Buying a Used Car

Federal Citizens Information Center

There are lots of ways you can check out a used car, as to its condition and fair market value. The time to do it is before you make your purchase, not after. Here are some useful links and tips for checking out that used car.

• Contact your state's motor vehicle department. Find out in advance what paperwork you will need to register a used vehicle.
   
• Check out the seller. For car dealers, consult your state or local consumer protection office. If it's an individual, check the title to make sure you're dealing with the vehicle owner. Also browse the classifieds for other auto ads with the same phone number – a sign of an unlicensed broker who sells used cars by posing as the owner.
   
• Take a test drive. Drive at different speeds and check for smooth right and left turns. On a straight stretch, make sure the wheels are aligned and the car doesn't pull to one side.
   
• Check prices of similar models using the NADA Official Used Car Guide (www.nadaguides.com) published by the National Automobile Dealer Association or the Kelly Blue Book (www.kbb.com). These guides are usually available at local libraries.
   
• Research the vehicle's history. Ask the seller for details concerning past owners, use, and maintenance. Next, find out whether the car has been damaged in a flood, involved in a crash, been labeled a lemon or had its odometer rolled back. The vehicle identification number (VIN) will help you do this.
   
• Your state motor vehicle department can research the car's title history. Inspect the title for “salvage,” “rebuilt,” or similar notations. Get the written mileage disclosure statement from the seller that is required by federal law and make sure it matches the odometer reading on the car.
   
• www.carfax.com and www.autocheck.com sell information on the history of vehicles gathered from state motor vehicle departments and other sources.
   
• The National Highway Traffic Safety Administration (www.nhtsa.dot.gov) lists VINs of its crash-test vehicles and will let you search an online database of manufacturer service bulletins.
   
• The Center for Auto Safety (www.autosafety.org) provides information on safety defects, recalls, lemons as well as service bulletins.
   
• www.safetyforum.com allows a free online search of its database of lemons registered by previous owners.
   
• Check the warranty. If a manufacturer's warranty is still in effect, contact the manufacturer to make sure you can use the coverage. In every used car and truck offered for sale, dealers are required by the Federal Trade Commission (FTC) to post a Buyers Guide that specifies whether the vehicle is being sold “as is” or with a warranty, and what percentage of repair costs a dealer will pay under the warranty. Keep in mind that private sellers generally have less responsibility than dealers for defects or other problems. Private sellers generally don't have to post information.
   
• Ask about the dealer's return policy. Get it in writing and read it carefully.
   
• Have the car inspected by your mechanic. Agree in advance with the seller that you'll pay for the examination if the car passes muster and the seller will pay if significant problems are discovered. A qualified mechanic should check the vehicle's frame, tire wear, air bags and undercarriage as well as the engine.
   
• Examine dealer documents carefully to make sure you are buying, not leasing, the vehicle. Dealer finance managers may try to “flip” your purchase to a lease, ignoring the agreed upon sales price and the promised allowance on the trade-in. A balloon payment and “base mileage” disclosures are warning signs you may have a lease.

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