5 Places Where You Should Never Buy a Used Car
As a general rule, used vehicles come with a lower price tag than new vehicles. Earlier this year, the average price of a used car was $26,510, a $633 reduction from the previous month. In contrast, the average cost of a new vehicle earlier this year was $48,275 and has remained fairly constant over these past months.
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Now, while things like high interest rates and the potential cost of maintenance or repairs can add to their overall cost, used vehicles are still an attractive choice for many people. That being said, it can be tricky to find a reputable place from which to purchase a vehicle. After all, there are many shady dealerships out there.
If you’re in the market for a used car, here are the top places you should steer clear of and why.
1. Side of the Road
So, you’re driving down the road and see a parked vehicle on the shoulder with a sign in the back saying it’s for sale and who to call. Sometimes, these vehicles look like they’re in good condition. Other times, they have clear problems like a broken-in windshield or a massive dent in the side.
Regardless of how the vehicle looks from the outside, or how good of a price it is, you might not want to call that number. After all, you don’t know the vehicle’s history or if it has other issues that will end up costing you hundreds or thousands of dollars later on.
“Finding a car advertised on the side of the road or an unverified online source are places to avoid,” said Brian Moody, executive editor at Kelley Blue Book (KBB).
And it’s not just determining the vehicle’s true cost or value that matters. It can also be incredibly difficult to verify the car’s owner. Depending on the circumstances, you might not even get a proper title to go with your purchase if you get that far in the process.
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2. Unknown or Poorly Rated Places
“Consumers should avoid any unfamiliar or unknown sources. Read online ratings and avoid poorly rated online or in-person stores,” Moody said.
Customer ratings can go a long way toward helping you make an informed decision about a specific used car location. Check the place out on sites like Edmunds.com or the Better Business Bureau (BBB) to see what other people are saying about them, their history of complaints, and possible scams or fees they charge. Alternatively, call your State Attorney General’s Office to get more information about the location’s history and credibility.
“Online reviews will tell you more about a dealership than anything else,” added Leland Jones, founder and CEO of Ceramic King Coatings Virginia. “You would want to avoid shops with a bad reputation for not just sales, but also service.”
3. Private Parties
Private dealerships or shops aren’t necessarily a bad place to shop for a used car, but you’ll want to do your due diligence before agreeing to anything.
“Both franchise dealerships, as well as private party sellers, can be a good source for finding a good used car,” Moody said. “There’s very little risk in buying a car from a franchise dealership or a large used car chain. Shopping for cars for sale from private sellers can be [riskier], but often the reward is a lower price.”
4. Overly Expensive Dealerships
It’s a good idea to compare prices of used vehicles on sites like Kelley Blue Book before heading out for a test drive. Say, for example, you want to purchase a 2015 Toyota Corolla. You can check out typical prices on KBB, as well as find actual vehicles matching the specifications for sale.
If you head to a place with used cars and find a vehicle you like, cross-reference it with KBB or another reputable site before making the purchase. If the in-person location has that vehicle but is selling it for several thousand dollars above market price, look elsewhere.
5. Dealerships Without Good Warranties
Many reputable dealerships offer a warranty on any used car purchase. This warranty might be brief, but it can still protect you from any unforeseen issues that come up shortly after driving the vehicle off the lot. Once the warranty expires, you can usually purchase a new one elsewhere.
“You want to avoid going to dealerships that do not offer great and affordable warranties on their vehicles,” Jones said.
Look for places that offer warranties. Compare several options rather than choosing the first one you see. Doing this could save you a lot of money on unexpected repairs or maintenance.
More Tips on Buying a Used Car
Here are just a few additional tips when it comes to deciding where to purchase your next used vehicle:
Use Autotrader’s Private Seller Exchange. This tool “can help remove some of the risk in buying or selling a used car as the shopping tool uses qualified, pre-screened buyers, and a way to safely exchange money,” Moody said.
Refer to KBB for more pricing information. “Kelley Blue Book Service Advisor gives you pricing information for repairs and maintenance in your area, and flags what services could cost you more down the road, helping you make the most informed decision for your budget,” Moody said.
Focus on quality service and care. Look for a place that has excellent customer service ratings — not just while buying the vehicle, but also after the deal is done. “When you deal with a reputable business, you will find that the purchasing process goes much more smoothly, you have more peace of mind, and you know that they will take care of you on the backend of the deal,” Jones said.
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This article originally appeared on GOBankingRates.com: 5 Places Where You Should Never Buy a Used Car
