Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0801
    +0.0008 (+0.08%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2637
    +0.0015 (+0.12%)
     
  • USD/JPY

    151.2050
    -0.1670 (-0.11%)
     
  • Bitcoin USD

    70,397.54
    -433.55 (-0.61%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

5 things to know before buying a used car this winter

Retail stores see a bump in sales at the end of the year, but it’s also a great time to snag a great deal on a used car. In fact, many experts suggest buying a used car in the winter because dealers often offer discounts in order to free up space for new inventory.

“If you’re buying from a dealership, there are pushes to sell as many cars as possible to finish off the year,” says Matt Jones, consumer advice writer for Edmunds.com, a car pricing resource. “If you’re buying from a private party, there is a strong possibility that some people are selling cars in the winter to get holiday money.”

For those toying with the idea of buying a used car this November or December, here are some things to think about before you sign on the dotted line.

1. Watch out for cars with damage from Hurricane Matthew

Hurricane Matthew blew through the US in October, causing massive flooding resulting in billions of dollars of damage in cities throughout the Southeast. During the storm, countless cars were damaged by floodwater, and according to car insurance company GEICO, consumers need to look out for these vehicles when buying a used car.

There are a few things you can do to protect yourself: First, look for obvious signs of damage, including standing water, water stains and signs of rust. It’s also important give a critical eye to cars that were recently reupholstered. This could be a sign of an owner trying to cover up underlying damage.

If you suspect water damage, it’s a good idea to have a professional mechanic inspect the car for any signs of concern. GEICO also suggests obtaining a detailed car history report from a source like Carfax, to look at past ownership and any previous maintenance water damages.

 In 2015, Japanese auto supplier Takata issued recalls for 34 million airbags.
In 2015, Japanese auto supplier Takata issued recalls for 34 million airbags.

2. Be aware of car recalls

A recent report from CBS4 in Denver found that a local dealership was selling used cars with recalled parts. During an undercover report, a customer was told that the dealership didn’t sell any cars with under recall. But CBS4 found that some of the cars had existing recalls when they researched the VIN numbers.

This local story sheds light on a much bigger issue facing used-car buyers. There is currently no federal requirement requiring owners to fix recalled items before selling a used car. This adds an added risk to buying one. For the most part, Jones suggests that a reputable dealership will not want to sell you a car with a serious recall because they want to avoid any chance of tarnishing their reputation. The same cannot be said for dealer auctions. “If a dealership can’t find the part or make the fix, many will send the car to a dealer auction so they don’t have that liability,” Jones says. Meaning, customers buying from an auction might unwillingly purchase a car with a defect.

When it comes to buying a car from a private party, many owners may not even be aware there there is a recall, and might unknowingly sell a car with a recalled part.

In the end, it’s up to consumers to protect their families. If you find a car you like, check the manufacturer’s website and look for up-to-date recall information. You can also get detailed information by searching the VIN number on Safercar.gov, or by checking out the “Car Recall” page on Carfax, which gives information about recalls for 43 different makes of cars. If you’re still unsure, go to the specific dealership’s service department and have them search their database for current recalls.

3. Observe the odometer

Odometer fraud isn’t something that should be at the top of your used-car checklist, but it’s a legitimate threat. According to the Department of Motor Vehicles (DMV), odometer rollback involves changing the mileage reading on a car to make it appear as if the car is newer or in better condition. If reported, odometer fraud is a felony offense.

As a potential owner, the first thing you should do is assess the car for signs of aging. “If you hop into a car, and the interior is beat to heck, but the odometer only has 18,000 miles, something ain’t right,” says Jones.

If you suspect odometer fraud, take the time to compare the actual mileage on the odometer with mileage recorded on vehicle maintenance records and inspection records. If you’re buying a used car, Edmunds suggests purchasing an Autocheck and using Carfax to see if anything is amiss.

4. Mileage isn’t always a deal breaker

Just because a car has over 100,000 miles doesn’t mean you should eliminate it as an option. Thanks to the technological advances in car manufacturing, R.L. Polk Co. says that the average lifespan of a vehicle today is 11.4 years. This means that more and more cars can get 200,000 miles more before they conk out. Jones says if a car has been properly maintained, it’s acceptable to purchase a car with up to 150,000 miles. Even so, buying a car with that many miles will cost you money in future maintenance. “If you have budget of $7,000 for a used car, I would spend $5,500 on the car and then save the remaining money in a maintenance fund for future repairs,” he says.

5. Pop the hood, inspect the car

This sounds like a no-brainer, but it’s crucial to inspect the car before making a purchase, and this means looking under the hood. The problem is that many people are hesitant to look under the hood because they don’t know anything about cars. Jones suggests taking a look anyway: “You don’t have to know anything about cars to see if something is amiss under the hood. Look for corrosion on the battery, leaky oil and any loose wires. It’s also a good idea to squeeze hoses to make sure they feel rubbery and not brittle.

Brittany is a writer at Yahoo Finance.

Read more:

Forget Airbnb, try these other popular vacation rentals

The best dates to book airfare for Thanksgiving and Christmas

Low on cash? Now there is layaway for airline tickets

Advertisement