Design preview. Not public yet.

Money

Buying a car without getting taken

Know your budget and financing before you shop, get an independent mechanic to inspect any used car, read the Buyers Guide on the window, and compare the total cost, not just the monthly payment.

ModerateA few hours to doInspection fees vary

You'll need

  • A budget, including insurance
  • A loan pre-approval or a sense of the rate you can get
  • The car's VIN

Do it like this

  1. Shop for the loan before the car. Banks, credit unions and dealers all offer financing, and you can negotiate the terms (CFPB, FTC).
  2. Read the Buyers Guide. Dealers must post it on every used car, and it says whether the car is sold "as is" or with a warranty (FTC).
  3. Pay for an independent mechanical inspection. A vehicle history report may list accidents and flood damage but typically won't list mechanical problems (FTC).
  4. Run the VIN at NHTSA.gov/recalls for open safety recalls.
  5. Compare the total cost: down payment plus every monthly payment, and the finance charge (FTC). Say no to add-ons you didn't ask for.
Watch out. Federal law doesn't give you three days to cancel a car purchase. Ask about the return policy and get it in writing before you sign (FTC).

If it doesn't work

  • If a dealer won't allow an independent inspection, the FTC suggests going to another dealer.
  • If the paperwork doesn't match what you agreed, don't sign until it does. Make sure it reflects the deal you think you're getting (CFPB).
  • If a dealer added products without asking, ask for each add-on's price in writing. You can usually buy the car without them (FTC).

Good to know

Add-ons add up

Add-ons like gap insurance, VIN etching and rustproofing can cost thousands and are often pitched at the end of a long day (FTC).

"As is" means as is

If the as-is box is checked, the dealer won't pay for repairs after the sale. Get any verbal promises written on the Buyers Guide (FTC).

Insurance is part of the price

Get an insurance quote before you buy. See Auto insurance basics.

Sources

  1. Federal Trade Commission Buying a used car from a dealer
  2. Consumer Financial Protection Bureau Auto loans
  3. National Highway Traffic Safety Administration Recalls

Lesson M10.1 · Last checked October 2, 2026 against the sources listed. See a mistake?