As of September 2025, conditions have improved a bit for buying a used car. Prices have softened at the end of summer, but supply may not be keeping up with demand.
The average price of a used car was $25,512 in early fall of 2025. Some of those cars will need to be financed, and higher interest rates present their own challenge.
Another thing to watch out for is a drop in the quality of trade-ins. Some of these problems are not obvious. It’s never been more important to get the best possible vehicle for your money. Here’s what to look for when buying a used car.
Key Points
• Used car prices have softened recently, but supply may not meet demand, affecting availability.
• Verify the car’s value using independent sources to ensure a fair price.
• Check the mileage and ownership history to assess the car’s condition.
• A test drive is usually essential to evaluate the car’s handling and performance.
• An independent mechanic inspection can reveal any hidden issues or potential problems.
When Buying a Used Car, the Questions Matter
This is not the time for shyness. Bring a friend with you to make sure you stick with your questions. These 12 will help you make a decision.
1. Why Are They Selling the Car?
Listen carefully to the answer and let the prospective seller talk as long as possible. Within the explanation could be important clues as to why they’re offloading this vehicle besides a desire for a new set of wheels.
2. What Is the Value of The Car By the Book?
Don’t rely on the car owner for this answer. You need independent information to help with negotiating. Go to websites like Kelley Blue Book to get a range of value for the car. This is also a prime opportunity to ask how they arrived at the asking price.
3. What Is the Mileage?
Everyone knows that years cause automobile wear and tear. Americans drive an average of 13,596 miles a year, according to the Federal Highway Administration. Do the multiplication. Does the number they give you make sense considering how old the car is?
Recommended: Financing a Used Car With Over 100K Miles
4. How Many Owners Has the Car Had?
Is the car’s current owner the first one? If not, does the seller know how many people have owned it previously? How long has the seller owned the vehicle? If someone is trying to sell a car after owning it for a year or even less time, there might be some big problems.
Recommended: Do You Need Proof of Insurance to Refinance?
5. Do They Have the Title in Hand?
A longtime owner might not be sure of the location of the title. The problem is, a seller might not have the title because there’s an outstanding loan from the bank. A clear title is free of any doubts about the ownership of the vehicle. If the seller has it, you can be certain that someone won’t appear to try to take back the vehicle after you’ve paid for it.
6. Do They Have Service/Maintenance Records?
If the seller doesn’t have records of maintenance for the car, all is not lost. You might be able to obtain the records from an authorized dealer for the vehicle’s make. The bottom line: Cars need regular tune-ups and oil changes. If a vehicle hasn’t been maintained regularly, it could mean you will end up with costly repairs.
Recommended: Refinancing a Car Loan
7. Has the Car Been in Any Accidents?
A dented bumper isn’t a tragedy. But if the car has been in a big accident and needed bodywork or even a new engine, you really need to know that. The repairs might have left lingering problems.
8. Is the Vehicle Under Warranty?
A private seller may possibly not know this. But a dealership will certainly have access to warranty status. If a car is still covered, it could save you money. If you’re working with a dealer, you may be able to buy an extended warranty.
9. Has the Car Ever Been in a Flood?
If the car has been exposed to flooding, it could cause problems with the electrical system. Look out for mold and rust, too. To find out if there is rest, you may need to look at the car’s underbody with a flashlight.
Recommended: What Is a Salvage Title?
10. How Would the Purchase Affect Your Car Insurance Premiums?
Your insurance premiums may go up with this purchase. Insurers look at the age of the car as well as make and model. Get in touch with an independent insurance agent before you close the deal to hear the numbers.
Recommended: Auto Insurance Resources: A Comprehensive Guide to Car Insurance
11. Can You Take the Car for a Test Drive?
Being able to sit in the car and drive it is crucial. A test drive is the only way to find out how the car handles. Plus it will reveal any issues the seller may not be aware of (or is hiding). If a seller refuses to allow a test drive, that’s a bad sign.
12. Can You Take the Car to a Mechanic for an Independent Inspection?
You should only ask this if you’re serious about buying a used car. But if you are, then you should ask – and if you get any pushback, that, too, is a bad sign.
Recommended: What Happens to a Car Loan When Someone Dies
The Takeaway
With used car prices possibly dropping, it could be time for you to start shopping for a new vehicle, but you need to arm yourself with smart and perceptive questions that drill down on the car’s quality and condition. And it’s essential you listen closely to the answers and proceed with prudence in making your decision.
Sometimes you need a car loan to afford a vehicle, used or new. Refinancing your auto loan has pros and cons to explore.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
How much mileage is too much for a used car?
Typically 100,000 miles is considered a cut-off point for used cars, though some say 200,000 is another limit to consider. Older vehicles often require more frequent maintenance when mileage exceeds 100,000 and things can start to go wrong.
Is it ever a good idea to buy a used car?
Yes, you may get a price break on a sound vehicle without many miles on it. However, If you’re looking at buying a newer used car — models no older than three years in age — you may find that prices are still pretty close to what they sold for when new.
When will used car prices drop?
As of the third quarter of 2025, used car prices were showing signs of a slight, gradual decline but a significant drop is considered to be unlikely in the near future.
Photo credit: iStock/coffeekai
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOALR-Q325-083