How to Buy a Used Car
Each year, Americans spend more than $85 billion buying 17 million used cars. The Florida Department of Agriculture and Consumer Services developed this brochure to answer many of the questions about the sale of used vehicles. This brochure supplies information about the public and private sale of used vehicles, their warranties and additional tips on buying.
Shop Around
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A franchised dealer, one who sells both new and used cars, is a promising source for customers willing to pay top dollar. The dealer saves the late-model trade-ins for resale, while the less desirable vehicles are auctioned or sent to wholesalers. Franchised dealers have repair facilities, and they often provide a warranty with the vehicle.
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Be wary of transient used-car sales operations; unscrupulous operators tend to move frequently. Check any company's complaint history with the Florida Department of Agriculture and Consumer Services by calling 1-800-HELP-FLA (435-7352). Also, check with your local county consumer affairs office or Better Business organization.
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Banks and other lending institutions often offer to sell vehicles that they have repossessed. Don't overlook them as a potential source of used cars.
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You may get a good deal when buying a car from a private owner since there is no dealer mark-up involved. However, when buying from a private owner, insist on obtaining the vehicle's service records, references and records of original purchase. Regardless of who you purchase the car from, be sure you have thoroughly inspected the vehicle and its records prior to purchase. Have it checked by your own mechanic, if possible.
Federal Trade Commission's Used Car Rule |
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If you are considering purchasing a used car, the Federal Trade Commission's used car rule may help you. Dealers must post the "Buyer's Guide" on all used vehicles. This includes used demonstrator autos, light-duty vans and light-duty trucks; motorcycles are excluded.
The Buyer's Guide will state whether the vehicle comes with a warranty and, if so, what specific warranty protection the dealer will provide. The guide will state if the vehicle has no warranty ("as is") or comes with an implied warranty only.
The Buyers' Guide must reflect any changes in warranty coverage that you may have negotiated with the dealer. It also becomes a part of your sales contract.
If the vehicle is purchased "as is," it is purchase without warranty, in whatever shape or condition it's in.
Unexpired Manufacturer's Warranties |
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If the used vehicle is covered under the manufacturer's original warranty, have the dealer add the following paragraph below the warranty disclosure: "Manufacturer's warranty still applies. The manufacturer's original warranty has not expired on the vehicle. Consult the manufacturer's warranty coverage, service location, etc."
This does not mean that the dealer offers its own warranty in additions to the manufacturer's. If you have any questions about warranty coverage, ask the dealer.
Service Contracts |
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Dealerships often offer car buyers service contracts, otherwise known as "extended warranties." Remember, service contracts are not warranties- they're like insurance policies. Warranties are included in the price of the vehicle. Service contracts are purchased at additional cost.
To decide whether you need a service contract, consider several factors, including: whether the warranty already covers the repairs addressed in the service contract; and whether the vehicle is likely to need repairs and the cost of those repairs.
If a service contract is purchased within 90 days of buying the vehicle, warranty coverage must be stated on the contract. Federal law prohibits the dealer from disclaiming implied warranties on the systems covered in the service contract. or example, if the service contract covers the engine for six months, you automatically get implied warranties on the engine as well. This may give you additional protection even beyond the scope of the service contract.
For information on service contracts, check with the Florida Department of Financial Services online or by phone at 1-800-342-2762.
Inspect and Test Drive |
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If you are interested in a particular car, Ask the dealer or owner for a test drive. Drive the car under many different conditions, such as on hills, highways and in stop-and-go-traffic.
Ask the dealer or owner whether the car has ever been in an accident. Find out as much as possible about the car's prior history and examine its maintenance record.
Choose a sunny day to inspect the vehicle; darkness can mask flaws. Bring someone who has knowledge about cars to assist you, if possible.
During the inspection, note the following:
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Fluids and leaks. Look for dark stains or puddles on the pavement beneath the vehicle. If there are puddles, the car may have leaks from the cooling system, transmission, engine or elsewhere. with the engine cold, remove the radiator cap and look inside the radiator; the fluid should not be rusty. Greenish-white stains on the radiator indicate pinholes and leakage.
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Body. Rust often lurks beneath blistered or peeling paint. Left unchecked, rust can affect the structural integrity and safety of the body and chassis. If rust erodes the car body, trunk or floor, it can let deadly exhaust fumes inside. Wheel wells and rocker panels under the doors are especially vulnerable to rust. To check if rusted areas have been patched over with putty, place a small magnet against those areas. If the magnet doesn't stick, it may show a patch job. Uneven color, poorly fitted doors, trunk lid or hood may also be evidence of an accident. Check inside the trunk; a musty odor or water stains could indicate leakage.
- Tires and suspension. A car with 25,000 miles or less on the odometer should still have its original tires. If the tires are bald or brand new, the odometer might have been rolled back or disconnected. Unevenly worn tires may signal damage or improper wheel alignment. Check the spare tire and make sure the jack and other tire-change gear are present.
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Push and pull each front tire while holding it at the top. If you hear a clunk or feel play in the wheel, wheel bearings or suspension, joints may be worn.
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Push down hard at each corner of the car a few times to bounce it up and down, and then let go. If the car needs more than one rebound to level of, the shock absorbers are suspect.
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Stand about 10 feet behind the car to see whether one side is lower than the other. Then do the same from the side to see whether the front or the rear sags. A lopsided car may need new springs.
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Interior. The seats should be free from broken springs and rips in the upholstery, and they should be firm, not saggy from long use. A musty odor may signal water seepage. Check out all controls and accessories. Have your helper stand outside to be sure all the lights work properly.
