Overview

Each year, Americans spend more than $85 billion buying 17 million used cars. The Florida Department ofAgriculture and Consumer Services developed this brochure to answer many of the questions about the sale of used vehicles. This brochure suppliesinformation about the public and private sale of used vehicles, their warranties and additional tips on buying.
A franchised dealer, one who sells both new and used cars, is a promising source for customers willing to pay top dollar. The dealer saves thelate-model trade-ins for resale, while the less desirable vehicles are auctioned or sent to wholesalers. Franchised dealers have repairfacilities, and they often provide a warranty with the vehicle.

Be wary of transient used-car sales operations; unscrupulous operators tend to move frequently. Check any company's complaint history with theFlorida Department of Agriculture and Consumer Services by calling 1-800-HELP-FLA (435-7352). Also, check with your local county consumer affairsoffice or Better Business organization.

Banks and other lending institutions often offer to sell vehicles that they have repossessed. Don't overlook them as a potential source of usedcars.

You may get a good deal when buying a car from a private owner since there is no dealer mark-up involved. However, when buying from a privateowner, insist on obtaining the vehicle's service records, references and records of original purchase. Regardless of who you purchase the carfrom, be sure you have thoroughly inspected the vehicle and its records prior to purchase. Have it checked by your own mechanic, if possible.

Introduction

Most consumers want to know how to buy the car of their choiceat the best possible price. Many people feel that car payments are an unavoidable fact of life, and that they might as well buy a newer car thanan older one. However, there are some advantages as well as some pitfalls to be avoided when shopping for a used car.

With improvements in the quality of automobiles over the years, a well-maintained car should remain reliable for at least 10 years and 100,000miles. The U.S. Department of Transportation reports the average life span of a vehicle is 12 years or 128,500 miles. That leaves a lot of goodcars out there with plenty of life left in them. If you are looking for a new model, buying a used car of the same style, only a couple of yearsold, can really be a good deal. The biggest percentage (approximately 20 percent) of a new car's value is lost in the first year of ownership.Accessories such as expensive stereo systems, power assists and convenience options are far less a factor in resale pricing. In addition, by thetime a vehicle is a couple of years old, even minor problems should have been discovered and corrected.

Pricing a Used Car

With the average price of a new car increasing every year, it is not surprising that the fastestgrowing segment of the auto industry is the used car market. In the past decade, used cars have become increasingly better values. Buying a carthat is just a year or two old can save thousands of dollars over the price of a new model, especially as the price of new cars keeps increasing.

Decide on the year, make, model and options you desire on the vehicle. Do you need a family vehicle or an economical model for a college student?Consumers Reports publishes excellent information on both new and used cars, to include maintenance and repair information. Narrow your choicesof vehicles as much as possible. Pay attention to: visibility, safety features, comfort, ride and other items of importance.

To check the "recall record" of a vehicle, call the U.S. Department of Transportation Auto Safety Hotline at (800) 424-9393. They will tell youif a car model has ever been recalled and send you information concerning that recall.

In addition, via the internet, you can obtain recall or technical service bulletins on vehicles at http://www.alldata.tsb.com.

Price Guides for Used Cars

A variety of price guides are used by lenders, dealers and individuals to determine thevalue of used cars. Check the N.A.D.A. (National Automotive Dealers Association) Official Used Car Guide, Southeastern Edition, for the bookvalue on your trade-in.

This book also can be found in public libraries, local banks and credit unions. It is published monthly by the NADA and provides averagetrade-in, wholesale, loan and retail prices for nearly every car sold in the last 7 years.

This information can be obtained through the reference section of your public library at no cost or there are services that provide invoiceprices for a fee.

Check the classified ads in the local newspaper to determine what advertisers in your area are asking for the type of car you want. Thedifference between wholesale and retail value will be your bargaining range.

