If you’re in the market for a used car, truck or SUV in 2022, it won’t come as a surprise that vehicle inventories are low and prices are high. Unlike the last vehicle-supply crisis during the Great Recession, demand hasn’t let up for cars just because they’re hard to find. In fact, some of the vehicles on our recent “Best Used Cars Under $10,000” list were retailing for half that amount in early 2021. 

With too many buyers seeking too few vehicles, it’s more important than ever to be a savvy consumer, which means knowing the lay of the land, where to shop, what questions to ask of vehicle sellers and how to inspect your potential new ride. 

Most of the important things to watch for haven’t changed even as vehicles have evolved, but the abnormal trajectory of used car values is a very recent phenomenon.

When Covid-19 shut the nation’s economy down in 2020, many automakers canceled orders for the semiconductor chips used for everything from car radios and engine management systems to chip-enabled car keys. They took this step fearing the virus would sharply curtail vehicle sales, and they would be stuck with a glut of chips. 

As it turns out just the opposite was true.

As a result of this, automakers don’t have the chips needed to meet high demand for new cars, and most are struggling to keep up with production. With popular models like the Kia Telluride and Ford Bronco essentially sold out due to high demand, Americans literally switched gears and started heavily buying used cars. 

According to auto industry analyst firm Cox Automotive, 40.9 million used cars were sold in the U.S. in 2021, up about 10% over 2020. That number includes 22.2 million sales by consumers to dealerships and online retailers like Shift and Carvana. Used car sales are expected to remain high this year, with Cox predicting 2022 numbers at 39.3 million used vehicle sales, with 22.1 million by consumers selling to dealers and online retailers. 

Those numbers should continue to go down as new vehicle production starts to improve. For now,  some very popular models (like the Toyota Tacoma) are selling more used than they did new before the coronavirus/chip shortage.

Yes, used vehicles of all kinds cost more than they did two years ago, but you can still get great deals if you do your homework, and you’re ready to buy when a solid purchasing opportunity presents itself. Follow these steps to get the best deal:

Know what you want to buy, and be realistic about how much you want to spend. Remember, used vehicle prices are up about 10% generally, but some models might be even higher than that. The $25,000 Jeep you want to buy is now up to $27,500 or more, which might be too much of a stretch. It’s OK to admit that.

Consider Certified Pre-Owned (CPO) vehicles. Vehicles that qualify for manufacturer CPO programs are typically the best of the used options. They’re often lease-return cars with low mileage and with all of their routine maintenance sorted, and CPO programs typically offer excellent warranties. 

In some cases, CPO vehicles can even come with coverage that exceeds that of new vehicles from the same brand in the same showroom. An example from 2018: A low-mileage 2017 Lexus NX demonstrator unit only a few months old had two years added to the factory warranty which was a longer coverage period than on a then-new 2018 NX.

Choose a reliable brand. It only takes a few keypad strokes to research whether the vehicle you are looking for has a good reliability record. When looking at luxury vehicles, remember the cost of service and maintenance will be much higher than non-luxe vehicles. It costs more to maintain a Lexus than a Toyota, even though that Lexus is built using Toyota parts. In general, the more whiz-bang features a vehicle has, especially connected car tech, the more expensive those parts will be to fix if they break.

When it comes time to actually shop and start driving cars, you’ll want to learn all you can about the specific vehicle you’re looking at. The following questions are all must-asks (for EVs follow this similar but separate advice):

Once you’ve got answers to your questions, it’s time to take a closer look at the merchandise.

Check for rust. Rust is rarer than it was 30 years ago, but it still happens. Get on your knees and take a look at the underbody with a flashlight. Inspect lower door and fender areas for paint bubbles that indicate rust. Lift up the trunk/hatch area and passenger cabin mats and look for rust or flood damage.

Look at the ground and at the oily bits. Use your eyes and a flashlight to look for leaks under the car, which could indicate the need for expensive engine, transmission or differential service. Check the vehicle underbody and the ground under the vehicle for evidence of leaks.

Take a quiet drive. During the test drive, leave the stereo system off and listen to the vehicle. Don’t just drive around the corner, experience the vehicle at city and highway speeds. Purposely drive down a rough road and listen for squeaks and rattles. Use your nose to sniff out any foul odors that may indicate engine or transmission damage, an exhaust leak or even mold or mildew smells that could indicate a flood car or leak from a windshield, sunroof or trunk seal.

Drive straight. Check to make sure your potential purchase tracks in a straight line. Take someone with you during the test drive, or ask your salesperson or car owner to drive in a straight line. If the vehicle is going straight, but looks like it’s driving off on an angle, this “crab walk” phenomenon could indicate severe body or suspension damage. Look at all tires for uneven wear or low tread. 

Get a mechanical inspection. If you’re not comfortable getting dirty or you don’t think you know enough to really check out the vehicle, book a mechanical inspection. We always advise a pre-purchase inspection, and happily in 2022 services like Wrench Mobile Mechanics, YourMechanic and RepairSmith offer mechanics that come to you or to the vehicle for such services. You might end up spending $250 on such services, but it’s worth it for the reassurance.

Don’t expect to remember all of the advice in this article if you are a relative newbie to the car buying process. Create a checklist with questions and items to look for as outlined above. Write everything down so you nothing is forgotten.

Vehicle purchases can become emotional if you find a car you really want or you’ve been looking forward to purchasing for quite some time. 

Be sensible and systematic, ask the right questions and enjoy your used car purchase.

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