How to buy a used car

Federal rules require dealers to display a Buyers Guide on every used vehicle offered for sale. It states whether the car comes with a warranty or is sold as is, and if there is a warranty, exactly what it covers and for how long.

'As is' means precisely what it says: no warranty, no implied promises, and no recourse against the dealer if the engine fails on the way home. This is lawful, and the majority of used cars are sold this way.

The Buyers Guide becomes part of your sales contract, and its terms override any contradictory verbal assurance. A salesperson saying 'we'll look after you if anything goes wrong' means nothing against an as-is sticker.

If a dealer promises something, get it written into the contract before signing. Verbal promises are unenforceable in practice.

A few states restrict as-is sales or imply a minimum warranty on used vehicles, so your state's rules may give more protection than the federal floor.

There is no cooling-off period for vehicle purchases. The federal three-day rule people half-remember applies to certain door-to-door sales, not to cars bought at a dealership. Once you sign and drive away, the car is yours.

Get the VIN — the 17-character vehicle identification number — and check it for open safety recalls. This is free, takes a minute, and open recalls are repaired at no charge by a franchised dealer for that brand.

Decode the VIN to confirm the vehicle is what the advert claims: year, engine, trim and where it was built. Mismatches between the VIN and the listing are a serious warning sign.

Buy a vehicle history report and read it for title brands — salvage, flood, rebuilt or lemon-law buyback. A branded title dramatically reduces value and can make insurance and resale difficult. History reports are useful but incomplete, so treat a clean one as reassuring rather than conclusive.

Check the odometer reading against the service history and the report. Odometer fraud persists, and wear inconsistent with the stated mileage — pedals, seats, steering wheel — is often the giveaway.

Then pay an independent mechanic for a pre-purchase inspection. Not the seller's mechanic. This is the single most valuable step available and it routinely finds problems that change the price or the decision entirely.

If a seller refuses an independent inspection, walk away. There is no legitimate reason to refuse, and the refusal is itself the answer.

Test drive it properly, and for longer than a dealer expects. Include a stretch of motorway at full speed, some stop-start traffic, and a rough surface — many faults only appear under one of those conditions. Start the engine from cold if you can, because a cold start reveals problems a warmed-up engine hides.

While driving, turn the radio off and listen. Check that the brakes pull straight, the steering does not vibrate, the transmission shifts smoothly, and the air conditioning actually cools. Look for warning lights that come on and stay on, and be suspicious of a dashboard where a bulb has conveniently been removed.

Get pre-approved by a bank or credit union before you visit a dealer. Credit unions in particular often offer notably better vehicle rates than dealer financing, and an approval in hand becomes the floor the dealer must beat.

Dealer financing can still win. Manufacturers sometimes subsidise rates on certified pre-owned vehicles, and a dealer may match or beat your pre-approval to keep the finance business. The point is that you can only tell if you have something to compare against.

Negotiate the total price of the vehicle, never the monthly payment. A payment figure conceals both the interest rate and the loan term, and lengthening the term is how an expensive car is made to sound cheap.

Watch the loan term. Long terms reduce the monthly figure but mean paying far more in total and spending years owing more than the car is worth.

Add-ons in the finance office are where dealer profit concentrates: extended warranties, paint protection, fabric treatment, gap insurance, VIN etching. Most are high-margin and optional. Gap insurance is occasionally worth it on a small deposit, but is usually cheaper from your own insurer.

Read the contract before signing and check the numbers match what was agreed. Discrepancies between the verbal deal and the paperwork are common enough that checking is not paranoia.

A franchised dealer is the most expensive route and the most regulated. Certified pre-owned programmes add a manufacturer-backed warranty and an inspection, which is genuine value if the price premium is reasonable.

Independent dealers vary enormously. The Buyers Guide requirement still applies, but so does 'as is', and quality ranges from excellent to dire. Check reviews and complaint records before visiting.

Private sellers are usually cheapest, and often the honest option, but the Buyers Guide rule does not apply to them and neither do most consumer protections. Everything depends on your own inspection.

Meet a private seller somewhere safe and public — many police stations offer designated exchange areas — and never carry large amounts of cash.

Online-only retailers deliver to your door and often include a genuine return window, which is a real advantage in a market with no cooling-off period. Confirm the return terms in writing before buying.

Whoever you buy from, confirm the title is clear and in the seller's name. A car with an outstanding loan cannot be transferred cleanly until the lender is paid, and buying one leaves you owning a vehicle you cannot register.

Register and title the vehicle with your state motor vehicle agency within the deadline your state sets. Missing it means penalties and, in some states, a car you cannot legally drive.

Arrange insurance before you drive it away. Nearly every state requires at least liability cover, and driving uninsured risks licence suspension on top of the financial exposure.

Keep every document: the bill of sale, the Buyers Guide, the title, the finance agreement and the inspection report. If a dispute arises, the paperwork is the case.

Curbstoning is the scam to know: unlicensed dealers posing as private sellers to dodge the Buyers Guide rule and offload damaged or branded-title cars. A 'private' seller with several vehicles, or whose name is not on the title, is the pattern.

Title washing is the other: moving a branded vehicle between states to obtain a clean-looking title. A history report showing frequent state changes without a matching reason deserves scrutiny.

If something goes wrong, complain to your state attorney general and the FTC. State lemon laws often cover used vehicles as well as new ones, and dealer licensing boards can act where a dealer has misrepresented a vehicle.