Our Best Used Car Buying Advice

We want to help you find the peach in a world full of lemons

(Originally posted July 2010, updated 5/8/13 and 8/19/22 by Tom Dwyer Automotive Services)

As we write this, the car market is very tight.  Chip shortages, supply chain problems, and a Covid hangover have combined to push prices up and availability down.  Current prices for new vehicles just broke a $47,000 average, while a used car will set you back $33,000 on average.  People are holding onto their cars longer, and those high prices are justifying larger repairs here at the shop as well.  Everything’s going up, but when it comes time to part with your clunker you may have enter the car market whether you want to or not.  With all these pressures on the car-owning public, we thought it would be a good idea to review our best advice for buying your next new or new-to-you vehicle.  We have a section on our website, “Buying a Car”, that has links and other resources you might need for New or Used shopping, but this article sums up all the main points on Used vehicles in just one place…

What to look for in a USED vehicle

There’s a reason every vehicle on the market is being sold. The challenge in buying a used vehicle is finding a good one that fits your needs, is in your price range, and is being sold for a good reason. You won’t find that perfect vehicle unless you either perform a methodical, logical search, or get very lucky.  Here are some tips that will be helpful whether you’re buying from a Dealer or Private Party…

• • Determine the your budget. Under-$3000 cars are the hardest market because there are plenty of $500 cars priced at $3000, but very few $5000 cars priced at $3,000. Be careful!  The starting price point for a good low-end used vehicle is about $5000, and $7000 to $10,000 can buy a pretty nice one.
  • Whatever your budget, any vehicle will probably need some repairs or maintenance, so try to reserve at least 10% of the budget for necessary repairs and/or improvements to the car. Buying a vehicle that needs repairs is fine, but buying a vehicle beyond repair is not.
  • Select a quality model and range of years that fit your needs. Vehicle type, make, and model are all just matters of personal preference, but not all vehicles are created equal. Consult Consumer Reports, your friends, family and the service shop that will maintain your car for help determining which vehicles will meet those needs in the safest, most affordable manner over the longest period of time.  Narrowing your selection to one or two models will make shopping easier and help you make an informed decision. The market value (i.e. Kelly’s Blue Book), features, handling/driving characteristics, and overall value of a deal will be easier to identify after becoming familiar with specific models and years.
  • We highly recommend Toyotas and Hondas as we think they are the most reliable vehicles out there. We think you’ll find the Toyota Corolla is one of the best values on the planet.
  • Determine your Search methods. You’ll need both time and energy for the search. It’s important to browse advertisements consistently over a period of time.  Good vehicles don’t sit on the market long, so check your websites every day or get the earliest edition of any publications you’re using.  The first week of searching will seem like there are too many options to deal with, but be patient. If you do your homework, the next week you will realize that there might be only a few new ads while the rest are repeats from the previous week.  If you see a vehicle of interest, check the information and call the seller for a phone interview as soon as possible.
  • Don’t just look in one place.
    • Sites like Craigslist and OfferUp are great, but the Internet doesn’t have everything.
    • There are still print publications that you can pickup at a local convenience store, and local papers like the Oregonian, Willamette Week, or Sellwood Bee occasionally still have car ads (if not in print, then in their online versions).
    • If you want to get creative, people at schools, churches, or retirement homes occasionally put car ads on their bulletin boards.
    • We’ve had good experiences with online car seller CarMax.
    • And of course, there’s always word of mouth. Your friends and family are great networks to find who’s selling what
  • Low mileage is everything! An older, good make/model of car with low miles is usually a better value than a newer vehicle with high miles.
  • Don’t be pressured into buying the first car you see. Salespeople (including private parties) will pressure you to buy THIS car, NOW, before ANYONE ELSE gets it.  Don’t give in.  There are always other cars and other days to shop, so don’t buy any car until you feel it’s right.  Cars purchased in haste are rarely good vehicles.
  • A pre-purchase inspection is the best investment you can make! We really hate POST-purchase inspections… usually, there’s no way to undo the deal if an inspection shows the vehicle is economically challenged or not repairable.  Most bad cars can be quickly and cheaply sorted out with a good pre-purchase inspection process, saving you time, money, and heartbreak.  Don’t do a pre-purchase on every car you look at (it will quickly get too expensive!) but do one on any vehicle you’re serious about.  Your rule of thumb should be “If it passes the pre-purchase inspection, I’m going to buy it.”
  • CarFax can be useful, but not necessarily complete. You should consider a CarFax report for any used vehicle you’re thinking about buying, but be careful… it’s not necessarily a complete report on the vehicle.  CarFax can only report data that has been reported to it, so it could have major gaps in repair, maintenance, or accident reports.     CarFax reports are good for
  • Title transaction records– Who has owned the vehicle matters; this information is recorded every time the car changes owners.
  • Length of ownership– Good vehicles have few owners, each keeping it for a reasonable time. Cars that change hands frequently, either between private parties or dealers, usually have some serious issue that’s being passed around.
  • Geographical history– Where the car spends most of its service life can make some mechanical issues (like rust and corrosion) more likely. Good vehicles usually don’t need to cross state lines.  Use them, but don’t unquestioningly trust a CarFax report!
  • NEVER BUY A SALVAGE TITLE VEHICLE– You’ll see them called ‘reconstructed titles’, ‘retitled’, ‘rebranded’, or other obfuscations, but stay away from ANY vehicle that has been repaired after being totaled.  These vehicles are only as good as the repairs done on them, and many issues that will total a car can’t be repaired.  For example, if a vehicles’ frame has been straightened after an accident, that frame won’t crumple as designed in the next accident no matter how thorough the repair.  Salvage titled vehicles can be safe and reliable but probably aren’t… the risk shouldn’t be yours.

