Buying A Used Car: Pre Purchase Inspection Guide

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Inspecting the car will help you determine the existing condition as well as highlight potential issues that could arise in the future. By finding out what’s happening underneath, you’ll either feel more confident that you’re making a great investment or you’ll discover that there are hidden flaws that could give you more leverage for negotiations.

Here are a few things that you should check before you seal the deal.

 

Check the documents

Check The Documents

Get the papers from the seller. Make sure that the specifications corresponds with what they got on paper. Take note of the VIN. Make sure that it also matches. The VIN will be on the engine, on the front end of the frame, the driver’s side of the interior dash and the trunk.

This will help you make sure that you’re not buying a glued on vehicle. This will also help you determine if the seller is the type that you’d rather not deal with. You will know by his willingness to entertain scrutiny and interrogation.

 

Check for dents and scratches

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Check for awkward dents to make sure that it was not wrecked. Sometimes wrecked vehicles will still have those after it’s been done over. It will still leave small indicators like that. So make sure that you watch out for those.

Look for scratches and dings. It should tell you how the car was used. You can also use it to to knock down the price a bit. Check the inside seams, make sure that they’re all still factory looking. If the alignment does not look right be sure to ask why.

Check the body lines make sure that they’re even. Uneven body gaps will allow water to penetrate and will corrode the inside. It is also your indicator that it has been through the shop for a major body work.

 

Check the tires

 BeFunky_Tirecheckup.jpgTires can tell alot about the car. Make sure that they match, if not ask why. They have played around with it for a reason.

Check the wear on the tires, make sure the depths of the thread are still good, not enough depth means you will have to replace it soon half a finger nail will last a while.

Make sure that the steel radio belt is not sticking out. A wear like this is an indicator that there’s a problem with it’s suspension.

Tires have  4 digit codes:

  • eg1. “1206” – means that it was manufactured on the 12th week of 2006 –
  • eg2.”0114″ – it means first week of 2014.

If you find a car with brand new tires that means that there’s a problem that they’re trying to hide. Also make sure that there’s a roadworthy spare tire.

 

Check the mileage

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Odometers are often rolled back so the seller can make more money. Cars with low mileage are priced higher. Ommit 35000-40000 miles and it will artificially inflates the value to about $2500 to $3000.

Here are a few tips to determine if the odometer has been tampered.

  • Compare the mileage on display and the average mileage a year.
  • Check the wear and tear, make sure that it’s appropriate to the declared mileage.
  • Check the title, the service records or get the vehicle history report to compare the recorded mileage and the displayed mileage.
  • Check the car’s tires. If it shows 20000 mi or less it should have the original tires.
  • Check number alignment. Make sure that it should not be crooked, contain gaps or jiggle.

 

Check the fluids

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Checking the fluids will help you determine if the car was properly maintained. It will help you know potential issues that may arise in the future.

  • Look at the engine oil fluid using a dipstick and a piece of cloth.  Brown/yellow tinted is an indication that it was well maintained.
  • Check the brake fluid . Yellow tint is good. Condensation may turn it reddish  it ‘s still fine.
  • Check the coolant fluid. Look into the pressurized reservoir. Lime green color for a properly maintained car.
  • Transmission fluid. It is reddish for properly maintained cars. If there are creamy residue floating, that means there’s an issue.
  • Check the power steering fluid. It is red or clear if it was properly maintained. Any color aside from this means there’s an issue.
  • Check the battery. Corrosion around the battery can cause problems specially during winter. Make sure that the hose and belt ar still firm. Make sure that it is not worn and brittle. Feel them so you can gauge if it will last long or may give out soon and start leaking.

 

Check the engine

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Check engine for leaks. Look under the vehicle and see if you find any.

Look at the check engine light make sure that it will not stay on when you start the vehicle. If it stays on that means that the engine has a problem.

Perform an initial engine test.

  • Step on the accelarator and the break at the same time.
  • Set it to drive and step on the gas all the way down while holding down the break.
  • A well maintained engine will not die. When it does, that means that the engine has issues.

Check the interior

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Make sure that you check all the buttons. Make sure that each is functioning right.

