Before starting your Used Car Sales search, you’ll need to do some homework. Spending time now may save you serious money later. Think about your driving habits, your needs, and your budget. You can learn about car models (like this bentley continental) on the internet.

When financing a used car make sure you understand the following aspects of the loan agreement before you sign any documents:

  • The exact price you’re paying for the vehicle
  • The amount you’re financing
  • The finance charge (the dollar amount the credit will cost you)
  • The APR (Annual Percentage Rate)
  • The number and amount of payments
  • The total sales price (the sum of the monthly payments plus the down payment)

Some dealers are attracting customers with “no-haggle prices,” “factory certified” used cars, and better warranties. Consider the dealer’s reputation when you evaluate these ads.

Dealers are not required by law to give used car buyers a three-day right to cancel. The right to return the car in a few days for a refund exists only if the dealer grants this privilege to buyers.

Dealers may describe the right to cancel as a “cooling-off” period, a money-back guarantee, or a “no questions asked” return policy. Before you purchase from a dealer, ask about the dealer’s return policy, get it in writing and read it carefully.

The Federal Trade Commission’s (FTC) Used Car Rule requires dealers to post a Buyers Guide in every used car they offer for sale. This includes light-duty vans, light-duty trucks, demonstrators, and program cars. Demonstrators are new cars that have not been owned, leased, or used as rentals, but have been driven by dealer staff.

Program cars are low-mileage, current-model-year vehicles returned from short-term leases or rentals. Buyers Guides do not have to be posted on motorcycles and most recreational vehicles. Anyone who sells less than six cars a year doesn’t have to post a Buyers Guide.

The Buyers Guide must tell you:
whether the vehicle is being sold “as is” or with a warranty;
what percentage of the repair costs a dealer will pay under the warranty;
that spoken promises are difficult to enforce;
to get all promises in writing;
to keep the Buyers Guide for reference after the sale;
the major mechanical and electrical systems on the car, including some of the major problems you should look out for; and
to ask to have the car inspected by an independent mechanic before you buy.

When you buy a used car from a dealer, get the original Buyers Guide that was posted in the vehicle, or a copy. The Guide must reflect any negotiated changes in warranty coverage. It also becomes part of your sales contract and overrides any contrary provisions. For example, if the Buyers Guide says the car comes with a warranty and the contract says the car is sold “as is,” the dealer must give you the warranty described in the Guide.

As Is – No Warranty
When the dealer offers a vehicle “as is,” the box next to the “As Is – No Warranty” disclosure on the Buyers Guide must be checked. If the box is checked but the dealer promises to repair the vehicle or cancel the sale if you’re not satisfied, make sure the promise is written on the Buyers Guide. Otherwise, you may have a hard time getting the dealer to make good on his word.

Some states, including Connecticut, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Rhode Island, Vermont, West Virginia and the District of Columbia, don’t allow “as is” sales for many used vehicles.

Implied Used Car Warranties
State laws hold dealers responsible if cars they sell don’t meet reasonable quality standards. These obligations are called implied warranties – unspoken, unwritten promises from the seller to the buyer. However, dealers in most states can use the words “as is” or “with all faults” in a written notice to buyers to eliminate implied warranties. There is no specified time period for implied warranties.

Warranty of Merchantability
Breakdowns and other problems after the sale don’t prove the seller breached the warranty of merchantability. A breach occurs only if the buyer can prove that a defect existed at the time of sale. A problem that occurs after the sale may be the result of a defect that existed at the time of sale or not. As a result, a dealer’s liability is judged case-by-case.

A warranty of fitness for a particular purpose applies when you buy a vehicle based on the dealer’s advice that it is suitable for a particular use. For example, a dealer who suggests you buy a specific vehicle for hauling a trailer in effect is promising that the vehicle will be suitable for that purpose.

If you have a written warranty that doesn’t cover your problems, you still may have coverage through implied warranties. That’s because when a dealer sells a vehicle with a written warranty or service contract, implied warranties are included automatically. The dealer can’t delete this protection. Any limit on an implied warranty’s time must be included on the written warranty.

Dealers who offer a written warranty must complete the warranty section of the Buyers Guide. Because terms and conditions vary, it may be useful to compare and negotiate coverage.

A full or limited warranty doesn’t have to cover the entire vehicle. The dealer may specify that only certain systems are covered. Some parts or systems may be covered by a full warranty; others by a limited warranty.