Buying from a major new car Dealer

Be careful with small dealers and used car lots.   

Small lots rely on auctions rather than trade-ins and lease-returns for their inventory.  Auctions are where dealers trade their junk. Good vehicles don’t cross state lines and don’t go to auction.  Stay with a major Dealer.

Even for reputable and stable Dealers, their inventory is not acquired from little old ladies, meticulous autophiles, or benevolent philanthropists.  They probably won’t offer you the best deal up front just because it’s you.  They need to sell all their inventory, not just the two best cars on the lot.

Dealers are not our first choice, but their ability to take your old car in on trade and finance your new one makes their convenience very attractive. If you decide to go with a Dealer, stay with the major ones who sell both new and used cars.  Stay on their main new car lot, as opposed to their used car satellite lots.  

Don’t spend a lot of time with any one salesperson. If they don’t have a car that fits your predetermined needs and price range, move on. If one of their cars interests you, ask them a few quick questions. Is the price firm? Has it ever been in an accident? Do you have the CarFax report? Does it have any remaining warranty? Can I have it inspected by an independent Technician?

Your Trade In

The first questions that the dealer will probably ask you are, “Do you have a trade in?” and “Are you going to finance?” Tell them you have no trade in (even if you do) and that you are interested in their financing (even if you are not). If you have a trade in keep the deals separate. Work out the best deal on the car first, and then ask about trade values. The dealer may be willing to negotiate a lower vehicle price if there is an assumption of profit from financing.  Once the price of the used vehicle has been established, then introduce any other variables.  The dealer will want to blend any and all the deals together and have you just focus on the monthly payment. There is more to the cost picture than the singular monthly payment.

Inspect it anyway

If the dealer does have a vehicle that interests you, make sure you have it inspected by a qualified, thorough, neutral party. The term “certified” used car doesn’t do much for us.  We prefer an independent inspection and report rather than the empty word “certified.”  The dealer will usually let you have the vehicle inspected after signing paperwork. Be careful, the paperwork might obligate you to buy the vehicle anyway.  Require the paperwork to give you the right to negotiate after the inspection or decline depending upon mechanical condition.  If they won’t let you have it checked or you’re not comfortable with the contract, walk away.  If the car checks out okay and you can reach mutually satisfactory terms, congratulations.

Remember that the dealer does this for a living and knows the game much better than you do. Time is on their side and they know that you might get burnt-out and buy anything in haste.

Buying from a Private Party

Private party sales potentially result in the best values but require much more commitment from a buyer.  While it’s easy to buy from a dealer, finding a good value in terms of both in dollars and vehicle quality requires greater effort.  Professionals don’t leave money on the table.  A professional is more likely to sell you a marginal vehicle for a low price, or a good vehicle for a marginal price than a good vehicle for a low price.

Private party sales are considered buyer-beware sales: you buy it, it’s yours. Therefore, make sure you’re dealing with a true private party and not a car salesman without a dealer’s license. In Oregon, people who sell cars for profit are required to have a license and with this license comes certain legal obligations. Similarly, beware of sellers who are not the titled owners of the vehicle in question. There is an increasing population of people that sell cars for profit but do not have a dealer’s license. Make sure your private party seller is really a private party.

