Just because used cars are more affordable doesn’t mean you could get the biggest returns of your investment. With more used car dealers and private sellers coming out in the market, loaded with promises, it’s now easier to fall prey into buying a lemon when you don’t take the necessary precaution.
To protect yourself from scams or all out fraud, here are some tips to keep in mind before you buy a used car.
Do Some Research
Once you come up with a short list of your favorite makes and models, research on their market value and compare prices with other dealers. You may also check online prices and see who offers the lowest reasonable price. Of course, a selling price that is set so low should raise a red flag for some possible underlying issues. The specific car might have undergone major repairs, or might have been written off. So make sure everything is clear before even moving forward with the sale.
Read This : Checklist Before Buying Used Cars
Set Your Budget
You may have found a used car that costs just a fraction of its brand new version. But take heed, as your financial obligations do not end at the point of closing the deal. Mandatory payments for transfer of registration, car stamp duty and third-party insurance are part of what you need to consider when finalizing your budget. If you want to know more about the exact amount of each fee, ask your dealer. You might also spend a little more having the Vehicle Identification Number checked by PPSR to obtain the car’s history.
Be Careful With Deposits
There have been recent reports of dealers or private sellers requiring deposits from prospective buyers to secure the car, especially when the buyer decides to drive-test the automobile. Unfortunately for some would-be buyers, some sellers no longer refund the deposit because of the premise that the car has already been reserved. So, to secure your payment, always put every agreement you have with the seller in writing, specifying the terms (e.g., whether the deposit is refundable, etc.).
Steer Clear of Hidden Financial Encumbrances
You might spend a few dollars to pay for a PPSR or CarHistory check to obtain a detailed history of the used car. But the minimal fee you pay is worth it given the essential information you receive such as whether the car is still tied to financial encumbrance, or whether it was stolen.
Here’s More : How To Be Smart About Buying A Used Cars
Once you have everything cleared, you’re now ready to drive the car of your dreams. With a well-maintained secondhand vehicle, not only will you save much because of the huge price difference from the brand new ones, but your car will also no longer go through steep depreciation, unlike the brand new ones. This means you can always resell your vehicle in the future without huge losses.