Used Car Financing/Insurance

Check with local banks and credit unions for financing in order to make comparisonswith dealer financing. Also consider obtaining preapproved credit, which would eliminate dealer pressure on the purchase of a vehicle.

Check with your insurance company for a quote on the vehicle you want to purchase. Can you afford to pay insurance and car payments? Also be sureto allow a little "extra" in your budget for unexpected repairs.

Check your local Better Business Bureau, Consumer Affairs Office, and the Department of Agriculture and Consumer Services (1-800-435-7352) forinformation on local automobile dealerships.

Make sure the dealers are licensed by the Division of Motor Vehicles. Ask to what professional associations they belong (Florida IndependentAutomobile Dealers Association, Chamber of Commerce, etc.).

Where to Buy Used Cars

A used vehicle is a major purchase and requires comparison shopping for price and value tofind the best deal. There are many sources available to today's purchaser: new car dealers, used car dealers, rental car companies, leasingcompanies, and
private individuals.

New car dealers generally keep only the best cars and usually give them a thorough inspection. In addition, consider buying from a dealer whohandles the particular brand of vehicle that you are interested in. Look for a full service department and a well stocked supply of parts. Theymay offer a parts and labor warranty. Be sure to visit several automobile dealerships.
Rental returns (also referred to as program cars) are often an excellent value. These vehicles are typically less than two years old, wellequipped and maintained, with good warranties. Some "unexpected places" to look would be domestic dealers for used imports or luxury dealers formid-priced sedans. Find a friendly salesperson that you are comfortable with and ask questions to determine the person's knowledge about cars.

Private individuals are another source to be considered when purchasing a used vehicle. However, a private party may not necessarily offer abetter deal. Buyers may end up overpaying for a car because they somehow assume they are getting a better deal from a private party.

One benefit is that the potential buyer can meet the seller face to face and inquire about any mechanical problems, who was the principal driver,why the vehicle is being sold and request maintenance records.

When purchasing a vehicle from a private individual, there are no warranties of any kind. It is strictly "buyer beware". In addition, the buyerswill have to provide their own financing for the vehicle or pay cash.

Outside of Car

Look at the vehicle during the daytime as darkness may hide problems. Do not look at vehicles in therain, which hides nicks and scratches, as well as making thin, worn paint look slick. Be sure to concentrate on big defects and not minor repairsthat can be made easily and inexpensively.

Prepare a checklist for both the interior and exterior of the vehicle, as well as those items to test while driving. Take a general look aroundthe outside of the car. A very common practice is to have the car detailed to increase its appeal. Usually this includes a thorough cleaninginside and out, waxing and the repair of minor cosmetic items which can hide abuse or "wear and tear".

Examine both sides of the car from a distance (both front and back). Look for ripples, waves, poorly fitted panels and mismatched colors, all ofwhich may indicate that body work may have been done. Bubbles along molding or chrome indicates rust underneath. Also look under the vehicle forrust as well. If the rust has gone through the metal, you could be looking at major repairs.

Check for welding spots on the frame which may indicate a serious accident or repairs. Open and close the doors, hood, trunk or hatchback.Conditions noted previously may indicate that the car was wrecked, poorly kept, or has been driven excessive miles. Stand back approximately 10to 15 feet from the car and see if the car is level. If one corner seems lower than the others, it suggests a broken spring or other chassis orsuspension problem.

Check the shocks by pushing down on each corner of the car and letting go. Your car should bounce upward only once and then settle back to itsoriginal position. If the car bounces several times, new shocks may be needed.

Check the tires. Uneven tire wear may indicate improper wheel alignment, tired shocks or worn front end components. In addition, check the insideof the tires for brake fluid leakage (indicating leaking wheel cylinders).

