Consumer Tips For Buying a Used Car

The key to finding a good used car is being able to predict its future performance -- and the best way to do that is to know how the car was treated and what problems it had in the past

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Buying Myths	Buying Steps
What to look for? Dealer Sales	What to look for? Private Sales

Buying Myths

Many buyers believe they have governmental agency or consumer agency protecting them when they purchase a used vehicle. It is only after the sale that the buyer discovers these protections are just a myth. Here are some of the many myths and misconceptions buyers have when they purchase used vehicles:

Myth: Used Car Lemon Law
Buyers believe that because there is a New Car Lemon Law that there must be a Used Car Lemon Law. LemonBusters receives hundreds of phone calls each month from people who purchased used cars and are having problems; they want to know about the used car lemon law. Only a few States have some type of a Used Car Protection. All the rest do not have such protection laws. Even if a State has a Used Car Lemon Law, it becomes an arduous, frustrating, and time-consuming process with no guarantee of satisfaction. This can be avoided by a professional unbiased inspection before purchase.

Myth: Automatic Warranty
Like the used car Lemon Law misconception, many people believe there is a warrantee that automatically comes with a used car. Dealers are not required to give any type of warranty when they sell a used vehicle. Any dealer’s warranty must be in writing to be enforceable. (Many warranties are not worth the paper they are written on and cause a false sense of security). These warranties become nightmares once the buyer tries to use them.

Note: There may be a factory warranty on some newer used cars. These warranties may be voided if the vehicle has been wrecked, had faulty repairs performed or if the odometer was rolled back.

Myth: Take Back Period
Many buyers believe that there is a 3-day take back period or they can take it back if they have not made a payment. In most States there are no laws stating the buyer can get their money back or the seller must repair the vehicle after the purchase.

Myth: Program Cars Have Factory Warranties
One of the enticements of buying a 1 or 2 year old program car with less than 36,000 miles is the remaining factory warranty. However, many manufactures are now challenging warranty claims.

Manufactures aggressively look for ways to void part or all of a warranty. Any tampering with the odometer will void any remaining warranty. Manufactures also look for accident damage, scheduled maintenance not performed and misuse of the vehicle to void the remaining warranty.

Any vehicle with its warranty voided will have a substantially lower book value. In addition to a decreased value, accidents, misuse and poor maintenance will increase the maintenance, repair, and operating costs of the vehicle.

Myth: Dealer’s Inspections
Used car dealers want to sell cars and turn over their inventory. They know that a car with appealing good looks will sell quickly. To accomplish this many dealer's inspections and repairs only cover cosmetic items. Many dealers do not want to know the true condition. The dealer must inform the buyer of any problems that they know about. It is the buyer’s responsibility to determine the vehicle’s existing condition and potential problems before the sale. The buyer will be responsible for all repairs after the sale, regardless of any oral statements made by the dealership or seller.

Many sellers and salespeople will talk the buyer out of their right to have the vehicle professionally inspected. However, the only way to determine the true condition of the vehicle is with a professional inspection. Buyers have the right to have the vehicle professionally inspected either on or off the lot, before they buy.

Myth: Certified Vehicles are Better
The new buzzword in the used car industry is “Certified Vehicles”. Used car dealers declare that these cars have been thoroughly inspected and all repairs have been made. The dealer may also offer some type of limited warranty, guarantee or take back period. These vehicles usually are sold for a higher price and have a higher profit margin for the dealer. Be aware! There is no standard for Certified Vehicles. Anyone can declare a vehicle “Certified”. Read the warranty carefully and have the vehicle professionally inspected to ensure there are no mechanical or structural problems and that any repairs were performed correctly.

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Buying Steps

1.  Do research.

Before buying a used car, buyers should do library and/or Internet research.  Specific items to research should include the chosen car's make and model, the cost to acquire that particular model, and the car's track record for reliability. Consumers can call the Auto Safety Hotline (800-424-2393) to learn whether a specific car has ever been recalled.

2.  Buy from a reputable dealer.

Consumers can buy cars from two main sources:  dealers or private owners.  When buying from a private owner, consumers have full responsibility for any problems with the car regardless of whether or not the seller had prior knowledge of the problems.  When buying from a dealer, consumers are protected under the Federal Trade Commission's Used Car Rule and/or "implied warranties" of state law.  Consumers should buy only from reputable dealers.  Consumers can check with their state Better Business Bureau or Consumer Protection Division to see if a complaint has been made against a particular dealer.

3.  Check the odometer.

Sellers often roll back the odometers of used cars because consumers/buyers sometimes consider mileage when assessing a car's condition.  If a car is a 1960 and the odometer shows only 20,000 miles on it, something could be fishy.  Two obvious signs that an odometer has been tampered with are:

• White lines between the numbers that do not line up 
• Vibration of the 1/10 mile number when the car is moving

4.  Inspect the car yourself.

During this inspection, the Better Business Bureau suggest that you check for the following:

