It is always a difficult decision to make when buying a used car. There are many things to keep in mind, the worst thing that can happen to you is buying a new car and having to take it to the shop the next day.

The first thing is the price you want to make sure you do your own evaluation and evaluate the car yourself. That way you can negotiate the price, since usually the markup is around $4,000.

Try to avoid non-franchise dealers: Non-franchise dealers are dealers that are not part of a brand name dealer. For example, if you go to a Ford store and they have used cars that is a franchised dealer, if you see a used car lot on the side of a busy road like Joe’s Motors, then Joe’s Motors is not a franchised dealer. Non-franchise dealers get their inventory from larger dealer auctions. There are some good cars that you can buy at auctions, such as government auctions. The auctions these small dealers are buying are basically top notch cars, for good auction resources see the bottom of this page.

What’s wrong with buying a car from a non-franchise dealer who bought a car at auction?

Buying a car from a certified government auction is fine, but buying a car from these small dealerships could cost you a lot of money in repairs.

Let’s look at an example: I go to a Lincoln store and buy a new Navigator, and I’m trading in my 1999 Ford Pick-up. My Pickup has 120,000 miles on it; The dealer most likely doesn’t want to keep that vehicle on his lot. Why? The car has too many kilometers and is considered reserved. Booked-out means that a major auto loan lender can no longer finance the value of that truck. The loan is considered a high-risk loan, since in the event that you cannot pay your loan, if the vehicle is seized, they will not be able to recover their invested dollars. My truck now becomes a cash only purchase and makes it hard to sell the lot. A franchised dealer is also less willing to get a bad rap for selling a high mileage car that caused their customers serious problems. So what about my truck? Almost all franchise dealerships have silent auctions where wholesalers bid on their inventory. Where I used to work they would take all the high mileage swaps and set them up on a vacant lot where they hosted an auction every Wednesday and Friday. These wholesalers then buy the cars and make minor repairs to them. When the cars have been “touched up,” they are ready to be sold at Joe’s Motors, on the side of a busy intersection.

These exchanges do not go through any type of certification or punctual inspection. Sold as is with no warranty and no warranties. That is why it is a bad idea to buy cars from these places.

A common tactic wholesalers use is to purchase cars at insurance company auctions, cars that have been totaled and issued salvage titles. They often have body shops where they fix up the car just enough to make it look attractive to a potential customer. These cars often have bent frames, non-functioning airbags, bad suspension, etc. Do they tell their customers the history of the car? Of course, they don’t tell their customers that the car had been parked in some garage, or that it was a one-owner car.

Inspect the car from top to bottom:

Don’t be afraid to ask the seller if the car has ever been in an accident or if the owner reported any damage repairs. When you ask, run your fingers along the small crack in the fender and hood, if you feel the paint is rough or uneven, this indicates that the car has been repainted. Open the doors and run your fingers around the inside of the door, again, look for any paint that feels rough or uneven. Check the hood, trunk and all doors. When the car is built at the factory, they have robots that paint the car, then “bake” the paint to prevent any rough spots, discolorations, or bubbles in the paint. When a body shop repaints the car, they don’t have as much talent or fancy equipment that manufacturers use. This is how you can tell if there is a defect in the paint job.

Ask them to change the oil before you receive the car. There are many tricks that skilled mechanics use to prevent an engine from blowing oil out of the exhaust. Often times if you change your oil you will be able to see or smell exhaust smoke that might not have been there before.

Start the car and place your hand on the exhaust pipe, [be careful not to place it on the pipe its self, it will be hot] then smell your hand, if you smell burning oil, the car’s piston rings could be bad. Replacing piston rings is a major engine job.

Always ask before finalizing your deal if the title is clear. This means that there are no tilts on the title. Also, ask them if the title is clean, this means it is not a salvaged title.

Before you agree to leave, if there was anything you wanted to change, paint, or pull a tooth, make sure they do the job first. Many times they tell the customer what they want to hear, but they never do what it takes to keep the customer happy. If they can’t do it at that particular time, ask them to speak to the manager and ask them to give you something in writing that the company will make the promised repairs at a later date.

By following these simple steps and using your common sense, you will always make the right decision before buying your next new used car.