Top 8 Questions to Ask When Buying a Car

Car Buying Tips

Buying a car, whether it’s your first or your fourth, can be intimidating. Since people typically go through the car-buying experience once every few years, it's easy to forget what to ask the sales staff when visiting a dealership or speaking with a private seller.

At Mountain America Credit Union, we’ve been financing auto loans for nearly a century, so we know what to look for when it comes to car buying. We are here to provide you with the guidance and personalized service you need to make informed buying decisions in the process of buying a new or used car.

Get our top eight questions to ask before buying a car to help you avoid bad purchases and negative experiences.

1. Is there a vehicle history report available?

When you show up to a used car dealership, the vehicles will probably look great at first glance—possibly even indistinguishable from brand-new cars. But be very careful about buying a used vehicle without setting eyes on a vehicle history report first.

A history report will give you all the information you need to understand the car’s full picture, including previous owners, title status, mileage and much more. These reports usually come from companies like CARFAX, AutoCheck and InstaVin and are typically free on the dealer’s website.

There are several important red flags to look for on a vehicle history report:

Recalls: Automotive recalls are becoming an increasingly common occurrence. They are issued when the National Highway Traffic Safety Administration (NHTSA) sees a particular make and model repeatedly demonstrating the same defect, forming a pattern of unreasonable public safety risks. When enough of the same vehicles have demonstrated the same defect, the car manufacturer is asked to issue a recall of the problematic part. Make sure the vehicle you’re considering doesn’t have any recalled parts that haven't been replaced.

Odometer: A vehicle’s value is directly related to the number of miles it’s been driven. The higher the miles, the lower the value. Unfortunately, the practice of tampering with the odometer is not entirely uncommon, and innocent buyers sometimes wind up taking home vehicles that have been driven much further than the odometer indicates. Thankfully, a vehicle report will tell you the mileage of the car during its last service date so you can ensure the odometer hasn’t been rolled back since then.

Salvage title: A lot of people are attracted to salvage titles because they seem like a bargain. There’s a reason they’re priced so low, and that’s because of the risk that’s assumed under a salvage title. A vehicle becomes a salvage title when it sustains damage so severe that it’s declared a total loss by the owner’s insurance. The insurance company then sells the salvage title to a repair company where it’s rebuilt. Even though the car is repaired, salvage rebuilders have been known to cut safety corners, and they can’t guarantee that the car still meets its original safety specifications.

2. Has the car been in any accidents?

Knowing the incident history of a used vehicle before buying it can save you from expensive setbacks down the road. When speaking to the seller, ask them about any and all accidents the car has been through—no matter how minor. All kinds of damage can have unpredictable impacts on the vehicle’s performance. For example, a seemingly insignificant fender bender that didn’t dent the car could have hurt the car’s suspension, which wouldn’t be revealed during a visual inspection.

Despite the most thorough repairs after a more serious wreck, the accident damage can resurface and become a problem in the future. Parts that have been damaged before may not be as safe or protective in the event of a future accident, and parts that have been bent or broken in the past may fail or wear more quickly than undamaged parts. You wouldn’t want to encounter those issues months after you buy the vehicle, so in addition to finding out exactly what accidents the car has been in, ask about what repairs have been done on specific areas of the vehicle.

This is a prime example of why it’s so important to get the CARFAX report and have a qualified mechanic inspect the vehicle before you sign anything. If you’re buying through a dealership, some offer free CARFAX reports through their websites. If you can't find it there, simply call and ask the dealer for a free report.

3. Can I take the car to a mechanic?

Whether you’re buying from a used car dealership or a private seller, ask to take the vehicle to a mechanic before the final purchase. This simple precaution can save you from buying a lemon—but only ask for an inspection if you're serious about buying the car. A pre-purchase used car inspection will cost between $100 to $200. In some cases, though, you may be able to convince the seller to pitch in or cover the cost of the inspection.

A pre-purchase inspection checks every major part and system, including the steering, transmission, brakes, suspension, engine components and more. At the end of the inspection, the mechanic will give you a detailed report on any problems he or she identified. A good mechanic will usually be able to catch frame damage, overdue maintenance, poorly performed repairs, replacement needs and anything else that needs attention.

If the seller shows any hesitation to allow a mechanic to check out the car, be very wary of the vehicle and the owner. They may know about expensive problems that they haven’t disclosed to you. An honest seller has nothing to hide and shouldn’t have any problems letting you take the car for an inspection.

4. Can I test drive a used version of the car?

A test drive is a necessary part of the car buying process. It ensures that your chosen vehicle is compatible with your driving habits and has the feel and features you want. The problem with test driving a new car, however, is that any brand-new vehicle you drive will feel smooth and comfortable at first. This is why you should ask the dealership if there is a used version you can try out as well.

When driving the used version, you’ll have an idea of what your car will feel and sound like a few years down the road. If the three-year-old version is still smooth, comfortable and sturdy, chances are it will be a good purchase and serve you well.

