I'm a Mechanic: 5 Things To Know About Used Cars Before Buying
When it comes to car buying, a lower price doesn’t necessarily mean it’s a better deal. Most people buy a used car to save money, but unlike new cars, used ones come with more unknowns. This is why it always pays to do your research before committing to a used car purchase.
Here are five things to know about used cars before buying.
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1. Used Cars Come With More Risk
“Before buying a used car, understand that the risk is higher than buying a new car,” said Melanie Musson, auto industry expert with AutoInsurance.org. “There’s always a chance that something could go wrong with a car, whether it’s new or used, but the risk is higher with a used car.”
Because the car is older, you don’t know how well it was maintained by previous owners. Plus, any warranty is typically limited or nonexistent.
Luke Oswald, automotive specialist at Wheels Away, recommended researching the make, model and ownership history before buying.
2. VIN Discrepancies Can Signify a Scam
Used car scams can happen anywhere, but buyers may face a higher risk in private-party transactions.
“One of the biggest mistakes a buyer can make when purchasing a used car is not checking if the VIN number matches,” Oswald warned. “VIN discrepancies can cover up hidden write-off histories, title washing or cloned/ stolen vehicles, so it’s important to always check the VIN matches the vehicle and databases.”
3. Depreciation Is in Your Favor
According to Musson, depreciation will be more in your favor if you buy used.
“Depreciation happens most rapidly in the first three to five years of ownership," Musson said. "Once a vehicle is older than that, depreciation slows down. That means you’ll lose less of your vehicle’s value each year than you would have if you had bought new.”
Oswald recommended buying a 5-year-old used vehicle for the same reason.
“The car will have then done most of its financial depreciation, but still be new enough to have a lot of life left in it and avoid any big repair bills," he said.
4. Some Used Cars Still Have a Warranty
It’s hard to beat a full new car warranty, but Michael Ouziel, founder and managing partner at MMO Law, APC, a California Lemon Law firm, recommended finding a used car that comes with a manufacturer certified pre-owned warranty (CPO).
“CPO vehicles have generally been inspected, serviced and are backed by an additional manufacturer's warranty and other benefits,” Ouziel said. “I was part of the trial team for the case that established that CPO vehicles can be covered under the California Lemon Law (unlike most other used vehicles).”
5. An Inspection Can Save You Money
Before buying a used car, make sure to get it inspected by a mechanic. This is often referred to as a pre-purchase inspection (PPI), and all you have to do is ask the seller or dealer if you can have the car inspected by an independent mechanic.
“Most mechanics will charge around $150 to inspect a used car and identify any issues,” Musson said. “Having someone who knows what they’re looking for and isn’t associated with the seller can help you avoid a car that could become a money pit.”
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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