  • Check the windows, the door locks, air conditioning and the sound system.
  • Check the buttons that control the side mirrors, signal lights, wiper blades and the cruise control button.

Remove the back seat and check out the foam below for water lines and molds to see if it was flooded. Most shops will do a good job removing the waterlines outside but leaving marks on the inside.

If you notice anything that’s not functioning right, bring it to the seller’s attention have them fix it or use it to reduce the price.

 

Check the electrical ciruit

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You may inspect the wiring physically if you are familiar with the path to how it was laid out or if you have a diagram on hand. You do that to check the obvious like missing and worn out wires.

Second, you should check if it is flowing properly. This is done by performing a grounding test using a multimeter or volt meter.You can bring a volt meter when you meet the seller, if you are going to a dealership they should readily have it there and you can just borrow it for the quick test

How to perform a quick grounding test:

  • Place the test lead to the battery, make sure negative is place to the negative pole and positive to positive.
  • Take note of the result.
  • Then remove the negative test lead and test the engine. Take note of the result. If it shows the same numbers then you do not have an issue.
  • You have to do it again this time the engine should be turned on.
  • Do the test while the engine is running. Make sure that you get the same result or close.
  • A difference of .4 of a volt or more is an indication of a grounding issue.

 These are the things that will help you check for problems during your visit for inspection. Make sure that you go through it very carefully to determine if the car is worth the price or not. 

Tips For Buying A Used Car Online

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Buying a used car online is an option for people who does not have the time to go car lot hopping and an alternative for those who got tired of dealing with the traditional salesman.

Some find it more convenient since you can easily narrow your search down according to your targeted model and allotted budget while others are hesitant to go this route since they are afraid of the risks involved.

Buying a car online can work for you. Below are some of the things that you should check  out to be successful in getting this task done.

 

Set Your Limit

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Set the amount that you are willing to spend. Make sure that it is within your range.

  • Consider the type of car that you need, your income and your financial accountabilities. Once you have established your limit, it will be easier for you to filter through online shops and auction sites.
  • It will help you stay grounded and keep you from buying on impulse. It will reduce the risk of straining your family’s budget and help you focus in getting the right one that will suit your daily needs.

 

Do Your Research

Research

There are lots of rumors and horror stories about buying a used car online. Most of the time they’re from people who have had bad experiences because they were not able to take the time to educate themselves.

  • You should create a list of trusted used car listing and auction sites. Check out online forums for reviews. Keep your list, you will need it to compare prices. Find out how much control they have over the transaction. Find out if they have buyer protection and learn about how much you are covered when you buy from their website. Check for common problems like scams and buyer complaints. Use it to weigh where you feel the safest.
  • When you find a car that catches your attention. Check out the car’s history. Get a vehicle history report. You can use it as a reference to check for potential problems. Check the seller’s history. Use the internet to locate their shop and look for reviews to learn about their reputation. If they’re a private seller get to know them more. Be polite and establish good rapport. It will work to your advantage, private seller’s are more likely to entertain haggling if they are comfortable with the person that they’re dealing with.
  • Create a list of the documents involved. Learn about the documents that you should see before and after purchasing the car. Get in touch with an expert if you do not understand something. Do not hesitate to ask the seller to provide you the car’s paperworks. Make sure that they’re legit . You can check out this blog to find out more about the relevant documents: Buying A Used Car: The Relevant Documents.

Take time to educate yourself and learn the process. It will help you feel confident and it will help you making the correct decision.

 

Inspect The Car

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One disadvantage of finding a car online is that you will not get to see it immediately you will rely on pictures and the description that’s being presented by the seller.

  • I strongly suggest that you find time to meet the seller and inspect the vehicle. However if it is not possible there are other ways for you to be able to get the feel and experience of being able to check it firsthand.
  • You can find lots of information about the car online, check the manufacturer’s page, download the manual and check forums for user’s feedback. Jot down the car’s strengths and common issues.
  • If the seller is in a faraway state, hire a mechanic who can come and inspect it for you. There are lots of websites who offer this service nowadays. They will send you the result and make sure that you carefully review everything before committing to buy. Go over the mechanic’s feedback and ask questions if you find anything that you are not clear with.