Look under the car for oil spots, or leaks from the transmission, power steering or shock absorbers. Open the hood and check belts and hoses forcracks or wear. Remove the radiator cap. The coolant should be a clean, greenish (or blue or yellow, depending on brand of coolant used) color.Brown sludge inside the radiator neck may indicate poor maintenance.
Pull out the oil dipstick. If the oil is gummy or grayish, the engine might have serious problems. If there is a black buildup near the top ofthe dipstick, smell it. A burnt smell indicates that the engine or transmission has been run hot. The automatic transmission fluid should beclear and reddish in color, not brown or black. A burnt smell or low fluid level indicates neglect.
Be sure and check the fluid level in the master cylinder as well. If the fluid level is low, check for leaks and have brake pads checked. Makesure there is an inflated spare tire, a jack and a lug wrench.

Inside of Car

The interior can give you a good idea of the overall condition and how well the entire car has beenmaintained. Check the mileage to be sure the car has not been used too much for the price being asked. Today's cars average approximately 12,000miles per year. In addition, compare the service stickers on the door jamb or under the hood to see if the recorded mileage is consistent withthe odometer reading. It is possible to obtain a history of service as well, depending on where the vehicle was serviced.

   
• Check the condition of the seats, belts and carpeting. Lap belts and shoulder harnesses should be in good shape with no rips, tears or    frayed webbing. The upholstery should be clean with no large rips or cracks.
   
• Check the windows to see if they open and close easily. Manual windows should crank smoothly. Power windows should not hesitate. All    glass should be free from serious cracks or scratches.

Look at the brake, accelerator and clutch. These pedals should work smoothly without strange noises or binding. Check all exterior lights andflashers on the car to ensure they are operating properly. Start the engine and check the warning lights and gauges as well as all theaccessories to make sure they work. Make certain that the air conditioning blows very cold air.
Check the glove box for the owner's manual. It contains maintenance information and important data on engine tuning, fluid capacities andreplacement parts.

A used car does not depreciate as rapidly as it did when it was first driven from a dealership brand new. Be aware of hidden and extra costs,such as rustproofing or extended warranties that you may not want. charges for processing the paperwork involved in a sale known as conveyancefees and credit insurance which will pay off your loan should you die or become disabled. Before purchasing, check your coverage under existingpolicies you already have. You cannot be forced to purchase credit insurance as a prerequisite to securing a loan. This charge represents thedealer's participation in national or regional advertising and is already built into the base price of the vehicle.

Extended warranties are generally offered by manufacturers to cover major drivetrain parts (engine, transaxle, transmission, etc.) at an extracost. Some of these warranties may include a deductible that is paid by the owner. Service contracts and "wrap-around" warranties are offered bymanufacturers and warranty companies. They generally cover repairs for a longer period than the manufacturer's drivetrain warranties. Forinformation on service contracts, check with the Florida Department of Insurance at 1-800-342-2762.

Likewise, do not be afraid to walk away, especially if "the deal won't be there tomorrow". Shop during daylight hours in order to thoroughlyinspect the vehicle and take a test drive. Be sure to drive the car under a variety of conditions, such as hills, highways and in stop-and-gotraffic. This should be a fairly extensive drive, not just a drive around the block.
A car's good points or problems are often apparent after a few miles. If the engine was warm when you arrived to look at the car, it may mean theseller has been running it to hide starting difficulties.

Drive Test

Start the engine and press down on the brake. If the pedal sinksslowly, there may be a leak in the master cylinder. As the engine warms up, listen for any noises such as knocks, ticking and rattles, whichcould indicate engine problems. Next, put the car in neutral and rev the engine. If there is a lot of white or bluish smoke, the engine may needan overhaul.
At idle, the engine should be smooth and quiet. Punch the gas pedal to see if the engine responds without hesitation and then returns to normalidle. When first starting out, drive slowly to get the feel of the car. The automatic transmission should shift smoothly without jerking,slipping or hesitating. A manual transmission should shift smoothly between gears without grinding. The clutch should engage and disengagesmoothly without grabbing or chattering and don't forget to make sure the reverse works. Drive on a flat, smooth road and lift your handsslightly from the wheel. The car should track straight and be stable without vibration. If the car pulls in either direction or "shimmies", afront end alignment or other front end repairs may be necessary.

