What to Consider When Buying a Used Car + 9 Practical Tips
What to consider when buying a used car from an individual or dealership? If you have your hand on the right used car, don't rush into buying it. There are some things you should check before purchasing. This article provides you with nine practical points on what to consider when buying a used car or even a new one to prevent future regrets.
1. Set a Budget is What to Consider When Buying a Used Car
Before looking for a car to buy, define your budget; how much are you willing to pay for a used car? During the purchasing process, try to stick to this budget. It's not just about keeping your money, but it also helps you make a better decision.
Cars' features are so vast, but not all of them are necessities. So decide which car you should buy, considering your budget is a smart move. See which options are necessities and which are luxuries. Evaluate a car's price and resale value to have a clear mind on it.
When you see the plethora of features and add-ons in the cars world, sticking to a budget can be difficult, but it will help you quickly narrow your search. Always set a budget before trying any other thing in the purchasing process.
2. Research about Car History
Imagine you find the right car, scan the exterior and interior, and everything looks fine; Don't be sure yet. Even though everything looks good enough on the outside, the vehicle may have a rough past. Considering the car's history, maybe you're not sure if it's in is priced reasonably. Many factors can affect a used car's value, including accidents, maintenance, weather damage.
So what should you do? What to consider when buying a used car for yourself? There are some online services like Carfax that supply history reports on used vehicles. Everyone can reach these services. They provide you with complete history details about prior damage, odometer readings, and title information.
Ensure that the used car you're interested in is what it claims to be with pre-purchase car inspection services. Some services provide you with a filled-out checklist that thoroughly examines the car's interior and exterior.
3. Check the Reviews on Car Manufacturer
Find reviews and reports on car manufacturers and their makes and models. Some services like Kelley Blue Book provide you with many useful resources, from car reviews to valuation tools and local dealer inventories.
Services like the Kelley Blue Book show what consumers should expect to receive for their car when trading it in at a dealer. They report on a fair price when selling the vehicle to an individual instead of making a dealer trade.
It would be wise to check the NADA value too. It's the value of a car based on many different value factors. The NADA guides have deals for cars, bikes, boats, and all kinds of vehicles. To check the reviews is what to consider when buying a used car from an individual seller of a dealership to have a successful purchase.
4. Drive the Used Car
It may seem obvious, but it's vital to get behind the wheel of a used car before buying it. It's always tempting to quickly jump on what seems like a fair deal for a used car, but it's essential first to see how you as the driver connect with the intended vehicle on the road.
But there are many questions you should ask yourself. For instance, does it feel natural and intuitive to drive? Do you feel secure and safe? Are there any blind spots, which propose a safety concern? How touchy are the clutch, gas, and brake pedals?
A 30-minute test drive is vital to evaluate how a used car runs in a realistic setting. Consider a familiar route and test actions you would typically do; hit the brakes, put it in the park, accelerate and change lanes. Get a feel for the car's features and accessories and make sure they work correctly.
5. Consider your Lifestyle is What to Consider When Buying a Used Car
Purchasing a car, whether a brand new or a used one, is based on practicality. Although the sports car might be within your budget, the spacious SUV might be the better car if you have a crowded family. Think through why you need this given car, then consider your lifestyle and your family. Finally, try not to stray away from practicality even when you stumble upon something edgier.
The popularity of SUVs has risen over the past few years. They provide flexibility and are great for families; however, they can also be overpriced and unnecessary when more economical options cover similar needs.
Buyers should think twice about an SUV, especially when it's a 4WD because the running costs can become a burden. Other vehicles on the market appear smaller but have a similar luggage capacity, allow child restraints, and have a larger capacity engine.
6. Keep Financing in Mind
Whether you plan to take out a bank loan or financing through the dealership, it's essential to keep your options for the funding in mind while doing your research. You might borrow money from a bank, finance company, or credit union. In the loan agreement, you agree to pay the amount financed, plus a finance charge. Once you're ready to buy a car from a dealer, you use this loan to pay for the vehicle.
Depending on the financing type you choose, you could be required to show proof of residency, income, or identity. It all depends on what documentation your lender requires; however, it can speed up the purchasing process if you prepare them in advance.
There are some apparent advantages to financing. If you have good credit and qualify for a low-interest rate, financing may be the way to go if you can get a relatively low-interest rate. Some dealers offer 0% interest if you finance with them.
7. Check the Warranty
It takes some extra effort, but it's crucial to look at the fine print. It's what to consider when buying a used car from a dealership or an auction house. You may find some vehicles labeled "Certified Used Car," which means it still has the car manufacturer's warranty.
However, sometimes these given vehicles are covered under a third-party warranty or maybe no longer covered at all. If the car is no longer covered under warranty, some individuals opt to buy an extended warranty. It will extend the term from the original warranty and give you peace of mind if you're nervous about repairs.
Regardless of your decision, make sure to look into the warranty thoroughly and any signs on the vehicle. Some used cars will have a sign that says "as is." This sign means the dealer is no longer legally responsible for any damage to the vehicle once it's driven off the lot.
8. Provide the Insurance
You should have proof of insurance before buying a used car. It's required before you close the deal. You cannot drive a vehicle on a public road without car insurance. The car dealership will not let you leave with the car until you provide proof of insurance.
Some companies let you transfer your current insurance coverage to another vehicle for a short period, but these laws vary by country. If you've done your researches and feel confident about a particular car, you should get insurance quotes so you can calculate potential payment.
Once you've settled on contenders or have made your decision, you can get car insurance quotes by providing the vehicle identification number (VIN), or the make and model, to insurance companies.
9. Consider Ownership and Car Title
Obtaining a car title is a crucial step in the buying process and is what to consider when buying a used car or other vehicles. If there is no loan or lien on the vehicle, the dealership, or individual you're purchasing from should provide you with the used car title.
If you're closing the deal with an individual seller, it's essential to make sure that the person is the valid owner. Check for an ID and make sure that the name matches the name on the title.
Depending on state laws, paper titles are generally mailed, and electronic titles and liens are released to the motor vehicle agency approximately ten business days after the payoff is received. Allow 15 to 30 days to receive your title based on mail time or the car agency process.