Buying a used car is a major purchase. Before you plunk down your hard-earned money or sign up for a few years of car payments, you should take the time to figure out what you really want and need. Following these simple guidelines can help you reach an informed decision.

Avoid emotional involvement.
Everyone has fond memories or feelings for certain cars or models. What you have to bear in mind is that not every blue Buick belonged to your favorite Uncle Harry and not every red sportscar belonged to that car nut who lived up the street and rebuilt the engine himself every weekend. (Besides, didn't you ever wonder why he spent more time fixing it than driving it?) It takes a lot of mental toughness to turn away from a car that stirs powerful emotions in your soul, but it's best to consider each car on its own merits and let the memories stand alone.

Consider your budget.
A car should serve its master, not vice-versa Buying a car--no matter how good--can be a headache if you have to struggle to make payments or pay for frequent repairs. Pick a time when you are not under pressure. Then, relax and take a realistic look at your financial picture. If you have money saved for buying a car, that's great. Whatever you decide to spend, however, plan to set aside about $1,000 of that money for "unexpected" repairs, because any car can have something break at any time. The last thing you want to do is sink all your money into the initial purchase, then have your car sitting idle because you can't afford to fix it. It wouldn't be a bad idea to check on insurance rates before choosing a car, either. Rates vary dramatically from make to make and from model to model. You don't want to end up with a car that costs more to insure than it did to purchase.

Factor financing costs into your thinking.
If you are going to finance your purchase, figure realistically how much of your budget you can afford to spend on a monthly payment. Multiply that figure by the number of months you'll be paying (usually 24, 36, or perhaps 48 on a fairly new model) to determine the total. Take about 80 percent (lending institutions do charge interest, after all) of the total and you'll have approximately how much money you can apply toward the purchase. Add to that the cash down payment (generally 20-30% on a used car--and the older the car the higher the down payment) and you will have an idea of what you can spend. Now add about 10-15% to that, since you can figure to negotiate the price down (rarely is a used car price locked in place), and that is the price range you should be shopping for. If you feel like a sharp "horse trader," you may want to adjust that figure up even further. You can use the accompanying worksheet may to help you figure your target price range:

Figuring your target price range.

Deciding what type of car to look for.
Now that you have a price range in mind, give some thought to the type of vehicle you want. You should make the decisions about carrying capacity, fuel economy and comfort requirements before you go out looking, because once out there rational thinking is easily clouded by emotional distractions such as vivid colors and sensuous shapes.

Ask yourself how you plan to use the car. Who will be the principle user? If it's to be used for driving to school and to a part-time job, body style may not be critical. If you're planning on driving the five-person carpool to work one week a month, then a four-passenger compact or a two-door coupe might not be practical. If it's for driving the kids to school and handling the complexities of modern suburban living, a big 4x4 pickup truck might not make much sense, no matter how much fun it would be on the weekends.

There are many different types of cars on the market, so there most certainly are models that will meet your needs well. What follows are descriptions of 11 different categories of cars based on their size, price and body type. These groupings may differ from others you have seen before, but we feel they sort the whole crop of current cars into sections more easily handled so that a better choice can be made.

Subcompacts or City Cars
The smallest cars, designed to carry four passengers, are best suited for urban use. They are not more than 170 inches in overall length. Their small size, makes them very easy to maneuver in traffic, as well as in an out of parking spaces. In fact, they can use parking spaces which larger cars must pass by.

Subcompact cars are two-door models more often than not. They offer sufficient room in the front seat, but back seat passengers may be cramped and uncomfortable for any great distance. Trunk space is also limited. But some have fold-down rear seats with or without hatchbacks, which is handy for hauling things.

Because they are the smallest in size, subcompacts are usually the lowest in original cost. Regarding cost, remember that size and price do not always have a direct relationship. For one thing, a tiny car has just about as many parts as a big one. Another reason is the equipment. A four-door hatchback with automatic transmission could cost more than a larger two-door stick-shift without a hatch.

