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Buying

The biggest red flags in a used car ad

A used car listing is a sales document, not a disclosure. The information that is missing usually matters more than the information that is there.

Ten tells that should make you slow down, and what to ask instead.

Get my free quoteRates as low as 6.93% APR for qualified applicants. All financing is subject to credit approval.

The tells

  • No VIN in the listing, which prevents you from checking history before you travel.
  • Photos that avoid one side of the vehicle, or are taken in rain or at night.
  • A price far below comparable listings with no explanation.
  • Sold as is with no safety inspection in a province that requires one.
  • A seller who is not the registered owner, or who wants to meet somewhere other than the registered address.
  • A short ownership period, such as three months, on an older vehicle.
  • Odometer numbers that do not match service records.
  • Refusal to allow a pre-purchase inspection.
  • A lien still registered on the vehicle with no plan to discharge it.
  • Pressure to leave a deposit before you have seen the car.

Always do these two things

Buy a vehicle history report using the VIN, and have an independent mechanic inspect the vehicle before money changes hands. Together they cost a fraction of a bad purchase.

If there is a loan on the car

Ask for a payout statement and confirm the lien discharge process in writing. Never accept a verbal promise that the loan will be cleared later.

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Frequently asked questions

Use a vehicle history report and confirm the payout statement with the lender directly. Provincial lien registries vary.

In most provinces a safety inspection is required to transfer ownership on a used vehicle. Ontario, for example, requires one.

Not always, but a large gap below comparable listings usually means an accident history, a lien, or a mechanical issue.

Keep reading

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*No credit check is required to complete the initial pre-qualification. This is not a loan approval or a guarantee of financing. Final approval, rates, terms and conditions are subject to lender requirements and may require a credit check.