Buying a used car can be a very wise decision. A high-quality used car doesn’t have the same depreciation rate as a new car. You may be able to afford a better car if you choose to buy used instead of new, but there are also some risks involved with buying a car that’s not new.
Our members often ask us how to buy a used car. They want to make sure they avoid scams and get the best possible car (and price) for their money. Here are some tips that can help you.
First, let’s review some of the most common used car scams so you know the ways that a seller or dealer might try to take advantage of you.
There are other potential scams, but these are the most common.
Now, let’s talk about some common-sense steps you can take to avoid being scammed as you shop for a used car.
First, research dealerships in your area. Know who has a franchise to sell certified, pre-owned cars and who doesn’t. You should do research on the car you want and know which dealerships sell them. At Addition Financial, we partner with many great dealerships across Central Florida that can help get you behind the wheel of a new or used car. You can find a list of these partners here.
Speaking of research, if you plan on trading in your current vehicle make sure you know its Kelley Blue Book value. It’s not a good idea to rely on anybody else to tell you.
You should also know your credit score before heading to a dealership. That way, you can’t be scared into thinking you won’t be able to get a bank loan. You’ll be in the best possible position if you go in with a car loan pre-approval from your bank or credit union. Then, you can negotiate as a cash buyer.
Before you test drive any vehicle, ask questions. You should be able to review the information about any car. Be on the lookout for sketchy statements (like the example about Freon in the previous section). Ask follow-up questions and be as persistent as possible.
Always test drive a vehicle before buying it and make sure to check that everything works. You want a car that’s in good shape. Don’t accept shady explanations if something doesn’t function.
Always run a CarFax report using the VIN of the vehicle you’re considering buying. Even if the seller presents you with a report, you should run another report for yourself. While it’s not common for people to present phony reports, you want to be sure that you’re getting accurate information.
Before you move forward with a purchase, ask to see the title of the car and make sure that it matches the name of the person or company you’re negotiating with. Curbstone fraud always involves a discrepancy in ownership.
Finally, make sure you conduct all business in person and through reputable financial institutions. Get everything in writing. Sometimes, used car dealers will promise service and not deliver on it. If you have it in writing, they won’t be able to renege.
Buying a used car doesn’t need to be scary. Armed with the information we’ve provided here, you’ll be able to avoid scams and get the best possible vehicle for your money.
To learn about Addition Financial’s flexible car loan options for members, please click here.