Most of us who shop for our next vehicle do one of two things: we either search the local want ads for a private party with one to sell, or we stop by and browse our neighborhood automobile dealers. (There are other options, such as police and government auctions, but contrary to what you may hear, there are rarely good deals to be had at these events anymore – since the competition in bidding drives up the prices in short order.)
One of the advantages to dealing with a private seller is that negotiations over price can go much easier. These days, with the U.S. economy in shambles courtesy of Wall Street and the corporate elite, it’s pretty much a buyers’ market for used cars; fewer people are replacing their aging vehicles today, so it’s often relatively easy to haggle down someone’s asking price.
On the other hand, when it comes to buying from a private seller, you don’t have a lot of protection. Should you get stuck with a lemon, you won’t have a lot of recourse except to swallow your losses, since most state laws don’t cover transactions between private individuals. This is not true of automobile dealers, however, who must follow strict regulations in most states or face legal sanctions.
If you are buying a brand new car or truck, your purchase will be covered by a manufacturer’s warranty for up to ten years and 100,000 miles in some cases (though five years and 50,000 miles is more common). However, most used (or “pre-owned”) automobile dealers don’t automatically offer a warranty. Instead, they either offer the car for sale “as is,” meaning you know up front that you will be assuming all the risk, or offer you the opportunity to purchase a warranty for a small additional fee that will cover defects and other undisclosed mechanical problems for a certain period.
If you are buying a new car however, you’re usually covered by a manufacturer’s warranty. In many cases these days, this can be for up to ten years and 100,000 miles.
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