BBB tips on how to avoid scams when shopping for a used car

Higher prices and tight inventory are the name of the game for vehicle sales in 2026 – Kelley Blue Book reported that in February, the average new car sold for 3.4% more than a year ago, which is higher-than-normal growth. However, used car prices also dropped slightly in February, and some buyers may be turning toward the used market to get more mileage for their dollar.

A quality used car can be a good investment, but how can you be sure it isn’t a dud? BBB received nearly 19,000 complaints last year about used car sales, and many follow the same pattern: Someone buys a used car which then malfunctions or fails to pass an inspection.

Other reports involved sellers who did not provide the vehicle title at point of purchase, scams when shopping for used cars online, or predatory lending practices.

You can’t stop unscrupulous sellers from trying to take advantage of you, but you can protect yourself with knowledge. Research pricing in advance, test drive the car yourself, and make sure you know your rights – including what information the seller is legally required to provide.

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

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

• Look at both new and used car dealers. New car dealers may have used cars available with warranties, and some offer 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 check if it is a BBB Accredited Business, see its rating and read customer complaints and reviews. This can help you gauge whether the business is trustworthy.

• Consider trusted online sellers. Superstores and online-only stores are a convenient, often no-haggling way to buy used cars. But do not skip a search on bbb.org.

• Use caution with private sellers. Private owners may sell through online marketplaces, classified ads, or word-of-mouth. You might get a deal, but you will not 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.

How can I tell if a used car is of 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 does not 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 is not 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 are shopping for a used car online, look up the seller on BBB.org to make sure it is a legitimate vendor. BBB has received reports from people who paid for a car online that did not 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 reported issues 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 all commitments, conditions and warranty details you have discussed verbally are in the contract. Discuss what will happen if you fall behind on payments and how the seller will communicate with you about that.