Before a deposit on a used car: history, inspection and what to get in writing
A used car carries questions a new one doesn't: what happened to it, and what shape it is in now. Two documents answer them, a history report and an independent inspection, and two promises in writing protect a deposit.
The history report
A history report on the VIN shows reported accidents, title problems and past owners. A car with an accident on its record often sells for less later, and repairs can hide problems.
The independent inspection
An independent mechanic's inspection checks what a report can't. For a car far away, a mobile inspection service or a shop near the dealer can do it.
Two things in writing before any payment
Before paying anything, a deposit included, buyers get two things in writing: that the deal depends on the inspection, and that any deposit is refundable. The planner's email templates carry a line for this on a used car: "Since it's a used car, I'd like the sale to be contingent on an independent pre-purchase inspection by a mechanic I choose, and any deposit to be fully refundable if I don't go ahead after it. Could you confirm both in writing before I pay anything?" It appears in the quote request, the offer and the confirmation emails.
Certified pre-owned
Many makers certify some of their used cars: a manufacturer-backed inspection and an extended warranty, usually at a higher price than the same car uncertified. The two compare on the out-the-door total and on what the warranty covers.
Insurance and safety
Insurance costs can differ a lot between models, and even between trims. A quote for the exact car (year, make, model and trim, or the VIN) before committing shows what it adds to the monthly cost, next to the payment. NHTSA lists recalls and owner complaints by model year, and a VIN can be checked on NHTSA.gov.
Common questions
- What should be in writing before paying a deposit on a used car?
- Two things: that the sale depends on an independent inspection, and that any deposit is refundable if the buyer does not go ahead after it.
- What does an inspection check that a history report does not?
- An independent mechanic's inspection checks the car's present condition. A history report shows what was reported about it: accidents, title problems and past owners.
Where this fits
Part of stage 5 of the method: Make dealers compete in writing. Related: Out-the-door is the only number.