Should I Buy a Manufacturer Buyback Vehicle?

The Used Car Buyers Guide from Consumer Reports says, "A dealer buyback happens when the original owner returns the car to the dealer during the first few years of its life because he or she is unhappy with it. The dealer then tries to sell it as a used car. A manufacturer buyback occurs when the manufacturer repurchases the car from the dealer to keep it out of the used car market."

There are pros and cons to buying a manufacturer buyback car. The main pro is that these cars are usually significantly cheaper than comparable models that haven't been bought back. The main con is that there's usually a reason the car was bought back in the first place, so you need to do your homework to make sure you're getting a good deal on a quality car.

If you're interested in buying a manufacturer buyback car, here are a few things to keep in mind:

- Do your research. Check out the car's history using its vehicle identification number (VIN). You can find out if the car has been in any accidents, if it has been recalled, and if there are any outstanding issues with the car. You can also get an idea of the car's value by checking its Kelley Blue Book value.

- Get a pre-purchase inspection. Have a qualified mechanic check out the car to make sure it is in good condition.

- Be prepared to negotiate. Manufacturer buyback cars are often sold at a discount, so be prepared to negotiate for the best price.

- Consider extended warranty options. Because you don't know the full history of the car, you may want to consider purchasing an extended warranty to help cover unexpected repairs.

A manufacturer buyback vehicle is a vehicle that has been purchased back by the manufacturer from the original owner, typically due to a lemon law claim. The vehicle is then repaired and resold, usually at a deeply discounted price. While the vehicle may have been repaired, it will always have a manufacturer buyback designation on the title, which can negatively affect the resale value.

When a manufacturer offers a buyback on a vehicle, it is because the vehicle has a production defect that makes it unsafe or unusable. The buyback offer is designed to encourage customers to return the defective vehicle so that the manufacturer can fix the problem and prevent further injuries or accidents. In some cases, the buyback may also be offered as a way to compensate customers for their losses.