It can be a smart money-saving move to buy a used vehicle instead of a new one. The average price gap between new and used vehicles is more than $20,000, according to recent Edmunds’ sales data. But many used-vehicle shoppers make costly mistakes that can be avoided with a little research and preparation. Here are five common mistakes identified by Edmunds’ experts and what you can do to avoid them.
Not taking a thorough test drive
Many shoppers will drive the vehicle but not pay close enough attention to how the vehicle drives. An in-depth test drive can help you determine if there’s anything mechanically wrong with the vehicle. Is there any hesitation from the engine? Are there any clunks as you drive over bumps? These are all things that, if noticed, can help you avoid a used car with a dubious past.
Most newer used vehicles are also equipped with technology features. Check these out as well. Make sure the touchscreen works properly and that you can pair your phone to the vehicle using Apple CarPlay or Android Auto integration if it’s equipped. Also determine what kind of driver aids the vehicle has and observe if they work properly. Features such as blind-spot warning and traffic-adaptive cruise control rely on sensors that can be costly to fix if they’re not working properly.
Not spending money to get a history report or inspection
Never assume the seller knows the vehicle’s history or is being entirely truthful. A used car might look good on the surface and drive well, but it could be hiding a history of accidents, flood damage or odometer fraud. One way to get independent information is to purchase a report from services such as Carfax or AutoCheck.
A vehicle history report can also reveal prior accidents, title issues, rental or fleet vehicle use, and any major recalls or repairs. A car might have been written off as a total loss but later rebuilt and resold — something a history report can flag. You might have to purchase a history report on your own, but many reputable dealerships will provide one for free.
Additionally, have the car inspected by a trusted mechanic for an extra layer of security. Even if the vehicle history report appears clean, underlying mechanical problems may exist. Take that seriously and be prepared to part with $150 to $400 for a prepurchase inspection. This small investment can save you from buying a vehicle with hidden damage or mechanical gremlins.
Focusing only on the monthly payment
One of the biggest mistakes car buyers make is only considering the monthly payment rather than the total cost of the vehicle. Dealers often frame a deal around what you can afford per month, stretching out loan terms to lower the payment while increasing the total amount you’ll pay in interest.
