Do you want to buy a quality used car but are afraid of getting ripped off?
You are not alone, and for good reason. Used car sales are by far the most lucrative segment in the auto industry in terms of commissions earned by salespeople and the dealer and therefore the GREED factor comes into play when it comes to selling cars. The potential to be taken advantage of increases for the unsuspecting and uninformed car buyer.
That being said, there are still quite a few honest and credible used car dealers out there, and if you’re prepared with some of the advice in this article, then you can walk away with a nice clean used car AND a good deal.
There are TWO basic types of used car dealerships that you need to know to tell them apart.
1. Your garden variety of used car dealers which most towns and cities have almost everywhere. These dealerships typically sell cars purchased at local auctions or were higher mileage cars purchased from a local dealership, or taken as a trade-in on their lot. Generally speaking, you won’t find the latest models with the lowest miles and still under warranty. What you CAN find are clean, reliable cars, maybe with higher miles than you wouldn’t find at a name brand dealer, but often lower prices. The typical used car dealer doesn’t have anywhere near the overhead of major dealerships, so their gross profit margin (the difference in costs they have on a car and what they can sell it for) may be less. , so ideally it will save you some money. .
Most of the best used car dealers offer financing and warranties on all of their cars at an additional cost, of course. Some, but not most, have a place to get their cars repaired before putting the car on their lot. You need to make sure that whatever you’re looking at has had at least one up-to-date inspection.
Used car dealerships can be a great place to find a good car, BUT, be warned, some of the cars can be rough and you need to know what to look for and how to look at a used car.
2. Your car dealerships that sell new and used cars. These dealerships typically keep a selection of what they like to call “used” or even “certified pre-owned” vehicles, and typically spend extra time preparing the car before it hits the lot. They have a workshop and certified technicians to check these cars and make sure they are in good condition. Certified Pre-Owned cars especially need to look and work like new. All of this, of course, makes used cars from Brand Dealership command a higher price. Get ready to haggle!
Buying a used car or a “used” car can make a lot of sense no matter where you buy one.
Any new car will drop 25-40% once it rolls off the lot. In this day and age of better cars and cars that last 100,000+ miles, used cars, especially almost any Japanese car, can go 200,000+ miles and you get an even better price. Once again, make sure the car fax gets verified!
BIG MYTH: “When you buy a used car, you’re buying someone else’s problem”Not necessarily so. Many used cars are given out on lease. Many used cars, the owners simply outgrown the car or, like so many people on the road, just like to trade cars often and trade cars like underwear!
Here are some tips on how to maneuver through the sometimes shark-infested waters of used car dealerships.
1. Know what you want. Or at least have an idea. Do you want a cheap car? A luxury sedan? An all terrain? You’ll find a nice selection at some of the many used car lots that dot our landscapes. A good way to shop discreetly is to shop online. Compare similar models and brands.
Check out Consumer Reports for the best used car deals or the online Kelly Blue Book.
2. How much will it cost? Once you have an idea of what you want, get an idea of what it would cost. The oldest and most popular service is Kelly Blue Book. At KBB, you can select virtually any model, make and year of vehicle and get a “good-better-better” price, depending on the vehicle’s condition and various features. With KBB, you can get a general idea of pricing or even narrow it down to specific features. For example, if that cool sports sedan you’ve seen on a lot has leather upholstery and alloy wheels vs. cloth seats and wheel covers, then you’ll pay more for leather and wheels. Also, you MUST know what the mileage is on the car you are interested in. Cars with more than 100,000 miles automatically drop in price compared to similar cars with less than 100,000 miles.
3. Get a Car Fax report! A Car Fax report provides the detailed history of virtually any vehicle on the road today. To do this, you must accurately note the Vehicle Identification Number (VIN).
A Car Fax report will tell you a LOT! It will tell you important things like: Was the car totaled? total losses? Has the car been in a flood? Are there any memories? Has the airbag ever deployed? Has this car been “saved”? Has the car been inspected annually? How many owners and where? If the car you’re interested in has had multiple owners, that could be a red flag, so pay attention to the number of owners in the past.
These are important things to know before you even take a test drive! You can obtain the Car Fax yourself or ask the dealer to provide you with a recent Car Fax Report.