Your Initial Phone Call

When responding to a private party advertisement, before you even make an appointment to look at the vehicle, here are the 15 Questions You Must Ask Before Buying a Used Car:

• • How many miles are on the odometer?
  • Is your name on the title? Is it a reconstructed or salvaged titled vehicle? Is the title clear?
  • Are the tags current? When do they expire?
  • How long have you owned the vehicle (Both time and miles)?
  • Where did you purchase it?
  • How was it driven (for long or short trips, in the city or in the country)?
  • Who drove it? (a 16 yr. old vs. a 90 yr. old)
  • Who performed the maintenance, and do you have the receipts?
  • Has the vehicle ever been damaged or in an accident? If so, how much was the repair and where was it performed?
  • Why are you selling such a “great” vehicle?
  • What do you know that needs repair on the vehicle?
  • Is the price firm?
  • How are the: paint, body, tires, glass, accessories?
  • Does the AC work?
  • Can I have the vehicle checked by an ASE Certified Master Technician?

Write down the answers to your questions so you can verify the truthfulness of the owner’s answers when you arrange to inspect the car in person. If you don’t get a good feeling about the owner or the information they’ve given, move on and don’t waste your time seeing the vehicle in person. 80% of vehicles can be eliminated from the ad itself or the phone call.

If you are satisfied with the owner’s responses to your questions, try to see the vehicle as soon as possible. Bring your notes from the phone interview so you can verify each response.

Your On-Site Visit

Check the car to see if it has been warmed up before you have arrived. Place your hand on the hood near the radiator and feel if it’s warm. If it feels warm, the car has probably been driven recently. It is good to observe a cold start to check for possible problems not apparent with a warm engine. Knocking, ticking, smoking, hard starting, stalling, poor cold performance, may be signs of serious problems and if these symptoms disappear when warmed up, these problems may not even be noticed in a professional inspection.

Inspect the body. Has the car just been detailed? Is it too clean to believe? Check the body panels for dents and paint problems. Check the uniformity of the body seams and the paint color-match and texture-match between panels. All the body panels and doors have VIN stickers that should match. Check the glass and the headlight lenses. Check for any paint on rubber moldings or over-spray. Check the tires for match of brand and wear. Check the wiper blades. Look in the trunk. Check for moisture or any signs of mold, a spare tire and the original toolkit. Pull up any carpet or matting to see the trunk surfaces. If you smell mold take that as a sign the vehicle has water leaks that may be expensive problems to fix.

Under the Hood

Check for the under-hood information and VIN stickers. There are usually two or more stickers affixed to the underside of the hood, on the panel over the radiator or on the inner fenders. These stickers give information about emissions, tune-up, and other important specifications. If they are missing, the hood or other body parts may have been painted or replaced. Check any seams, body panel junctions or fasteners for signs of work. Look at the belts and hoses and ask the owner if they are original. Ask if the seller knows if the vehicle has a timing belt and when it was last replaced. Look at the air filter if possible. Inspect the battery and its cables. Is it clean or crusty? Is it the original? If the under hood area is spotless ask it the engine has been steam cleaned. Oil leaks can be temporarily hidden with a good engine clean.

Check the Fluids

Pull the engine oil dipstick and check the oil condition. It should be full and clean. Ask the owner when the last change was and the frequency of changes in the car’s history. Non-synthetic oil should be changed every 3,000 to 4,000 miles or 4-6 months whichever comes first. If the oil was just changed it should be nice and clean. If the oil is 3,000 miles old it will be dark but should never be black. Ask the owner who changed the oil and what brand and viscosity of oil was used.

With the engine cold, open the radiator cap and inspect the coolant. It should be nice and green (or in some imports red), not brown or rusty looking. Ask the owner if they know when the cooling system was last serviced and do they know how old the thermostat is.

Check the power steering fluid. It should be clean and look either clear or pink, not metallic, and should not have a strong odor.

If possible, check the brake hydraulic fluid. It should be clean and transparent, not dark and dirty. Ask the customer if the brakes have been worked on and if they have serviced the brake fluid. Brake fluid should be replaced every 2-3 years or when brake work is performed. This is especially critical on cars with anti-lock brakes as an ABS brake problem can cost thousands of dollars.

