Getting a good deal on a used car is a smart financial move, but it’s also an area where scams are all too common. Sellers who lie, defects that are expertly hidden, you name it – there’s a multitude of ways that a shifty operator can prey on unwary buyers. Here are the steps you should take to make sure you don’t get ripped off when buying a used car.
1. Research the Vehicle’s Market Value
The most common con game goes something like this: you buy or bid on a used car. It’s a decent model. The price is good. Then, a few days later, you discover that the seller has been charging more than twice what you paid. While it might be fun to fantasise that you could make a tidy profit on the car and graduate to a career in flying or shopping, in real life you’re going to want to avoid overpaying. Here’s what to do: before you even start looking, figure out the market value of the car you want (for a good ballpark figure, check out Kelley Blue Book or Edmunds). Knowing the fair market value will give you some negotiating power and help you spot any prices that seem awfully high or awfully low.
2. Inspect the Vehicle Thoroughly
Always check out a used-car before you buy it. Look for obvious signs of wear and tear: rust, dents, water damage, visible problems with the tires, brakes and engine. If you are not mechanically inclined, make sure to take the car to a trusted mechanic for a pre-purchase inspection. A mechanic will be able to look for hidden problems that may not be visible to the naked eye: engine trouble, transmission issues, faulty electronics. If the seller refuses an inspection, this should raise a red flag.
3. Review the Vehicle History Report
Always request a vehicle history report from the seller; Carfax and AutoCheck are reliable online sources that provide information on previous ownership and accidents, problems with titles, mileage discrepancies and other issues. If a seller refuses to provide one or won’t discuss the car’s history to your satisfaction, be suspicious and be sure to check the VIN on the vehicle to be certain it’s the one you’re looking at.
4. Beware of Online Scams and Payment Methods
If you are buying a car online, watch out for the payment method and words like ‘wire transfer’ or other untraceable methods of payment. Pay with a secure payment method such as PayPal, or have the buyer or seller meet you at your bank so that the certified checks can be verified then and there. (303 words)
5. Verify the Seller’s Legitimacy
If you are purchasing from a private seller, ask for an ID and proof of ownership. Make sure the name on the title matches the seller’s ID to confirm they are the legal owner. If the seller doesn’t have a clear ownership trail of the vehicle or if they seem to be in a hurry to complete the sale without proper documentation, avoid the transaction.
Taking these precautions will help you greatly reduce the risk of being taken for a ride when you buy a used car. Be alert, be curious, and never be rushed into anything. If you plan properly, you can find yourself a good vehicle and avoid a very costly mistake.