As you test drive the used vehicle, keep the radio off so you can hear every sound the car is making. It may even be beneficial to roll down the windows to listen for exterior noises. Drive on slow residential streets as well as highway roads, if possible, to see how the vehicle brakes and accelerates in different driving conditions. Take advantage of empty parking lots to make tight turns and listen for the clicking or whining noises that can indicate costly issues.

5. What are the car's safety features?

When you’re on the road, you take your own life and your passengers’ lives into your hands. If the worst-case scenario were to happen, you’d want a safety-rated vehicle that could take the majority of the damage and prevent injury as much as possible. As you’re walking through the features of your preferred car with the dealership's sales staff, don’t be afraid to ask how the car performed in crash tests, what its National Highway Traffic Safety Administration (NHTSA) rating is and which of the latest safety features are built into the car.

When you shop for new or used cars, one of your top priorities should be choosing safety features specific to your environment and driving habits. For instance, if you do a lot of highway commuting, blind spot detection and lane departure warning technologies can make your daily drive a lot less risky. If you live in a cold climate, it would be wise to invest in a vehicle equipped with forward collision warning and auto braking.

While many of today’s smart new safety features are nice to have, they aren’t necessary. But there are some basic safety features on which you should never compromise. Here are some that every vehicle should have:

• Side-impact airbags
• Electronic stability control
• Tire pressure monitoring system
• Anti-lock brakes
• Adaptive headlights
• Shatterproof glass
• Lower Anchors and Tethers for Children (LATCH) system.

6. Can you come down on the price?

Whether you’re buying a new or used car, don’t make the mistake of accepting the first price you’re quoted while shopping at a dealership. You may be intimidated at the idea of negotiating with an experienced salesperson, but the thousands you could save on the sales price make it well worth your time to try.

Before you even step foot into a dealership, arm yourself with sufficient knowledge about the vehicle model you want, including its market value and the price that dealerships in your area are offering for the same vehicle. There are abundant online resources available for this kind of research, including Kelley Blue Book, JD Power and the Edmunds True Market Value pricing system.

Knowing these details helps you make a strong case for lowering the price, and it shows the salesperson that you’re an informed buyer with more than one option. When they make you an offer, explain that you have extensively researched the value of the vehicle and know what it sells for in the area, and give them the price to beat with evidence that another dealership is selling the car for less. Most will do what they can to give you a better deal so their dealership gets the sale.

If you can’t agree on a price in the end, remember you can always walk away from a bad deal.

7. How much will you give me for my old car?

If the car you’ve chosen costs more than you’d originally planned, you may be able to decrease your expenses a little by trading in your current vehicle. Ask the dealer you’re working with if they take trade-ins. If they do, they will subtract the agreed-upon price of your current car from the sales price of your new one.

It is important to know that dealers will typically offer you less than what your car is worth so they can resell it for a larger profit. Another option is to sell the car on your own. There are a variety of places where you can post used cars for sale online. While this will create some added time commitment, it will aslo help you to get more money out of your car.

If you want to stick with the convenience of a trade-in, the next step is to ask how much the dealer will give you for your old car. Get a general idea of what they’ll offer prior to visiting the dealer. Then decide if it’s worth it. Here’s how:

• Browse cars similar to yours in age and condition and determine the average price.
• Subtract 20% of the car’s average value to cover what the dealership will take off to ensure its profits.
• Subtract another $250 to $500 to account for how much the dealer spends to get the vehicle ready for the sale.

Keep in mind that this figure is just a rough estimate. If you want something even more accurate, get estimates from multiple dealerships.

8. What dealer fees are included in the final price?

The expenses involved in purchasing a car always include more than just the cost of the vehicle itself. When you buy a car from a dealership, your “out-the-door price” also includes taxes, dealer fees and more. Before finalizing your purchase agreement, ask to see the breakdown of your costs on the sales contract. Some dealership fees are universal while some can potentially be negotiated. Make sure you understand what each fee is for, and don’t be afraid to ask questions.

Here are some of the costs that are typically non-negotiable:

• Documentation fee: While it may sound strange that dealerships charge you for filling out a contract, this universal charge covers the costs incurred by the dealer to prepare and file all the required paperwork. Some states have a cap on this fee—find out if your state is one of them. If the fee isn't regulated by the state, it may be higher. Try recouping the cost by negotiating a lower price for the car.

• Sales tax: Each state regulates its own vehicle sales tax at a standard rate.

• Title and registration fees: Most dealerships charge a fee for registering your new car with the state DMV. This means you won’t have to worry about getting the title or ordering a license plate. The title and registration fee amount differ from state to state.

Fees you could potentially negotiate include:

• Marketing fee: Auto dealers spend a lot on marketing, and they sometimes try to recover these costs by adding an extra fee to your contract. Dealerships may include this cost in the vehicle prices, so be sure to point that out if you see this fee in your cost breakdown.

• Extended warranty: Dealerships may try to sell you an extended warranty, but many people who purchase them never use them. Before you sign on the dotted line, do some research to find out if the costs outweigh the benefits.

• Gap insurance: Gap insurance, while good to have, is almost always optional. It covers the difference between the amount you owe on your loan and the current value of your car if it ends up stolen or a total loss.