What to Know in Buying a Pre-Owned Car

Buying a pre-owned car can save you a considerable amount of money. However, even used cars represent an expensive purchase for most people, so it is important that you shop wisely to get the best value possible. By understanding what you need to know in buying a pre-owned car, you can research the history of each vehicle, get accurate pricing information and avoid getting ripped off by shady sellers.

Vehicle History

Pre-owned cars may look perfectly fine, but may have serious problems you need to know about. Unscrupulous sellers can change odometer readings, hide mechanical problems or fail to disclose accidents. Running a vehicle history report may protect you from such scams. The most comprehensive vehicle history reporting system is Carfax. Check the VIN number for cars you are considering buying to find out about permanent damage caused by accidents or flooding, to check the mileage for accuracy and even to find out if the car received regular maintenance, such as oil changes.

Inspection

Mechanics charge a fee to inspect a pre-owned vehicle for problems, which can get pretty expensive if you do it repeatedly. Check used cars for common problems before spending money on a mechanic. Pop the hood and look at the engine before and after a test drive. The engine should be clean; watch out for oily residue or signs of a leak. Clean the oil dipstick and check the levels and how clean the oil looks. Signs of water in the oil could mean a bad head gasket, an expensive repair, notes Cars.com. Check the undercarriage and wheel wells for signs of oil or leaking fluids. When you test drive the car, make sure it starts easily, shifts gears and accelerates smoothly.

Pricing

It is not unusual for sellers to price a used car according to how much money they want instead of what the car is actually worth. Do your homework to avoid overpaying. Kelley Blue Book values are industry standard for pricing new and used cars. Private party cars are separated into three pricing categories based on the condition of the vehicle. Dealership prices are higher, but the dealer markup frequently includes a limited warranty to protect you from repair expenses immediately after purchase. In addition, a private seller's used car is rarely in excellent condition, while dealerships will often make repairs before putting a vehicle on the lot, notes Kelley Blue Book.

Additional Considerations

Always have an independent mechanic inspect the vehicle before you hand over your hard earned cash. Many pre-owned vehicle sales are "as is," which means you may have no recourse if the car self destructs five minutes after you buy it, warns Kelley Blue Book. A mechanic can find potential issues, such as temporary fixes to hide a serious oil leak or transmission problem, as well as alignment issues that could indicate an unreported accident. Additional things to look for during an inspection include rust spots, uneven wear on the tires and badly fitted door, trunk or hood closures.