• Body - Look for rust, particularly at the bottoms of fenders, around lights and bumpers, on splash panels, under doors, in the wheel wells, and under trunk carpeting.  Small blisters may indicate future rust sites.  Check for paint that does not quite match, gritty surfaces, misaligned body panels and paint over spray on chrome -- all possible signs of a new paint job, masking body problems.  Look for cracks, heat-discolored areas, and loose bumpers -- warning signs of a past accident.  A welded seam may mean that the car is actually a body shop's "rebuilt" creation from salvaged parts.  Also, look for hail damage.
• Tires - Uneven wear on the front tires usually indicates either bad alignment or front suspension damage.  Also, check to make sure the spare tire and jack are in the trunk and in good condition.
• Battery - Look on the sticker for the guarantee date.  A battery generally needs to be replaced after 25,000 miles.
• Doors, Windows, Trunk Lid - Look for a close fit, ease of opening and closing, and secure latches.  A door that fits unevenly may indicate that the car was involved in a collision.
• Tailpipe - Black, gummy soot in the tailpipe may indicate worn rings, or bad valves and possibly expensive repair.
• Window, Glass and Lights - Look for hairline cracks and tiny holes.  These could continue to crack, if not properly sealed.
• Shock Absorbers - Lean hard or "bounce" on a corner of the car and then release it.  If the car keeps rocking up and down, the shocks may need to be replaced.
• Fluids - Oils that are whitish or have white bubbles may mean that water has been introduced into the system; this can be a sign of a major problem.  Check the radiator fluid, it should not look rusty.  Also, check for leaks and rancid smells.
• Mechanical Parts - Check to make sure the heater, air, etc. are working properly.
• Interior - Check upholstery and overhead lining for wear and tear.

5.  Have the car inspected by a mechanic.

Have a trusted mechanic thoroughly inspect the car.  

6.  Test drive the car.

During the test drive, the Better Business Bureau suggests that consumers do the following:

• Test drive the car in in various settings:  hilly areas, stop and go traffic, highway, etc.
• Check to see if the 1/10 mile of the odometer is moving; this may indicate that the odometer has been tampered with.
• Try turning at various speeds to test the steering.  Too much stiffness could indicate bad shocks and/or front-end problems.
• Listen for excessive noise when you start the car.
• Test the brakes to make sure they do not feel spongy.

7.  Read warranties and service contracts thoroughly.

Buying a used car is a way to get a good car at a reduced price. However, since the car has had a previous owner, a smart consumer should pay close attention to the history of the car and should be aware of the possibility of extra repair expenses.

Warranties and service contracts can be very complex.  However, they hold answers about future liabilities for problems with the car.  Most importantly, make sure all warranties and contracts are in writing.  

When purchasing a used car, federal law requires that a used car dealer post a Buyer's Guide on the window of the car. The purpose of the Buyer's Guide is to tell consumers if the car is sold "as is" (that is, sold with all defects, known or unknown) or if the car comes with a warranty. While an individual who sells a single car is not required to post a Buyer's Guide, dealers who sell six or more cars a year are required to do so by law.

• Check to see if the car comes with a warranty and, if so, what the specific protection is that the dealer or seller will provide.
• Contrary to popular myth, neither state nor federal law gives consumers a right to cancel a car purchase. Therefore, make sure that you have had the car thoroughly inspected by an independent mechanic before you agree to purchase it.
• Remember, if you buy a car "as is" and have problems with it, you must pay for any repairs yourself.

8.  Talk to previous owners, if possible.

9.  Review the car's maintenance record.

10. Take your time!

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Dealer Sales

1. whether the vehicle is being sold "as is" or with a warranty
2. what percentage of the repair costs a dealer will pay under the warranty
3. that spoken promises are difficult to enforce
4. to get all promises in writing
5. to keep the Buyers Guide for reference after the sale
6. the major mechanical and electrical systems on the car, including some of the major problems you should look out for
7. to ask to have the car inspected by an independent mechanic before you buy

• When the dealer offers a vehicle "as is," the box next to the "As Is - No Warranty" disclosure on the Buyers Guide must be checked. If the box is checked but the dealer promises to repair the vehicle or cancel the sale if you’re not satisfied, make sure the promise is written on the Buyers Guide.
• State laws hold dealers responsible if cars they sell don’t meet reasonable quality standards. These obligations are called implied warranties—unspoken, unwritten promises from the seller to the buyer.

1. Warranty of merchantability: The seller promises that the product offered for sale will do what it’s supposed to
2. Warranty of fitness:  A dealer who suggests you buy a specific vehicle for hauling a trailer in effect is promising that the vehicle will be suitable for that purpose

• If the manufacturer’s warranty still is in effect, the dealer may include it in the "systems covered/duration" section of the Buyers Guide. To make sure you can take advantage of the coverage, ask the dealer for the car’s warranty documents. Verify the information (what’s covered, expiration date/miles, necessary paperwork) by calling the manufacturer’s zone office. Make sure you have the Vehicle Identification Number (VIN) when you call.
• A service contract provides repair and/or maintenance for a specific period. But warranties are included in the price of a product, while service contracts cost extra and are sold separately.

Private Sales

• Private sellers generally are not covered by the Used Car Rule and don’t have to use the Buyers Guide.

• Private sales usually are not covered by the "implied warranties" of state law. That means a private sale probably will be on an "as is" basis, unless your purchase agreement with the seller specifically states otherwise.

• Many states do not require individuals to ensure that their vehicles will pass state inspection or carry a minimum warranty before they offer them for sale. Ask your state Attorney General’s office or local consumer protection agency about the requirements in your state.