To test the brakes, accelerate to 30 to 40 miles per hour. Make sure there are no cars behind you, then step hard on the brake pedal, but do notlock the wheels. The brakes should grab evenly and the car should slow down in a straight line. If the car pulls to the left or right, itindicates the need for brake adjustment or a system re-build. A grinding noise indicates badly worn pads or linings. Drive at 35 miles per hourand listen for any unusual noises. If you hear a whining sound from the rear-end, it may need replacing.

Next, accelerate to 45 miles per hour. If the front end shakes or vibrates, the tires probably need balancing. Drive quickly over a rough roadand listen for any loud squeaks or rattles. If the car bounces or bangs over small bumps, the shock absorbers may be worn and need replacing.After you have driven the car for a while, check the temperature gauge to see if it shows a high reading or if the temperature warning light (besure this works!) comes on. These are signs of trouble with the cooling system and they can be very expensive.

To test engine response, accelerate hard on an empty road. The car should respond immediately. There should be no hesitation or smoke from thecar. The engine should accelerate smoothly with no strange noises. You may want to find a steep hill to check the engine's power. If there is asignificant loss in power while climbing, the car may need an overhaul or a tune-up. While you're on the hill, test out the hand brake to makesure that it holds the car. When you are through with the test drive, it's a good idea to turn off the car for a minute or two. Check again forleaks under the hood and beneath the car. It's also a good idea to check the tailpipe. An engine that is burning oil will leave a black, sootyoil deposit. A white, powdery residue usually means good fuel combustion.

Odometer Fraud

Is the physical condition of the car consistent with the mileage on the odometer? The odometerreading is an accepted means of determining the dollar value of a motor vehicle. If the vehicle is in exceptionally good condition, perhaps itemswere replaced due to excessive wear. Also look for scratches on the odometer/dashboard, misaligned digits, digits that stick or an odometer thatfits loosely. If you suspect that the odometer has been rolled back on a vehicle offered for sale, contact your local law enforcement agency orthe DMV. If you suspect odometer fraud has occurred with a vehicle you have already purchased, the DMV can assist you in obtaining a record ofall previous Florida owners and odometer statements from the dealers involved. If your suspicions are confirmed, you will need to retain anattorney in order to file suit against the violator. Due to the importance of the odometer reading in determining the value and condition of avehicle, state and federal laws have been enacted making it illegal to tamper with a vehicle's odometer.

   
• Disconnect an odometer.
   
• Turn back an odometer.
   
• Drive with a disconnected or non-functional odometer.

It is a violation for anyone (dealer or individual) to sell a vehicle without providing a written statement of the actual mileage at the time oftransfer. Exemptions from odometer disclosure include vehicles which:

   
• Are 10 years old or older.
   
• Have a GVWR (Gross Vehicle Weight Rating) of more than 16,000 pounds.
   
• Are not self-propelled.

If you suspect odometer tampering, check the following:

Look for oil stickers, service records or warranty cards showing the mileage of the vehicle.
Check the physical condition of the carpet, brake pedal, seats and any other items that might show wear.
Look for scratches on the odometer or the dashboard, misaligned digits, digits that stick or an odometer that fits loosely.
Examine the odometer statement that the current owner received when the vehicle was purchased.
If you are purchasing the vehicle from a dealer, you should contact the previous owner, write down the vehicle identification number (VIN). Thisnumber is visible through the windshield on the driver's side. The VIN will enable you to get the previous owner's name.

