10 Used Car Red Flags

Red flags to avoid

Increase your chances of investing in a reliable and safe vehicle by considering these red flags during your purchase. Go beyond the traditional used car checklist to find a vehicle that serves you well for years to come. Here are 10 deal breakers to watch out for while car shopping.

1. The vehicle doesn’t have a clean title

This one’s not an automatic dealbreaker, but it’s important to be aware of the history of a vehicle you’re considering—including damage as well as any repairs. The title should be your top priority on a used car buying checklist. After browsing used cars on the market, you’ve probably come across one that stopped you in your tracks—a new, low-mileage vehicle for a great price. It seems like a steal until you notice that it has a branded title.

A branded title is given to a vehicle that has been significantly compromised or declared a total loss by the previous owner’s insurance company. Each state has its own classifications but here are some of the most concerning titles:

• Salvage/rebuilt—Salvaged vehicles are ones that have been rebuilt after being totaled in an accident.
• Junk—Junk titles are assigned to cars that hold no value except for the price of the salvageable parts.
• Lemon—Lemon titles are like-new cars with significant defects that the manufacturer decided not to fix.
• Flood—A flood title means that the engine compartment of the car was flooded at one point and sustained damage.

Be aware that these titles are required to be disclosed to potential buyers before the sale is finalized. However, sellers who have less than stellar reputations may sometimes try to avoid disclosing a used car’s branded title or delay telling you until you’re ready to sign the papers. What’s more, branded titles are more difficult to insure, and most financial institutions will not offer funding for branded titles. So, if you’re going to take on the risk, you’ll likely need to pay cash.

2. The transmission is jerky

Transmission repairs can cost upward of $5,000. For automatic transmissions, watch for these three things:

• Harsh shifting—To test for this problem, listen to see if the transmission makes a grinding noise when you switch gears.
• Delayed engagement—If it takes several seconds for the vehicle to respond when you switch gears, the transmission may be faulty.
• Slippage—Perhaps the worst of all transmission issues is slippage, or the vehicle’s failure to respond to acceleration of the gas pedal. The tachometer will go up, but the car won’t go faster.

For a manual transmission, pay close attention to the clutch. A worn-out clutch will engage too soon after pressing down on the pedal and the transmission will slip upon acceleration—you may also experience a burning smell as a result.

3. There is rust under the car

A little rust on older cars is normal around doors and corner panels and even more so in states that frequently use road salt during harsh winters. But don’t make the mistake of dismissing undercarriage rust as simply cosmetic.

Rust underneath the vehicle, on the frame and around the tires isn’t just an eyesore. It can also negatively impact the vehicle’s integrity and even cause parts to eventually fall off, especially if involved in an accident.

4. The oil in the car has a gooey consistency

When you check the car’s fluids, pay attention to the way the oil looks. If it’s thick, dark and clumpy, there may be clogs and deposits in the engine, which can be difficult to remove. What’s worse, this is a common sign that the vehicle hasn’t been maintained regularly. A previous owner’s neglect could cost you a great deal of fuel efficiency, longevity and reliability.

5. The car smells like mildew

A mildew smell could be a sign that the car has sustained flood or other water damage. If this is the case, it’s a good idea to walk away. Exposure to excess moisture can damage the electrical system and render safety features, such as anti-lock brakes and airbags, useless. Any mold or mildew contaminants lingering in the vehicle can also trigger asthma and allergies.

6. The vehicle is leaking fluids

Not all fluid leaks are a cause for alarm but knowing which types are serious can save you from costly issues down the road. Look at the ground underneath the car and under the hood to see if you notice any drips or leaks.

• If it’s just water, there’s no need to worry. Water will leak out when the air conditioning has recently been running.
• On the other hand, black fluid indicates an oil leak, which could mean the car’s engine gaskets or seals are worn out. It could also mean the oil pan is damaged.
• Pink, green, orange or yellow fluid usually points to an antifreeze leak. This indicates that the car is leaking coolant, which regulates the temperature of the engine. This can cause overheated pistons to weld to the cylinder and ruin the engine.
• Red fluid may either be the power steering or transmission fluid. The latter keeps the transmission properly lubricated, so when it leaks out, it leaves the components of the transmission susceptible to damage and could even compromise the vehicle’s performance.

7. The car makes strange noises

Upon test driving a used vehicle, listen for the sounds it makes in every situation—while starting up, idling, turning, braking, accelerating, backing up, going over bumps and so on. Any grinding, crunching, squealing, hissing, sizzling, knocking, booming or scraping noises could spell dollar signs in your future

8. The exhaust pipe is emitting black smoke

This happens when the car is burning too much gasoline as the result of a defective fuel injection system, clogged air filter or a host of other issues—but that’s not the end of your problems. If a used vehicle is doing this, it indicates that the engine is underperforming, so you’ll pay more at the pump as well.

9. The vehicle feels sluggish

When you invest in a car, you expect something that feels zippy and lively and can be expected to perform for many years to come. Some used vehicles indicate their age and wear in how they drive. If the used car you’re test-driving feels tired, it may be a sign of a faulty fuel pump, a defective catalytic converter or a range of other issues. Best to avoid this risk and search for a better option for your money.

10. The price of the vehicle doesn’t match the estimated value

Kelley Blue Book (KBB) and JD Power provide consumers with real-world used car value estimates based on factors such as current market conditions, the time of year and prices from dealers, manufacturers, private transactions, wholesale auctions and lessors.

While their appraised values aren’t always perfect, they tend to come pretty close to estimating what a car is worth. If a dealer or private seller is asking significantly more or less than the KBB value, you’d be right to raise an eyebrow and walk away. Otherwise, you could end up significantly overpaying or purchasing a car that is underpriced because of significant hidden defects.

If you’re considering buying a used car, don’t miss our Used Car Buying Checklist—choose from a simple 20-point inspection or a more detailed 86-point version. Want more information? Get even more information on new and used car buying by visiting the Mountain America blog and podcast episodes.