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POTENTIAL
PROBLEMS/WARNING SIGNS
The
most sought after used cars are probably less than five
years old and have less than 50,000 miles on the odometer.
When you're looking for a used car, you'll probably
want to find one that has been driven no more than 15,000
miles per year. But you can't assume that a low-mileage
car is necessarily in great shape.
One
major concern is odometer tampering. The National Highway
Traffic Safety Administration (NHTSA) estimates that
consumers lose billions of dollars a year to odometer
fraud. Odometer readings may be rolled back or documents
can be forged. Making miles disappear helps increase
the car's value to the seller, but can mean increased
maintenance and repair costs to the buyer.
In
addition to odometer fraud, there are other significant
events in a car's past that unscrupulous sellers may
try to hide. Every state has laws designed to protect
consumers from buying used cars that may not be road
worthy. Consumers should be direct when asking about
a vehicle's past, and they should get a detailed vehicle
history report. The person selling you a used car should
provide a detailed vehicle history answering questions
to your satisfaction.
If
the seller cannot provide a detailed vehicle history
report, you can use the 17-digit vehicle identification
number (VIN) to secure a history from either the state
or a private vehicle history company. These companies
have compiled data from multiple sources to help you
get a better picture of the car's past. You can search
the web to find the companies providing this service
by looking under the topic of "vehicle history."
OTHER
PROBLEMS
Other
problems you may want to avoid include:
Damage
Disclosure, Salvage & Rebuilt Titles. These titles
are issued by states when the vehicle has sustained
damage as a result of one or more incidents. States
issue salvage titles when an insurance company takes
possession of a vehicle as a result of a claim. This
generally occurs after a vehicle has been declared a
total loss. A state may issue a rebuilt title if a vehicle
sustained damage and was rebuilt or reconstructed, then
placed back on the road. States issue junk titles to
indicate that a vehicle is not road worthy and cannot
be titled again in that state.
Lemon
Laws (Manufacturer Buyback Titles). "Lemons"
are sometimes resold to consumers as used cars. The
lemon laws were enacted to protect consumers from having
to keep a new car that has recurring problems. If someone
buys a new car with major problems, and the manufacturer
fails to repair the defect in a certain amount of time,
the manufacturer may be required to refund the consumer's
money by buying the vehicle back. Unfortunately, some
of the vehicles which are bought back are subsequently
resold as used cars.
Flood
Damage Title. States issue flood titles when a vehicle
has been in a flood or has received extensive water
damage.
A
NOTE ON CURBSTONERS
Most
states limit the number of cars that an individual can
sell without a dealer's license or only allow the selling
of one's personal car. Curbstoners are people who ignore
these laws and sell multiple cars that frequently have
hidden problems in their pasts — problems that can
affect both the safety and the value of these vehicles.
Before buying any used car, you should research both
the vehicle and the seller. Be wary of sales conducted
from the side of the curb or a vacant lot. Often these
vehicles are sold by con men posing as private individual
sellers.
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