Buying a used car can be a smart and economical choice, but it also comes with its own set of considerations. Unlike purchasing a new vehicle, the used car market requires a bit more diligence and knowledge to ensure you’re making a sound investment. This guide is designed to provide you with essential information and answer frequently asked questions to help you navigate the process of buying a used car from a dealership with confidence.
This guide focuses specifically on purchasing used cars and light trucks from licensed dealers. Please note that the information here may not apply to private sales (consumer-to-consumer transactions) or the purchase of new vehicles.
Remember, as a prospective buyer, you have the right to have any vehicle you are considering inspected by a mechanic of your choice, at your own expense. It’s also wise to consult with your lender, insurance agent, and legal counsel to fully understand the financing, insurance coverage, and purchase terms involved.
In any significant transaction, especially one as substantial as buying a car, asking questions and thoroughly reading all contracts and documentation is crucial.
If you have specific concerns or require further clarification, resources like consumer protection agencies or legal advisors can provide additional support.
We wish you the best in your search for the perfect used vehicle and hope you enjoy many miles of safe and happy driving.
Common Questions for Used Car Buyers
Can I Return a Used Car After Purchase if I Change My Mind?
Generally, no, you cannot return a used car simply because you’ve had a change of heart. While some purchases made in door-to-door sales might have a cooling-off period, this is typically not the case for used car purchases from dealerships. Laws generally do not mandate a “cooling-off” period for vehicle sales made at the dealer’s location. Therefore, it’s vital to be certain about your decision before finalizing the purchase.
What Happens to My Deposit if I Change My Mind Before Taking Delivery?
The return of your deposit largely depends on the dealership’s specific policy. Legal regulations don’t universally require dealers to refund deposits if you decide not to proceed with the purchase. However, reputable dealers should have a clear, written deposit policy. Always inquire about and carefully read the deposit policy before placing any money down on a used car. Understanding these terms upfront can prevent potential disputes and financial loss if you reconsider your purchase.
What Information is the Dealer Obligated to Disclose About a Used Car?
Transparency is key when purchasing a used vehicle. Dealers are generally required to provide a Used Car Buyer’s Guide (sometimes referred to as a window sticker or disclosure form) that details important information about the vehicle. This guide should include:
- Make, Model, and Year: Basic identification details of the car.
- Prior Use: Information about how the vehicle was previously used (e.g., personal use, rental car, police vehicle, taxi). This history can sometimes indicate the level of wear and tear the car may have experienced.
- Vehicle Acquisition: How the dealer obtained the car (e.g., trade-in, auction purchase). Knowing if a car was bought at an out-of-state auction can be relevant as it might indicate a less known history.
- Repossession History: If the car was ever repossessed.
- Major Mechanical Issues: Disclosure of any significant mechanical problems (engine, transmission, etc.), even if these issues have been repaired. This is critical for understanding the car’s past and potential future reliability.
- Prior Damage: Information about past damage from fire, flood, or collisions if the repair costs exceeded a certain threshold (e.g., $2,000). Significant damage history can affect the vehicle’s structural integrity and long-term value.
- Warranties Offered: Details of any warranties being offered by the dealer for the car.
Review this Buyer’s Guide thoroughly as it provides crucial insights into the vehicle’s history and condition.
Is a 30-Day Warranty Mandatory on Used Cars from Dealers?
No, there isn’t a universal legal requirement for dealers to provide a standard 30-day warranty on used cars. Warranty coverage on used vehicles is not uniformly mandated beyond basic state safety inspection warranties in some regions. Warranty terms, duration, and covered components are not legally standardized. Dealers often offer their own written warranties, which can vary significantly. Carefully examine any written warranty offered to understand its duration and what it covers for your specific used car. These details should be outlined in the express warranty section of the Used Vehicle Buyer’s Guide.
Do I Need to Buy a Service Contract if the Factory Warranty Still Has Time Remaining?
This decision depends on the specifics of the remaining factory warranty. A service contract (also known as an extended warranty) can offer coverage for repairs beyond the factory warranty period. However, it’s essential to compare the coverage of the service contract with the existing factory warranty. Ensure that the service contract provides additional or extended coverage and isn’t simply duplicating what is already covered by the manufacturer’s warranty. Service contracts typically become effective only after the factory warranty expires. Evaluate the time and mileage left on the factory warranty to decide if a service contract is a worthwhile investment for you.
What is a “Warranty of Inspectability”?
In many jurisdictions, used cars sold by dealers are required to have a valid safety inspection sticker issued within a recent timeframe (e.g., the last 60 days). This is often referred to as a “warranty of inspectability.” It signifies that the vehicle has undergone a safety inspection and, to the best of the inspector’s knowledge, met the minimum safety standards required to pass inspection on the day of sale.
When Can a Used Car Be Sold Without a Warranty of Inspectability?
