Blog Post

The American used car market is currently thriving, having experienced a 4.7% growth this year, reaching an impressive total value of more than $160 billion. However, the robustness of the market does not automatically guarantee the quality of the used vehicle you may choose to purchase. With the vast selection available, the likelihood of encountering a vehicle with significant issues increases, making the selection process more challenging.

Prospective buyers, however, have several strategies at their disposal to significantly enhance their chances of securing a quality vehicle over a problematic one. It’s crucial to look beyond the surface appeal of a vehicle, considering various factors that go into making a wise purchase. This guide aims to illuminate the common pitfalls to avoid in the used car buying process. Furthermore, it underscores the importance of selecting the right auto transport carrier, especially when purchasing a used car from another state, as a critical step in ensuring a satisfactory transaction.

Navigating Auto Financing

Opting for a used car often stems from financial constraints, making it crucial to set a strict budget. It’s important to weigh your options between securing a loan through banks, credit unions, or dealership financing, as each comes with its unique set of advantages and disadvantages.

For instance, securing a loan from a bank where you’re already a customer might be more straightforward and cost-effective, especially if they consider you a reliable candidate. This familiarity can lead to more favorable interest rates. However, be cautious, as banks can sometimes offer rates significantly above the national average, turning what appears to be manageable monthly payments into a substantial financial strain over time.

Dealership financing can be a boon for individuals with a less-than-stellar credit history. Dealers often have a roster of lenders willing to accommodate financially risky borrowers, simplifying the process of purchasing a used car. Yet, it’s worth noting that interest rates through dealerships are generally high, as this is how they profit, and the risk of repossession is elevated if payments are missed.

Credit unions provide a more personalized approach, treating you as a member rather than merely a customer. They typically offer lower interest rates compared to larger financial institutions. However, the lack of insurance for some credit unions introduces an element of risk to financing through them. The key takeaways are to diligently use a car loan calculator and to explore various financing options.

Skipping the Test Drive

While it might appear to be a no-brainer, surprisingly, not all purchasers opt for a test drive. Often, they place too much trust, wish to remain polite, or simply feel rushed, overlooking potential vehicle issues indicative of more significant mechanical problems. It is crucial to personally assess the performance, acoustics, and even the odor of a pre-owned vehicle before making a purchase decision.

Overlooking the Importance of a Mechanic

While test drives can provide valuable insights, they seldom offer a complete assessment of a vehicle’s condition. Opting out of a professional mechanic’s inspection when purchasing a used car may appear to save money initially, but it’s a decision that often leads to more significant expenses down the line. Their expert evaluation can help you avoid costly repairs in the future. Thus, it’s crucial to seek a mechanic’s advice, especially if the dealership’s used car purchase package does not include an inspection service.

Purchasing a car from a private seller often comes with assurances of the vehicle’s good condition and responsible maintenance. However, astute sellers are aware that any mechanical issues discovered during an inspection could give buyers an advantage in negotiations. Gauge the seller’s willingness to allow an inspection by a mechanic. Their response should serve as a clear indicator of whether to proceed with the purchase.

Failing to be thorough with the documentation

Navigating the paperwork for a used car purchase can be daunting. Begin with verifying the vehicle’s title, which confirms the seller’s ownership and is crucial for registering the car in your name with the DMV. The title also uncovers potential red flags, such as previous damage, accident history, purchase records, existing liens, and odometer accuracy.

Buyers opting for financing might not gain full ownership until complete payment. It’s imperative not to take the seller’s claims at face value when investigating a car’s history. Additionally, look beyond the title for comprehensive insight. Always review the vehicle’s history report and any maintenance records the seller provides to ensure a well-informed purchase.

At times, a history report may be included, while at other times, it falls to the buyer to procure one. Affordable resources such as VinAudit, AutoCheck, CARFAX, and the NMVTIS offer comprehensive historical information. Utilize this data to verify the seller’s documents and narratives, helping you make an informed decision and avoid costly mistakes.

However, it’s crucial to recognize that history reports are not without their flaws. Some incidents might not appear in the records immediately, and that’s assuming they were reported by previous owners at all. Therefore, it’s advisable to rely on a combination of firsthand observations and assessments from qualified mechanics, along with the historical data, to guide your decision-making process.

Choosing not to employ an auto shipping service for long-distance purchases

When purchasing a car from out-of-state, buyers often rely solely on photos and videos, placing them at a notable disadvantage. This disadvantage is magnified if one opts against using auto transport services. While self-pickup may appear cost-effective, it often proves more problematic than anticipated.

A journey surpasses the long-distance threshold at just 50 miles, introducing numerous risks and expenses such as secondary transport to the seller’s location, fuel costs, tolls, potential on-road damage, and an increased risk of accidents. Additionally, driving a car in another state without being recognized as its current owner may breach local laws.

Opting for an auto carrier can shield both you and your newly acquired vehicle from unnecessary risks associated with out-of-state purchases. With three primary carrier options and two pickup methods available, each presenting its own set of advantages and drawbacks, careful consideration is crucial to enhancing your purchase experience and minimizing potential risks.

Consult with auto transportation experts for any inquiries

Safe Car Hauling connects you with carriers to provide the most affordable shipping services available. Our meticulously selected list of auto carriers awaits your review. For further details, please contact us.