You can save money by buying a second-hand car over a brand new car. However, as with many things in life, you often get what you pay for. You may be thinking you got a steal when in fact, you were the one being robbed.
Before buying a used car, you need to consider certain things to ensure you are not dealing with a lemon. Here, we will discuss some of the things you should consider before buying a used car.
Advantages of Buying a Used Car
Many people dream of owning a car and having the freedom to go where they want when they want. But not everyone has the money required to buy a new car. For those on a budget, buying used may be the only option.
The slow rate of depreciation is one benefit of buying a used car. A new car will lose roughly 50% of its value after just three years.
Buying used will save you quite a bit of money, as you will be able to take advantage of the cumulative depreciation that your seller had to deal with to sell you their car for such a low price.
You can also enjoy the lower customization costs that come with a used vehicle, and you can also enjoy lower registration fees as well. Older cars tend to be cheaper to register in most cases.
Due to the age of the car and its low price, the amount that you will need to borrow will likely be much smaller than the amount required to buy a new car. The price may be so low that you may be able to buy the car with one lump sum payment.
Lower insurance premiums are yet another plus of buying a used automobile. Generally speaking, the less valuable a car is the less money required to insure it.
You will also be required to pay a lower sales tax on your used car, as the sales tax amount goes up the higher the vehicle’s price tag.
Major Drawbacks of Used Cars
Buying a used car will likely save you quite a bit of money. However, you need to ensure that your vehicle is in good working order before taking it off the lot. Otherwise, you may need to pay thousands to repair and maintain the car and thousands more to replace many vital parts.
Older cars tend to be less reliable than newer cars, as they tend to be less technologically advanced and have to deal with the expected wear and tear of being pre-owned.
You can also usually pick the colour, features, and accessories you want when buying something that is generally not possible with a used car.
Your choices will be limited as well when you buy used. There are only so many used cars to choose from, and very old vehicles may not have any replacement parts because the car manufacturer stopped producing them.
The value of used vehicles also tends to be less predictable, and used car financing also involves more risk. Due to these factors, you will be required to deal with higher interest rates.
Another downside to buying used is the increased repair costs, as older cars are more likely to break down or require regular maintenance.
Moreover, if you purchase your car from a private party, you may not obtain any warranty coverage. We would suggest that you do so with a dealership if you decide to buy used, as they will be more likely to offer you some kind of warranty coverage.
Things You Must Check Before Buying a Used Car
First, check the car’s condition, including the exterior, interior, frame, engine, tires, and mileage. Look for stains and tears, and test all electronic items, such as CD players and monitors, to ensure they work.
Look for rust and paint damage, and ensure that nothing is loose near the vehicle’s undercarriage. Ensure that the tires are worn evenly, as misaligned tires may cause dangerous drifting issues while driving.
The transmission fluid and oil should be tested with a dipstick, and you should look for cracked tubes, corrosion, and leaks concerning the engine.
Check the service records of the car. If the servicings are consistent, that’s evidence the previous owner looked after the vehicle. Go over the registration certificate to confirm that the car is the legal property of the seller.
Cross-reference the engine number and VIN, and don’t forget to take the car for a test drive. Look and listen for any anomalies that may require further investigation.
You also need to make sure that the car insurance policy has been transferred in your name. It must also be valid for at least three weeks after you have purchased it.
You should also go over the history of the vehicle. Do not hesitate to ask the seller many questions about the car and its past usage. The car may also have been modified over the years.
If so, go over the mods, as some of them may be illegal in your country. Loud exhausts, outlandish number plates, wide tires, body lifting kits, and engine mods are just some examples of car modifications that may be illegal where you live.
You should also ensure that the car has been evaluated from top to bottom by a certified mechanic to ensure that everything is up to par.
Taking the First Step
Used cars tend to be cheaper than new cars, but they may require more maintenance and repairs. You must ask a licensed and bonded mechanic to inspect the car from top to bottom to ensure that the car is fully operational and suitable for your needs.
Sources:
5 Things to Consider Before Buying a Used Car (acko.com)
Pros and Cons of Buying a Used Car, and How to Make Your Decision (roadloans.com)
Top 10 Advantages of Buying a Used Car - King Cotton CDJR Blog (kingcottonchrysler.com)