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Engine. The car should start easily, even when the engine is cold. Dive-away should be smooth, with no lurching, sputtering or odd noises. The car should accelerate smoothly and maintain power when climbing hills. Pings or knocks may mean the engine needs higher- octane fuel or a tune-up; leave the diagnosis to a mechanic.
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After the engine warms, accelerate to about 45 mph, Take your foot off the accelerator for a few seconds, and then accelerate. Your helper should be with you inside the car, watching through the rear window for exhaust smoke. (Black smoke may mean only that the fuel system needs adjusting, blue smoke means that the car burns oil, persistent, billowy white smoke could indicate that coolant is entering the engine's combustion chambers through a blown head gasket or crack in the cylinder head or engine block.
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Transmission. Smooth shifting is the key here. A manual clutch should engage smoothly, without bucking. If the transmission is automatic, warm up the engine, let it idle in "park," an inspect the dipstick for the transmission fluid. The fluid should be reddish, with a faint odor of chestnuts. A dark-brown color, a rancid smell or metal particles on the dipstick indicate trouble.
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Steering. The car should hold the road. Steering should be smooth and precise, without much free play or vibration. Have your helper kneel in the road in a safe area and watch from behind as you drive straight ahead, through a puddle, if possible. The front and rear wheels should travel precisely in line. If the car drives a t an angle, the body or frame was possibly bent in an accident. If the car's steering simply pulls to one side, though, a wheel alignment may save the day.
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Brakes. Accelerate to 45 mph on a flat stretch of empty road and brake hard, without locking the wheels. In each of three consecutive tries, the car should stop quickly, with no swerving, grabbing or vibration. With the engine idling, press firmly on the brake pedal for about 30 seconds. It should feel solid and steady. If it feels spongy or keeps sinking, the hydraulic system may be leaking.
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Comfort and noise. Cruise down a bumpy road at 30-40 mph. Does the car bound, bottom out or hop sideways? If so, the suspension could be faulty. Do you have squeaks and rattles? They can be hard to trace. With the engine running, listen from outside the car for sputtering or rumbling from the exhaust pipe, manifold, muffler, or catalytic converter. Replacing those parts, especially the catalytic converter. Replacing those parts, especially the catalytic converter, can be costly.
Additional Checks
If you are still interested in the car following the inspection and test drive, do a little more checking. To see it the car model has ever been recalled, contact the U.S. Department of Transportation Auto Safety Hotline at 1-800-424-9393. The agency will send you information about the recall. Also, take the car to a mechanic for a thorough inspection.
How Much Do I Pay? |
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Many variables determine how much a used car is worth. Prices are affected by the economy and vary in different regions of the country. The condition of the car is a major factor affecting its price.
Whom you purchase the used car from also makes a difference. Dealers need to pay overhead and provide a warranty, in addition to making a profit. Private sellers have no such encumbrances, so they may be able to sell cheaper.
Sales Tax |
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The sale of a motor vehicle must be documented in the state by reporting the sales price to the tax collector and tax paid based on the sales price. The vehicle must be registered, licensed and titled in the state.
If the vehicle sells for less than 80 percent of the average "book value" for the specified model and year, you must provide proof of the actual sales price by affidavit signed by both parties.
The state may collect any delinquent sales tax with interest and may impose a penalty equal to twice the amount of the additional tax.
Odometer Fraud |
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Florida law makes it illegal to tamper with, adjust, alter, set back, disconnect or fail to connect the odometer of a motor vehicle. The odometer cannot reflect a lower mileage than the motor vehicle. The odometer cannot reflect a lower mileage than the motor vehicle has actually been driven.
An odometer reading is one accepted way of determining the dollar value and the mechanical condition of our car. Low-mileage used cars generally carry a higher price tag than those with higher mileage.
If you suspect odometer tampering, check the following:
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Look for oil stickers, service records or warranty cards showing the mileage of the vehicle.
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Check the physical condition of the carpet, brake pedal, seats and any other items that might show wear.
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Look for scratches on the odometer or the dashboard, misaligned digits, digits that stick or an odometer that fits loosely.
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Examine the odometer statement that the current owner received when the vehicle was purchased.
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If you are purchasing the vehicle from a dealer, you should contact the previous owner, write down the vehicle identification number (VIN). This number is visible through the windshield on the driver's side. The VIN will enable you to get the previous owner's name.
All requests must be made in writing:
Florida Department of Highway Safety and Motor Vehicles
Division of Motor Vehicles
Attention: Correspondence Department
Neil Kirkman Building
2900 Apalachee Parkway
Tallahassee, FL 32301
Questions: (850) 617-2000
Additional Resources |
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National Highway Traffic Safety Administration
Office of Defects Investigation - This site allows you to search consumer complaints, defect investigations, recalls, technical service bulletins and foreign campaigns.
Vehicle Identification Number (VIN) Check
The Florida Department of Highway Safety and Motor Vehicles has a website that allows consumers the ability to search the VIN or title number. Search the Database
National Insurance Crime Bureau
The National Insurance Crime Bureau (NICB) has compiled a database of vehicles and watercraft affected by Hurricanes Katrina, Rita and Wilma. The information in this database was gathered from a number of sources, including insurance companies, salvage yards and state and local authorities. Search the Database
CARFAX - Vehicle History Reports
CARFAX searches its nationwide database and provides a detailed vehicle history report in seconds. All you have to do is enter a VIN.
Experian Automotive
Protect yourself and your investment with an AutoCheck vehicle history report form Experian!
