Are you planning on buying a used car? There’s a lot to consider before doing so, and we’ve gathered some great advice for you. Read on to learn more.
A Used Car Should Pay Off
It’s usually a financially smart idea to buy a car that’s been driven for a few years, rather than a brand new vehicle. An average car loses half its value during the first five years. If you want more car for less money, chose second-hand.
Buying a used car from a private person means you can get a great deal, but the risks are also higher. As a buyer, you are responsible if the car should turn out to be broken after the sale is completed.
Keep in mind these important guidelines when buying a used car:
- Always, always, always sign a sales agreement
- Review the vehicle’s service history report
- Do a pre-purchase inspection
- Take the car for a test drive
- Don’t be afraid to negotiate the price
- Get a car loan for used cars
The Test Drive
You should always take the car for a test drive pre-purchase. If the seller refuses, this is a huge red flag and you should avoid the car altogether. Once you’ve found a car that’s interesting and you’re ready for a test drive, here’s a checklist for you:
- Check all the lights
- Check the fan and AC
- Test the handbrake, make sure it doesn’t give in
- Turn off the stereo during the drive – this makes it easier to hear unusual sounds from the engine, gearbox, springs, etc.
- Do an external examination, checking dents or scratches
If you’re shopping for a car with automatic transmission, make sure that the gear runs smoothly without jerking. If the car has a manual transmission, it should feel steady.
Hopefully, the car passed the inspection and you’ve decided to go through with the trade. But you’re not in the clear just yet – now you have to make sure the purchase is safe and correctly handled.
A sales agreement should always be signed by both seller and buyer. There are many free templates online you can download. Before transferring money, be sure to check that any car loans have been redeemed from the vehicle.
In addition, you are required to have car insurance and you must report the change in ownership to your local authorities.
After you’ve completed these steps, you’re ready to drive your new car into the sunset. Congratulations on your new, used car!