Scouting for price-cuts is a smart habit. And buying used cars is no exception. No wonder why many people prefer to buy used cars rather than new cars. In fact, statistics show that the number of people who buy used cars is three times more than the number of people who buy new cars.
But then again, not all used cars are maintained equally by their previous owners. Hence, it is important for those who wish to buy used cars to consider the different factors that might affect the performance and the condition of the car.
There are two reasons why most used cars are not pricey. First, used cars quickly break down. Every year, cars like this come down 20% of its starting price that makes it easier for the customer to buy a used car.
The second explanation is that some people getting difficult to buy a car and give the complete amount in cash. By getting the services of a financial organization like a loan officer, a customer can pay their loan through month to month bits. Unfortunately, some people failed to keep that contract which gives the financial organization no choice but to reclaim the car.
Yes. The economic value of used car typically being considered too, otherwise we’ll get much problem in the future.
Before getting your own used car, it pays to do some homework. Think about what you need, what the car will be used for, and your budget. Look in books and online and think about repair costs, safety tests, mileage etc.
All this research can save you some serious money and help you avoid being ripped off.
Here are 12 points to keep in mind that will help you in buying your used cars.
- Reliability. Before selecting a used car you want to buy, read some reviews and check if the car has a good track record in terms of reliability. You may get an unreliable car cheap, but it'll likely break down. Spend a little more money on something more reliable as repairs are still expensive on cheap cars. Buying a car that is easily maintained is very helpful. Maintenance cost for cars also varies for different car. For instance Benz will charge over $120 just for an oil change while Toyota may charge $30. Readily available parts and a familiar engine will keep maintenance hassles to a minimum. Keep your region in mind. Certain features and styles are expected in certain regions dependent on the terrain and lifestyle. Why insist for buying a compact car in a mountain filled county?
- Fuel and emissions tests. Find out the fuel economy rating of the cars you're interested in, and how much it will cost to insure. With gas prices on the rise, fuel economy is becoming even more important. Also your used car must pass the emissions tests given by your state. This is a legal requirement, and will be your responsibility. Make sure it is clear to pass these tests before purchasing. You will not be able to register or drive the car until it passes inspections. Be careful not to sign any "As Is" statements on a contract. By doing so, you are accepting that once the car leaves the lot, any problems are now your problems. About 30 days are necessary to make sure that there is nothing wrong with the used car.
- History of the car. Once you've selected a car, make sure you know the history of it. There are a variety of companies that will run a history report on the car by checking the VIN (Vehicle Identification Number) of that car was not reported in an accident, stolen, flooded, or repossessed. Most people are not up front as they want to sell the car. Do your research and stay away from anything or anyone you're suspicious of. One of the many things you are able to learn about the car is whether it has been listed as being stolen. Cars that have been stolen can be sold by those with little ethics. If you were to buy a used car that was reported stolen then you would have to hand it back over and of course lose your money. With over 30 cars being stolen every day, having a car data check to make sure the one you are considering is not among them is essential. Occasionally a car can also be offered online for sale which has been written off in an accident. If the insurer deems the car to be too badly damaged then they will write the vehicle off and pay out on the insurance. If this is the case and the car has been repaired and sold on then it will be the property of the insurance company. Even worse a vehicle could have been written off due to the severity of damage which means that it is not safe to repair. However even these cars can be sold on, cars can also be welded together and of course having this information can save a great deal more than money when it comes to your safety. A car history report can even tell you how badly damaged the vehicle was if it was written-off. Your car history report can also tell you such things as the color of the car, the size of the engine, how many doors the vehicle has and how many times it has changed hands. You will also be able to find out when the car was actually manufactured and when the vehicle was registered for the first time. You can find all of this information with a specialist website from the vehicles identification number which is usually found behind the windscreen, on the bodywork and the chassis plate. Anyone selling a car should not mind if you look the vehicle over and take this number and of course the numbers should match on the car and with the documentation supplied with the car.
- Find out the used car value. Check online, local newspapers, and motorcar magazines for what the car is worth. Keep in mind that the 'magazine value' is not always the best measure for what the car is worth as it just gives you the average value. Knowing what other people are asking in the area will help you negotiate and determine if you're getting a good deal.