The dealer must include the following information in the “Warranty” section:

  • the percentage of the repair cost that the dealer will pay. For example, “the dealer will pay 100 percent of the labor and 100 percent of the parts
  • the specific parts and systems – such as the frame, body, or brake system – that are covered by the warranty. The back of the Buyers Guide lists the major systems where problems may occur
  • the warranty term for each covered system. For example, “30 days or 1,000 miles, whichever comes first”
  • whether there’s a deductible and, if so, how much

You have the right to see a copy of the dealer’s warranty before you buy. Review it carefully to determine what is covered. The warranty gives detailed information, such as how to get repairs for a covered system or part. It also tells who is legally responsible for fulfilling the terms of the warranty.

Make sure you receive a copy of the dealer’s warranty document if you buy a car that is offered with a warranty.

Unexpired Manufacturer’s Warranties
If the manufacturer’s warranty still is in effect, the dealer may include it in the “systems covered/duration” section of the Buyers Guide. To make sure you can take advantage of the coverage, ask the dealer for the car’s warranty documents.

Verify the information (what’s covered, expiration date/miles, necessary paperwork) by calling the manufacturer’s zone office. Make sure you have the Vehicle Identification Number (VIN) when you call.

Used Car Service Contracts
Like a warranty, a service contract provides repair and/or maintenance for a specific period. But warranties are included in the price of a product, while service contracts cost extra and are sold separately. To decide if you need a service contract, consider whether:

You can determine the value of a service contract by figuring whether the cost of repairs is likely to exceed the price of the contract. For example, “bumper to bumper” coverage may not mean what you think. Check if a deductible is required and, if so, the amount and terms and if the contract covers incidental expenses, such as towing and rental car charges while your car is being serviced.

Used Car Sales Promises
The Buyers Guide cautions you against spoken promises. They are difficult to enforce because there may not be any way for a court to determine with any confidence what was said. Get all promises written into the Guide.

Pre-Purchase Used Car Inspection
It’s best to have any used car inspected by an independent mechanic before you buy it. For about $100 or less, you’ll get a general indication of the mechanical condition of the vehicle. Look for facilities that display certifications like an Automotive Service Excellence (ASE) seal.

There are no standard operating procedures for pre-purchase inspections. Ask what the inspection includes, how long it takes, and how much it costs. Get this information in writing.

If the dealer won’t let you take the car off the lot, perhaps because of insurance restrictions, ask the dealer to have the car inspected at a facility you designate. You will have to pay the inspection fee.

Once the vehicle has been inspected, ask the mechanic for a written report with a cost estimate for all necessary repairs. Be sure the report includes the vehicle’s make, model, and VIN. Make sure you understand every item. If you decide to make a purchase offer to the dealer after considering the inspection’s results, you can use the estimated repair costs to negotiate the price of the vehicle.

Vehicle Systems
The Buyers Guide lists an auto’s 14 major systems and some serious problems that may occur in each. This list may help you and your mechanic evaluate the mechanical condition of the vehicle. The list also may help you compare warranties offered on different cars or by different dealers.

Private Used Car Sales
Buying a car from a private party is very different from buying a car from a dealer. Private sellers generally are not covered by the Used Car Rule and don’t have to use the Buyers Guide. However, you can use the Guide’s list of an auto’s major systems as a shopping tool. You also can ask the seller if you can have the vehicle inspected by your mechanic.

Private used car sales usually are not covered by the “implied warranties” of state law. That means a private sale probably will be on an “as is” basis, unless your purchase agreement with the seller specifically states otherwise.

If you have a written contract, the seller must live up to the promises stated in the contract. The car also may be covered by a manufacturer’s warranty or a separately purchased service contract. However, warranties and service contracts may not be transferable, and other limits or costs may apply.

Many states do not require individuals to ensure that their vehicles will pass state inspection or carry a minimum warranty before they offer them for sale.

Buying a Used Car
Whether you buy a used car from a dealer, a co-worker, or a neighbor, follow these tips to learn as much as you can about the car:

  • Examine the car yourself using an inspection checklist.
  • Test drive the car under varied road conditions – on hills, highways, and in stop-and-go traffic.
  • Ask for the car’s maintenance record.
  • Talk to the previous owner, especially if the present owner is unfamiliar with the car’s history.
  • Have the car inspected by a mechanic you hire.