Subcompacts use the smallest engines--never more than four cylinders, and some have only three. Though small, they are great for urban use. However, if you live in a large city and use expressways, make sure the car you choose has sufficient power to keep up with the pack.

Most subcompacts come with manual 4 or 5-speed transmissions. If you have decided to buy a subcompact, or any other manual transmission car, but have not driven with a stick-shift before, you must learn how to do so first. If you choose a car equipped with an automatic transmission, you will likely have to pay extra for it.

Subcompact cars, because of their light weight, small engines and manual transmissions are the easiest on gas. However, that might be as far as their economy goes. Most subcompact cars are imported. Parts for imported cars, in some cases, are relatively expensive.

Resale value for subcompact cars can be poor. Perhaps this is not so much a reflection of the cars as it is the maintenance they often receive. Many of them were bought by first time buyers who either did not understand the need for regular servicing or could not afford to give their cars proper care.

Compacts
The next group of cars, moving up in size and price, are the compacts. They are between 171 and 180 inches in overall length. They all have four-cylinder engines, although there are some examples which have a V6 option.. Manual or automatic transmissions are available in most models.

There is a larger choice of body types among the compacts. Two-doors, four-doors, hatchbacks, station wagons, coupes, and even convertibles are offered. However, station wagons and convertibles are each described in their own categories later in this chapter. In addition, some coupes could fall into the sporty/performance group, covered later.

Usually more options are available on compact cars, which make them more comfortable in any driving situation. Generally, the engines are powerful enough to handle air-conditioning without adversely affecting road performance much.

Compact cars are a bit roomier than subcompacts, which also makes them a bit more comfortable. With larger motors, they can perform better in commuting to and from the suburbs, but not quite as economically. The cars in this group can be used for the occasional long trip, but they are not the most ideal if much long distance travel is anticipated.

Mid-Sized
Better for taking long trips, yet quite good for running around in the city, are the intermediate or mid-size cars. They are 181 to 190 inches in overall length. They are still small enough to get in and out of most parking spaces, yet they are large enough to provide good interior room and usually have decent size trunks.

As a group, they normally have V6 engines. However, depending on the make or model, large four-cylinder motors are offered. Some of the fours have turbochargers or 16-valve designs, which develop enough power to keep you from being embarrassed when the light turns green. A series of newer turbochargers is now becoming popular, one of it's features is decreased turbo lag.

A good variety of optional equipment is available on the cars in this group. More power, conveniences and luxury equipment are offered than in the preceding categories. Some of this equipment--such things as automatic transmission, power steering, AM/FM/CD(with a varying amount of speakers) radio, or tinted glass--are increasingly being offered as standard features on certain models in this class.

Full-Sized
The cars that are referred to as full-size today are much smaller than those considered full-size a few years ago. Two down-sizings in the last dozen years have reduced most cars in this group to the size the cheapest Ford or Chevy of 35 years ago. However, the interior room is practically as roomy as those cars of a generation ago, thanks to thinner doors and smaller engines mounted crosswise. Any car over190 inches long is now regarded as full-size.

Many use a large V6 motor and others continue to use V8 engines. The V8's are of modest size compared to the blockbusters before the energy crises. Most full-sized cars have adequate power. With government insistence, fuel consumption for these cars is very good.

A typical car in this grouping is a four-door sedan. But some coupes or two-door models may also be available. These cars are fully equipped. Even without any options, they usually come with an automatic transmission, AM/FM/CD stereo (with a varying amount of speakers), power steering, power seats and more.

These are very comfortable cars for long distance travel and have the power for sustained Interstate cruising. They are the smoothest riding because of their size. The comfortable seating and quiet operation allow the passengers to arrive at a distant destination with a minimum of fatigue.

Luxury
Though most cars in this category are full-size, price is the criterion for these cars--cars with a base price of $30,000 or higher. Naturally they offer the optimum combination of engine power and passenger comfort.

