Buying a used car is no harder than hunting for treasure. When you buy a new car you can just walk to a showroom, look at the functionalities, design and the price tag, and just pick it up. You will get warranties and other perks with it But in case of a used car, you will need to do a lot of research. Ensuring that the car is in good condition is the toughest thing to do.
When buying a used car website research can help you find some great cars. They provide pictures and specifications; however, this is not good enough. You will need to tear up everything about the car before buying it. People buy a used car to save money and pay low taxes and insurance. If you are thinking of buying a used car then here are some used car buying tips and tricks for you.
Set a budget and arranging for finances:
The first thing you should do is set a budget for buying cars. You will find cars at various price ranges. So, you should know how much maximum you can afford. You should also consider the extra costs of registration and insurance when setting a budget.
You should be ready to give 10% down payment and take a loan to pay the rest of the amount in three years. Make sure that the monthly auto expense is not more than 20% of your monthly salary that you take home. It is better to get preapproved for a car loan; that way the buying process will be simple.
Locate and choose cars :
You can search online for used cars. You can look at Craigslist, AutoTrader, AutoList and other classifieds for searching used cars. You can also visit car lots where used cars are sold. You should check out a number of cars and shortlist your preferred ones. Then pick one that matches your taste and budget.
You should find out what type of car you want. If you have children then you should look for a family car with enough room. You should list down the must-have features of the car and try to find cars that match those descriptions. When buying a used car mileage it has driven so far is an important factor to consider.
Check ownership costs:
The cost of buying a car can be sky high. Apart from the upfront cost, there are some other costs involved too. You should find out the total ownership cost and then decide whether you will be able to buy the car or not. You should choose a car that has high resell value but low insurance and maintenance costs.
Check the car history report:
It is extremely important to check the car’s history. This will tell you whether there was an accident or major problem with the car. It will also tell you about the status of the title, maintenance details of the car. You can find out the history report of the car using the Vehicle Identification Number WIN). You should make sure that the car has a clean title; otherwise, you will have a problem transferring the car’s ownership to your name.
Talk to the seller:
Before you finalize your decision, you should talk to the seller to find out more about the car. You should find out whether the seller is the first owner of the car, past service records of the car, the asking price, etc. You should request if you can take the car to the garage for a detailed inspection
Go for a test drive:
No matter how good the car is, unless you go for a test drive you won’t be able to tell whether you will be comfortable driving it You should see if the brakes are responsive and whether you are able to control the steering and acceleration comfortably. While driving the car you may come up with problems that you may discuss with the dealer. You should drive the car on hilly and rough pavement, curves and also highways to see how it performs.
Negotiate the price:
You shouldn’t go for the asking price right away. You should check out the price of the car from the experts and calculate how much it might cost after deducting the depreciation and other costs. You should consider the make and model of the car, the mileage it has covered and the present condition of the car. You should then negotiate the price with the car dealer.
Close the deal:
After you have finally decided to buy the car, you will have to make arrangements for the payment and the paper works. You should scrutinize all the clauses in the agreement and make sure that everything is in the right order. You should include a short term alDright to reject’ clause. That will keep you at the safe side. If you find out any fault during this period then you will be able to cancel the deal.
The current owner of the car may still have car loan; so you should find out how much the loan is from the lender and try to close the deal. For the contract, you may have to give a documentation fee. You should also transfer the registration to your name. After you have closed the deal you should arrange for car insurance.
You should do hours of research before buying a used car. It is risky to buy a used car than buy a new car. However, you will find used cars in very good condition and these cars will perform as good as the new ones. The owner may be selling the car just because he or she has bought a new car. If you do proper research and if you are lucky, you will be able to purchase a good used car that you will be able to drive for a long time.
You shouldn’t always go for the cheapest up-front price. Sometimes, when the car is in bad condition the owner sells it at a low price. However, you must realize that your insurance cost will be higher and you will need to spend a lot of money on car maintenance. So, take the decision to buy a used car wisely so that you don’t repent later on.