Is it a bad idea to buy a used car?

Hey Zahntech -

I am planning to buy a used car. What do I need to look out for? Is it better to take the financial hit and just buy a new car? I'm not comfortable with taking someone's word for the condition of the vehicle.

- Skeptical car buyer

Hey Skeptical -

My wife complains that she'll never own a new car, even if we can afford it, because I just can't see taking the depreciation that you do as soon as you drive a new car off the lot. That said, there are other good reasons to buy used: especially with new models or significantly revised models, you don't have history and a track record to show a car isn't prone to trouble. My wife wanted a particular car that came out a couple of years ago; research later showed that those cars had more instances of mechanical trouble than pretty much any other new car in the 2000s.

However, you can avoid heartache with a used car if you do the following things:
-- Insist on getting all the paperwork available. Not every used car will have records, but you should try.
-- Insist on taking a car you like to get it independently inspected. That means if you're buying a used Toyota from the Toyota dealership, drive the car off the lot and take it to a third party (an independent shop or even another, unaffiliated Toyota dealership). A third party will be able to perform a full vehicle inspection for usually half an hour to an hour of labor - and if they find significant problems, it will be well worth it. (You can also use the information the shop finds to improve your bargaining position should you still want the car; for example, if the car shows that the timing belt is due soon, and you know it will cost $400 to replace it, you can see whether you can negotiate $400 off the asking price.)

Note that if the dealership or car sales company won't allow you to take the car off the lot to be inspected, there's probably something they want to hide from you - or the car is such a hot seller that they don't have to extend you that courtesy. And in that case, buyer beware!

Oh, and if you're buying from a private party, ask him/her to meet you at the shop that will do the inspection, and you can go over the findings together.