Introduction

Buying a "used car" is a more attractive alternative than ever before. Automobiles are becoming more reliable all the time and the average life span is longer than ever. A four year old car or truck in good condition can bring you many years of dependable, low cost service.

You want to make sure the preowned vehicle you're thinking about purchasing is the best possible value. What's the service history? Is the mileage reasonable? Has it been serviced regularly? Is the asking price fair? These are some of the questions you are going to want to answer before you make your decision. 1st Source Bank makes finding these answers quick and easy -- just click on any of the links at the right and simplify your search.

Know the Book Value

A quality preowned car or truck may cost less than new, but it's still a big commitment. You work hard for your money and want to make sure you're getting the most value for your dollar. You may be wondering about the current market value of the vehicle you're thinking about purchasing. Value varies based on the condition of the vehicle. Here are some examples:

*Black Book data effective August 2009. The values given are estimates only based on Black Book Clean wholesale and retail. The actual value of a vehicle is based on it's condition, mileage and optional equipment.

We make it easy for you to check the estimated value on any car or truck from the comfort of your own home. For even more detailed information contact your experienced 1st Source Banker or call Loan Source at 255-6644: toll free at 888-255-6644. They'll be happy to help you compare retail and wholesale prices, determine the real value of various accessories, and answer any other questions.

A good rule of thumb is to avoid buying a previously owned vehicle older than 5 years with more than 50,000 miles. Remember that low mileage does not guarantee quality. A car with only 10,000 miles is no bargain if it's been abused. The average driver puts around 15,000 miles on their vehicle every year; a truck or car with a 10,000-mile average can be an excellent find and a good target to shoot for when shopping. Be flexible though, a car that has been well cared for may still be a good choice even if the mileage is a little above average.

Here are some examples of how mileage impacts the value of a vehicle:

Blue Book data effective August 2009.

Beware of unscrupulous sellers who may try to deceive you by rolling back the odometer to increase the car's selling price. You can guard against this kind of fraud by having the vehicle's title checked using its VIN* (vehicle identification number). If the car has been sold as used before, there will be a record of the mileage. Compare that number with the current reading to see if it makes sense.

Learn the Real Condition

One of the biggest risks involved with purchasing a previously owned vehicle is its condition. Sellers, especially car lots, will spend a good deal of time sprucing up their vehicles before they go on display. Your job is to look beyond the freshly waxed surface and determine how well this car or truck has been cared for.

Knowledge is your best friend when you go shopping; know what you're looking for before you go. Have a check list of items you want to inspect and take it with you. Make sure you take your time during the test drive so the car warms up thoroughly. Stay out for 15 minutes at the very minimum and try to get the dealer to let you keep it overnight if possible.

NEVER take the seller's word regarding the condition of the vehicle you're thinking about buying. ALWAYS take it to a reputable mechanic, preferably one you know, and have them look it over. Most repair shops do this frequently and know what to look for. It will probably cost you a few dollars, but the price is well worth it.

Maintenance History Tips

The care a car or truck receives from the previous owner makes a huge difference in value. It can also be one of the most difficult things to accurately determine when you're shopping for a used car. Here are some tips that can help make your decision easier.

• Take an overall look at the vehicle's appearance. Is it clean? Is the body covered with dings and scratches? Is the interior in good shape? Do you get the overall impression that the car was well cared for?
• Ask to see maintenance records. These indicate how often oil changes were done, proof of tune-ups, required warranty service, and other necessary maintenance. If the vehicle has been driven more than 50,000 miles, ask if the timing belt has been replaced. If these records are not available, consider walking away. Without them there is no way to determine the auto's previous care.
• Use the VIN* (vehicle identification number) to see if the automobile has a salvage title. A salvage title would indicate that the car or truck has been written off as a total loss by an insurance company, then rebuilt for sale.

These are just some of the things to keep in mind as you try to determine the maintenance history of a preowned vehicle. Do your best to find out as much as you can and, when working with a dealer, make sure they stand behind their vehicle with a solid warranty.