4 Key Signs a Used Car Won’t Hold On to Its Value
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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You may want to put on your inspector hat if you’re in the market for a good used car. According to Consumer Reports, finding a trouble-free used vehicle isn’t about luck. It’s a combination of good research and investigative skills. After all, you don’t want to waste money on a used car that isn’t worth it.
Here’s a look at four key signs a used car you’re considering won’t hold on to its value. Keep in mind, it’s important to do your research whether you’re buying from a dealer or a private seller.
Also see six key signs you should walk away from a used car deal.
Exceptionally Low Price
You’re probably familiar with the idea that sometimes a deal is too good to be true. This is critical when buying a used car, especially because your mind may be focused on the price and mileage.
According to Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth, one sign that a used car won’t hold on to its value is if the seller is offering a price that’s exceptionally less than other used options for the same make and model.
Wear and Tear
“Wear and tear despite low mileage can be a red flag that the car hasn’t been maintained properly,” Cheng said. While a used car may show some signs of its age, consider carefully how beat up the vehicle is given the mileage and model year.
Issues With Reputation and Reliability
Cheng also said to do some research on the used car you’re buying to look for any issues with reputation and reliability for the brand and model. If you discover well-known issues with the model you’re thinking about buying, perhaps it’s a sign to look for a similar vehicle from a different brand.
Spotty Maintenance Records
If the maintenance records aren’t clear, it may be time to pass. Per Consumer Reports, an organized stack of repair and maintenance documents may be a sign that the car has been cared for sufficiently. You can research the maintenance schedule and compare those with service records.
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