Drivers are increasingly getting pushed into the used market. In January, the average transaction price (ATP) for a new vehicle was $49,191, a 1.9% year-over-year increase and an all-time high for January. Adding to the pain, automakers lowered sales incentives last month, with the average package equal to 6.5% of ATP, down from 7.5% in December 2025. 

While buying used can mitigate costs, a smooth purchase isn’t guaranteed. There are some risks and traps to watch out for when buying any used car.

Below are a few recent accounts of used car buyers who weren’t so lucky in their shopping experience, along with steps you can take to avoid avoid making their mistakes.

Paper-Perfect Doesn’t Equal Road-Ready

The first used-car buying horror story we’ll highlight is a driver who was quoted for over $7,000 in repairs less than 24 hours after purchasing their vehicle. 

According to this driver’s Reddit post, they purchased a 2014 BMW 3 Series with 45,000 miles under assurance that the car was in good condition, with a solid CarFax to boot. 

The Reddit user and BMW purchaser wrote: “The following morning on Tuesday, lights come on for brakes and chassis stabilization. I bring it to a reputable shop near me (Virginia) and they say the brakes are completely shot, ABS is leaking fluid everywhere and screws are threaded horribly with damage. The quote was over $7,000 less than 24 hours after purchasing the vehicle. Shop ensured me that the car would not pass inspection in its current state.”

They added: “Note to self, always perform a pre-purchase inspection.”

How an Independent Inspection Could’ve Saved This Driver Thousands

It only took this driver 30 miles to realize their mistake: they skipped an independent pre-purchase inspection (PPI). A test drive and dealer assurances don’t negate a buyer’s need for a PPI, which can catch issues that a test drive won’t. 

Once a PPI reveals issues, a driver can walk or use the information as leverage during negotiations. If a dealer refuses a PPI, you should always walk away, and including a contingency in your contract stating that the vehicle must pass a state inspection within a certain number of days (ex: 3 to 7) adds protection.

A PPI will cost $150 to $250 on average, which is a pittance in comparison to $7,000+ in repairs. This BMW buyer noted that even if they had purchased an extended warranty, which they didn’t, the warranty wouldn’t cover the repairs since they were pre-existing rather than unexpected, which is accurate. 

Regarding the buyer noting that the CarFax looked good, a CarFax report covers data such as reported accidents, title issues, and some service records. However, it won’t detail the driver’s mentioned problems, such as fluid leaks, brake condition, or ability to pass a state inspection, underscoring the importance of a PPI. Learn more about the importance of a PPI.

A Test-Drive Warning That Could’ve Become a Paperwork Trap

Next, we’ll be looking at a used car shopper who heard a concerning noise when turning a vehicle’s steering wheel during a test drive. 

The dealer told this shopper they’d fix the issue under the manufacturer’s warranty, but only after the driver signed the paperwork. This shopper moved forward since the dealer said they’d include a right to rescission in the agreement’s documentation. However, when the dealer’s finance department reviewed the documentation to verify a right to rescission clause upon the buyer’s request, none was found. 

On Reddit, this shopper, who ultimately walked, said the dealer created a “We Owe You” document, but the language was a bit loose and could be interpreted in their favor.

How to Handle This Situation, and Your Next-Best Option

Ideally, you shouldn’t sign until an issue is fixed.

Still, this type of agreement isn’t guaranteed, as one Genesis manager replied to this Reddit post: “I will not fix it and have you come back, because by then you bought elsewhere.”

If a dealer insists on you signing first with a repair scheduled later, you’ll need to request a binding, enforceable agreement outlining what will be repaired, who is paying, when it will be completed, and what occurs if the repair isn’t done. Clearly documenting these terms means retaining leverage and avoiding situations where a dealer can delay, minimize, or interpret vague promises to their advantage.

When One Buyer’s Extended Warranty Wasn’t Enough

Some used car buyers assume that an extended warranty equals comprehensive protection, but assumptions and lack of verification can leave even those with an extended warranty in the lurch, as was the case with this Reddit user.

The used-car buyer reported purchasing a used Jeep Wrangler from a GM dealer, obtaining an extended powertrain warranty, and having the vehicle’s engine blow from overheating five days later. After getting their Jeep towed to the dealer and claiming the warranty for repairs, an inspector denied the claims due to aftermarket tires, wheels, and lift parts, which the buyer said were pre-existing.

How a PPI and Careful Review Could’ve Prevented This

This is another example of a driver that would’ve benefited from a PPI by an independent mechanic. A PPI would’ve typically highlighted the presence of aftermarket parts, which often void warranties, while revealing problems that pre-empted the engine blowout. Any discovered problems could’ve caused this buyer to walk or given them more negotiation leverage.  

There’s also the issue of carefully reading a warranty.

Additionally, carefully reviewing the warranty would’ve helped them understand: 

• Exclusions for aftermarket parts
• Pre-existing conditions
• Non-factory repairs
• Whether the vehicle is covered as-is, since pre-existing modifications don’t always void coverage

Confirming coverage in writing from the dealer or warranty provider solidifies protection.

An Easier Way to Avoid Used Car Horror Stories

Avoiding the used-car-buying horror stories above is doable with a bit of knowledge and preparation. However, there’s an easier way to buy in 2026. CarEdge’s Concierge streamlines the process by matching you with a shopping expert who understands your needs, launches your search, completes dealer outreach, and handles negotiations from start-to-finish. How much is your time worth? Say goodbye to the dealership games, and have an expert handle it for you!

Start your journey today with a free consultation.