Navigating the Used Car Market

A Guide to Avoiding Scams and Getting a Reliable Ride

Buying a used car can be an exciting and cost-effective way to get behind the wheel of your dream vehicle. However, the used car market can also be a breeding ground for scams and shady deals. To ensure that your car-buying experience is smooth and free of deceit, it’s essential to be armed with knowledge and follow a few key steps. Here are some tips to avoid getting cheated by a used car dealership.

1. Remember the Used Car Dealership Needs You More Than You Need Theme

Keeping this in the back of your mind when talking about a used vehicle being offered for sale will save you from becoming a victim to pressure from the salesman. Remember the car dealership needs your money. The salesperson works on commission. They are willing to do just about anything to get your money. So be skeptical. Trust but verify all that you are being told about the used car you are looking to buy.

2. Before Buying a Used Car, Do Your Research

Before even setting foot on to a car lot, research the make and model you’re interested in. Look into common issues, maintenance costs, and the car’s overall reliability.

You should also research the dealer. Look up online reviews!

3. Always be Prepared to Walk Away

You should never buy a used car the first time you see it and take it for a test drive. Always go home, think about it. This will allow your emotions to fade, and you can determine if you are making a wise decision. Stepping away will also break the hold of any pressure sales tactics.

4. Always Negotiate in the Out The Door (OTD) Price

Car sales personnel will frequently ask you what monthly payment you are looking to have for the car you are buying. This sets you up for the dealership to manipulate the numbers on the backend of the transaction. There are different ways to adjust the monthly payment, including interest rate, down payment, or length of a car loan. But none of these things impact the actual cost of the car. The dealership can inflate the cost and still get you to the payment you are looking to have. Avoid this trap and always negotiate in OTD.

OTD is the price of the car that includes all of the governmental fees and sales tax. You will probably have to provide the dealership with your zip code in order to calculate the sales tax.

5. Ask Good Questions

Here are some questions you may not have thought about to ask a dealer:

Did the dealership inspect the vehicle? They will ALWAYS say yes because they are required to perform a smog test and safety inspection. But this sets up the follow-up question.

When your technician inspected the car, did they notice any prior body work? The dealership will probably show you a Carfax report to say the car has no prior reported accident. BUT THIS DOESN’T ANSWER YOUR QUESTION. You asked about what the technician noted during the inspection.

What did the dealership do to get the Vehicle ready for sale? Did the dealership make any repairs, change the brakes, put on new tires, perform an oil change, etc.? What did they do? If they did nothing, then this is a sign that they did not actually inspect the vehicle or the repairs needed were too expensive to perform.