Almost without exception, they have six- or eight-cylinder power. At first, it may come as a bit of surprise to find out that they do not have a long list of options but, in standard form, they are so fully equipped that there is little more the manufacturers can reasonably add.

Many of the cars in this class are imported. Japan, Germany, Italy, Britain and Sweden are large suppliers in this exclusive class.

If you are seriously considering a true luxury car, the resale value maybe of little consequence. But for your information, the better known makes retain their value very well, while some of the lesser known makes may not.

Convertibles
Once the most desired dream car of Americans, the convertible slowly fell out of favor and was actually laid to rest in the 1970's. But, it didn't stay dead. It is now enjoying a revival of modest proportions. Only a few car makers are currently producing convertibles, although some small custom companies throughout the country are enjoying a brisk business in making convertibles from stock coupes.

Engine and other equipment in a convertible is virtually the same as offered in a comparable closed car. Performance may be affected adversely: An open car offers resistance to air flow. To strengthen the body, added reinforcement is necessary and that adds weight. Convertibles usually weigh more than their closed equivalents. The difference can be as much as having another hefty passenger aboard.

Either production or custom convertibles are quite expensive. Their cost today is higher, even relatively, than before their disappearance in the 1970's. Formerly, a convertible cost 10% to 20% more than its coupe counterpart. Today, the premium is at least 25% and, in one case, over 85% higher than the comparable coupe.

Today's convertibles still have the disadvantages of the past. Even with the top up, they are noisier and draftier than closed cars. They tend to leak, as well. The tops wear and need replacing from time to time. Most important, convertibles offer little or no passenger protection in a rollover accident.

Sports/Performance
As you probably noticed, we have scarcely mentioned the hardtop body style. There was a great cry about the demise of the convertible in the 1970's, but scarcely a whimper about the pillarless hardtop when it was disappearing. It was already an endangered species even before many people noticed that the convertible was retreating into obscurity.

To fill the vacuum left by the hardtop's disappearance, many car-makers offer a coupe of sportier styling. Often such cars have a more powerful motor, and/or performance type suspension that sets them apart from their running mates. There are some instances where these coupes have no sedan counterparts - just a single model series. Whether or not such a car actually performs better, it is intended to give the impression of a sportier car.

This grouping has a broad range of sizes, though they tend to be somewhat smaller than sedans. Some have just two-passenger capacity. Others have four or five passenger seating, but, in some, the rear seat may not be adequate for adults. These are not family cars. Families seriously considering such cars need a second car for keeping their tribe together on trips. Trunk capacity may be quite limited as well. These cars are not built to be haulers.

Prices of these cars tend to be somewhat higher than their related sedans, if there are any.

Luxury Sporty/Performance
Price is the determining factor for this category. Sporty/Performance cars, whose base price is over $30,000, qualify for this grouping. Most out-and-out production performance cars are found in this category. The imported, expensive variety you seldom see, except by the side of the road with a policeman writing out a speeding ticket.

Prices for the cars in this group are broad ranging. Some seem to be exorbitantly high in price. It may be hard to fully explain paying such a high price, so just remember this: the purchase of a Luxury Sporty/Performance car is mainly for prestige and fun.

Station Wagons
At the opposite end of the practical spectrum is the station wagon. Before World War II, station wagons were prestige vehicles. They had varnished wood bodies, and were commonly found in exclusive resort areas. They were used to pick up guests at the railway station and take them, with all their luggage, to the hotel. The wooden bodies not only made these cars expensive, but were squeaky and very susceptible to the ravages of weather.

After the war, station wagons were found to be very useful for people to haul materials for building their new houses in the suburbs. It was then that the much more durable all-steel bodies became normal, though some have continued the woody appearance with artificial woodgrain trim.

Station wagon popularity has decreased. Where once you could find them in all shapes and sizes, now these vehicles are much smaller and leaner in order to compete with the Minivan and the SUV markets. But some people still prefer the more car-like feel of a station wagon and therefore, it may never truly die. And, who knows, with the recent SUV backlash we have been experiencing, we see evidence that wagons are gaining in popularity.