 

Completing The Transaction

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One advantage of buying online is that the prices are already bottomed down. Sellers do that to attract more buyers. It means less time is spent haggling so you are likely to close a deal faster than the traditional way.

  • There are several ways to pay for your purchased vehicle. The seller may include his preferred terms on the listing and some auction sites also have their own payment processing solution. You will also find auto financing sites that can provide immediate approval. However it will still depend on where you feel most comfortable.
  • The seller may ask for a certain amount to serve as your initial deposit and then he will provide a deadline for the rest of the payment. Make sure that you understand his terms since most sellers do not return down payments in case their customer decides to back out of the transaction.
  • Make sure that you keep a copy of the receipt of all the payments that you have already made. Those will be your proof that you have already done your part of the deal.

Transporting The Car

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One of the things that most people are worried about is how the car gets delivered. They are worried about the safety of the vehicle and sometimes it is one of the factors that can be most stressful.

Deciding what car transport to use is a matter of your time line, budget and concern over your vehicle being exposed to the elements. Here are the common types of transport method available in the market right now.

  • Truck auto transport is a direct and quick way to ship your car. You have probably seen auto transport trucks on the highway carrying loads of new and used cars. Tractor-trailer car haulers typically transport up to 9-10 vehicles at a time, depending on the vehicle size and types.

  • Enclosed Auto Transport where the cars are being transported in a fully enclosed trailer with either flexible or solid sides, roof and doors. This is the most expensive type of auto transport because fewer cars can be loaded at one time but you are guaranteed that it will be kept safe from being exposed.

  • Open Auto Transport cars are transported on a truck that is open to the elements.

  • Rail transport picks up the vehicle at the origin location and brings it to the appropriate rail terminal, where the vehicle is loaded onto fully enclosed rail equipment. Then you can pick it up on the designated drop off station.

  • Make sure that you are fully covered and also secure a copy of all the paper works. Transporting a car nowadays is ten times better than it was in the past because of modern equipment, online tracking tools and better safety regulations. As a result, cars that are bought online are delivered smoothly and in a timely manner.

    Buying a car online has grown to be the popular choice of many over the past few years. There were successful transactions and there were bad ones. Plan everything carefully and back it up with research.

Tips For Selling A Privately Owned Car

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The time will come when you will want to sell your car.  You can be starting a family and require a new vehicle with more room or just want to treat yourself to a brand new model with modern up to date features. For whatever reason, selling the car yourself is the best way to make the most money out of it. The following are practical tips on how to sell your car.

 

Clean Your Car

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The appearance of your car will help sell it. You will attract more buyers when it is clean and shiny. Start by knocking dust and mud off with running water and a dependable detergent. Start from the shell, go under the hood and down to the tires.

Vacuum the seats and the floor mats. Make sure that you replace the air freshener to get rid of any unpleasant smell that may turn off potential buyers when they come to inspect it. After that, polish and wax the car to have that showroom shine.

A clean car is a reflection of how well the car was treated. It will help you sell it fast at your desired price.

 

Price It Right

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Picking the right asking price is very important. It will determine if you will get multiple inquiries or none at all. If you price it too high potential buyers will be turned off. If it is too low, they may get suspicious.

You can find some helpful pricing structure from the Internet. You can visit reliable sites such as Yahoo! Autos or Kelley Blue Book for the correct market value. Check the classifieds to know how similar cars are priced.

Consider the car’s condition, mileage, cosmetics and upgrades if there are any. It is wise to determine the amount that you are willing to accept to close the deal so you can have your asking price a little bit above that to save some room for haggling.

 

Advertise The Car

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Create a banner and put on the windshield then, on the other windows, write the basic details about the car, like the asking price, mileage, year and model. Include your mobile number in a large print size so that the people who pass by the car won’t miss it.

Use the internet. Utilize social networking sites. Take plenty of pictures and create an advertisement on your wall. It will allow you to spread the news not only to your friends and relatives but to their network as well.

Create a listing on classified advertising sites like eBay Motors, Auto Trader, Kelly Blue Book and also Craigslist. Be honest and detailed with your description. Include photos of spots that has dents or scratches. Though most of these sites charge for advertising, it’s worth it for the number of buyers you can reach.

