Best Tips for Buying a Used Car

Since most of the new cars drop about 40% of their original value within the first year, buying a used car could be a great way to cut the cost of your transportation. Although it is becoming a popular option for many, there are number of risks involved in buying a used car. So it is very important to take your time and do your homework without rushing into a deal. Here are few tips that will make the experience of buying a used car much easier and will also help you in avoiding being ripped-off.

Why should you buy a used car

Buying a used car is a smart decision as most new cars lose their value very quickly. You can buy a car that is almost as good as a brand-new one for a very affordable price. But the advantage of buying a used car is not limited to this one only because there are more. When you buy a used car:

  • You will save money that has to be paid to the insurance company.
  • If you are smart, you can find bigger bargains.
  • Most of them are still under the factory warranty.
  • History of any used car can now be traced very easily with its vehicle history report.
  • Negotiating is less stressful.

Budget carefully

Before you start shopping for a used car, you must carefully consider your budget. Calculate how much you can spend, not only for the car but also for registration and insurance. In case you are planning to take a loan, work out your maximum monthly instalment, and shop around and get a few loan quotes to find the best rate. After establishing your budget never go over that amount.

Finding a good used car

The easiest way to find used cars is to search newspapers and online classifieds. By doing this, you will also get a rough idea about the current market price of the model you are planning to buy. Be cautious of the used cars that are priced much lower than their usual market price. If you cannot make your mind to pass over a bargain that looks too good to be true, have it thoroughly checked by a mechanic. You can also go window shopping by make, model, age and location. And before making a purchase, check the latest news about car to see if there are any plans for a release of a new model, which will always lessen the price of older models.

Ask questions and negotiate

When you visit the seller to check on a car, always ask the following questions.

  • Why did they decide to sell it
  • For how long they have had the car
  • Has the car ever been in and accident
  • What are the “bad habits” it has
  • Anything that is not in the list but if you think it to be important.

You should never buy a car for the initial price that it was listed. The car owners always try to keep a margin for bargain so you can always get a better price if you negotiate. If the car has any faults, you can point them out when negotiating the price.

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