If you’re in the market for a set of wheels, buying used can be a smart and cost-effective choice, offering great value and access to vehicles that might otherwise be beyond your budget. However, navigating the used car market requires caution and preparation to avoid costly mistakes. In this article, we’ll share some slipups that car buyers commonly make – so you don’t have to.

1. Skipping Research

Buying a new car can be exciting, but rushing into a purchase based on looks or price alone can lead to buyer’s remorse. Start by researching the car’s make, model, and year using resources like Consumer Reports^®, J.D. Power^®, and Kelley Blue Book^®. These tools can help you check reliability ratings and identify common issues. It’s also wise to check if the vehicle has any outstanding recalls by visiting the National Highway Traffic Safety Administration (NHTSA) website.

2. Limiting Your Options

Don’t settle for the first deal you see. Explore multiple sources, including dealerships, online marketplaces, and private sellers. Compare prices using tools like Kelley Blue Book^® or Edmunds^® to ensure a fair deal. Keeping your options open can help you negotiate effectively and avoid overpaying.

3. Taking a Superficial Test Drive

A test drive is your opportunity to evaluate the car thoroughly. Take it for a spin on different types of roads, including bumpy or poorly paved ones, to assess its handling, acceleration, and braking. Likewise, consider taking multiple test drives in various types of weather. Listen for unusual noises and check for vibrations or warning lights. Test all features, including the air conditioning, heating, radio, lights, and windows, to ensure everything works properly.

4. Skipping a Pre-Purchase Inspection

Regardless of how well the test drive goes, don’t buy a used car without having it inspected by a trusted independent mechanic. This inspection should include a detailed review of the engine, brakes, suspension, electrical system, tires, and bodywork. The mechanic can also check for signs of prior accidents, flood damage, or hidden issues. You’ll have to pay for an inspection, but it can save you from much more expensive surprises down the road.

5. Neglecting the Vehicle History Report

A vehicle history report from CARFAX^® or AutoCheck^® can reveal important details about the car’s past, including accidents, title status, odometer rollbacks, and service records. For example, a report could reveal that a car advertised as being in “perfect condition” was previously in a major accident. Reviewing this report can help you avoid buying a car with serious issues that aren’t immediately visible.

6. Focusing Solely on the Monthly Payment

A low monthly payment may seem appealing, but it often comes with a longer loan term and/or a higher interest rate. Instead, you may want to focus on negotiating the best overall price for the car. For example, a $500 monthly payment for 60 months will total $30,000, while a $600 monthly payment for 48 months will total $24,000. Understanding the full cost of the loan will ensure you’re not paying more than necessary.

7. Ignoring Seller Red Flags

It’s important to pay attention to the seller’s behavior. Be cautious of sellers who evade questions, rush the process, or provide inconsistent information. Trustworthy sellers are transparent and willing to answer questions and provide relevant documents. For instance, if a seller claims to have lost the title or insists on cash-only transactions, proceed with caution. If something feels off, it’s best to walk away.

8. Overlooking Paperwork Details

Be sure to carefully review all paperwork, including the sale terms, warranties, and financing agreements, before you sign and drive away. If something is unclear, don’t hesitate to ask questions and negotiate terms if needed. Don’t be afraid to pump the brakes on the deal if you’re not satisfied.

9. Underestimating Additional Costs

The sticker price isn’t the whole story – you’ll need to budget for sales tax and registration fees. And don’t forget ongoing expenses like fuel, insurance, and maintenance. Setting aside $1,000 to $2,000 for unexpected repairs is a wise precaution.

10. Rushing the Decision

Patience is key – don’t feel pressured to make a fast decision. Take your time to compare your options, ask questions, and consult trusted resources. A car that meets your needs and your budget is worth the wait. Remember, you’re in the driver’s seat!

Need help with financing or evaluating your options? Contact our experts today.