Florida Department of Highway Safety and Motor Vehicles
Division of Motor Vehicles
Attention: Correspondence Department
Neil Kirkman Building
2900 Apalachee Parkway
Tallahassee, FL 32301
Questions: (850) 922-9000
Other Items to Check

Ask if the vehicle has ever been in an accident. Find out as much as possible about the car's prior history and maintenance record. If you arepurchasing the car from a dealer, contact the previous owner to verify the mileage and condition of the car. If the dealer will not provide thisinformation, write down the vehicle identification number, which is usually visible through the windshield on the driver's side. With the vehicleidentification number, you can contact your local tax collector's office or the DMV to obtain the previous owners' name.

For a small fee the National Automobile Dealer's Association, (800) 274-2277, will run a title search on a vehicle. It will also tell you if aparticular vehicle has been salvaged, flood damaged, recalled or had the odometer rolled back.

Mechanical Check

After you've checked out the car thoroughly and are seriously considering buying it, you should take it to a trusted mechanic or autodiagnostic service (again, check the Better Business Bureau) before you make a final decision.

The money spent on checking the car out may save you a lot more money and hassle in the long run. The best place to have the car inspected isat a dealership that sells and services the same make of car. The mechanics there will be familiar with the car and know what problems to lookfor. They also have the sophisticated computer equipment needed to analyze today's cars.

If the car does have some problems, ask the mechanic the approximate cost of repairing any defects. Minor problems which can easily be repairedcan be used to negotiate a lower price but a car with major problems should be avoided. Think long and hard before buying a flood damaged orrebuilt car, or one with serious problems that you may not have the additional money to repair.

The mechanical check is not an "iron-clad" guarantee, just one more way of protecting you and your loved ones. This may be the most importantstep in the used-car buying process. If the dealer or owner refuses to let you take the car to a mechanic, Do Not Buy The Vehicle!

Emissions

As of June 29, 2000, Florida no longer requires emissions testing.

Certification of Pollution Control Form

All dealers are required to have this form filled out completely and signed by both the customer and the dealer at the time of sale. Dealerswithin Hillsborough County are required by law (Chapter 1-8) to complete a certification of pollution form that is designed specifically forHillsborough County. A copy of the form goes to the customer at the time of sale as well. This form certifies that the vehicle has all requiredpollution control devices (and has not been tampered with).

As-Is Or Warranty

All dealers are required by Federal law to post a "buyers guide" in the window of each vehicle offered for sale. The buyers guide notifies thebuyer that there is a warranty or that the vehicle is being sold "AS-IS" with no warranty of any kind.
In the case of an "AS-IS" sale, once you drive the vehicle from the dealership, it belongs to you, despite any problems the vehicle may have. Ifthe vehicle breaks down after only a few minutes of leaving the dealership, the repairs are YOUR responsibility.

Sometimes the most important difference between vehicles is not under the hood or in the extra equipment offered but rather is tucked away in theproduct packaging - the Warranty Card. While you think nothing will ever happen to your newly purchased vehicle, problems will surface. Thebetter the warranty, the less you will pay for those unexpected repair bills.
When comparing warranty policies, longer is better. However, be cautious of policies that are too long or have unrealistic requirements -- thecompany may not be around later when the vehicle needs service.

Does normal service need to be accounted for?

Can service be performed at a repair shop of your choosing or only by certified repair shops designated in the policy? (Important if you livesome distance from where you would be expected to have repairs and service done.)
If misused, is the warranty completely void on all covered items?

Some companies are lax while others require you to have the original warranty with you when repairs are performed. The Magnuson-Moss Warranty Actof 1975 requires that warranties be available for reading before purchase. Unfortunately some companies do not comply with this requirement. Noreputable dealer runs afoul of this law, but their administrative procedures for providing this information are sometimes incomplete. Under thisfederal law, you can sue based on breach of express warranties, implied warranties or a service contract.

The bottom line is: read warranties carefully, especially the fine print. Be sure to obtain copies of the documents you sign. There have beenoccasions where a "buyers guide" reflected a warranty, but the contract stated "AS-IS". Remember, there is no warranty or agreement unless it isin writing and signed by all parties.