Just because what you want to buy isn’t a new car, doesn’t mean you shouldn’t treat it like a new one. Purchasing a used car can be generally as exhilarating as obtaining a new car. Shockingly, getting a used car can likewise be as difficult as making sense of which new car would suit you best.
Purchasing a used car is an incredible method for cutting the expense as most new cars lose around 40% of their price in the initial year itself. If you don’t know yet what car to buy, it is absolutely fine to have a hundred other options in your head. Our suggestions will surely guide you, delivering clarity to your perception.
With the excitement to purchase a used car, there are dangers too. It’s vital to not rush into purchasing a used car and to purchase quite far with your head instead of your heart. To help you decide if the vehicle is worthy of buying, you can also consider bringing items like a notebook and pen for taking notes, paper towels for checking engine oil, flashlight to check for any leaks or corrosion, and so on.
That’s precisely the reason we’ve endeavored so hard to prepare a guide to help you purchase a used car. We want to make your used car purchasing experience a memorable one!
Step 1: Understand and plan your financial budget
A general rule is that your month to month EMI ought not be more than 20 percent of your salary. There are many factors associated with planning your expenses for the month like utilities, bills, rent, groceries, other debts and many more. So it is important to plan your expenses wisely and spare a suitable chunk of your income to pay the amount. And this process can be tediously difficult. Therefore, to help you plan your budget for a car loan accordingly, we have feature that is known as a Car Payment Calculator. Use our car payment calculator to know more!
Get The Best Car Finance Deals Using These Tips
Step 2: Select and categorize cars as per your utility
Once your finances are taken care of, you’re in a good position to go and find more information about the car or type of cars you really need rather than want. However, if you haven’t done that because you’re unable to do so, you’re still doing just fine!
Look for reliable second hand cars, also known as second-tier cars. They are not the best selling cars, but their cheap and offer value for its price. Again for instance, a Nissan Altima can be on par with a Honda Accord or Toyota Camry in terms of features. In short, efficient cars that are worth its price.
Step 3: Know your car’s history and car value
This is a crucial step. Its imperative for any used car buyer to know the current condition of the used car. The VIN comes in handy here. A seller or a private party must provide the VIN in his/her ad for reference. It describes the history of the car. The information now known to the buyer can be like, if the insurance company has totally declared loss or the odometer has been rolled back. Hence, such negative reports should be taken into consideration as it influences decision making. Check our Used Car Finder to learn more about this! The value of a car greatly depends from which type or kind of party you’re purchasing from i.e a dealer or a private party. A dealer will offer more clarity on the various services it will provide, along with aftermarket warranty and other benefits. Additionally, locating your dealer is essential to know which dealers are willing to provide so many attractive offers to get the best price. By using the Dealer Locator, this becomes a cakewalk! However, the price offered in comparison to a private party might be more. When purchasing from a private party, there’s always a risk of uncertainty and lack of assurance. Hence, you need to be extra careful. Ask the seller a ton of important information regarding the car ownership, mileage, maintenance, repairs done till date and relevant questions. Moreover, ask the reason why is he/she selling the car and how did he/she come about the price they’re willing to offer. These questions will help in negotiating with the party.
Step 4: Test Drive
Now, once you’ve finally have made your choice and contacted the dealer or car seller, you’d want to take a test drive which is absolutely not an option, it’s a necessity. It is very important step because it gives an idea to the buyer to understand the general mechanism of the car, look and feel of the car. Hence, under general circumstances, it is ideally advisable. You could consider checking parameters like: All the car controls are easily operable and reachable, can the driver’s seat be adjusted easily for better driving comfort, seating is comfortable for fellow passengers, the boot has sufficient space to fit big items and bags, does the air conditioner and radio work in the car, and other factors that may seem relevant for you to check.
Step 5: Car Reviews and Car Inspection
Now, if you’re satisfied with the way the car drives and its look and feel, knowing the car before hand is a very good move. Various car reviews will help you know more about the car and these reviews are honest ones because they come from a variety of consumers who know exactly how the car works. These reviews count a lot while purchasing and saves money in the long run.
