When you want to buy a car but don’t have the necessary funds to buy a new one, your only option will be to get a used car. And if you are a smart buyer, you can actually get some of the new models at great savings. Below, we check out the five important things you should look for when buying a used car.
- History Of The Car
It is extremely important that you inspect the history of the used car you intend to buy. In fact, you must never buy one if the seller is unwilling to provide details of the car history. Maybe the car was wrecked at one time and it has been modified to look good even though it is not in its best condition. Once you get the Vehicle Identity Number (VIN) of the car, you can get a full car history report from services like AutoCheck or CarFax. Plus, you need to check whether the car has a clean title or salvage title. A salvage title is issued by the insurance company of the car to let the buyers know that the vehicle has been totaled in the past. Buying such cars is a bad investment.
- Exchange Offers
You should also check whether any exchange offers are available. Some sellers do provide 40% or more price cuts in case you are willing to exchange your existing car for the used one. However, if the exchange offer does not provide any great value or your car is too old, then it is better for you to donate your car to Goodwill or other charitable organizations.
- Finance
If you don’t have the funds to buy a used car by paying in cash, you can take a loan for the purchase. However, if the car is more than five years old, the banks will probably not grant you any loan. For cars less than 5 years old, you will have to pay about 2% higher interest rate as compared to the rate of interest on new cars. Plus, you will have to ensure that you have a good credit score when applying for the loan since it will guarantee that you get the best terms from the bank.
- Ownership Costs
A used car might seem attractive to you because of its lower price, but the cost of owning the car is not just dependent on its purchase price alone. Instead, you will also have to consider maintenance costs, insurance costs, etc. to get a fair idea of how much you will have to spend to keep the car running. Otherwise, you might end up owing a cheap car that comes with a very high annual maintenance cost which can make the vehicle a bad investment.
- Extended Warranty
When you buy a used car, it is likely that the vehicle has outlived the validity of the manufacturer’s warranty. As such, it is recommended that you only buy cars from sellers who provide an extended warranty on the car, say for two or three years. This way, if the used car develops any problem after the purchase, the warranty will cover it. Likewise, it is imperative that you read the terms of warranty thoroughly before purchasing the vehicle.
