7 Used Car Myths That Are Costing You Thousands

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Many people turn to used cars in hopes that they will save them money in the long run. On the surface, this seems like a safe assumption. After all, the average used vehicle costs $25,151, whereas the average new vehicle costs $47,244, according to Kelley Blue Book.

But while buying used might save you money upfront, secondhand vehicles often come with hidden issues that add to the total cost. In some cases, a pre-owned car could end up costing you thousands of dollars on your initial purchase, begging the question of whether you’re really saving any money at all.

In some cases, purchasing a used vehicle can definitely be a sound financial decision. But in others, it could be quite the opposite. If you’re considering buying a used vehicle, here are some of the biggest myths about them that could seriously bust your budget.

Low Mileage Equals a Better Deal

When buying a used vehicle, one of the first things to look for is its mileage. Typically, older vehicles will have higher mileage than newer ones.

And, in most cases, a low-mileage car is considered a better deal than a high-mileage one. But it’s not always that simple.

“While low mileage can be appealing, it doesn’t guarantee a trouble-free vehicle,” said Ryan Waterman, CEO at Independence Automotive. “Some cars with low mileage may have been stored improperly or have other underlying issues. A comprehensive inspection is crucial to uncover potential problems.”

In addition to getting a pre-purchase inspection done on any vehicle you’re interested in, it’s also important to do your research.

See if that make and model has had any recalls or other noticeable issues. Check what people are saying about it as well to get a better idea of whether it’s actually a good deal.

Dealerships Are Better Than Private Sellers

Many places sell used cars, including major dealerships, private businesses and individual sellers. While it might seem like a dealership is always the best option, none of these options are inherently better or worse than the others. What matters is doing your research before making the purchase.

“While dealerships often offer warranties and a sense of security, it’s not always the case that they provide better deals,” said Waterman. “Private sellers can offer well-maintained cars at competitive prices. The key is to do your due diligence, whether you’re buying from a dealership or a private individual. Get a pre-purchase inspection and research the vehicle’s history regardless of the seller.”

Do a bit of comparison shopping into different dealerships and private sellers in your area. Check their online reputation and what other features they might offer, like an extended warranty, free or discounted check-ups, or a family maintenance plan.

Used Cars Don’t Get Discounts

Since they’re not new, some people believe used vehicles don’t benefit from any dealership discounts, but this isn’t necessarily the case. Dealerships and some private sellers will have holiday specials or other discounts on select inventory — including used vehicles.

Along with this, you might also be able to find a better deal — in some cases — by shopping online. This doesn’t mean you can only find good deals online, though. It just means that the seller might list their current specials on their website before they come up on location.

Carfax Reports Tell All

Getting a vehicle history report from Carfax or an alternative can give you a better idea of the car’s history of issues and accidents. But just because you get a clean report doesn’t mean there aren’t any hidden problems with the vehicle.

“While a clean Carfax report is reassuring, it doesn’t guarantee a problem-free used car,” said Waterman. “Some incidents may not get reported, and thorough inspections by a trusted mechanic are still essential. Hidden issues, such as accidents that didn’t involve insurance claims or incomplete repair work, can exist even with a clean history.”

At the same time, even if the report comes back with some minor issues, that doesn’t necessarily mean the vehicle is a bad purchase. You’ll need to consider what type of incidents or damage the car has sustained and make a decision based on that and a more recent inspection.

“While a car with a history of accidents may raise concerns, it’s not an automatic deal-breaker,” Waterman continued. “Minor accidents that were properly repaired can leave no lasting damage, and the price may be lower as a result. Again, a professional inspection can help you determine if the car is safe and reliable.”

You Don’t Need a Separate Inspection

You might decide to skip getting a separate inspection done, especially if you’re buying from a dealership that’s recently conducted one of their own. But that doesn’t mean you shouldn’t still get a pre-purchase inspection for the used car. This is particularly important if you’re buying from a private or individual seller whose reputation you’re not as familiar with.

Having a professional check the vehicle out can determine its actual condition, as well as give you an idea of what any repairs might cost. Of course, the mechanic who inspects the vehicle is likely to charge a fee for the service. But even so, an inspection could potentially save you thousands of dollars down the road.

Used Cars Have No Resale Value

Another common misconception about used cars is that they have virtually no resale value. This can keep people who currently own such a vehicle from trying to sell it or from knowing its true worth.

But the truth is, even preowned vehicles can still hold value. In fact, vehicles are known to start depreciating the second they’re driven off the lot. So, if you find a lightly used car in great condition, you could actually be getting a better deal from it.

You can estimate the value of your used vehicle by searching its original manufacturer’s suggested retail price (MSRP) online or by checking its listing price at several dealerships. You can also check out sites like Kelley Blue Book to see the vehicle’s make and model, and its estimated value.

Returning a Used Car Is Easy

Unfortunately, returning a used vehicle isn’t any easier than returning a new one. In other words, once you pay for it and drive it off the lot, it becomes your responsibility. Only rarely will a dealer take the car back and give you a full refund or agree to exchange the vehicle.

Keep this in mind when signing the sales contract or taking out a loan for the vehicle. And make sure you do your due diligence beforehand so that you don’t end up taking on a money pit.

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