Advice for Buying a Used Car in California (2024)

Thinking about buying a used car? With so many things to consider, it can be confusing to know what to look for or where to start. We've put together our best advice for buying a used car in California, so that you're getting the best deal and a car that you'll actually love. (Don't worry new car buyers , we take care of you, too!)

Check for important documents

Always plan to get a vehicle history report. This is great as a first step - it immediately lets you know whether or not you're chasing a dead end. Carfax is a go-to resource for checking a VHR - all you need is the car's vehicle identification number (VIN). In some cases, just the license plate will do.

Advice for Buying a Used Car in California (1) Driving a car

Test drive the car

This is one of the most important steps in buying a used car. Look for any lights that come on, check your visibility, and be aware of any weird smells. Some other things to evaluate:

  • Tires: How old are they? Are they even? What does the tread look like? Check the condition of the spare tire, too.
  • Brakes: Are they making any weird noises? Do they feel smooth?
  • Is there anything leaking or steaming?
  • Does the AC actually work?
  • Do your lights all work?
  • Do the doors, windows and lids open and close properly?
  • How does the engine sound when turned on?

As you're driving, be sensitive to what you feel, smell and hear. Drive over rough roads, and be on alert for odd noises or vibrations. Stop and start the car at varying speeds. Turn the car at varying speeds.

Know which scams to look out for

Car scams are easy to spot if you know what you're looking for. Here's a list of 10 common used car scams to be aware of.

Get the car inspected by a mechanic

If possible, get someone to inspect the car before you buy it. Preferably, make sure it's a mechanic that you trust . If you're buying from a dealership and they won't let you take the car to a tech, you can find a mobile diagnostic service that will come to you for the inspection. CPO cars should already have an inspection and warranty in place.

Know your pricing options

Prices will vary depending on where you shop. Private-seller cars will usually cost the least, while Certified Pre-Owned vehicles (CPO) will cost the most. This is because CPO vehicles have long-term warranties that are backed by the carmakers, not just the dealership. If you decide to buy a CPO vehicle, you will only be able to do so at a franchised dealership.

Private or dealership?

There are pros and cons of buying from a private party or going with a dealership. If you choose to buy from a private party, you may get a better bargain. However, there won't be any warranties, and it may be harder to get a refund.

If you decide to buy from a dealership, you may be shelling out more. However, dealers are generally required by law to guarantee a car for a short period, which gives you a safety net in case something goes wrong with the car. Additionally, dealers may be able to help with insurance, taxes and registration.

It's all about what makes most sense for your budget and time.

Advice for Buying a Used Car in California (2) Signing a contract

Tips for buying from a dealer

Before you even step into a dealership, you should know the market price of the car. When bidding, start below market price, and work up. Don't be fooled by sales or deals that boast a few thousand dollars off from the sticker price. You should also have a maximum price in mind. This allows you to walk away, and may also help in negotiating a lower price from the salesperson, because it shows that you're not easily swayed.

The LA Times recommends staying away from discussing monthly payments with a dealer. This is because dealers may trick customers into paying more than they're aware of. Instead, remain focused on the total price of the car.

A good rule of thumb is to separate your negotiations out instead of talking about everything at once. For example, you may want to structure your conversation first around price, then financing, then extras (like warranties), and finally the value of a trade-in (if applicable).

Always remember that everything is up for negotiation; by that, we mean that you shouldn't just be haggling on the price of the car. Loan packages, extended warranties, insurance, and anti-theft devices are all up for consideration. As always, compare the prices you're quoted with what you've researched yourself.

Under California state law, if the car costs less than $40,000, you have the right to buy an insurance policy that lets you return it within two days.

Tips for buying from a private seller

You should follow all of the above advice when going through a private seller, including asking for a VIN, getting a mechanic to inspect the car, and taking it on a test drive. Unlike buying from a dealership, however, you'll have to transfer the title and registration, and get license plates. Check out the California DMV's information on buying a vehicle and changing vehicle ownership here , including the necessary forms needed to complete the transaction.

Images sourced in order of appearance: Unsplash , Unsplash , Unsplash

Krista Doyle

Krista is a Content Writer and Editor at Aceable where she has written several online drivers ed & real estate courses. She loves using her passion for writing and tracking marketing trends to help Aceable's students learn necessary skills to succeed in their lives and careers.

Advice for Buying a Used Car in California (2024)

FAQs

What is the 10 day rule for auto financing in California? ›

Dealer has 10 days to cancel the contract if the loan is not funded. They must tell you within 10 days that the contact is being canceled (a letter in the mail on day 10 counts). If they do, you return the vehicle and get a 100% refund. If they try to cancel after day 10, you need to get an attorney asap.

