Used car shopping can be aggravating and difficult. But if you thoroughly research your used car, and the dealer selling it, before making a purchase, you won’t waste your money. Here are 10 more tips to make it easier to get a good used car without getting ripped off in the process.
1
Know What You Should Pay Before You Pay It
Do your homework before going to a car dealer. Before you go, you should already know the normal selling price for the specific model of used vehicle you are looking for and what your trade in vehicle is really worth. Prices normally depend on numerous factors, including mileage, options, any title brand, and overall condition. Knowing the normal retail price gives you a starting point before you start negotiating. You can find out vehicle retail prices by looking for price guides at your local library, at a bookstore, or on Internet sites such as edmunds.com or kelleybluebook.com. There is no 3 day right to cancel the deal unless the dealer writes it down on the sales contract, so be careful. Dealers may say they have a money-back guarantee, or a “no questions asked” return policy, but if it is not in writing, it does not exist. Before you sign anything, ask about the dealer’s return policy, get it in writing, and read it carefully.
2
Get a Copy of Your Credit Report and Shop Around for Financing First
If you are planning on financing your used car purchase, get a copy of your credit report. Then, shop around for the best financing. You can get finance quotes from your bank, credit union, and internet sites such as bankrate.com. By getting your credit report and shopping for the lowest finance rate, you can avoid the dealer's often unreasonably high interest rate when buying a used car. Car dealers offer financing because they make money off it. When a car dealer arranges financing for a consumer, the interest rate charged the consumer will often include a “kickback” payment to the dealer that the consumer ends up paying through a higher interest rate. Dealers never tell the customer how much extra profit the dealership is making for arranging financing. If you finance through the dealer, don't forget to negotiate the interest rate too. The dealer usually has a spread of 3 points they can use and they often start off with the highest number in that range. You can bargain downward.
3
Have a Pre-Purchase Inspection Done Before You Buy Any Vehicle
Once you find a vehicle you are interest in, get it inspectede by an independent mechanic. Unlike a safety inspection, a mechanical inspection is designed to determine the overall reliability or mechanical condition of a vehicle. To find a pre-purchase inspection facility, you should check the Yellow Pages under “Automotive Diagnostic Service” or ask friends and relatives for recommendations. Look for facilities that display certifications like an Automotive Service Excellence (ASE) seal. If the dealer will not let you take the car off the lot, be suspicious. You can also try to find a mobile inspection service that will go to the dealership. You will have to pay the inspection fee but most of the time you will get the vehicle inspection report in writing and that can help you negotiate the price.
4
Get a Vehicle History Report
You should have the dealer provide you with the vehicle’s prior owner history, sometimes called a “Title History.” Title history reports often contain important information, including whether a car has been salvaged, returned as a lemon, rebuilt, or otherwise damaged. Title history reports may also disclose odometer reading problems or accident damage. If a car dealer does not have access to a title history report or refuses to give you one, then you should get the report on your own before you buy. All you need is the vehicle’s Vehicle Identification Number (“VIN number”) and you can see that at the bottom of windshield in front of the steering wheel area. You can then get a title history report online from companies like Carfax.com or AutoCheck.com for a small fee. These reports don't disclose everything and they aren't foolproof, but they can help you undestand what you are really buying before you buy it.
5
Look for the Buyer Guide Window Sticker and What It Says
The Federal Trade Commission’s (FTC) Used Car Rule requires all car dealers to post a Buyers Guide window sticker in every used car offered for sale. When you buy a used car from a dealer, get the original Buyers Guide that was posted in the vehicle or a copy of that guide. The Buyers Guide must reflect any negotiated changes in warranty coverage and it becomes part of your sales contract. The Buyers Guide must tell you whether the vehicle is being sold “as is” or with a warranty. When a vehicle is sold “as is,” there is no warranty or service contract offered with the purchase. It is important to get all promises in writing when purchasing a vehicle “as is.” For instance, if the dealer promises to repair the vehicle or cancel the sale in an offer for a vehicle being sold “as is." The Buyers Guide must also indicate what percentage, if any, of the repair costs is covered by the dealer if they give you a warranty. Always insist that you get some warranty coverage.
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