A proper physical examination, before negotiating or purchasing the car is a must. You can let your repair man or mechanic do this for you. And a private party will not cause a lot of problem for you to do this. However, there’s a greater possibility that a dealer will cause of lot of problems or there will be resistance from the dealer for you to do this.
Car reviews and inspection will definitely be used for better negotiation.
Step 6: Negotiation At Its Very Best
All the above information, examination, tips and reviews, pre-decided quotes, everything will come into play here! Negotiation is the most baffling step, yet most exciting.
Usually, negotiating with a private party is easier in comparison to a dealer. Because a private party is inexperienced too, when it comes to selling. Moreover, he/she is the one who is more willing to give the car when compared to a dealer. Here, you have to be comfortable with person you’re negotiating with and always decide on the lower and higher limit well in advance for quick negotiation. Moreover, don’t sound too desperate or hungry and be prepared to walk out as your last resort (This just might turn out to be your best option). When dealing with a dealer, you have to heavily rely on expertise and information you’ve gained all the way through. The dealer will be very persuasive too but you have to stick to your ground. Moreover, plan and spend more time negotiating with a dealer than a private-party.
Step 7: Close the deal and purchase your used car
After the confirmation of the final price and all the hard work, it’s time to book your car. Few things come into consideration here as well and it must not be neglected. Hence, closing the deal should be done properly. So when a private dealer is concerned, make sure all the paperwork, title transfer, and registration is done properly. Also, make sure the additional warranty and the auto insurance is taken care of as well. In case of a dealer, make sure the deal is closed properly to avoid after-sales problems Also, make sure the documentation fee, license fee, sales tax and all other charges that are applicable are included. Check the best deals on used cars here!
Too much trouble taken! It’s time to relax and take your great used car for a spin or long drive!
Buying a car is hard. Deciding whether to buy a new car or a used car is harder. Is a used car a safe choice? Can I afford the installments of a new car? These maybe the questions that are running in your head.
Here are the advantages of buying either one. See what works best in your favor.
Advantages of a new car
Trendy features – The new cars are obviously packed with the latest features. Safety, design, comfort- everything is up-to-date. Also you have the benefit of custom ordering your new car you can order your with certain features that you like. For example you may want your car in a metallic shade.
Low Maintenance – The cost of maintaining a new car is comparatively low than that of a used car. In the first year of buying a used car itself you will incur significant maintenance charges. This is because the car has been used for a certain amount of time and is subject to depreciation. Hence, the constant maintenance. Also, few new cars come with free maintenance for sometime.
Warranty – Unlike the used car, the warranty is unused. You may have to buy a warranty for a used car but the new car comes with free warranty per se which covers car related expenses for a certain period.
Lower interest rate – New cars have lower interest rate on the financial loans than the used car. Some used cars may not even be eligible for finance. However this depends on the institution that is providing you with the car loan.
Get the best quotes for new cars right here!
Advantages of a used car
Benefit of depreciation – Every new car owner takes a depreciation hit i.e the value of the car drops by more or less 15 percent the minute he purchases it. You can avoid this when you buy a used car as the depreciation hit is borne by the initial owner of the car. So you can pay a lower price and still own a great car.
Lower price – This is the most obvious benefit of a used car. You can satisfy the sole purpose of buying a car without burning a hole in your pocket. Sure, you won’t get to enjoy that new car smell but at least your monthly installments won’t eat up all your savings.
Wider choice – The money that you will spend for a mid rage new car, with the same amount of money or lower you can purchase a luxury car. So if you have a certain dream car but can’t afford it, that’s what you do. You buy a used one.
Avoid additional new car expenses – There are so many hidden costs involved in purchasing a new car. You have to pay for state licensing fees, state and local taxes, high insurance premiums etc. You can avoid all these expenses with a used car as they are covered by the first owner of the car.
Want to get the best price for used cars? Click here.
These are a few pointers that will help you decide on your choice of car. Which one are you likely to buy and why?