How to buy a used car on Labor Day weekend

The Labor Day holiday weekend can be one of the best times of the year to shop for a new vehicle.

While you may be tempted by holiday incentives offered, you still need to do research so you make a well-informed decision.

“A used car might test-drive like a dream, only to be a clunker a few weeks later,” said Michelle Corey, Better Business Bureau president and CEO. “It’s important to know the vehicle’s history and your rights under a warranty.”

The BBB has received 26,000 complaints on used car purchases in the past three years. About 60 percent of them follow a simple pattern: a consumer buys a used car, the car soon malfunctions or fails to pass an inspection, and the consumer wants a refund or a trade-in.

Beyond the usual bait-and-switch routines, upsells, and the sale of cars in sub-standard condition, the BBB has recently received reports from consumers buying used cars online from a bogus car dealer and receiving nothing in return for their purchases.

When shopping for a used car, the BBB recommends the following tips to avoid driving off the car lot in a lemon:

• Do research. Use online resources to check the average retail prices of different makes and models of used cars depending on the year and how many miles are on the car. The prices will give you an idea of what the used car should sell for when looking at different locations.

• Evaluate your finances and budget carefully. Check your credit score with one of the credit reporting agencies before shopping. Your credit score may impact the type of financing you qualify for, the terms of a loan, or even which vehicles you can be approved. Visit your bank or credit union to get pre-approved for a loan, so you can compare rates offered by the dealer. Allow room in your budget for repairs, which will help give you realistic expectations of what you can afford. Set a price limit. When calculating the cost, be sure to include the price of the tax, title, registration, and insurance. These costs are about 10 percent of the purchase price.

• Ask questions about a vehicle’s history and condition. If a salesperson indicates that a vehicle has been “inspected” or “checked over,” ask for details. Was it a mechanical inspection, or a visual? Has the vehicle been put up on a lift? Ask for records on the vehicle, such as any on inspection, prior maintenance, and repairs or reconditioning done by the dealer. Ask for a vehicle history report, such as CarFax or AutoCheck. Many dealers can provide this, and it can show past issues such as accidents. Remember that a vehicle history is only as complete as information reported, and isn’t a guarantee of the vehicle’s condition.

• Consider having a qualified mechanic inspect the vehicle. Reputable dealers encourage customers to have an inspection done by a qualified mechanic before purchase and will usually allow a vehicle to be taken off-site for a short time with some basic information such as a customer’s driver’s license and proof of insurance. Pre-purchase inspections can cost $100 or more but may help identify potential issues and save on costly repairs down the road.

• Get any additional commitments made by the dealer in writing. If the dealer has agreed to perform or pay for additional repairs as a condition of purchase, be sure to have these commitments written into the contract. This is sometimes referred to as a “We Owe” agreement. Get the timeframe for completion of repairs in writing, and make sure you understand who to contact to have work completed.

For more information on buying a used car, see the Consumer Reports article “Best Labor Day Deals on New Car for 2018: Shoppers Can Find Serious Savings on Good, Safe, Reliable Models.”

The article describes great deals on good cars during one of the biggest car-shopping weekends of the year

Consumer Reports focused on models with an overall score that’s among the best in their class. The score incorporates a vehicle’s road-test performance, predicted reliability, owner satisfaction, and safety equipment.

Its analysis shows that you can save from $2,900 to as much as $6,000 off the manufacturer’s suggested retail price on all 10 cars, SUVs, and trucks featured in the article.