Let us not forget about the local magazines and newspapers. They have special sections for used car advertising. It may not be as visible as the other options but it is low-cost and most of the time those who look at those sections are the people who are really in the hunt to buy a car.

 

Meet With Potential Buyers

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Before setting an appointment to show your car, it is important that you screen your potential buyers. This is to avoid wasting your time on someone who is not really interested in buying or on someone who you’d rather not deal with. It is also a precaution to keep you safe from those who have bad intentions. You should ask for the person’s full name and be willing to answer all their questions. Tell them your preferred payment method and set your conditions clearly.

 

Meet in a public place and do not come alone. Bring all the documents and papers. Expect that they will inspect that before they physically inspect the car.

 

Make sure that you check his driver’s license before the test drive and make sure that he agrees with your time limit before driving. Ride along with him and use it as an opportunity to talk about your car’s strengths. Be willing to share why you bought that particular car and why you’re selling it now.

 

Negotiate The Price

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After having the car inspected and tested by the potential buyer. They may still want to try their luck to get you to lower the down the price.

 

If your car have issues they may use it to have you bring down the price, tell them you already factored that into your price. Sometimes they will pretend that they do not like it for some reason then they would tell you that they were able talk to another seller who is offering the same car at a lower price. They will tell you that they would get yours if you can beat the other person’s price.

 

You should be ready for those scenarios, keep your cool and be polite in declining their request. Be firm with how much you’re willing to get and they will get the message. They’ll feel that you’re not desperate and the chances of closing the deal in your favor will more likely be accomplished.

 

Keep in mind that they have already invested a lot of time and gas in coming over to see it so even if you don’t lower your price, 90% of the time they will still buy it.

After receiving confirmation that the person would buy it. Gather all the relevant paperwork for your car and prepare the bill of sale, it’s the proof that the purchase has indeed taken place. Include receipts for work done on your car. It’ll show that you’ve attended to all problems and will avoid future disputes.

Scams To Avoid When Buying A Used Car

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Buying a new car should be a pleasant experience for both the customer and the seller. However, many used car purchasers fall prey to the scams of unscrupulous dealers.

This article will introduce you to some of the common tactics used by bad car dealers. Once you are already familiar with how they’re played, you will be able avoid it and save yourself from being scammed.

 

Multiple Buyers Bluff

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When a salesman notice that you are interested in one of his cars, he will tell you that there are multiple intrested parties who may come back to buy the car. He will do this to pressure you to buy the car on the spot. He will make you feel that if you do not take it now, somebody else will.

If you sense that the negotiation is headed this way, take it easy. Do not show that you are worried because you already know at the back of your head that it’s just a tactic. Take your time, do your research and make sure that you do a thorough inspection. He may be hiding something that’s why he’s rushing you to get it on the spot.

 

Title Washing

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Bad dealers hide the history of a vehicle that’s been salvaged. Salvage titles are assigned to cars that are deemed total loss by insurance companies. This is also referred to as “branding” a vehicle. Vehicles with branded titles have lower market value and difficult to sell. Title washing washes away the brand. Once the brand has been eliminated, the car’s value goes up and it’s a lot easier to sell.

Titles are washed by transfering a salvaged vehicle to a state that doesn’t recognize the brand. When the state issues a new title, it may no longer show that it had been salvaged. If not, the seller will move it from state to state until the branding is gone. When it is, the vehicle’s history will have been “washed” clean.

Make sure that you get the VIN and get a vehicle history report. This will help you check if the car has a clean title.

 

Fake Escrow Service Scam

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The target of this scam are online used car buyers. The scammer will use stolen images and post bogus vehicle listings online. The scammer will pretend to be the owner of the car being sold. The selling price is much lower than other listings for the same car, to lure you into contacting the seller.

The seller will refuse to meet up since he’s overseas and he can only do the transaction using the “fake escrow service”. After you register you will get a bogus email, telling you to deposit the payment through cash wiring services like Western Union, Moneygram etc.. After the payment has been sent, the seller will no longer respond and your hard earned money is gone.

Be careful when buying online. If the price is too good to be true do a background check. If you find the seller shady, walk away from the deal. Look for established sellers with sufficient feedback to back up their credibility.