The smallest wagons carry four people. As the size increases, seating capacity increases to five or six people. An adult might not be as comfortable in the rear as a child and this is something you should check during your look through the vehicle.

Sometimes cargo racks are optional, sometimes not — depending upon the model you choose. Luggage room is usually rather generous, but nowhere near the room of the past generation of vehicles. Usually the second seat folds down in a 50/50 or 60/40 split to accommodate more.

If you have the need for a large station wagon, check the Chevrolet and GMC Suburban. They use the full-sized pickup truck chassis. But, if you're in need of more room, you might want to look into a minivan or an SUV. Just be careful that you don't get a vehicle you can't handle.

Passenger Vans and Mini-Vans
Closely related to station wagons are vans. They are of a more compact design than wagons. The cabin area is placed almost over the engine. This makes the van shorter, yet the interior space is usually greater than most station wagons can provide.

This layout makes vans much higher than wagons, which has its advantages and disadvantages. With the driver sitting higher, he can see the road ahead much better than in a car.

But climbing up into a van may be difficult for children, older people, or the disabled. Most vans are too high to enter the average garage. Check the clearance of your garage door with the overall height of any vans you may be interested in buying. There are some so-called mini-vans on the market, and they are able to enter most garages. Some have front-wheel-drive, which makes them lower.

Seating in vans can range from five in a mini-van to 15 in some extra length full-size models. Climbing in or out of the rear most seats is a little awkward. The interior finish is comparable to cars, and some are as plush as you will find in a luxury car.

The rear seats in vans usually do not fold down. If additional cargo space is required, the third, or extra, seats can be easily removed.

Though they are more awkward to service because they are virtually enclosed in the cabin, van engines are at least as powerful as you get in most comparable cars. Trailer towing is quite practical with a van equipped with a sufficiently powerful motor.

Sport Utility Vehicles
Sport utility vehicles are the largest growing segment of automobile today. Originally these tough little trucks, which were pioneered by the World War II military Jeep, have changed a lot. Like many cars, they have grown in size. Today, there are many sizes and variations from smaller sportier "cute-utes" to the mammoth "mine is bigger than yours" sizes.

The main feature that sets these vehicles apart from all others is their ruggedness for off-road travel. They have higher ground clearance than cars and wagons. Most have four-wheel drive. Any models which do not, can have four-wheel-drive ordered, at extra cost.

As they grew in size over the years, the need for smaller models became apparent. So, a couple of the major manufacturers are offering these vehicles in both small and full-size lines. The imported models are usually of the smaller variety.

Although they can be used for normal city driving or country travel, do not expect a cushy ride. They have stiffer suspension than you might not be used to. In addition, their shorter wheelbase gives a little choppier ride. These vehicles are much better suited for unpaved roads and off-road use. In regions of heavy snowfall, they can get through where conventional cars would be firmly stuck.

Front-Wheel Vs. Rear-Wheel Drive
So much for the various types of cars. There is one feature which must be carefully considered by a new car buyer these days. That is to decide about front-wheel or rear-wheel drive. Not too many years ago, all cars sold in North America had rear-wheel drive. Then some imports introduced us to the front-wheel drive concept. The idea was picked up by a couple domestic makes, but it remained pretty much a novelty until the need for lighter, more fuel efficient cars became so evident in the 1970's.

Front-wheel drive makes cars lighter because of the lack of a long drive shaft to the rear wheels. However, it is more complex because of the transaxle, which takes the power to the front wheels. This has caused many headaches and repair problems.

A check of the high performance cars show they do not use front-wheel drive. There needs to be more development done on transaxles before they can handle the high power of performance cars.

However, front-wheel drive has some important advantages, and may be the best choice for you. Traction is much better. This is particularly noticeable in snow and ice. But a word of caution here. Because traction is so good with front-wheel drive, one might get the impression that the road is not as slippery as it really is. When the brakes are applied, the road is found to be slipperier than expected. Front-wheel drive cars cannot brake any better that those with rear-wheel drive.

