In November 2020, my 2007 Toyota Prius was swamped in a tropical storm that hit the west coast of Florida. The electrical system was fried and the battery pack permanently damaged. Fortunately, I had comprehensive coverage on my auto insurance policy, which returned a little less than 60% of what I had paid for it, and I began to look for used cars on Craigslist after the claim was paid out. 

Without the Prius my family had no car, so we were eager to replace it with another. In that desperation, I jumped on a used 2013 Prius that was listed for $3,500, which was slightly more than the payout on the claim. The listing had been up for about 12 days — which should have been a red flag — but it was a good deal. I was so keen to buy it, I even took a 90-minute Lyft to get there — on Thanksgiving. 

I bought the car — and still drive it today — but had I my wits about me then, I would have negotiated a much lower price than what I paid. It’s a big regret since I ended up paying $8,000 on the purchase! Here’s why I would have negotiated it lower.

The car had multiple problems  

I took the car for a test drive with the owner present. The 2013 Prius was different from my 2007 and it took me a moment to get used to the dashboard. But once I figured out how to display the meter on the Prius battery, I noticed something wrong. 

Anytime I accelerated, the battery would drop into yellow and red. It would spike into green when I braked. But the moment I gave it some gas the bars would drop and it would only maintain a battery charge that was about half what my 2007 could hold. 

“Oh, that’s normal,” the owner said. “It’s been doing that since I bought it.” 

If you’re unfamiliar with Priuses, the battery pack is arguably the most important component on the vehicle. These packs cost anywhere from $2,000 to $5,000 to replace, depending on how much your mechanic charges for labor, and when they die, the car becomes immobile. Batteries usually last about 200,000 miles, but they can die more quickly if the owner drives the car recklessly. 

Unless you know how to test Prius battery cells with a multimeter, the best way to inspect one is to read the battery meter on the dash. I knew the rapid drop in bars meant the battery was going bad. But, half believing the owner and half indulging in wishful thinking, I ignored it. 

It wasn’t long after we bought the car that we got the red triangle of death. “Check hybrid system,” the dashboard said, “Stop the vehicle in a safe place.” We had to pay for a tow truck ($100) to haul it to a shop that serviced Priuses. It took a few hours before the mechanic called us with the diagnosis: not only was the battery pack dying, but the 12V battery was also dying. The car’s tires were also balding and needed to be replaced ASAP. 

We paid $3,500 for the Prius, which seemed like a steal. But then we paid $3,700 for the battery pack (parts plus labor), $400 for a new 12V battery, and another $400 to replace the tires. All in all, we spent roughly $8,000 for a Prius that had 187,000 miles on it and an exterior that had been abraded significantly by sand. 

Never buy a used car at the asking price

If I could return to that Thanksgiving afternoon, I would not have let the owners know I was desperate and would have instead negotiated the price further down. 

As it were, the owners knew I needed that car; I mean, who takes a 90-minute Lyft on Thanksgiving unless they have no other choice? They also used my situation to their advantage: I was interrupting their Thanksgiving, and they had “other buyers” who were coming out to look at the car the next day. 

Plus: I was at their house without a way to get home. They knew I needed that car, and they had already stated they were not willing to budge on the price. 

Now, I’m no stranger to buying used cars. In fact, this is the fourth used car I’ve bought in six years. I’ve negotiated prices before, and I’ve walked away from cars that were clearly lemons. But this time I made a crucial mistake: I went to the car believing I had no other choice, which, psychologically, rewired my brain to ignore red flags. 

What I should have done was resist the “scarcity mentality.” That is, the belief that if I didn’t buy that Prius on that Thanksgiving day, I was not going to find a better deal. It was an impulsive decision and it cost me another $4,000. 

Go with your gut. If you feel apprehensive about a used car, spend some time investigating. Give it a thorough inspection — at least check the tires! — and pay close attention during the test drive. Even if the car checks out, don’t buy it without at least throwing up a counteroffer. Most owners aren’t experts at appraising their vehicles, and who knows — they might be more desperate to get rid of the car then you are to buy it. Your personal finances will thank you.

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