What Exactly Does It Mean If A Car Is Sold As-Is?

When looking for a new ride, you'll want to avoid key mistakes when buying a car at the dealership. Cars are sold in a range of conditions. New cars have no previous owner history, while used cars tend to be pre-owned and have accident, service, and repair histories to look over. There are also those that are labeled "as-is," which basically means that you're taking on the vehicle in its present condition — whatever that may be. There isn't any warranty coverage, so if something goes wrong shortly after the sale goes through, getting the matter sorted out is entirely your responsibility. Your only other alternative would be acquiring a third-party warranty, which could be costly.

If you're on the hunt for a new car and are interested in as-is models, you should know that there are some benefits to buying in this condition that could make it worth your while.

You might want to keep an open mind when it comes to as-is listings, despite the risk involved. There aren't any warranties attached, and the vehicle may need repairs that the seller doesn't want to deal with, but opting for an as-is vehicle is often a money-saver. If you're lucky, the money you save on the purchase itself will remain in your pocket and won't be lost on massive, stress-inducing mechanic trips. Before making anything official, it's wise to look over the vehicle personally for any defects or have an inspection performed by a professional.

An as-is car can also have fixer-upper potential. Imagine finding your dream car for a super low price, but it needs a few things done to it before it's road-ready. If it fits your budget and you're handy with a wrench, you can turn it into a personal project. If you're not, you can always shop around and get the work done as cheaply as possible. Either way, you could get a great ride for far less than a warranted model in good condition. There are even some classic cars out there that are great beginner restoration jobs.

Despite the potential for a bargain, there are some drawbacks to buying a car as-is that are hard to ignore.

Evidently, there are scenarios in which getting a car in as-is condition could be the right move. However, there are no guarantees that you're getting something worth having. Sure, an as-is vehicle can be cheap, but even with a thorough inspection, problems could appear at any time after the deal is done, and repair costs could wipe out any savings you made on the purchase price.

Worse yet, an as-is vehicle might even be a danger, and a seller might not disclose issues that could threaten your safety or that of other drivers, hence why the pre-purchase inspection is so important. With this in mind, perhaps dropping a bit more money on a used or certified pre-owned car — a used car that has been inspected, repaired, and is backed by the manufacturer, sometimes with a warranty to boot — is the better option. If nothing else, these can mitigate or eliminate the concerns that come with as-is cars. It's not uncommon to find reliable used cars for under $15,000.

If you don't mind a little work and are looking to save some money, as-is car buying is a great way to go, but it's important to do your due diligence before signing the dotted line.