Ten Possible Problems with Buying Used Cars
Used cars have already suffered new-car depreciation and usually make better values for buyers interested in getting the most for their money.
However, there are more risks in buying a used previously-owned car than in a buying a brand new car.
New cars are sold exclusively by manufacturer-franchised and state-licensed new-car dealers, who sell cars that are fresh from the factory, have never been driven, and are backed by manufacturers' warranties, state Lemon Laws and other consumer protection policies.
Used cars are sold with "as-is" terms by individuals, repair shops, at auctions, and by used-car dealers. All used cars have been previously titled, registered, and driven by at least one other owner. The owner might have been an individual, a business, a lease company, a government agency, or a fleet owner such as a rental car company.
So what are the risks in buying a used car?
1. Scams are now commonplace on car buying/selling web sites such as Craigslist. Fake sellers offer cars that don't exist and take your money by promising non-existent "eBay payment protection" to make you feel better about sending money before receiving the car. For more, see Car Scam
2. Buying cars long-distance on web sites such as eBay Motors and AutoTrader create risk because you can't see the car, you can't test-drive it, and you can't inspect it. It's better to search these sites for cars in your area and buy locally, if possible.
3. Buying a used car is nearly always an "as-is" sale which means no warranties and no guarantees. There are no "grace period" or "cooling off days" laws that apply when buying cars.
4. State lemon laws do not protect used cars. The laws only apply to new cars purchased at a franchised dealer, and only under very specific conditions.
5. Used cars are often sold to inexperienced buyers without titles. A title is the only legal proof of ownership. If a buyer doesn't have a title, with his name on it, then the car could be stolen or not belong to the seller. Such sellers usually have a good story as to why they don't have the title.
6. Used cars can be salvage vehicles. That is, the car has been wrecked, declared a total loss by an insurance company, and then repaired and resold. These cars can have potential hidden problems. Many states require such cars be sold with a "salvage" title, but other states do not.
7. Used cars are often sold after being wrecked and repaired. The repairs are often made as cheaply as possible with junkyard parts, sloppy work, and sub-standard paint. Frames are often bent. The value of a wrecked and repaired car is always less, even if the repairs have been done well.
8. Used cars can have hidden problems known to the seller, but not disclosed to buyers. Although generally considered illegal, it is difficult to prove when damage first existed – before or after the sale – and whether the seller knew about it. Used cars are sold "as-is" which generally means that the seller is off the hook in most cases. It's up to the buyer to make sure there are no problems.
9. Used cars can have problems not known to the seller. Sellers often are not aware of potentially serious problems with their car and honestly declare that the car has no problems. Many sellers are not mechanically inclined and simply don't know the tell-tale signs that indicate problems.
10. Safety equipment on used cars can be disabled, or otherwise non-functional. If the car has been previously wrecked, it's possible that the expensive air bags were never replaced or that anti-lock brake systems don't work. These are problems a buyer might not find out about until it's too late.
What to do?
Always take caution when buying a used car -- caution you wouldn't need to take if buying a brand new car from a dealer.
1. Make sure you get your car inspected by a mechanic before the sale. You can't rely on a car seller's statement or opinion about the condition of a car. Most will say their car "drives fine" or that there are "no problems."
2. Test-drive the car on city streets and highways at all speeds. Listen for unusual noises or handling problems.
3. Look over the car for signs of water damage, leaks, excessive wear, and accident repairs. Get maintenance records if possible.
4. Get a Carfax or AutoCheck vehicle history report. Many sellers are 2nd or 3nd hand owners and may not know the history of the car they are selling. They might have purchased the car without checking its history.
Although most sellers are honest, you should not make assumptions. A little caution could easily help you avoid a serious mistake when buying a used car.