The best magazine
The common logic is that buying a car that has already suffered much of it's value depreciation is a smart move. A buyer purportedly gets more for his money.
However, there are considerably more risks in buying used cars than in a buying a brand new car from a licensed new-car dealer, selling cars that have never been driven, and backed by manufacturers' warranties, not to mention the protection of state Lemon Laws and other consumer protection policies.
So what are the risks?
1. Scams are now commonplace on car buying/selling web sites such as Craigslist. Fake sellers offer cars that don't exist and take your money by promising non-existent "eBay payment protection" to make you feel better about sending money before receiving the car.
2. Buying cars long-distance on web sites such as eBay and AutoTrader create risk because you can't see the car, you can't test-drive it, and you can't inspect it.
3. Buying a used car is nearly always an "as-is" sale which means no warranties and no guarantees.
4. State lemon laws do not protect used cars -- only new cars purchased at a franchised dealer.
5. Used cars are often sold to naive buyers without titles. A title is the only legal proof of ownership. If a buyer doesn't have a title, with his name on it, then the car could be stolen or not belong to the seller.
6. Used cars can be salvage vehicle. That is, the car has been wrecked, declared a total loss by an insurance company, and then repaired and resold. Many states require such cars be sold with a "salvage" title, but other states do not.
7. Used cars are often sold after being wrecked and repaired. The repairs are often made as cheaply as possible with junkyard parts, sloppy work, and sub-standard paint. Frames ae often bent. The value of a wrecked and repaired car is always less.
8. Used cars can have hidden problems known to the seller, but not disclosed. Although generally considered illegal, it is difficult to prove when the damage existed (before or after the sale) and whether the seller knew about it.
9. Used cars can have hidden problems not known to the seller. Sellers often are not aware of serious problems lurking under the hood of a car and honestly declare that the car has no problems.
10. Safety equipment on used cars can be disabled, or otherwise non-functional. If the car has been previously wrecked, it's possible that the expensive air bags were never replaced.
What to do?
Always take caution when buying a used car -- caution you wouldn't need to take if buying a brand new car from a dealer. Make sure you get your car inspected by a mechanic before the sale. Test-drive the car on city streets and highways at all speeds. Look over the car for signs of water damage, leaks, excessive wear, and accident repairs. Get maintenance records if possible. Get a Carfax or AutoCheck vehicle history report. Although most sellers are honest, you should not make assumptions.
Source: ...