What are three things you should do before buying a used car? ›

What to check when buying a used car
  • Research used car ratings and rankings. You should also research the make and model's general history. ...
  • Give the car a quick look for issues. ...
  • Take the car on the road for a test drive. ...
  • Inspecting a used car with a trusted mechanic.

How long do you have to return a used car in California? ›

California Contract Cancellation Option Agreements

The buyer has two days to return the car and obtain a refund for any reason. California Contract Cancellation Option Agreement prices are typically priced as follows: $75 for a vehicle costing less than $5,000. $150 for a vehicle that costs $5,001–$10,000.

What do you need when you buy a used car in California? ›

To take over ownership of a vehicle, you will need:
  • The vehicle's title (sometimes referred to as a pink slip), signed by the person selling the car. ...
  • If the seller is not the owner whose name is on the title, you will need a Bill of Sale signed by both the seller and the person whose name appears on the title.

What is the 300% rule in auto finance? ›

Present 100% of your products to 100% of your customers 100% of the time” is the credo F&I pros follow — at least for those living above $1,500 per copy. Also known as the 300% Rule, those who subscribe to it assume everyone's a buyer. It's a mindset we could all use on the service drive.

Can you cancel a car purchase after signing California? ›

After you sign a motor vehicle purchase or lease contract, it may only be canceled with the agreement of the seller or lessor or for legal cause, such as fraud.

What are 5 tips for buying a used car? ›

However, you can take steps to minimize your risk and secure the best deal.
  • Make a budget and stick to it. ...
  • Research cars that fit your needs. ...
  • Get preapproved for financing. ...
  • Shop around for a car. ...
  • Fully research a car after test driving. ...
  • Negotiate and finalize the purchase.
Mar 11, 2024

What are three disadvantages of buying a used car? ›

Disadvantages of Buying a Used Car
  • A lot of unknowns.
  • More wear and tear.
  • Fewer customization options.
  • Most don't come with warranties.
  • Higher mileage.
  • Possibility of being stuck with a lemon.

What mileage is good for a used car? ›

There's no rule to how many miles on a used car is too much, but by attempting to stick to the 12,000 miles per year rule is a great place to start. Find out how old the car is, multiple the number of years by 12,000, and if the number on the odometer is significantly higher than that, some concern might be warranted.

Is there a 30 day warranty on used cars in California? ›

Under California's lemon law, a “buy-here-pay-here” dealer must provide a minimum of a 30 day or 1,000 mile warranty, whichever comes first. The lemon law protects you if you buy a car from a buy-here-pay-here dealer and it dies or has significant issues soon after you leave the dealer.

How many days do you have to insure a used car after purchase in California? ›

California allows a new car insurance grace period of 30 days, which is how long you have after purchasing a vehicle to buy insurance for that car and provide proof of active insurance coverage to the California DMV.

What to do if you don't like the car you just bought? ›

You can try contacting the dealership and explaining the situation anyway. Remember that they're under no obligation to allow you to return the car. If the dealership does have a return policy, check the terms. Find out how much time you have and which conditions you need to meet first.

How do I avoid paying sales tax on a used car in California? ›

Private party sales are not subject to sales tax in California . Additionally , if you are a resident of another state and plan to register the vehicle in that state , you may be able to avoid paying California sales tax by providing proof of out - of - state registration .

How much tax for a used car in California? ›

California Sales Tax on Car Purchases

According to the Sales Tax Handbook, the California sales tax for vehicles is 7.5 percent. Of this, 1.25 percent goes to the applicable county government. Districts, cities, and other local government entities may collect additional taxes up to 2.5 percent.

How to gift a used car in California? ›

For a gift or trade, the new owner must indicate the vehicle's estimated value on a Statement of Facts (REG 256) form. New Legal Owner/Lienholder Section—The name and address of the new legal owner (lienholder), if any, must be entered on the appropriate lines.

What is a 10 day payoff auto loan? ›

A 10-day payoff statement is a document from your lender that gives us the payoff amount to purchase your vehicle, including 10 days worth of interest. We need this document in order to finalize your trade-in or sale.

Can you back out of a car deal in California? ›

Consumers who purchase a used car for less than $40,000 must be offered a two-day contract cancellation option agreement. There is no “cooling off” period unless you purchase a contract cancellation option agreement.

Is there a grace period for car payments in California? ›

Note that auto lenders typically offer a 10- to 15-day grace period from the payment due date during which you won't be charged late fees or face other consequences for missing a payment.

What is the California financing law? ›

requires the licensing and regulation of finance lenders and brokers making and brokering consumer and commercial loans, except as specified; prohibits misrepresentations, fraudulent and deceptive acts in connection with making and brokering of loans; and provides administrative, civil (injunction and ancillary relief) ...

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