1996 Honda CivicClick to enlarge picture

The 1996 Honda Civic is considered an exceptional used car value.

With the average retail new-vehicle price now topping $30,000, many American consumers are choosing to buy used vehicles instead.

After all, the average price for a used vehicle in the United States is far less—around $14,000, according to the National Automobile Dealers Association.

Buying used is more than just getting a lower price.

To get the best used model, a buyer has to do some soul-searching about what kind of vehicle he or she needs, decide on how much can be spent, and research which models have a reputation for holding up well.

After that, the shopping, test-driving—and purchase—can get under way.

Determine Needs
Buyers of used cars start pretty much in the same place as new-car buyers: Both need to ascertain their needs first.

To do this, a buyer should reflect on how the vehicle will be used. Among the key questions to ask are:

  1. How many people and cargo will the vehicle be expected to carry—on occasion and on a daily basis?
  2. In what weather and terrain will the vehicle be used?
  3. What features—including safety and comfort items—are required, and which features can be skipped, if necessary?
  4. How old should the vehicle be, given the amount of miles expected and the length of ownership?

The resulting analysis should lead to a general vehicle and engine size, type of transmission, as well as a general sense of vehicle age and mileage limits.

Consider the Budget
Used vehicles can be good buys. After all, the original vehicle owner already has taken some or most of the "hit"—or expense—as a new model depreciates. In fact, depreciation is the single largest expense of a vehicle.

Still, it's important to quantify, at least in a price range, what a buyer can afford.

Will the purchase be a cash transaction or will there be a loan to finance all or part of the car? When financing a used vehicle, talk ahead of time with a bank, credit union or other financing institution to learn their requirements. Also determine affordability and monthly payments using MSN Autos' calculator.

Remember to factor in car insurance, not just maintenance and fuel, as ongoing vehicle costs.

Research, Research, Research
There are many ways to study which vehicles are likely to hold up over the long term.

Well-known consumer magazine Consumer Reports publishes each fall a Used Car Yearbook that provides credible reliability ratings for models going back some nine years.

Better yet, the reporting arm of Consumers Union of Yonkers, N.Y., compiles a list of used vehicles by segment. These vehicles are considered reliable, good performers that offer value.

For example, in autumn 2003 the Used Car Yearbook said someone looking for a small, used sedan might want to look at the Honda Civic EX, which ranged from $6,000 for a 1996 model to the around $9,500 for a 2001 model. The 1999 Mazda Protege ES, at $6,000, could make another smart used car buy in the small sedan segment, Consumers Union said.

Someone shopping for a reliable sport-utility vehicle might want to seek a 1998 Nissan Pathfinder SE or 1998 Toyota 4Runner SR5. Consumer Reports considers both good choices. The 1998 Pathfinder SE should be in the $11,000 range, while the 1998 4Runner SR5 should be in the $13,500 range.

The bargain-basement vehicle on the magazine's 2003 list was the 1999 Ford Escort, with an expected price around $4,000.

Shoppers can visit the Consumer Reports Web site for more information, including data on more reliability of more recent models.

Tapping Power's Surveys
Like Consumer Reports, the market research firm of J.D. Power and Associates has surveyed car buyers for years—both at the start of their ownership experience and in later years—about defects and problems that they find with their vehicles.

The resulting information can be found in two important annual Power studies:

  • The Initial Quality Study describes how a vehicle is viewed in the first months of ownership, when it's still new. Obviously, a vehicle that ranks highly early on has the potential for long-term dependability.
  • The Vehicle Dependability Study that describes how owners feel about their vehicles about three years after purchase.

    Both can be found in the Library section of the Power Web site.

    For example, in calendar 2003 Power said the Mercury Grand Marquis, Buick LeSabre, and Ford Crown Victoria ranked as the top full-size cars in long-term dependability after three years.

    The Toyota RAV4, Honda CR-V and Jeep Cherokee ranked as the top entry SUVs.

    More Information Out There
    Other entities can provide insight into used vehicles, too.

    MSN Autos has a used car reliability rating system that looks specifically at several important mechanical systems on some older model vehicles.

    Kelley Blue Book, a longtime provider of pricing information on used vehicles, forecasts in 2003 which used models would likely be the priciest, as a percentage of their original price, because they're expected to hold their value well as used models.

    The ten vehicles on the list include the MINI Cooper, which is a low-volume model with strong consumer demand, and the Acura MDX, an SUV that has become a favorite of new SUV buyers, too.

    Check the History
    Another telltale sign of potential trouble, though certainly not the only sign, is the number of safety recalls a used model has had.

    The federal government's National Highway Traffic Safety Administration maintains a recall database.

    This database, for example, reports that the 2000 Ford Focus had an ominous ten safety recalls, and the 2001 Focus had six.

    While at the NHTSA site, peruse the Technical Service Bulletins. They detail some vehicle problems that a carmaker has sought to share with dealers.

    After finding a prospective vehicle, be sure to check over its mechanicals carefully via MSN Autos' Used Car Checklist. It's a good idea to have a mechanic inspect the vehicle, too.

    Also check the vehicle's history to ensure it hasn't been severely wrecked in a crash or stolen. Go to the MSN Autos Used Car Research page to use Carfax or AutoCheck to view the history of a car before laying any money down.

    Examples of Exceptional Used Vehicles

    Economical small sedans:

    Sporty sedans:

    Family haulers:

    Plush cruisers:

    Fun to drive:

    SUVs:

    Runabout sedans:

    Source: Consumer Reports' 2003 Used Car Yearbook

    Kelley Blue Book Best Value Holders among 2003 models

  • Acura MDX
  • BMW 3-Series
  • Chevrolet Corvette
  • Honda Civic
  • Infiniti G35
  • Jeep Wrangler
  • Lexus LS 430
  • Mercedes-Benz CLK
  • MINI Cooper
  • Toyota Tacoma

    Source: Kelley Blue Book

    Ann Job is a writer for T&A Ink.

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