When accelerating, if the front wheels do lose traction and spin, the car does not fish-tail. It continues ahead in a straight line. Steering control is much easier with front drive than rear drive.

This is a vital safety factor in areas of snow and ice. In one survey conducted during winter driving, it was discovered that most of the vehicles which had gone out of control and left the road had rear-wheel-drive. Front-wheel drive cars were in the obvious minor by a ratio of only 1-in-30. That shows dramatically the safety benefit of front-wheel drive. Whatever mechanical problems and expenses they may incur fades into relative insignificance in the light of this information.

Domestic vs. foreign.
Many countries are building cars in large numbers and shipping them to us. The new car buyer has a wide choice of countries from which to choose his car. Aside from the United States and Canada, there are cars from Japan and Korea, plus European cars from many countries including some behind the Iron Curtain. Even Latin American countries such as Mexico and Brazil are shipping cars to us.

If quality is the main basis for choosing a car from a particular country, it might be wise to think about this. The quality of domestic cars has improved greatly in recent years. So much so, that the popular concept of Japanese cars being so much better than ours needs to be carefully examined and possibly re-considered. Futher, the long-term durability of many cars of foreign manufacture is questioned by some experts, so the dometics may still be the better buys as used cars.

The choice of originating country is becoming a bit harder to make these days, however. The country of origin is only where the car is assembled. Many of the components that went into any given car may have been made in other countries.

Do some research.
One of the major things you need in a car, new or used, is reliability. A car doesn't do you much good if it spends most of the time in the shop. It will be well worth your trouble to learn a bit about the relative reputations of some used cars, including frequency of repair data.

Good information of this type is published by various consumer magazines that are available through the reference desk of your local library. In fact, information about used cars is available from many sources. If you have friends or aquaintances who are knowledgeable about cars, they more than likely will be delighted to share their knowledge with you. While not an infallible approach--each used car is unique, after all--these kinds of sources can guide you away from perhaps the most obvious problem models.

You can also research price information. The most convenient source of price data comes from your local paper. A scan through the classifieds will tell you what sellers are asking for various models. Just remember that these are asking prices and don't necessarily reflect what the cars will actually sell for.

Automobile dealers use a variety of used car price guides--sometimes known as "blue books"--to guide them in buying and selling cars. Again, your local library probably subscribes to one or more of these guides. Many bookstores carry books on used car prices, as well. These cost about $4.00 or $5.00, but could easily save you hundreds. If you are looking for an older car, you can usually find a few of the "weekly shopper" type publications in places like grocery stores or convenience stores. Much of the time, these tend to be cars that are rather specialized (modified for performance, etc.), or private owners who prefer to sell their cars themselves. Sometimes you can find a real gem or a bargain through these catalogs, but be very thorough when checking them out.

If you have a friend in the used car business, ask him or her if they would let you see a recent "black book," which is a listing of recent regional auction prices. These books provide the most recent and accurate figures for what cars are selling to dealers for in your region. This information is not generally given to "outsiders," but the knowledge can give you an advantage at negotiating time if you can get your hands on it.

Summary.
All of this may sound like we're trying to restrict your range of choice. Not true! The idea is to help you focus on what best suits your needs. The key is to know what you want and understand the market, while remaining flexible and open to a good value.The more knowledge you have before you go out to shop, the better you are likley to do.

These guidelines don't mean you should pass up a real "find" because it doesn't fit your "ideal car" profile. Maybe you decided a station wagon might be better for your needs; that doesn't mean you should pass up that cream puff sports coupe being offered at a fraction of its true value--if it is indeed a cream puff and a legitimate bargain. See the chapters about inspecting a car to help you decide about a car's true worth. With these preparations done, you're now ready to go shopping.

Consider off-brands or the less popular models. A "plain Jane" model will fetch less than a jazzed-up model of the same make and vintage, but may be nearly identical underneath the skin. In similar fashion, some