Buying a Used Car From a Dealer: What You Should Know
Buying a used vehicle is a major financial decision, and doing a little research before you visit a dealership can help you make a more informed purchase. The Federal Trade Commission (FTC) recommends that shoppers consider the vehicle's condition, history, total ownership costs, financing terms, and warranty coverage before signing a sales contract.
Do Your Research First
Before shopping, consider what type of vehicle fits your needs and budget. Remember that the cost of owning a vehicle includes more than the purchase price — you'll also need to account for insurance, registration, fuel, maintenance, and potential repairs. Research the vehicle's mileage, available options, safety information, maintenance and repair history, and typical ownership costs. The FTC also recommends requesting an out-the-door price in writing so you can understand the actual cost of the vehicle and identify any additional fees or optional products.
Understand the Buyer's Guide
Federal law requires dealers to display a Buyer's Guide on used vehicles offered for sale. The guide provides important information about whether the vehicle is being sold "As Is" or with a warranty, identifies certain major mechanical and electrical systems, and reminds buyers to get important promises in writing. Before purchasing, take the time to read the Buyer's Guide and make sure you understand what coverage, if any, comes with the vehicle.
Consider a Vehicle History Report and Inspection
A vehicle history report can provide useful information about a vehicle's past, including reported accidents and other history. However, a history report isn't a substitute for a mechanical inspection. The FTC recommends having a used vehicle independently inspected by a qualified mechanic before purchasing when possible. An independent inspection can identify mechanical issues that may not appear on a vehicle history report.
Know What You're Paying For
Dealerships may offer optional products and services, such as GAP coverage, VIN etching, or other protection products. These products aren't necessarily required to purchase the vehicle. If you choose an optional product, make sure you understand what it costs, what it covers, and whether it is right for your situation. The FTC recommends getting the details in writing before agreeing to additional products or services.
Understand Your Financing
If you're financing your vehicle, don't look only at the monthly payment. The FTC recommends reviewing the:
A lower monthly payment can sometimes mean a longer loan term or greater overall financing cost. Understanding the total cost of the vehicle with financing can help you make a better-informed decision.
Ask About Return Policies and Warranties
Before signing, ask whether the dealership offers a return or cancellation policy and make sure you understand the terms in writing. Federal law does not automatically give consumers three days to return a vehicle after purchasing it from a dealer. You should also understand whether the vehicle is being sold as-is, with a limited warranty, with a manufacturer's remaining warranty, or with another type of service contract.
A Few Minutes of Research Can Save You a Lot of Trouble
The best way to approach a used-car purchase is to ask questions, read your paperwork carefully, understand the vehicle's condition and history, and make sure you know exactly what you're agreeing to before you sign. At Azalea Motors, we encourage our customers to ask questions and understand their purchase and financing terms before driving away in their vehicle.
?? Official Resource
For the FTC's complete guide to purchasing a used vehicle from a dealership, visit: Buying a Used Car From a Dealer — Federal Trade Commission
This article is intended for general educational purposes. For the most current consumer-protection requirements and legal guidance, please refer to the Federal Trade Commission and applicable South Carolina laws.
Source: Federal Trade Commission
