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Home Financial Planning Personal Finance

How Does a Pre-Purchase Inspection for Cars Work?

by TheAdviserMagazine
6 months ago
in Personal Finance
Reading Time: 12 mins read
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How Does a Pre-Purchase Inspection for Cars Work?
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A pre-purchase inspection is a comprehensive evaluation done by a qualified mechanic to assess the condition of a used car before you buy it. The goal of a pre-purchase inspection is to identify existing problems and potential future issues before deciding whether to proceed with the purchase.

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Edmunds – New Cars Purchase

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CarsDirect - Car Purchase

CarsDirect – Car Purchase

New and Used Car ShoppingCarsDirect provides a broad selection of new vehicles, including cars, trucks, SUVs, and hybrids, through an extensive network of dealers to ensure great deals. For those interested in quality used vehicles, they offer access to over 1,400,000 listings, making it easy to find and secure the perfect car, truck, or SUV. The platform allows users to conveniently save searches and receive notifications when new listings match their criteria. Additionally, CarsDirect partners with numerous dealers to offer streamlined purchase options for both new and used cars, simplifying the buying process.

TrueCar

New and Used Car ShoppingTrueCar offers an extensive platform for buying and selling cars with transparent pricing and personalized offers. Their digital marketplace simplifies vehicle research, and with TrueCar+, the entire car-buying process can be completed online, including flexible financing, home delivery, and options for selling or trading in vehicles. Customers also benefit from a straightforward, no-hassle experience with trusted dealers. TrueCar partners with a network of verified dealers to ensure reliable transactions and competitive deals on both new and used vehicles.

Why is a pre-purchase inspection important?

Provides peace of mind. Knowing the exact condition of a used car helps you make an informed decision. It reduces the likelihood of buying a car that leaves you stranded or has major repair bills down the road.

Ensures safety. A PPI includes checking that all safety features are functioning correctly, so you can have greater assurance that you, your passengers and other drivers are protected.

Helps with negotiation. If a mechanic discovers issues during a pre-purchase inspection, it can help you to negotiate a lower car price or request repairs before you buy.

What does a pre-purchase car inspection include?

Usually a standard pre-purchase inspection involves the following, but details can vary depending on the provider.

☐ Exterior inspection. Checks for signs of accidents, flood damage, rust or paint inconsistencies. Includes aspects like tire condition, underbody damage and window cracks.

☐ Interior inspection. Assesses the condition of upholstery, mats, the headliner (ceiling) and seat belts. Includes inside lights, air conditioning, gauges, infotainment and other electrical items.

☐ Mechanical evaluation. Examines the engine, transmission, brakes, steering, suspension and exhaust systems for wear or damage. Includes checking for leaks and missing parts. 

☐ Diagnostic testing. Uses specialized tools to detect error codes or issues within the vehicle’s computer systems.

☐ Test drive. Evaluates the car’s performance, including acceleration, braking and handling.

☐ EV inspections. Includes assessing battery health and whether degradation is normal for the car’s age. 

Where to get a pre-purchase inspection

When deciding where to take a car for a pre-purchase inspection, it’s important to choose the provider yourself. For example, if you’re buying a car from a private seller, don’t rely on a pre-purchase inspection report they provide.

These people and places typically offer pre-purchase inspections.

Local mechanics. You may already have a relationship with a trusted mechanic who will provide an unbiased assessment. This could be someone who works independently or for a body shop.

Specialized technicians. For specific makes or models, a technician familiar with that brand can provide more detailed insights.

Mobile inspection services. These services come to the vehicle’s location, offering convenience, especially for private sales. This is also a good option if you’re buying a car in another state.

Dealerships. Some dealerships offer PPIs, but it’s not recommended to have the inspection done at the same dealership where you’re buying the car. If you’re buying from a used car lot, you might get an inspection at the service center of the new car dealership for that brand.

National retailer. Some chains, such as tire and oil change businesses, provide car inspections at a lower cost.

🤓Nerdy Tip

If the car is a certified pre-owned (CPO) vehicle, factory-trained mechanics have already inspected it as a requirement for manufacturer certification. CPO cars are also sold with a warranty. A third-party, pre-purchase inspection may not be as critical for a CPO vehicle, but you can still get one if you want the added reassurance.

How much does a pre-purchase inspection cost?

The typical cost of a pre-purchase inspection is about $100 to $300. Prices vary based on where you live, the depth of the inspection and where it’s done. Even though this is an added expense, it can prevent you from buying a damaged car and save you from costly repairs in the future.

Members of AAA and Auto Club may have access to discounts on pre-purchase inspections[0].

When to schedule a pre-purchase inspection

The best time to arrange a PPI is after you’ve narrowed down your vehicle choices but before you finalize a purchase. This timing ensures that any issues discovered can influence your decision-making process or negotiation strategy. Taking a car for an inspection when you test drive it can save you time.

Frequently asked questions

What if the seller refuses a pre-purchase inspection?

If a seller won’t agree to a third-party inspection, it could be a red flag. A refusal could mean they’re hiding issues, so it may be best to move on to other vehicles.

Is a vehicle history report the same as a pre-purchase inspection?

No, a vehicle history report is helpful but not a substitute for a hands-on inspection. It shows past events, but only an inspection can reveal current mechanical issues.

How do I get a pre-purchase inspection if I buy out-of-state or online?

You can hire a local mechanic or mobile inspection service near the seller’s location. Many services will go to the car, perform the inspection and send you a detailed report.

Also, some online retailers like Carvana and Carmax allow you to return a vehicle within a certain time period. If that’s the case for a car you buy online, make sure to get an inspection before the return window expires.

Do I also have to pay to take the car for a third-party inspection?

To ensure you do not take off with the car, some sellers may ask for a refundable deposit. Dealerships might also ask you to sign a nonbinding purchase agreement.

What if the seller refuses a pre-purchase inspection?

If a seller won’t agree to a third-party inspection, it could be a red flag. A refusal could mean they’re hiding issues, so it may be best to move on to other vehicles.

Is a vehicle history report the same as a pre-purchase inspection?

No, a vehicle history report is helpful but not a substitute for a hands-on inspection. It shows past events, but only an inspection can reveal current mechanical issues.

How do I get a pre-purchase inspection if I buy out-of-state or online?

You can hire a local mechanic or mobile inspection service near the seller’s location. Many services will go to the car, perform the inspection and send you a detailed report.

Also, some online retailers like Carvana and Carmax allow you to return a vehicle within a certain time period. If that’s the case for a car you buy online, make sure to get an inspection before the return window expires.

Do I also have to pay to take the car for a third-party inspection?

To ensure you do not take off with the car, some sellers may ask for a refundable deposit. Dealerships might also ask you to sign a nonbinding purchase agreement.



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