Buying A Used Vehicle From A Dealer

Buying a used car is a frustrating experience at best. Knowing your rights can help you make a savvier deal.

Prepare Yourself

Do your research ahead of time and know what make, model and year of car you're after. You can also find out what you should expect to pay for your car by comparing prices online and in newspaper ads.

It's best to line up financing with a bank beforehand. That way, you don't have to worry about dealer financing scams, and can negotiate the best interest rate.

If you're up to it, you'll probably get a better deal selling your current car instead of using it as a trade-in.

Visual Inspection

Once you've found a car you're interested in, take a good look at it, focusing on:

• Making sure the 17-digit VIN numbers on the dashboard and doors match (otherwise the car could be stolen)
• Signs of flooding, such as water lines on the engine, new carpeting or upholstery, rusting under the seats
• Signs of fluid leaks on the ground around the car
• The levels of fluids (radiator, windshield wiper, oil, and so forth)
• Signs of oversprayed or new paint, which might indicate the car has been repaired after an accident
• The condition of the tires

You'll also want to test drive the car to determine general handling, and whether there are any rattles (which may be evidence the car has been in an accident) or other suspicious noises.

If they are available, a look through maintenance records can tell you how carefully and frequently the previous performed routine maintenance such as oil changes. Maintenance records can often reveal accident repairs and mechanical problems.

Buyer's Guide Info

The Federal Trade Commission's Used Car Rule requires dealers to put what's called a Buyer's Guide in every used car for sale. The Buyer's Guide must tell you:

• What type of warranty the car comes with
• What percentage of the repair costs a dealer will pay under the warranty
• That all promises made by the dealer should be in writing
• That the vehicle should be inspected by an independent mechanic
• Some of the major problems to look out for in the mechanical and electrical systems of a car

Mechanical Inspection

It's important to have an independent mechanic inspect the vehicle for mechanical defects before you purchase it.

If the dealer won't let you take the car off the lot, you may be able to find a mobile inspection service that can inspect the car at the dealer's. If not, you may have to have the dealer take the car to be inspected at a mechanic's of your choosing.

There isn't a standard checklist for mechanical inspections, but the inspection should at a minimum cover the major mechanical systems mentioned on the Buyer's Guide.

Be sure to get a written inspection report from the mechanic, with a cost estimate for any necessary repairs.

Independent Research

Depending on where you live, you may be able to get at least some of the following information from your state Department of Motor Vehicles:

• Odometer mileage each time a car has been sold
• Whether the car has been in any accidents
• Whether the car has been sold at auction
• The number of owners, and when they bought and sold the vehicle
• If the vehicle was leased, or a rental car or government vehicle
• When the dealer took delivery
• Any vehicle emissions inspection problems
• Whether the car has been reported as stolen

Warranties

You'll want to negotiate as long a warranty period as possible.

If the dealer won't give you a warranty of at least 30 to 90 days, and insists you buy the car "as is," you probably don't want to buy the car. Some states, including Connecticut, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Rhode Island, Vermont, West Virginia and the District of Columbia, don't allow "as is" sales for most used vehicles.

If the dealer provides a written dealer warranty, you'll want to examine the terms carefully, so that you understand:

• What repairs are covered
• Whether parts and labor are covered
• What repairs are excluded

If the manufacturer's warranty is still in effect, you'll want to read over the warranty to see what it covers and how much longer it lasts.

Dealer Financing

It's best to line up your financing before you even go to a dealer's. But if you must finance through a dealer, make sure you understand the following details before signing on the dotted line:

• The total sales price (the down payment plus the sum of the monthly payments)
• The amount you're financing
• The finance charge (the dollar amount the credit will cost you)
• The amount of the payment
• How many payments you'll make
• The annual percentage rate ("APR"), which is the yearly cost of the loan (including interest) described in percentage terms

If you must trade in your old vehicle instead of selling it yourself, don't mention the trade-in vehicle until after you've arrived at a price for the new car.

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