Used Car Sales and “Lemon Laws”

  • If you have a problem that you think is covered by a warranty or service contract, follow the instructions to get service. If a dispute arises, there are several steps you can take:
  • Try to work it out with the dealer. Talk with the salesperson or, if necessary, the owner of the dealership. Many problems can be resolved at this level. However, if you believe you’re entitled to service, but the dealer disagrees, you can take other steps.
  • If your warranty is backed by a car manufacturer, contact the local representative of the manufacturer. The local or zone representative is authorized to adjust and decide about warranty service and repairs to satisfy customers. Some manufacturers also are willing to repair certain problems in specific models for free, even if the manufacturer’s warranty does not cover the problem.
  • Ask the manufacturer’s zone representative or the service department of a franchised dealership that sells your car model whether there is such a policy.
  • Contact your local Better Business Bureau, state Attorney General, or the Department of Motor Vehicles. You also might consider using a dispute resolution organization to arbitrate your disagreement if you and the dealer are willing. Under the terms of many warranties, this may be a required first step before you can sue the dealer or manufacturer.
  • Check your warranty to see if this is the case. If you bought your car from a franchised dealer, you may be able to seek mediation through the Automotive Consumer Action Program (AUTOCAP), a dispute resolution program coordinated nationally by the National Automobile Dealers Association and sponsored through state and local dealer associations in many cities.
  • Check with the dealer association in your area to see if they operate a mediation program.
  • If none of these steps is successful, small claims court is an option. Here, you can resolve disputes involving small amounts of money, often without an attorney. The clerk of your local small claims court can tell you how to file a suit and what the dollar limit is in your state.

The Magnuson-Moss Warranty Act also may be helpful. Under this federal law, you can sue based on breach of express warranties, implied warranties, or a service contract. If successful, consumers can recover reasonable attorneys’ fees and other court costs. A lawyer can advise you if this law applies.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Used Car Odometer Fraud is the illegal practice of rolling back odometers to make it appear that vehicles have lower mileage than they actually do so that the seller can obtain an artificially high price.

Any vehicle sold on the used car market could potentially have had the odometer rolled back, however the highest incidents usually occur among late model vehicles that have accumulated high mileage in a short period of time.

Vehicles that typically fall into this category are those that are privately sold but were originally leased vehicles, rental cars and business company fleets.

How can you tell if the odometer has been altered? Here are a few suggestions to help you recognize a potential odometer rollback:

  • Check the condition of the car. Is it consistent with the mileage shown?
  • Check the following high wear points on the vehicle:
  • Does the vehicle show high level wear on the brake pedal?
  • Does the brake pedal look brand new, suggesting that the seller is covering up high wear areas of the vehicle?
  • Do any of the following seem to be more worn out than the mileage suggests?
  • Carpets, Seats, Steering wheel, Seat belts (are they frayed at the edges?)
  • Are there any marks on the odometer, or are the numbers misaligned?
  • Check the mileage entered on oil change stickers, inspection stickers, tire warranties or repair invoices.
  • Check the AirCare website for vehicles in the lower mainland — the inspection data shows a record of the vehicle mileage.
  • When looking to purchase a car, take note of the condition of other vehicles that appear to have consistent mileage with the age of the vehicle in question. Where possible, take photos, then make a comparison.
  • When test driving, look at the odometer to see if the digits are moving or mileage has changed. The speedometer and odometer should be working together.

Generally, sources of repossessed used cars are banks as well as police impounds and 3rd party agents who engage in the job of repossessing and storing these vehicles. These companies will then organize auctions and sales in a bid to sell the vehicles as soon as they can to minimize cost.

The repossessed used cars business is a very lucrative market for car dealers which is the reason why many of these sales are not made known to the public. They are mostly attended by 2nd hand car dealers who will obtain the cars at dirt cheap prices and later re-sell them at a price that people pay in the open market for used vehicle.

The easiest and fastest way by far to locate these sales and auctions is from the internet. There are online databases dedicated to providing updated and accurate information relating to repossessed used cars sales. By using them, you can locate the sales nearest to your locale. Sometimes, you might even be able to see the models available. The database includes listing of cars, trucks, SUVs and so on.

Apart from getting help from an experienced mechanic, you can also request a vehicle history report and find out if it has been through any accidents.

Repo cars are usually a good buy as they are sold at substantially lower prices compared to actual market rates. Repossessed cars might fit the bill if you are looking to save money.

Every financial institution seems to be offering plenty of repossessed cars in the present economic downturn, and should be able to recommend reliable vehicles.

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