With the engine warm, check the transmission fluid (automatics only). Pull the dipstick the fluid should be nice and pink. The level should be proper, no yellow or dark color and no nasty smell. There should not be any metallic particles in the fluid.

Check for Leaks

Puddles and/or stains under the car are a bad sign. Look for excessive residue of oil or other fluids on the engine, transmission or other underhood components. Also as mentioned, you should note if the underside or engine compartment is TOO clean to be believed. Was the engine just cleaned to hide a leak?

The Road Test

Plan to drive the vehicle for at least 30 to 60 minutes on a variety of road conditions and at various speeds. Before the car is started, turn the key to the on position and check that all the warning lights are illuminated. This is called bulb-check mode. Make sure that warning lights such as Check Engine, oil pressure, emissions, ABS, air bag and engine control all are working and not disabled to hide a problem. Turn the steering wheel back and forth to check for free-play. There should not be a lot of play in the steering. Check the brake and clutch (if applicable) pedal height and response.

Start the car. It should start smoothly and easily. You should not have to depress the gas pedal on a fuel injected car to start it. There should be no unusual noises or any visible smoke (light vapor from the tail pipe is normal depending on the weather/temperature). Once the vehicle is started, place you foot on the brake and place the transmission (automatic) in drive and then reverse at a standstill. There should be no hesitation between park and drive or park and reverse, the engagement should be firm and quick.

Place the transmission back into park and check all gauges and vehicle functions. Do the gauges work, does the radio/tape/cd player work? Do the odometer numbers line up straight across the bottom? Is the odometer colored green or red from tamper-indicator? Do all the driver’s controls work? Check the horn, vents, blower, defroster, seat controls, dash lights, park brake, turn signals, remote mirrors etc. and adjust them to your needs. Now you are ready to drive the car.

Try to drive the vehicle on as many road conditions as possible. Find a good long, uphill climb (like HWY 26 to the Zoo) and watch the temperature gauge if equipped. The temperature gauge should not rise on a long uphill pull. Find a bumpy road to check for rattle and clunks. Apply the brakes firmly from several speeds. The vehicle should stop quickly and evenly in a straight line. Pull or pedal/steering wheel pulsation are signs that brake work is needed. The brake pedal should feel tall and firm at all times. If the car is equipped with anti-lock brakes a quick panic stop should be attempted. The wheels should not skid and the ABS related warning lights should not illuminate. The brake pedal will ratchet/vibrate noticeable during the operation of ABS brakes when the system is trying to prevent wheel skid. (This should not be confused with brake pulsation or vibration from the operation of the standard brake system caused by warped rotors and/or drums.) Make sure the AC works, it is really expensive to fix it. Set and test the cruise control (if equipped) to make sure it will work properly. Accelerate firmly to check for performance problems. The vehicle should not hesitate, ping, stall, smoke or anything other than go like heck.

Once back from the road test make sure to keep an eye and nose on any under hood smells or smoke.

The Emissions Test

Now with enhanced emissions testing in Oregon, you must be even more careful about purchasing a vehicle that might not pass. There is no waiver for this test. ALL CARS MUST PASS. It can be very expensive to make a non-compliant vehicle pass. Before you buy any vehicle, take it to one of the test centers and have it tested. DEQ tests are free of charge. It is the certificate that you pay for. A little inconvenience could save you a lot of money.

The Final Hurdle

If the vehicle is not checking out to your specifications so far, it probably won’t pass a professionals’ test either.  However, if the vehicle has passed the test to this point then it’s time to take the vehicle to a professional for a PRE-PURCHASE inspection that you should plan to pay for.  You’ll never be guaranteed that you’ve found a peach instead of a lemon, but If it passes this final hurdle, then you can buy with confidence.

In summary

No one buys a new car, maintains it to perfection, and then turns around to sells it long before the end of its realistic service life without a very good reason.  Go with your instincts and experience. Use all your senses down to your sense of smell.  Put in the time and energy required to perform a logical search and you will be more likely to find a good vehicle being sold for a good reason.

A good used car will demonstrate:

Long-term or original ownership.

As low as mileage as you can afford.

A reasonable sales price.

A history of appropriate, professional maintenance, with documentation.

A good seller will demonstrate:

A good reason for selling the vehicle.

Proof of professional maintenance.

Attention to details about vehicle maintenance.

Willingness to have the car inspected.

Honest answers to all your questions about the vehicle.

A feeling of trust and openness about the circumstances surrounding the sale.