- Have the car checked by a mechanic. Ask the dealer to provide the vehicle's service records. If the records are up to date and complete, that is usually a good sign. Now if you are told that the records are unavailable, that is a little suspicious. You want a used car that has been taken care of and is in excellent condition. If the dealer appears as though he is hiding something, even if it is service records, then he usually is. That is why it is in your best interest to have a third-party mechanic look over the car. This might be the exact car you are looking for, yet just by looking at it, you have no idea what this car has been through. A mechanic can put the car up on a lift and spot any prior crash damage, corrosion, frame damage that might be hidden and any leaks. Be cautious of a dealer who refuses the opinion of an outside mechanic. That usually means he is aware of damage that you might not recognize on your own. It would be a shame to buy a car and then realize that it needs a $1,000 repair. A mechanic may find something that you did not notice and it could save you thousands.
- Don’t look around alone. Always stay level headed when looking at a used car for sale and try not to go alone. Having a second opinion is very important and also will give you an edge with the salesman.
- Test drive first. There is no better way to know the condition of the car until it has been test-driven. Hence, a buyer should make all the effort to do a test drive first before he or she jumps into conclusion. If you decide to take the car on a test drive, make sure to try everything out, including the air condition, radio-tape-CD player, and power features (windows, mirrors, locks, etc) if so equipped. Drive the vehicle on a variety of roads and go to an empty parking lot to test the brakes and handling. But remember, this is someone's car so be respectful.
- Beware of the electronic component. Stay away from older cars that have a lot of electronic gizmos. These are often costly to repair and are not as reliable as cars that are more basic. Beware of monthly payments for navigation systems and in car communications systems when buying cars.
- The mileage is important. Although a lower mileage car is great, a vehicle with a lot of highway miles is not bad at all. Highway driving is very easy on the car. Stop and go driving is much harder. The condition of the car is more important than the mileage so long as the car was properly maintained. Normally, an average driver will drive 12,000 to 15,000 miles in a year. In this way, the buyer will be able to estimate how old the car is. Stay away from ex police cars, taxi cabs, or rentals. These cars are traditionally driven very hard and sometimes not as well maintained. They're cheap, but risky to buy.
- Safety features should not be taken for granted. Being old is not an excuse to justify the used car’s lack of safety features. Every car, whether old or new should have safety features in order to prevent some possible accident while driving. Check if the latest technologies in car safety are present in the car. A safe car is a more convenience car than muscle-packed, speed mobiles. Check for airbags, anti-lock brakes, traction control, electronic stability and side airbags.
- Insurance Cost. Different car also have different insurance rate even when they are in the same class. The insurance cost should definitely be a factor to consider when you are comparing with other cars.
- Finally, talk about the Money; make sure you know what your budget is. Never exceed the amount you can afford. For instance if your income is $50,000 USD, you shouldn’t spend more than $25,000 on the car because the car will may become a significant problem to you. As much as possible, get a list of the top 5 cars that you think you like and compare their car values and car pricing. Of course, everyone will want to choose the car that fits the lifestyle and the budget allocated for it. Once you’ve chosen the car you want, you have to decide how you are going to pay for it. You can pay the whole amount upfront or you can finance the purchase over time. If you do use financing, you should be aware that this increases the total cost of the car as you must pay for the car plus the credit. Once you have decided on how much you can put down, you can look at the annual percentage rate (APR) of the loan and the length of the loan and see how much your monthly payments will be. Generally, the shorter the term of the loan, the higher the APR. If you are in your teens, cosigning with your parents will help you to get a better rate. You may also want to think about paying in cash for a less expensive car. Remember to buy on price and not on payment. Dealers can disguise the actual cost of a car by manipulating the down payment and monthly payment as well as length of the loan in their favor. You can easily be ripped off if you buy on payment.
Last but not least, this is an important decision to make. If you buy from a dealer you will generally pay more. But you will benefit from knowing that if there is a problem you can return to the dealer to complain. Many dealers offer warranties and guarantee the quality of the car.
So, with all these buying used car guide you’ve read above, are you ready to do your homework?
