Buying a Used Car? 7 Red Flags on the Vehicle History Report That Can Cost You

You’ve worked hard to save up for a new-to-you-set of wheels. You’ve decided on the car dealership you’ll try and spoken to the salespeople, signed the paperwork and the check and taken keys in hand. Unfortunately, not long after you’ve driven off the lot, you found out that the fruit of your labor is actually a lemon.

Buying a used car doesn’t have to be a lesson in uncertainty, since most of them come with vehicle history reports. Knowing how to read one of these reports for red flags, or indicators that a car won’t last as long or pass key inspections, can mean the difference between losing your money on a dud and making a solid investment.

GOBankingRates talked to Mark Beneke, co-owner of Westland Auto Sales, to learn more about the features in a used vehicle that should have you burning rubber in the opposite direction.

Having multiple owners doesn’t mean that a car has been well-loved. Beneke cautioned that if a car has switched owners frequently during a short period, there may be an underlying issue with it.

He added that long-time owners typically care for their cars better than people who’ve only had a car briefly — upping the chances that there’s been some potential negligence or lack of attention to the vehicle.

Beneke advised prospective car buyers to get a full history of a car’s maintenance records to see how well it was cared for.

“Keep in mind that these reports require shops to provide the information. There are many people who have this work done at a shop that does not report it, or they do the work themselves,” he said. “If this is the case, see if they have kept a record of it all. You may be surprised at how many do.”

Though some vehicle history reports are clear about listing any mileage discrepancies, be on the lookout for reports that might not have these discrepancies listed so transparently. Beneke said that car buyers should look through the mileage updates from the beginning of the car’s life, comparing them to each reported update to ensure everything aligns.

A branded title means that the car has taken on some form of significant damage, from an incident like a major accident or flood, or had its odometer rolled back.

“While some vehicles like this are great and you can get them at a great price, there is a big risk involved, as you do not know what could pop up later on down the line,” said Beneke. “Not to mention that the resale value of the vehicle is also reduced.”

Ensuring that your future vehicle will be able to pass a vehicle emissions test is essential to keeping it on the road — and keeping your bank account protected from costly repairs down the line.

“If a vehicle fails to pass smog testing numerous times, it could mean that there are issues with the exhaust system or engine. If it managed to pass, it was likely taken care of,” said Beneke. “However, it would be wise of you to have those areas inspected to make sure it was done… correctly.”

Beneke encouraged car buyers to check the recalls of any car they might be interested in, so they’re aware of any outstanding issues that the manufacturer is trying to remedy.

“It’s important to check this, because there are many recalls that the manufacturer has still not found a remedy for,” he said. “This would mean that you would be buying a vehicle that you may not be able to reregister or insure.”

If you’re in doubt, you should call your local brand name dealership and confirm that there is an available remedy for the vehicle.

If your car comes from an area with major weather conditions like heavy snow — which prompts many local governments to unload the salt trucks on the road — you might find more wear and tear, as well as a higher chance of rust. Beneke suggested checking vehicles from these areas for signs of rust.

Ultimately, Beneke advised car buyers to do their own research and be proactive about checking the background of the car.

“None of these signs automatically indicate a bad vehicle. They are simply red flags that should raise your attention enough so that you dig deeper into them,” he said. “Looking at these and having your vehicle thoroughly inspected by a third-party mechanic will reduce your chances of that happening.”