Buying a Used Car: Best 4 Tips to Avoid Scams

When buying a used car, tips that help you save money are always useful. Tips that help you avoid scams are even better, and will save you a lot of frustration and unneeded expense in the long run. While buying a used car or truck can often save you thousands of dollars over the cost of a new vehicle, you should always be vigilant and be aware that there are some unscrupulous sellers out there. So, you know what kinds of used car scams and fraud schemes are used to defraud you or cheat you out of your hard earned money.

Check the Vehicle History

When considering a used car for purchase, always make sure that you use sites like Carfax or Auto Check to investigate the vehicle’s VIN history. These types of sites offer a wealth of information about the history of any used car or truck. On these sites, you can check if the vehicle has a salvage or junk title, the number of reported owners and the last known actual mileage. In addition, these sites offer other types of information that will be extremely useful to you.

Ask for ID

A very common scam is for someone to sell a vehicle that doesn't actually belong to them. While you might be surprised that this occurs, it happens a lot more than you think. Therefore, you should always ensure that the person negotiating a deal with you is the person that actually owns the vehicle. If they tell you that they are a proxy or acting on the seller's behalf, then you should be very skeptical. In fact, if you're not able to deal with the actual owner directly, then simply walk away.

Get It in Writing

If you're purchasing a used car from a dealership, always make sure that you get written documentation of any promises or agreements that have been made. It is quite common for some used-car dealers to promise you free services or repairs—only not to follow through when there's a problem.

Also, make sure that the used vehicle that you're considering has a buyer’s guide posted on the vehicle. A buyer’s guide is a requirement of the Federal Trade Commission, and was designed to protect consumers against used-car fraud. The buyer’s guide should be clearly posted on the vehicle, and if it is not—ask the dealer why.

The buyer's guide should also list information regarding how the cars being sold—as is or with a warranty. In addition, it should detail how much you can expect the dealer to contribute to car repair costs and if the car does have a warranty.

Useless Warranties

Always be skeptical of costly extended warranties that may be offered to you by some car dealerships. In fact, you can almost always save a lot of money by buying an extended warranty yourself, rather than purchasing it from the dealer. If you choose to purchase an extended warranty from a dealership, you may wind up paying considerably more than if you had you searched for and purchased one on your own.

In addition, always avoid dealer service contracts that may be presented to you as an extended warranty. These types of agreements are usually sold by the dealership to unwary customers that are unaware that the vehicle can only be repaired or worked on at the dealership that sold them the dealer service contract.

There are many types of scams that might be present with the purchase of any used car; therefore, always ask as many questions as you need to feel comfortable about your purchase. Furthermore, always research the vehicle and the dealership that you're doing business with.