How to Buy a Used Car with Your Tax Refund: 9 Used Car Buying Tips

During this time of year many of you are using your tax refund money to buy a new car. It feels exciting to drive off in a newer model car after driving a clunker or something that just doesn’t hold much appeal to you anymore.

Single Moms Are Targets for Scams

Unfortunately many women (especially single moms) get taken by used car dealers. They get a car and it’s absolutely a crappy vehicle. The dealer or seller fails to tell you about the engine or transmission problems.

The Headaches and Money Lost from Buying a Used Car

It looks like you are getting a great deal but when you look at the whole picture you will end up spending much more than the price of the car. You will deal with mechanics who think you are incompetent simply because you are a woman and don’t have a man in your life. You will deal with issues in trying to get your money back because the car was sold under an “As-is” warranty. This just happened to a friend of mine and now she doesn’t have a car because it died on her.

My Good Fortune, My Dad

I have been blessed to have a man in my life who knows all about cars. My dad. I’ve been around them it seems like forever and he’s taught me what to look for. I can ask him for advice and can confidently share this information with you.

To keep yourself safe here are a few tips to keep in mind when buying a newer car from a used car dealership.

9 Used Car Buying Tips

• Get a vehicle history report (more on that below)
• Test drive for at least 30 minutes on the interstate and notice any transmission or engine problems
• Get a reputable, certified mechanic to run a diagnostic on the car for about $30-50
• Never buy under an “As-is” warranty unless you are absolutely sure about the condition of the car. Request a 30-day warranty. If they say no do not buy
• Request the maintenance report (only if you buy from car manufacturer, i.e. Ford, GM, Honda)
• Ask for an oil change or tune-up (this will tell you how scrupulous the seller is)
• Look under the car and see if there is oil or other fluids leaking
• If using a tax refund,  find a car you can pay cash with just a partial amount. The rest should be used for any maintenance you will have
• If you have a car to trade it is best to sell the car to a private person and keep the cash for yourself. Do not trade!

Now more about the vehicle history report. This is a vital piece of information to get before you buy a used car.

Beware Title/Brand Washing

Title – or “brand” – washing occurs when a seller takes steps to hide the damaged or totaled condition of a vehicle. When a vehicle is damaged or declared a total loss due to flood, fire, accident, natural disaster or other circumstance, the state in which it’s titled will “brand” the title, noting the condition on the document. Unscrupulous sellers circumvent the branding by repairing or camouflaging the damage and then titling the vehicle in a different state.

During the first six months of 2011, 257,245 vehicles were initially branded and then transferred or retitled in a second state with a clean title, according to the AutoCheck vehicle history report database. In 2008, that happened to just 185,000 vehicles.

You can protect yourself from the risk of buying a title-washed vehicle by purchasing a vehicle history report. Most title-washed cars keep their original vehicle identification numbers (VIN), which is all you need to order a vehicle history report.

The report includes information on the status of the title (including if it’s been branded), a check of possible problems, an odometer check, the history of how the vehicle was used (as a rental or private vehicle) and any events, such as accidents or flood damage that have been reported on the vehicle. You’ll also get the ZIP code of where the vehicle has been registered, and you can use online resources to match that information to regions where the vehicle might have been exposed to floods or other natural disasters. (ARA)

Women’s Used Car Buying Guide and Checklist

This article does not cover everything you need to know about how to buy a used car. If you would like more detailed information and a used car buying checklist pre-order the Women’s Used Car Buying Guide and Checklist now to save yourself time, headaches, and money for only $10. The price will go up to $25 after it is launched in two weeks so order your copy now!

Women’s Used Car Buying Guide and Checklist Pre-Order