Auto Expert: 5 Used Car Red Flags That Could Cost You Thousands
A recent Wall Street Journal report found that 1 million prospective buyers have left the new-car market. As more Americans skip new cars due to high prices and interest rates, used car demand is rising.
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While buying used can save money upfront, it can also expose shoppers to scams and costly mistakes. Knowing what to watch for can help you avoid overpaying — or worse, buying a car that isn’t what it seems.
Here are five red flags an auto expert says you should never ignore when shopping for a used car.
1. Being Asked for an Upfront Payment
If a seller asks for money before you’ve seen the car in person, treat it as a major warning sign.
"The single biggest red flag is being asked to pay before you've seen the car in person," said Keith Crerar, chief transformation officer at Repairify, an automotive technology and intelligence company. "No legitimate seller needs a wire transfer, gift cards or a deposit to ‘hold’ a vehicle you haven't touched."
Legitimate sellers will let you inspect the car first. If payment is required upfront, walk away.
2. A Price That Seems Too Good To Be True
A car that's priced unusually low is often designed to lure buyers in quickly. In many cases, the low price is paired with a convincing story — the seller may claim they’re deployed overseas, say the car is already being shipped or push you toward a specific escrow service. These tactics are commonly used in listings for vehicles that don’t actually exist.
If the price is far below comparable listings, proceed with caution and verify the car in person before moving forward.
3. Paperwork That Doesn't Match Up
Before committing to any used car, make sure all the paperwork lines up. Review the vehicle identification number (VIN), odometer reading, and seller information across the title, the vehicle itself and a history report.
"Any mismatch is your cue to stop," Crerar said.
He recommends getting a VIN-based vehicle history report from a provider listed on VehicleHistory.gov. Be especially cautious of newly issued or recently transferred titles, which can sometimes indicate title washing — when a car’s flood, salvage or total-loss history is obscured by moving it across state lines.
4. The Seller Isn't Who They Claim To Be
Not every “private seller” is actually a private individual.
“Watch for ‘curbstoners’ — unlicensed dealers posing as private sellers to dump problem cars without any of the protections a real dealership owes you,” Crerar said.
Curbstoning is one way damaged vehicles — including flood cars, salvage cars and those with rolled-back odometers — re-enter the market.
Watch for these clues:
The same phone number appears across multiple listings
The seller insists on meeting in a parking lot or public place
The name on the title doesn’t match the seller
The seller becomes vague or defensive when asked basic questions
Crerar recommends meeting at the address listed on the title and treating anyone selling multiple vehicles as a dealer, even if they claim otherwise.
5. The Price Jumps Once Dealer Fees or Financing Are Applied
Not all risks come from private sellers — dealerships can introduce extra costs in less obvious ways.
Even legitimate dealers may use tactics that increase the final price:
Bait-and-switch: The advertised car is suddenly "unavailable," and you’re directed to a more expensive option.
Padded add-ons: Charges for paint protection, rust-proofing or extended warranties you didn’t request.
Financing tricks: Low advertised rates that apply only to those with top-tier credit, or “$0 down” offers that bundle in hidden fees.
“Slow down at the paperwork stage," Crerar said. "You have the right to a full, written, out-the-door price — and the right to say no to anything you didn't ask for.”
Under the FTC’s CARS Rule, dealers are required to disclose the total price upfront. Before signing, ask for the full out-the-door cost in writing, decline unnecessary add-ons and confirm that the financing terms match what you agreed to.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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