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Buying a preowned car in New Jersey can be a complex and somewhat daunting process. Shaped by the state's unique economic and regulatory conditions coupled with high insurance rates, pothole riddled roads, crumbling infostructure a competitive used car market, there are several hurdles that can complicate the car-buying process in this state.
New Jersey is known for its congested traffic, particularly in urban areas like Newark, Jersey City and Trenton. According to the New Jersey Department of Transportation (NJDOT), the state has one of the highest traffic congestion rates in the country. This congestion can lead to a higher rate of car accidents. In fact, the National Highway Traffic Safety Administration (NHTSA) reports that New Jersey has a 20% higher rate of traffic accidents per capita compared to the national average. Frequent stop and go driving especially within densely populated cities increase the wear and tear on vehicles requiring more frequent maintenance and repairs.
One of the other major factors playing a serious role in New Jersey's used car market is related to the state's significant economic hardships and challenges. New Jersey has a higher poverty rate and lower median household income in certain areas and a higher than average cost of living. According to the U.S. Census Bureau, the poverty rate in some parts of New Jersey is 15% which is 3% higher than the national average. People experiencing these economic hardships may not prioritize vehicle maintenance leading to a used car market saturated with poorly maintained vehicles with various condition issues requiring immediate repair.
The states above average poverty rate plays hand in hand with the states increased crime rates which includes vehicle theft, VIN fraud, title washing and various used car dealer related scams. According to the New Jersey State Police, the state's vehicle theft rate is 20% higher than the national average. In 2021, there were over 15,000 reported vehicle thefts in New Jersey with cities like Newark and Camden experiencing the highest rates. Additionally, the rate of car title related fraud is over 25% higher than the national average. This means that there is a greater risk of buying a car that has been stolen, misrepresented or involved in criminal activities are considerably higher in this state.
Further exacerbating the hardships that come with used car buying in this state are the stringent regulations when it comes to vehicle titles and registrations. The New Jersey Motor Vehicle Commission (MVC) reports that over 15% of used car transactions in the state involve some form of title or registration issue such as liens, salvage titles or missing documentation. NJ is home to the highest number of registered salvaged title vehicles in the country. A salvage branded title vehicle indicates that it was at one point declared a total loss by an insurance company which can reduce the resale value of the car by up to 40% according to a report by the Insurance Information Institute.
New Jersey also has some of the strictest emissions standards in the country which can make it challenging to find a car that meets all the requirements. The New Jersey Department of Environmental Protection (NJDEP) follows the California Air Resources Board (CARB) standards, which are more stringent than federal standards. This means that many older or out-of-state vehicles may not be eligible for registration in New Jersey without significant modifications. Vehicles in states with strict emissions standards are 25% less likely to pass emissions tests on the first attempt according to a study by the National Bureau of Economic Research. Coupled with the fact that the used car market in New Jersey is flooded with cars with little prior maintenance history, prior accidents, neglected problems and improper repairs you are more likely to buy a car that will not meet NJ emission standards when shopping for a preowned car in New Jersey. These legal standards and lack of quality inventory can delay the transfer of ownership and lead to legal complications and a wide variety of car ownership related issues from unexpected repairs to fines and denial of registration renewal.
Given the unique challenges of buying a preowned car in New Jersey it may be advisable to look for pre-owned vehicles outside of the state. However, if you do not have the means or the time to travel to have the vehicle inspected outside the state there are still steps you can take to safeguard your interest. The first step would be to always get a full vehicle history report in New Jersey prior to purchase. This report may provide crucial information about the car's past, including:
By obtaining a comprehensive vehicle history report in New Jersey you can gain valuable insights into the car's condition and avoid many of the pitfalls associated with buying a car in New Jersey. While this step won't solve all the challenges it may help reduce the risk of purchasing a car with hidden issues.
The second and perhaps the most prudent step of the used car buying process in New Jersey is a professional pre-purchase inspection. Having the vehicle inspected by a trusted certified automotive technician can help you get a better understanding of its current condition as well as help you anticipate future repairs. A professional vehicle inspection can identify issues that were never reported to the Department of Motor Vehicles and may not be visible to the untrained eye. This may include various hidden issues with various critical systems and components such as vehicle chasses, electrical system, subframe, drivetrain, suspension and more...
By taking the time to research the vehicle's past and having it inspected by a trusted professional automotive technician you will greatly reduce your chance of buying a vehicle with undisclosed preexisting issues.
Growing Population
with over 9 million people currently living in NJ
6 million+
registered vehicle in NJ
1 in 5 cars for sale in NJ
has had a previous accident
4 million+
vehicles sold in NJ annually
Conducting a simple VIN check before purchasing a vehicle is a crucial move that may help you avoid potential problems and future expenses. Taking this step may give you the opportunity to:
In today's market, transparency is everything. By checking the VIN, you equip yourself with the knowledge to make an informed choice, safeguarding your investment and ensuring you drive away with confidence.
