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CARCHEX in the News

The Role of a Pre-Purchase Inspection

Introduction:
Excited buyers caught up in the purchase often miss mechanical, cosmetic, and safety issues during visual inspections and test drives. If the vehicle being purchased is located in another city, the distance only compounds the problems. To get an unbiased mechanical review of the vehicle, many buyers choose to have a Pre-Purchase Inspection (PPI) done before the sale.

The Definition of a Pre-Purchase Inspection:
When a qualified individual examines a used car to determine the cosmetic, mechanical, and safety condition of the vehicle, it is called a Pre-Purchase Inspection. The PPI is designed to uncover existing conditions, or to reveal maintenance shortcomings that may become potential safety or expensive repairs in the future. Most Pre-Purchase Inspections are done by a certified mechanic or automotive technician who is familiar with the make and model of the vehicle being inspected.

When do I need a PPI?:
When purchasing a vehicle without a warranty, or one located in another city, a PPI is recommended. In nearly all used car sales transactions (with the exception of a certified pre-owned vehicle), the buyer is immediately assuming all of the risk in case of a break-down or major mechanical issue. A qualified PPI makes financial sense. Vehicles purchased online in other cities present additional challenges when the purchaser is unable to take a test drive. A PPI can often be arranged with just a few phone calls to some repair shops local to the used car.

Who is Qualified to do a PPI?:
Any competent mechanic or automotive technician who understands the vehicle you are purchasing can do a Pre-Purchase Inspection. Automobile dealerships (retailers) and independent specialty shops are excellent resources for a thorough PPI. In addition to the traditional automotive shops, there are now national specialized mobile PPI operations, such as CARCHEX, who will inspect vehicles almost anywhere in the country for a small fee.

What does a PPI Cover?:
The cost of the inspection generally determines the depth and detail of the inspection as most mechanics charge by the hour. A basic inspection will be mostly visual. This includes putting the car on a lift and checking the underside of the vehicle for leaks or broken components. A detailed road test where components such as steering and brakes can be assessed will involve a more thorough inspection. There are inspections to check engine compression and leakdown, oil analysis, even paintwork.

Is a PPI Expensive?:
A Pre-Purchase Inspection is paid for by the purchaser. The most basic version will cost $100 - $200. For that price, you will receive a good mechanical and safety inspection of the vehicle including a road test. A detailed inspection of a complex high-performance automobile, with extensive engine tests, could cost several hundred dollars or more. The more expensive the purchase price of the vehicle, the more sense a PPI will make.

The Terms of the PPI:
While most Pre-Purchase Inspections are completed before the sale, some negotiations require that the sale be contingent on the completion of a clean PPI. A good report is an excellent sales tool, while a failed PPI can end the deal immediately. The buyer and seller should agree on all terms of the PPI before the inspection occurs.

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