Buying used: high value, lower risk.(Annual Auto Issue 2002)(Buyers Guide)(Directory)

Used cars and trucks consistently outsell new ones. It's easy to see why. A used car often represents an excellent value. You can buy a two- or three-year-old model for about 30 percent less than you would pay for one fresh from the factory.

Used vehicles are also cheaper to insure, because premiums are lower for theft and collision coverage. And thanks to greatly improved reliability, a late-model used car may have most of its useful life ahead of it.

The catch? You can't always be sure that a used car was well maintained. Its original warranty may have expired. As a result, you could face stiff maintenance and repair bills. If you have to borrow money to buy a used car, you may pay a higher interest rate.

WHERE TO BUY

New-car dealers. Nearly all sell cars they have taken as trade-ins. The dealers tend to feature good late-model cars, many of which have come off lease and are sold with a limited warranty. Many dealers don't bother with very old cars or ones that may be difficult to sell. Prices tend to be high.

"Superstores." These are large, independent used-car dealers. Some specialize in low-pressure, one-price selling, while others bargain the old-fashioned way. Either way, superstore prices tend to be high.

Independent used-car dealers. The merchandise ranges from almost new to junkyard worthy. Prices tend to be low.