A used car may be sold without a safety inspection sticker if it’s designated as an “Unsafe Motor Vehicle.” This designation is made by a licensed inspection mechanic who has inspected the vehicle and determined that it failed to meet safety standards. An “Unsafe Motor Vehicle” certificate will list the specific reasons for the inspection failure. If you are considering purchasing a vehicle with this designation, be aware that it cannot legally be test-driven on public roads, cannot be issued a temporary registration, and typically must be towed from the dealer’s premises. Purchasing such a vehicle often implies it is intended for parts, scrap, or extensive repair by the buyer.
What Does it Mean if the Buyer’s Guide Mentions “Repaired,” “Salvage,” “Rebuilt Salvage,” or “Rebuilt” Title?
These designations indicate that the vehicle has, at some point, been declared a total loss by an insurance company, often due to damage from an accident, flood, or other incident, and has subsequently been repaired. A “salvage” title signifies the vehicle was deemed uneconomical to repair, while “rebuilt” or “repaired” suggests it has been restored to a roadworthy condition. Vehicles with these titles can have a reduced market value and may be more challenging to insure and finance. Consult with your insurance agent and lender before considering purchasing a car with a salvage or rebuilt title to ensure you can obtain appropriate coverage and financing.
What is “Unibody Damage” as Mentioned in the Buyer’s Guide?
“Unibody” refers to a type of vehicle construction where the body and frame are integrated into a single structure, unlike older body-on-frame designs. “Unibody damage” often suggests significant structural damage, commonly resulting from a major collision that could have led to the vehicle being declared a total loss. If a Buyer’s Guide indicates unibody damage, it’s highly recommended to have the car thoroughly inspected by your own trusted mechanic to assess the extent and quality of the repairs. Furthermore, discuss this designation with your insurance agent and lender as it may impact insurability and financing options.
Can I Obtain the Previous Owner’s Information?
Yes, in many cases, you have the right to request the name and address of the last registered owner of the used car from the dealer. Dealers are generally obligated to provide this information upon request, and this disclosure does not typically violate privacy laws. This information can sometimes be helpful in understanding the vehicle’s history, although direct contact with the previous owner might not always be possible or informative.
Why is a Vehicle “Title” Important?
A vehicle title is a legal document that proves ownership of a vehicle. It’s a crucial piece of paperwork in any car transaction. The title confirms that the seller legally owns the vehicle and has the right to transfer ownership to you. The dealer must possess the title to the car they are selling, and you have the right to examine it before purchase.
What Should I Check on the Vehicle Title?
When reviewing a vehicle title, pay attention to the following:
- Mileage: Verify if the mileage on the title matches the odometer reading in the car. Discrepancies can be a red flag.
- Title Brands/Notations: Look for any brands or notations such as “salvage,” “rebuilt,” “flood damage,” or other indicators of the vehicle’s history. These brands can significantly impact the car’s value and insurability.
- Liens: Check for any liens listed on the title. A lien indicates that a lender (bank, financial institution, etc.) has a financial claim on the vehicle, often because of an outstanding loan taken out by a previous owner. Ensure that any liens are properly released before you purchase the car. A lien release confirms that the debt has been settled, and the lender no longer has a claim on the vehicle.
Is it Legal to Reduce the Sales Price on the Contract to Lower Sales Tax?
No, it is illegal and fraudulent to falsify the sales price on a sales contract to evade sales tax. Both the buyer and the dealer could face legal penalties, including criminal charges, for making false statements on sales tax forms. Sales tax should be calculated and paid based on the actual agreed-upon selling price of the vehicle.
Are There Limits on “Documentation Fees” Dealers Can Charge?
Regulations on documentation fees (also known as doc fees or processing fees) vary by jurisdiction. In some areas, there may be no legal limit on the amount dealers can charge for documentation fees. However, dealers are generally required to disclose these fees clearly, often posting them on the vehicle or in the dealership. Additionally, sales tax is typically applicable to documentation fees, meaning you’ll pay sales tax on the total amount, including these fees.
Does the “Lemon Law” Apply to Used Cars?
Generally, “Lemon Laws” primarily apply to new vehicles, protecting buyers from vehicles with recurring, unfixable defects that substantially impair their use, value, or safety. Lemon laws typically have very limited or no applicability to used cars. In some rare cases, a used car might fall under lemon law protection if significant defects arise very soon after the original new car sale (within a specific timeframe or mileage from the original delivery date). If you believe your used car might qualify under a lemon law, you should consult with consumer protection agencies or legal professionals to explore your specific situation and rights.
What Are “Program Cars”?
“Program Cars” are typically late-model used vehicles, often formerly used as daily rentals or in corporate fleets. They are generally no more than a couple of years old and often come with the remainder of the original factory warranty. A factory warranty is provided by the car manufacturer and covers repairs for specific parts and defects for a set period or mileage. Program cars can be an attractive option as they offer relatively recent models with lower mileage and some remaining warranty coverage.
By understanding these key aspects of buying a used car, you can approach the process with greater confidence and make informed decisions, leading to a successful and satisfying purchase.
