Used car sales are a great way to get a reliable vehicle for less money. Buying a used car comes with certain risk however. It’s important that we understand the documents we are signing and all the provisions included to make us better buyers. Here’s what you need to know.
Limited WarrantiesWhen you purchase a car at a dealership you may have a limited warranty on a used car. These can vary greatly from one car to another. Some local car sales lots will offer a warranty of 30 days, and other will offer much less. In some instances the original manufacturer warranty may transfer over. If you choose a private used car sales option then you will likely not have any kind of warranty. Check the sales contract you are signing to know exactly what is expressed and implied. In most cases used cars are sold as is.
In-House FinancingA used car can qualify for financing through many dealerships. You may even encounter dealerships advertising special prices or rebates on used cars. This is almost always a ploy to get you to finance in-house. Manufacturers don’t offer rebates or cash back on used vehicles. You need to read the fine print if you’ve been offered some kind of special incentive, because most often to claim the incentive you will have to finance directly through the dealership. It’s not always a bad idea to finance through the dealer, but you can generally find more competitive rates by foregoing the incentive and lining up your own financing.The fine print is not something that you should only worry about on new cars. Anytime you are looking at used car sales you need to read through everything, ask questions and understand what you are getting before you transfer ownership to yourself.