Some car makes and models are more susceptible to problems — and to costly repairs — than others. So it pays to check reliability ratings, which attempt to identify problem areas in particular models and may help you estimate future repair costs. Typical reliability ratings assess a model’s likelihood of suffering minimal, moderate or significant problems across its various systems, such as engine, brakes, transmission, suspension and heating/air conditioning. The annual Consumer Reports Guide to Used Cars is a particularly helpful resource.
Sometimes certain car models are subject to a recall, because their manufacturer has identified a safety hazard or other defect that could affect the car’s ability to function. You can learn which cars have been subject to recalls in the United States by calling the National Highway Traffic Safety Administration’s Auto Safety Hotline at 1-800-424-9393 or by visiting its webite at www.nhtsa.dot.gov/.
When is a used car not really a used car? When it’s a demo car. Car dealerships often use a certain vehicle for demonstrations, such as test drives, or as an “executive car,” meaning that salespeople or managers drive it. In some states, when they sell this car later, they can still legally advertise it as new — regardless of its mileage — as long as it has never been registered in any individual’s name. Once a vehicle has been registered, however, it is legally considered used. Under federal rules, car dealers must post a buyers guide on a demo car, even if it’s being advertised as new, that indicates its condition. And you should certainly expect to negotiate a discount if you buy a demo car.