The most common mistakes made when buying a used car

Are you looking for a used car but don't know what to look out for? Don't worry. In this blog, we're taking a deep dive into everything you should avoid when purchasing. We'll uncover all the hidden landmines.

1. Shopping for a used car without a plan and research

Before you start shopping, it’s important to have a clear goal in mind. Make sure you know what type of vehicle you are looking for and set a budget. Decide what features and amenities you want, then create an ideal scenario encompassing most of them.

The internet is an excellent resource for researching cars, comparing prices, and determining which dealers offer competitive rates. Researching in advance can save time when it actually comes to purchasing your vehicle.

In addition, safety should always be a priority when researching vehicles – check Consumer Reports or the National Safety Council’s website for recalls, ratings, and other pertinent information about the models you are interested in buying. It may also be helpful to review reviews on various models before making your purchase decision to get an idea of how reliable each vehicle is engaging with the market today.

2. Not Scanning the Vehicle History Report

Before buying a used car, it is essential to consider the vehicle's history. A Vehicle History Report (VHR) is a comprehensive report that is an essential tool for the consumer when buying a used vehicle.

It can provide vital information about the car's registration and title history, plus accident information, odometer readings, recall notices, and service records.

The best way to obtain a VHR is to purchase it from an authorized provider. Look for services like Carfax or Experian AutoCheck that may offer discounts on multi-vehicle reports if you are viewing multiple cars.

The report should include details on any previously reported odometer rollback or major distress, such as flood damage or a salvage title. Also, look for details of past owners—have they paid the car off? Is there evidence of misusage, neglect, or other potential issues?

It's important to look at all details carefully to gain insight into the full condition of the automobile before making a purchase decision. You can use this information to make an informed decision and help prevent expensive problems down the line if you decide to proceed with buying a used vehicle.

Credit: ahainsurance.ca

3. Not Inspecting the Vehicle in Person

When buying a used car, you should inspect it in person. This means checking it from head to toe and not just simply looking at pictures. A visual inspection is important to evaluate if the car is in good condition and free of any damages or problems.

It pays to be vigilant when inspecting a car since you don’t want to be caught out by hidden costs later on down the line. When buying online, be sure to find out everything you can about the vehicle from the owner, including any previous damage or issues it has experienced. Ensure they provide evidence of registration, service history, accident records, and documents and that these are complete and accurate.

Before going for an appointment, research what signs of wear-and-tear or faults you should look for so you’re fully aware of what you should check for when inspecting a vehicle.

4. Not Taking a Test Drive

You must test drive the car before making a purchase to get an idea of how the car runs and how it feels.

During your test drive, observe vehicular performance as you go through varying speeds and road conditions.

Pay close attention to any jerky or jolty driving, as these can signify transmission or braking system issues. Include hills, highways, and stop-and-go traffic when taking your test drive for a more comprehensive vehicle review.

Also, take note of strange noises coming from any part of the car's exterior or interior, so you know what kinds of maintenance may need to be done in the future.

Finally, check for comfort during your test drive because having a comfortable ride is important once you own it—even if you're only driving short distances.

If at any time during your test drive something doesn't feel right, have it looked over by a trusted mechanic before making a purchase.

5. Buying a Vehicle Without a Warranty

A warranty is a vital consideration when purchasing a used car.

It's best if the warranty is from the manufacturer instead of the dealership. Warranties from agents are less powerful and may not be honored as easily by another dealership.

Suppose there is no warranty on a used vehicle. In that case, it's essential to factor in some money for future repairs or breakdowns. Consider having a reputable mechanic evaluate the car's condition before you buy.

Suppose you feel uncomfortable going through such an evaluation or paying for an independent assessment of the vehicle's condition. In that case, it's best to avoid buying a used car without a warranty.

Credit: caregardservices.com

6. Trusting sellers without doubts

When shopping for a used car, it’s important to be aware of the tactics some unscrupulous sellers may use to try and get the most money out of you. It is not always easy to spot a con artist; however, there are some tell-tale signs that you should watch out for before purchasing any used car.

One kind of seller to avoid is the “wheeler-dealer” type, who will attempt to pressure you into buying higher-end features you don’t need. He also makes outrageous promises about extended warranties, financing, and additional services. Be sure to thoroughly investigate any claims made by the seller and ask for proof that they offer these services.

Another type of unscrupulous seller to watch out for is one who tries to disguise significant problems with the vehicle. They may portray minor issues as part of normal wear and tear and neglect to mention certain damage or maintenance needs in hopes of the buyer overlooking them completely. It is recommended that buyers take their time inspecting the entire car closely before making any purchase decisions. If possible, have a mechanic examine it for them as well.

Finally, it’s important not to feel pressured into a financial commitment beyond what you are comfortable with or can afford. Some sellers may agree quickly on a low price and then ramp up financing costs by adding hidden fees onto your final bill. Be wary if this happens too fast, and always double-check your paperwork before agreeing on anything.

The key is research. Know what kind of vehicle you want and what prices other sellers are asking for. This way, you can spot red flags quickly and accurately assess whether an offer is reasonable.

Credit: bloomberg.com

7. Not Knowing Your Financing Options

When buying a used car, you must know your financing options. Accurate information and researching the various loan products can help you avoid costly mistakes.

There are typically two types of loans: direct and indirect.

Direct loans, also known as seller-financed loans, involve the seller lending money directly to the buyer. With this type of loan, you will make monthly payments to the person selling you the car rather than a financial institution.

If you are working with an indirect loan, you borrow money from a third-party financier who provides the funds to buy the car. Examples of indirect financing institutions include banks and credit unions.

Before signing on the dotted line, you must understand all terms and conditions associated with any loan agreement. Verify that all negotiated terms have been documented in writing; these documents should also be appropriately signed and dated by all parties involved to ensure accuracy.

Research interest rates before deciding on agreement terms to get a good sense of what constitutes a fair rate for your particular situation.

Taking these steps will help ensure that you find appropriate financing options at an affordable cost when purchasing your used car.

8. Not Getting an Independent Vehicle Inspection

It is extremely important to get an independent vehicle inspection before buying a used car. In some states, this type of review is required by law. You should find a mechanic with knowledge working on the car model you’re looking for and ask them to do an all-around assessment.

A full vehicle inspection includes a detailed review of all elements, from the engine and fuel system to the electrical system and brakes. The inspector will also check for signs of rust or other structural damage and any external or internal problems related to wear-and-tear, such as oil leaks or tire wear.

Ensure that your inspector has adequate liability insurance and ask to see their certificate before they begin work.

A skilled automotive technician should be able to offer an unbiased evaluation that points out any major problems with the car.