BBB shares the essential steps to smart shopping for a used car

A quality used car can be a good investment, but watch out for sketchy sellers and predatory loans.

While used car pricing is stabilizing after a turbulent few years, prices are still higher than consumers may be accustomed to. The search for a deal can lead shoppers to unscrupulous sellers – and they may feel pressured to decide quickly, as affordable used cars aren’t staying on the lot for long.

BBB received nearly 19,000 complaints about used car sales last year, often from buyers who purchased a car that malfunctioned or failed to pass an inspection. Some people have reported running into scams when searching for used cars online. Shoppers should also be on the lookout for lenders who offer expensive loans expecting that customers will not be able to repay them.

To avoid issues when you’re shopping for a used car, BBB recommends you do your research in advance and know your rights as a buyer.

What do I need to do before I buy a used car?

• Basics first. Before buying any car, set a budget, research models and know how you will pay for it. The goal is to be armed with information and confident in what you want before you talk to a seller.

• Compare car prices. Research online (try using a resource like Kelley Blue Book) to get an idea of the average retail prices of makes and models you’re interested in.

• Look at both new and used car dealers. Both new and used car dealers may have used cars available. Dealerships should provide you with carefully inspected vehicles. Some offer warranties or a “certified” used car program.

• Research sellers at BBB.org. If you’re getting your used car at a dealership or similar business, you can check its BBB Business Profile to confirm if it is a BBB Accredited Business, see its rating and read customer reviews.

• Use caution with private sellers. Private owners may sell their cards through online marketplaces, classified ads or word-of-mouth. This can be a way to get a deal on a well-maintained car, but you won’t have the protection of working with a trusted company. Remember that fraudulent dealers may disguise themselves as individual sellers, offer stolen or damaged cars, or roll odometers back to hide mileage.

• Compare lenders. If you intend to use an auto loan to pay for your car, get quotes from at least three trusted lenders and compare them before making a decision.

How can I tell if a used car is good quality?

• Ask specific questions about the vehicle’s history. Find out as much as you can about the car before buying it. The salesperson should provide a vehicle history report, which includes records on prior inspections, maintenance and accident history. This doesn’t guarantee the car’s condition, but it can help you make an informed decision.

• Visually inspect and test drive the car. Look and listen for signs of damage or poor performance.

• Consider an independent inspection. Getting your own inspection by a licensed mechanic before buying can give you information on the car’s condition that isn’t typically included in the vehicle history report.

How can I avoid scams when shopping for a used car?

• Think twice before buying after a natural disaster. After floods or similar events, opportunistic dealers may try to sell damaged vehicles before the damage information appears on vehicle history reports.

• Shop carefully online. If you’re shopping for a used car online, look up the seller on BBB.org to make sure it’s a legitimate vendor. BBB has received reports from people who paid for a car online that didn’t exist. Follow BBB’s online shopping tips to spot red flags on websites such as a lack of contact information.

• Know your rights. The Missouri Attorney General and Illinois Attorney General provide information about your “Lemon Law” rights when buying a used car. Per an FTC rule, anyone selling more than five used cars per year must provide a Buyer’s Guide for every car that has information on any issues with the car or conditions of sale.

• Get it in writing. As with any big purchase, get a written contract and read it carefully before signing. Make sure it includes all commitments, conditions and warranty details you’ve discussed verbally. Discuss what will happen if you fall behind on payments and how the seller will communicate with you about that.