6 Tips for buying a used car (without getting ripped off)

Nobody likes shopping for a used car. Let’s get that outta the way early. Because when you think “used car,” the thought that comes to mind is your broke uncle’s beater, and the sleazebag in the loud suit who sold it to him.

But if you do your homework, you could be driving a RAV4 with leather seats and navigation, a Lexus RX 350 with memory seats and remote touch, or a 4X4 Tacoma with a bed liner and off-road wheels. The media image of the used car lot has most people putting it below Chernobyl on their list of places they’d like to visit. But buying pre-owned now is nothing like it used to be - otherwise I wouldn’t be in this business. That said, here are some tips to not only avoid getting burned, but to get the best car for your money.

Most people who call in or write to inquire about a used car, have no idea what they’re looking for. Most often, I’ll hear “I just want something basic,” or “Does it have a backup camera?” It’s one thing to not have too many expectations walking in, but it really pays to get familiar with the car you’d like to own.

If you’ve narrowed your search down to a model (e.g. Toyota Camry), do a quick lookup on edmunds.com or cars.com, and have a different look at the “trim” levels. For example, if you’re in the market for a pre-owned Camry, would you like leather or cloth seats? Sunroof or no sunroof? Would it be good to have navigation? A cell phone interface so you can take a call without pulling over to the side of the road? All of this might seem superfluous, but if you’re driving the vehicle for the next 3-5 years? That’s a longer commitment than most romantic relationships. The last thing you want is to be stuck a car that you end up wanting to trade in by next year. You’d be surprised how often I ask a client “When did you buy the vehicle?” and it turns out they bought it less than a year ago, but got tired of it after a few months.

It annoys me when people say things like “They don’t build cars like they used to.” No, of course “they” don’t. They build them better. Just look at this test, where a 2009 Chevy Malibu was crashed against a 1959 Chevy Bel Air. The dummy inside the Malibu was knocked around, but the dummy inside the Bel Air was utterly annihilated.

Additionally, there are features like electronic stability control, anti-lock braking systems, brake force distribution, and others, which can dramatically cut the odds of catastrophic accidents. Even if the used car you’ve had your eye on has low kilometres and is well-maintained, can it actively prevent you from rolling over your vehicle? Can it react faster than you can if one or more of the wheels begin slipping on an icy patch? If your vehicle isn’t up to date with the safety features that come standard on today’s vehicles, that money you save could be putting you at unnecessary risk.

Also, don’t forget that vehicles require maintenance. As mentioned in a previous post, the cost of upkeep can quickly drive up your cost of ownership. You’ve probably got better things to do with your time than make repeat trips to the service department for more repairs.

This one is a bit of a double-edged sword. If you Google the vehicle you’re interested in for long enough, sooner or later you’ll find someone who’s salty about the one they bought, or the dealership they bought it from. That’s the nature of business; can’t satisfy everyone. That said, there are all kinds of forums on the internet for enthusiasts like ToyotaNation and r/Toyota (a subforum on the popular site Reddit.com), where you can find honest reviews from current owners, as well as some cool ideas for customizing the vehicle that’s on your wish list.

Being a reputable dealer with a halfway decent blog, obviously we’ve got some skin in the game. That said, here’s the way it goes in the used-car game: dealerships get the first bid on good vehicles, since they’re acquired as trade-ins. They’ll have newer models, and often have the vehicles with the lowest kilometres on them, but typically charge the highest prices. The vehicles the dealerships don’t keep, they’ll send to the wholesale market where they’re picked up by smaller used car dealers. These vehicles are often priced lower due to accident history, or high kilometres.

You can also buy a vehicle at an auction, and never has the phrase “You get what you pay for” been more applicable. I know that you’ve probably got a friend who brags about the absolute steal he or she managed to scoop up at an auction. But sooner or later they’ll end up sitting across from me and explaining why they never intend to go through that again. I’m not saying it’s impossible to get a good car at a good price from an auction; it’s just that I haven’t met anyone who was completely satisfied with the experience of owning it.

Every pre-owned vehicle available on a dealer’s lot should have the CarProof history available for it. If you’re buying from a private owner, there’s no reason they shouldn’t have a recent CarProof statement ready and available for you to look at. The CarProof statement not only contains a history of accidents and repairs, but gives a rundown of the vehicle’s service history. Without looking at the CarProof record, you could end up buying a vehicle that’s got a pound of jelly sitting in the engine because the last owner never bothered changing the oil.

This is the hardest one for me to type, but here it is. The average profit margin on a new vehicle is often razor-thin. Consumers are demanding more technology and safety features as standard-issue in new vehicles, which means that production costs are high. But consumers also want cheap vehicles, which means dealers are squeezed for profits. Pre-owned cars, on the other hand, have much more average profit margin available. That means asking for $1000 or more off the sticker price is not out of the question.

That said, there’s also the danger of over-negotiating. Selling cars is a business, not a charity. There has to be enough profit in the deal for the dealership to pay their employees and keep the lights on. At least five times a day, there will be customers asking for an “at cost” deal (that is, selling the vehicle for exactly what the dealer paid for it), or even a “below cost” deal (selling the vehicle for less than the cost of putting it on the lot). I’ve had people offer me $20,000 for a $30,000 car, as if marking up a vehicle by $10,000 wouldn’t be a sure-fire way to be eaten alive by our competition. If all of those requests were honoured, we’d be out of business within months. You might find a dealership who will do business with you and sell for next-to-nothing, but the odds are that the service you receive afterwards will…not be great. Try to find the balance between being a frugal consumer and being a waste of salespeople’s time. We’ve got bills to pay and families to take care of, just like you do.

What’s the best way to negotiate? Believe it or not, it isn’t hopping from dealership to dealership and demanding the best price. Any dealer can undercut the competition by a couple hundred dollars, but how much is your time and sanity worth? On the other hand, you don’t want to take their asking price if it turns out you could have saved some money. So just say, straight up, that you’d like the best price possible, and that you’ll take the vehicle today if they can save you the time of shopping around. Seriously, it works. We have sales quotas to meet, and we’d rather wrap up the business than waste your time. Most reputable sales staff (and their managers) will come up with a number that lets you feel like you got a good deal, and lets them keep the lights on.

As always, if you like what you’re reading here, and you’d like to check out pre-owned vehicles at Toyota on the Park, call us at 416-391-7632. Or send us a message through the Toronto Rides contact page and let us know what you’re looking for.

We’ll take good care of you.