One of the top advantages of buying a pre-owned vehicle is finding a great car for a price that is significantly lower than what you would pay if it was new. Used vehicles often provide a terrific value and can enable you to step up to a higher-end vehicle that you couldn’t afford new. However, it is very important to do your homework to avoid potential pitfalls in purchasing a pre-owned vehicle. Diligent research will help ensure that you purchase a vehicle that is both safe and reliable.

Pre-owned vehicles are available from a number of sources including private parties. But it’s always in your best interest to consider all sources when purchasing a pre-owned vehicle – especially a new car dealership. A new car dealer can help you avoid some potential pitfalls of a used-car purchase. Here are some reasons why:

Safety
As established businesses, dealerships have technicians who are trained professionals to inspect every vehicle registered for sale to ensure that it has passed a safety check and will get you around safely. New car dealerships also offer a safe environment with well-lit parking lots and a high level of security while shopping for a car. For many, this is preferable to meeting with a stranger at an unfamiliar location for a private party sale. Private parties also cannot provide a safety guarantee on the vehicle you’re buying.

Warranty
One of the greatest benefits of purchasing a used car from a new car dealership is the ability to obtain a warranty should anything go wrong. New car dealerships place high value on customer service and will provide complimentary services for future maintenance covered under warranty. Sometimes they will also offer a return policy for customers purchasing a used-car. Private-party sellers, on the other hand, usually sell their car “as is” with no warranty. Once you’ve purchased the car, you will be responsible for any unexpected maintenance or repairs needed and cannot hold the private-party seller accountable.

Expertise
Aside from technical experience, dealerships also have expertise in developing customized financing plans for their customers. Since few people pay cash for their vehicles, this can save a lot of time and hassle. Additionally, most dealerships have a direct relationship with the DMV so you won’t have to deal with the bother of transferring the vehicle title to your name. In contrast, with a private party sale you are often left with the burden of making phone calls and submitting paperwork to the DMV.

Here are a few more tips to simplify the process of purchasing a pre-owned vehicle:
Take a test drive
» Always take the car for a test drive through a variety of road conditions (e.g., highways, hills, stop-and-go traffic).
» The car should start easily with minimal noise and vibrations.
» Make turns at various speeds to check the shocks and suspension.

Does the vehicle come with a warranty or is it sold “as is”?
» When sold “as is”, you will be responsible for any problems that occur after the sale is made. There are no grace periods.
» Each warranty is different – read the fine print to know exactly what is covered and to what extent

Is the vehicle certified?
» Certified Pre-owned (CPO) Vehicle Programs serve as a quality guarantee for used vehicles. Typically these programs are offered on recent, low-mileage models which have been carefully inspected, and are covered under a warranty. Most CPO programs also offer additional incentives, such as free loaner cars if repairs are needed.

Check the value of the vehicle.
» Check a pricing guide such as Kelley Blue Book or National Automotive Dealers Association .
» Book values will vary depending on mileage, age, number of previous owners, condition, and driving region.
» Certified vehicles will be priced higher than non-certified vehicles because they are selected and inspected to meet high standards.

Does the vehicle have a clean title history and is it damage-free?
» Avoid cars that have been in a major accident, undergone extensive bodywork, or have been exposed to flood, fire, or hail damage.
» Vehicle history reports can be found at CarFax or Experian Automotive.

Has it received a mechanical check-up?
» Once you have made an offer but before you buy the car, consider hiring an independent mechanic to inspect the car for any mechanical and/or electrical problems – be prepared to do this at your own expense. (Note that when you buy a certified pre-owned vehicle, this has already been done for you.)
» Any necessary repairs noted by the mechanic could be deducted from your original offer.

Do you have a written purchase agreement?
» Make sure all promises are made in writing before purchasing the vehicle.

By following these tips and suggestions, you should be well on your way to purchasing a pre-owned vehicle that is both safe and reliable.