While you can save tons of money purchasing a used car, it’s still a scary proposition. Every year we hear stories about people purchasing used cars that have actually been in major collisions. To be honest, it’s easy for auto rebuilders to fix these vehicles up and put them back into the circulation. Unfortunately, we’re the ones that have to deal with the long term issues.

When an insurance company looks into accidents, one of the first things they assess is whether or not the vehicle is totaled. If they make this judgment, then it means that it would cost more to fix the car than the amount its worth. Once this is set in motion you get a check for the amount, and the vehicle goes to a salvage auction. Unfortunately it could end up returning the market after someone purchases it for cheap and then fixes it.

Even if a car looks new and well kept, you might be surprised to learn that it may have sustained major damage. The title to a vehicle will not always reflect this fact. Here are some things that you can do to keep yourself from being taken for a ride when it comes to buying a used car:

1. Check the title of the vehicle. Not every salvaged vehicle will have a notation on the title; in some cases band-aid repairs are done on the sly without a report being issued. But the title is the first place to check. If you see phrases like “scrap,” “parts only,” “unsalvageable,” or “un-rebuildable” then you are dealing with a vehicle that’s been involved in a major accident.

In order to do this simple check, we recommend using the National Motor Vehicle Title Information System (NMVTIS). You’ll be able to enter a simple VIN number and get all kinds of helpful information. Whether it’s the odometer reading, if it’s been reported stolen, or if it was considered a total loss you’re going to know. In order to do this you can visit the NMVTIS at nmvtis.gov.

Have Someone Inspect It- Okay, so we don’t want you to have your next door neighbor come out and inspect it. However, if they are certified in collision repair then they would be a wise choice. They’ll be able to identify the signs of a previously wrecked vehicle.

3. Ask the seller outright whether the vehicle has ever been in an accident. There are no guarantees that the seller will be truthful, but this way you can avoid a lie by omission. Some people won’t offer the information, but will be truthful if you ask.

Get a History Report- One of the best things you can do is getting a history report. The two best places are CarFax and AutoCheck. They will offer up all the dirt on any vehicle out there. Unfortunately, not all problems are reported to the state licensing agencies.

When it comes to checking out a used car’s past, be thorough in researching the vehicle’s history before you make a purchase. Document your research and keep a record of your conversations with the prior owner to protect yourself in case you find out later that you’ve been sold a previously wrecked vehicle.

While you can save tons of money purchasing a used car, it’s still a scary proposition. Every year we hear stories about people purchasing used cars that have actually been in major collisions. To be honest, it’s easy for auto rebuilders to fix these vehicles up and put them back into the circulation. Unfortunately, we’re the ones that have to deal with the long term issues.

When an insurance company looks into accidents, one of the first things they assess is whether or not the vehicle is totaled. If they make this judgment, then it means that it would cost more to fix the car than the amount its worth. Once this is set in motion you get a check for the amount, and the vehicle goes to a salvage auction. Unfortunately it could end up returning the market after someone purchases it for cheap and then fixes it.

Even if a car looks new and well kept, you might be surprised to learn that it may have sustained major damage. The title to a vehicle will not always reflect this fact. Here are some things that you can do to keep yourself from being taken for a ride when it comes to buying a used car:

Check the Title- Since not every salvage vehicle has a notation on the title, you have to look at the wording. If you see things like “scrap,” “parts only,” “unsalvageable,” or “un-rebuildable,” then you have a vehicle that’s been in an accident right in front of you.

You can check the vehicle’s title by utilizing the National Motor Vehicle Title Information System (NMVTIS). This database lets you enter a VIN number to instantaneously check the title and odometer reading of an automobile and find out whether it was ever declared a total loss or reported stolen. This government service is available in most states, and more states are continually adding this service. You can visit the NMVTIS website at nmvtis.gov.

Inspect the Vehicle- This is extremely important, and it shouldn’t be someone you know. Have a person that is certified in collision repair take on this task for you. They’ll be able to give you the telltale signs that could involve a faulty vehicle.

Ask the Seller- If they are truthful, asking the seller could be the easiest option. However, there are times when they just want to sell the vehicle so it could become difficult. Even though this could be helpful, we still recommend researching the vehicle as much as possible.

4. Get a vehicle history report. Two of the most popular services for this purpose are Carfax and AutoCheck. These types of reports can clue you in to important red flags about a vehicle’s past. You should, however, be aware that a clean report is no guarantee that a vehicle has never been wrecked. Still, this provides another important piece of information, since there are many problems that are never reported to state licensing agencies.

All we ask is that you be thorough when researching this vehicle. All the tips we provided above should give you enough details as to whether or not it’s going to be worth the money. If you’re really smart, document all your research and conversations in case something goes wrong. This way you can build a case in the event of a problem.

Since most of us, myself included, don’t have a safe with a big stack of cash in it we need to finance our auto purchases. Most people go with dealership financing but there is another option. Private party auto loans are often a more practical solution depending on your situation. In General here are some of the major differences between the two types of loans.

The Loan Term

Private party lenders tend to offer shorter loan terms compared to dealership loans. Dealership loans are often as long as 72 months or 6 years. On the other hand private party loans are typically 36-48 months or 3-4 years.

The end result is for the same principal you will have higher payments on a private party loan but generally pay only a fraction of the overall interest.

Higher Interest Rates

On average interest rates are higher on private party loans compared to dealership loans. This may be misleading because private party loans accept people with lower credit scores but charge higher interest rates. If you have good credit you can usually find a rate that is comparable to what you could get through a dealer.

Pre-Approval

In general you go through the loan approval process before you start seriously shopping for a car. Instead of picking out a car and then applying for financing which is the common practice with dealership loans. The result is more flexibility and negotiating power when you are actually shopping.

Furthermore since all of the loan processing is done before committing to buy a car, buyers with less than perfect credit do not have to worry about finding the perfect car only to be told after the fact that they cannot actually afford it.

Private Sellers

The difference between buying the same car at a dealership or from a private seller is typically thousands of dollars. Many people think they can’t go the private party route because they cannot finance their purchase, but private party auto loans do just that.