Buying a used car can be a cost-efficient alternative to owning a vehicle as long as you’re purchasing one in good condition. Being more affordable than a new vehicle, it enables you to own a car for personal or business use in the shortest time possible. However, the preloved car may also come with several issues that could affect your driving experience. Thus, it is essential to know things to avoid when buying a used car.
If you’re in the market for your first used car, beware of these four things.
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Not Knowing What You Can Afford
Find out how much you can afford before looking for a car. You should never skip your homework—don’t visit the dealership empty-handed or you’d pay more than necessary. If you jump straight to the car search, you might end up making unnecessary sacrifices, or you might be wasting time looking at cars that don’t fit with your budget.
The internet is a good place to begin your car buying process. Once you’ve worked out your budget and your needs, start comparing models and finding out what the various car features mean. Different manufacturers sometimes use slightly different terms to refer to the same thing. Make note of any advertised prices, especially on runout deals.
Relying On Monthly Payments
If you’re planning to buy a used car through a car loan, using your monthly payments as the sole basis in calculating and calculating prices is not smart. A low monthly payment may seem affordable and friendly on your budget but it would require a long time to complete. This would mean that you would end up paying back more money. Take note that the interest of your loan is calculated in your monthly repayments—the longer your car loan runs, the more interest you would have to pay.
Also, a car’s value depreciates over time. Although a used car doesn’t depreciate as fast as a new one, it still loses 15 to 20 per cent of value each year. In other words, reselling your already second-hand car to a new buyer would be very difficult.
Only Visiting One Dealer
There are a lot more buyers out there who only shop at a single dealership than you realise. But even if you know the salesperson or you’ve bought all your cars from him before, that doesn’t mean they are offering the best price.
The bonus is that these days a lot of dealerships also put their best deals online, so it makes it easier to shop around, pick a couple, pay them a visit, and negotiate. Also, make sure that you go to an honest used car dealership. They will genuinely help you, and that’s what you want from visiting your local dealership.
Not Asking Enough Questions
“We’ll even throw in…” is always an appealing phrase when you’re trying to make a deal. But did you know dealers make more money on extras and servicing than they do on the actual margin of the car? So while accessories are an extra bargaining chip to sweeten a deal, they’re also likely to use these to up the final price you’re paying.
Don’t feel bad to ask some questions. Believe in your gut. If you think something is fishy, then maybe it is. Don’t forget about these red flags as well. It’s best to avoid these things when buying a used car!
BONUS: Not Hiring The Best Pre-purchase Car Inspector in Melbourne, VIC
Have a professional inspector like German Precision do a thorough pre-purchase car inspection in Melbourne to ensure that your dream car is operating properly and not a scam.
If you are looking for a professional pre-purchase car inspector in Melbourne, do not hesitate to contact German Precision or Prepurchase Check today!
sources: macquarie.com.au, whichcar.com.au, positivelendingsolutions.com.au