 

Curbstoners

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Curbstoners are people who actively and regularly buy and sell vehicles without a license, proper permit or a legally established place of business and pretends to be private sellers in order to attract buyers.

You can easily become a victim of fraud involving issues like Odometer Tampering, Undisclosed Frame Damage or Salvage Rebuilt Vehicles, Faulty Safety Devices, Mechanics or Promissory Liens and other problems that may not be truthfully disclosed at the time of sale.

When a car is bought from him, he will leave the title blank or “open.” Without his name on the document to avoid paying Sales Tax, Federal Income Tax and any other declarations that are legally required.

You will find them along the highway and on free advertising sites, like Craigslist. Be sure to check the contact number, if it appears on various private-party listings. If it does, then you know that the seller is one of them. Verify the name on the Certificate of Ownership (title) matches the seller’s name. Avoid sellers who only accepts  cash and refuses checks or money orders.

 

Yoyo Financing

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In this situation, the dealer allows you to leave with the car before the financing have been finalized. You will later receive a call informing you that the deal cannot be made as agreed. So you would have to come back and they will pressure you to accept new, more expensive terms using a variety of tactics.

To avoid this, make sure that the financing is final before you leave with the car. Do not forget to ask for a copy of confirmation, signed by the lender.


These are some of the dirty tactics used by bad dealers. Make sure that you remember them when you go out there to begin your search. If you sense that the negotiation is headed towards any of these, then it’s time to walk away and find a better deal somewhere else.

The Basic Structure Of A Used Car Dealership

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When you are in the market for a used car, it is important that you know and understand the basic structure of a used car dealership. This will give you a heads up on what to expect once you’re there and an idea on how they will accommodate you on your visit.

Here I will enumerate the basic structure of a used car dealership and how they function. It will help out in your preparation so you’ll have the confidence in implementing your car buying strategy.

 

The Sales Force

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They are the front liners. They would assist you and facilitate the car sale. They will hand you the buyer’s guide for the car that you will be interested in. They’ll go over it with you and make sure that all your questions are answered.

Keep in mind that they are there to make sure that your time spent was worth it. So better use it to your advantage. Make sure that you have all the time that you need for inspection, do not be pressured. Ask as many questions as you can and do not hesitate to haggle.

 

The Management

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This team is composed of the head of each department. Most probably you will have a brief moment with one of them while inspecting a car. They are likely to approach you and the associate to check on the progress of the sale or to simply give you a warm welcome.

You will see them on their designated area working with their team. They are there to coach, mentor and train their members.They make sure that they are motivated and equipped to take on their assigned tasks.

They also make sure that business strategies are wisely implemented. Above all, they make sure that the firm’s operation is flowing accordingly.

 

The Accounting Department

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This department is responsible for recording and tracking sales, services and repair bills and all warranty claims.

The people behind this department are the machinery behind the sales team. They determine the amount of discount and price to be attached to each vehicle model. They work in very close coordination with all the other departments in the dealership.

 

The Service Department

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When the car that you bought fails to operate properly while under warranty, the dealership is under obligation to offer a refund or servicing.

Most used car dealerships have an in house servicing department that is responsible for all repairs and maintenance of vehicles. The guys and gals in this department have a sixth sense that can diagnose a car by listening to the roar of the engine.

 

Finance and Insurance department

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After you confirm your intention to purchase a vehicle, the sales person will take you to the F&I team. It is then the mandate of this department to figure out which loan or payment module best suit you.

I will encourage you to go through this carefully to make sure that terms that you will get is within your range. Analyze your monthly expenditures and be as honest as you can when disclosing other financial commitments so that you will be able to get the payment scheme that will work out well for you.

Most of the cars bought in the US are financed. Financing can come in a number of ways, one of which is loans. Loans are a preference of most new car owners because of their easy repayment, the department responsible for marketing car loans is the finance and insurance department (F&I).

Used car dealerships work in close coordination with banks, this ensures that they get lease or loan financing at lower rates. A dealership may get the financing from a partner bank at about 6% they would then offer the car buyer the same car financing at 8%, they will have a profit of 2% on the loan.

There are good dealers and bad dealers out there, so you should be careful when buying a car to ensure the overall package you are getting is fair for you.