Author Topic: Used car buying due diligence  (Read 2936 times)

RWD

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Used car buying due diligence
« on: August 24, 2015, 06:46:26 PM »
I came across this podcast/video by Steve Lehto of things to be aware of before buying a used car. Very useful information. Much of it should be obvious, but it's good to have it fresh in your mind.
http://oppositelock.kinja.com/what-you-must-know-before-buying-a-used-car-the-podca-1723320666

[edit]
Key points:
  • Ignore verbal statements (put things in writing)
  • Undestand what purchasing "As-Is" means
  • Never buy a car from a buyer who won't let you have it inspected (take it to an independent mechanic)
  • Demand repairs before you commit to purchase
  • Examine the title before you buy
  • Research pricing online
  • If you can't purchase with cash, shop around for financing
  • Sell your old car yourself (don't trade it in)
  • Beware of buying from friends and relatives
[/edit]
« Last Edit: August 25, 2015, 07:21:32 AM by RWD »

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Re: Used car buying due diligence
« Reply #1 on: August 25, 2015, 12:17:26 AM »
I came across this podcast/video by Steve Lehto of things to be aware of before buying a used car. Very useful information. Much of it should be obvious, but it's good to have it fresh in your mind.
http://oppositelock.kinja.com/what-you-must-know-before-buying-a-used-car-the-podca-1723320666

Might have been great info. But it only reminded me why I hate podcasts. Two minutes into the 19 minute video, and he has yet to say anything useful. In that two minutes, in a print article I could have skipped to the meat and been halfway through it.

RWD

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Re: Used car buying due diligence
« Reply #2 on: August 25, 2015, 06:47:51 AM »
I came across this podcast/video by Steve Lehto of things to be aware of before buying a used car. Very useful information. Much of it should be obvious, but it's good to have it fresh in your mind.
http://oppositelock.kinja.com/what-you-must-know-before-buying-a-used-car-the-podca-1723320666

Might have been great info. But it only reminded me why I hate podcasts. Two minutes into the 19 minute video, and he has yet to say anything useful. In that two minutes, in a print article I could have skipped to the meat and been halfway through it.

Usually he posts an accompanying article so that you can choose which format you prefer. But this podcast/video was sort of a compilation of information from his various other articles so he might not do that this time. I have updated the first post with the key points summarized in bullet form.

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Re: Used car buying due diligence
« Reply #3 on: September 01, 2015, 10:53:37 PM »
Thanks for the update.

I'm guessing “Examine the title” means check Carfax (or one of their many cheaper competitors)?

Also, not sure why I wouldn't want to buy from a friend or relative. I'd know the true history of the car (reliability, maintenance, and repair) which of course is quite valuable.

That said, for me, selling to a friend or relative is a different matter.

When I buy used I know I am taking my chances. But not everyone sees it that way, I'd not enjoy getting the stink eye from family or friends because the car I sold them wasn't as reliable as we both would have hoped.

RWD

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Re: Used car buying due diligence
« Reply #4 on: September 02, 2015, 07:22:20 AM »
Thanks for the update.

I'm guessing “Examine the title” means check Carfax (or one of their many cheaper competitors)?

I think he means to literally look at the physical title. There are a lot of red flags you can discover just by doing that.
 - Branded title (e.g. reconstructed/salvage)
 - Seller's name not on the title
 - VIN or other information does not match vehicle being sold
 - etc.

Steve Lehto also recommends getting a NMVTIS vehicle history report. This should cost ~$2 from the right website. Checking Carfax is fine too, but more expensive.


Also, not sure why I wouldn't want to buy from a friend or relative. I'd know the true history of the car (reliability, maintenance, and repair) which of course is quite valuable.

That said, for me, selling to a friend or relative is a different matter.

When I buy used I know I am taking my chances. But not everyone sees it that way, I'd not enjoy getting the stink eye from family or friends because the car I sold them wasn't as reliable as we both would have hoped.

Depends on how solid your relationship is, I suppose. Even if you're on the buying side your relationship could be soured by price negotiation. Or if the vehicle had sentimental value to the seller and you end up selling it after too short of a period or perhaps just don't take care of it. Just things to take into consideration.