NOTE: Any good used car dealer likely has one on file and will be happy to show it to you.
IF this dealer Fancy Dances around this topic, then go ahead!
4. Visually inspect the car yourself! Walk around it and note the fit and finish. Not every wrecked car will be reported, but if you see irregular gaps between the doors, hood, and fenders, look out! Check for “overspray”. If the car was repainted, it may not show up on a Car Fax either. Look around the black trim and exterior accessories like the headlights, door handles, etc. If you see “overspray” the car has likely been repainted. Now, for a car that’s over 10 years old, it might be perfectly reasonable to get it repainted. Just try to find out who and where the work was done.
5. Look under the hood. Even if you have no idea what you’re looking at, do this anyway. Is the engine clean? Is there mud on the inner sides? How are the battery cables? Clean or accumulated corrosion? It is not good if the engine area is not spotless and had a good steam cleaning.
6. Check oil and all other fluid levels. This seems obvious, but still, you want to know if the oil has been changed and if the fluids (brake and transmission) are full. If any of these levels are low, RED FLAG!
7. Inspect the tire tread. One method of checking tread depth is to insert a penny into one of the grooves with Lincoln’s head facing down and facing you. If you can see the top of old Abe’s head, it’s time to replace his tires and make sure the dealer knows this is a concern. At the trading table, you can get a new set of tires!
8. Inspect the wiper blades. Normal wear on wiper blades is common, but if you’re going to buy this car from a dealer of any kind, you should have new wiper blades.
Once you’re satisfied that the car you’re looking at is worth your attention, THEN and ONLY then take it for a test drive.
Next step Test drive!9. The seller may or may not give you some bollocks about taking the car off the lot and driving down the street a certain distance to trade it in for “insurance” reasons. Is not true! They want to keep as much control over the process as possible, that’s all.
There are several things to watch and listen for when getting started:
10. Start the engine with the window down so you can HEAR and SEE what it’s like.
Is the muffler silent? Is there smoke?
11. Assuming you are on an automatic, move the transmission back and forth between gears,
“P”, “D”, “R”, “N”, etc… if it changes easily? How does it sound when you put it in the drive gear? If there is a CLANK sound, watch out, there could be trouble!
12. If it is manual, make sure the gears shift easily from one gear to the next. Test the clutch.
Is there a lot of “play” when you press down before the clutch engages? If there is “play” then the clutch could be worn.
13. Drive. First, enter an open section and accelerate as quickly as possible. Is the acceleration smooth? Does it waver or stop or stop? Not good!
14. BreakingThen apply the brakes firmly, but don’t brake hard. Does the car drift to the left or to the right? If so, it could be alignment issues. Not good! How far does the brake pedal travel before it is activated? If it’s a lot, the car may need a brake job. If it goes to the ground, then you have real brake problems.
15. Interior Controls.Is the air conditioning working and blowing cold? Does the heater work? How’s the stereo?
Do the electric windows go up? Do crank windows roll up easily?
Do the locks work? Be sure to take the time to get to know the interior aspects of your potential next car.
16. Take the car for a nice ride! Have fun! Turn up the stereo! Take a CD to play!
Drive in traffic, as well as on an interstate highway, if possible. Pay attention to any unusual noise or volume. Accelerate and brake frequently to test the responsiveness of the car.
Okay, you took the test drive, you think you love the car, now what?
Make sure you have paid attention to steps 1, 2 and 3. Request a Car Fax report. Always soberly pour out the report as if you were preparing your Last Will and Testament.
NEVER tell the salesperson that you are absolutely thrilled with the car or that you are desperate for a car. This opens an opportunity to be taken advantage of.
Also, if you want to trade in your old vehicle for a new one, NEVER tell the dealer you intend to trade it in advance because this can skew the numbers you are offered. You ALWAYS want to know how much the car will cost BEFORE you trade in!
It goes without saying that you should be ready to walk away from any deal that is offered to you.. If it smells fishy, it probably is! DON’T let your emotions get the best of you! There is always something as good or better because out there with your name on it!
In short, be like the Boy Scouts whose motto is, “Be Prepared” and chances are you’ll find a good one because you can live for several years or more.