Buying a used car has become a complex ordeal. Franchised and independent dealers, rental companies, leasing companies, car superstores, and online sellers compete to bring in customers by promising the best prices, better warranties, and certified pre-owned (CPO) vehicles. In most cases, CPO vehicles have been subject to a rigorous, multi-point inspection and can be expected to operate almost as good as new. Certified pre-owned can mean different things to different dealers, but a manufacturer CPO usually has higher standards than most independent used car lots.
New changes in the Federal Trade Commissions (FTC) used car rules could mean that a CPO vehicle may not always be safe. Last months changes will make it easier to label vehicles as “Certified Pre-Owned,” even if it is under recall and has not been fixed. These changes came as a result of the Takata airbag defect and its unprecedented 60 million airbags recalled. The lack of replacement parts has dealers first replacing airbags most likely to cause harm, while others may have to wait years before they can get repairs done. Given the situation, the Federal Trade Commission said dealers may advertise used vehicles as certified even if their airbags were under recall, as long as the problem has been disclosed to the buyer.
These changing policies are leaving consumers frustrated while they try to figure out who is selling cars that need to be fixed and how much sellers are disclosing. Some dealers, who at one time promised they would not sell automobiles with recalls, have changed their minds as vehicles awaiting Takata airbag repairs start to stack up.
Federal Trade Commission – Before You Buy a Used Car, Check List
Below are a few tips from the Federal Trade Commission on how you can protect yourself when buying a used car.
Whether you buy a used car from a dealer or an individual:
- Test drive the car under varied road conditions such as hills, highways, and in stop-and-go traffic.
- Ask for the car’s maintenance records.
- Determine the value of the vehicle before you negotiate the purchase. Helpful places to check include the National Automobile Dealers Association’s (NADA) Guides, Edmunds, Kelley Blue Book, or Consumer Reports.
- Research the upkeep costs for models you’re interested in, including the frequency of repairs and maintenance costs.
- Use an inspection checklist. Vehicle checklists can be found in magazines, books, and on websites that deal with used cars.
- Check whether there are any unrepaired recalls on a vehicle. Ask the dealer and check yourself by entering the VIN at safercar.gov, or by calling the National Highway Traffic Safety Administration’s (NHTSA) Vehicle Safety Hotline at 1-888-327-4236. If there is a recall, ask the dealer to fix it, or to give you information showing it was fixed.
- Get an independent review of a vehicle’s history. Check a trusted database service that gathers information from state and local authorities, salvage yards, and insurance companies. For example, the Department of Justice’s National Motor Vehicle Title Information System (NMVTIS) offers information about a vehicle’s title, odometer data, and certain damage history. The National Insurance Crime Bureau (NICB) maintains a database that includes flood damage and other information. You can investigate a car’s history by its Vehicle Identification Number (VIN). You also can search online for companies that sell vehicle history reports. The information in the reports may not be complete, so you may want to get a second report from a different reporting company.
- Consider hiring a mechanic to inspect the car.
