Buying Your First Used Car? 5 Red Flags That Can Turn a ‘Deal’ Into a Money Pit
New cars aren’t cheap. To save money, you might consider buying your first used vehicle — but proceed with caution.
“[Your] best friend is to remember the least expensive vehicle on the lot is usually not the best bargain,” said Alan Gelfand, owner of German Car Depot. “There are gems hidden behind worn paint or old vinyl, but only if the vehicle has a clear history and has been serviced and maintained on a regular basis.”
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In March 2026, the average price of a used car was $30,166, according to JDPower. Approximately 50% more expensive, the average new vehicle price was expected to reach $45,859 that same month.
Clearly, buying a used car can be a great way to save money – assuming you perform proper due diligence. Gelfand shared five red flags that can turn a seemingly cheaper used car into a money pit. Keep reading to learn the signs it’s probably best to walk away from a preowned vehicle.
1. No Maintenance Records
Sellers who have taken good care of their vehicles tend to have proof to back it up.
“If the seller has not kept track of routine maintenance such as oil changes, fluid services, brake pad replacements and other regularly scheduled maintenance, it is safe to assume that some of this work has not been performed,” Gelfand said. “A well-maintained car at 100,000 miles is far safer than a poorly maintained car at 50,000 miles.”
2. Warning Lights
Don’t dismiss warning lights in the vehicle, as they could indicate a need for pricey repairs, Gelfand said.
“Remember the vehicle may have had recent service – i.e., cleared codes – or even a recent monitor reset to hide problems,” he said. “A full prepurchase inspection will advise you as to whether or not the car's emissions monitors are ready or active.”
3. Uneven Tire Wear
More than just a need for new tires, disproportionate tire wear can signal a larger problem, Gelfand said.
"Check the tread for uneven wear and look for signs of feathering – edge wear – or cupping – wavy wear – across the tread,” he said. “These patterns can be a sign of misalignment, worn suspension parts or previous accident damage.”
He said the cost to repair these issues can range from a few hundred dollars to thousands.
4. Signs of Fluid Leaks
Signs of oil, coolant, transmission fluid and power steering leaks can be a major red flag on a used vehicle, Gelfand said. While they might be a minor concern at first, they can lead to serious damage over time.
“What seems to be a simple oil leak at first can quickly turn into a costly repair, if not fixed in a timely manner,” he said. “A small leak of coolant or transmission fluid can quickly become a life-threatening overheating situation or a premature transmission failure. A power steering fluid leak can cause significant damage to costly components such as the engine.”
5. Seller Hesitates on Prepurchase Inspection
If the seller is reluctant or opposed to an independent prepurchase inspection, this might be the biggest red flag, Gelfand said.
“Commonly offered for a fee by automotive specialists, PPIs are a great way for the buyer to learn about and pay for any existing defects in the car,” he said. “If the seller is being less than completely transparent about the condition of the car, a good PPI will likely reveal those problems and allow the buyer to walk away from the deal or negotiate a lower price to cover the cost of repairs.”
Hence, a seller that’s evasive or refuses a PPI might be hiding something from you, he said.
The Bottom Line
“It is cheaper to walk away from a bad deal than to own a bad deal,” Gelfand said.
First-time used car buyers commonly make mistakes because they fall in love with the price, color or monthly payment, he said. Avoid making costly mistakes by taking the time to closely inspect the vehicle.
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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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