With an ever-growing used car market, this is a great time to buy your first pre-owned car. Gone are the days when you would only find old and defunct cars in second hand lots. With most car owners selling their cars within the first five years of purchasing the vehicle, you can now find latest models in good condition at remarkable prices.
As the saying goes, if a deal is too good to be true, it probably is. Here we have compiled a list of eight things you should consider before you buy your first used car.
Select the type of car you want
There are multiple variants including hatchbacks, sedans, and SUVs, which serve different purposes. The first thing you need to do is select the type of car that suits all your requirements, including the number of passengers it fits and the purpose for the same.
For example, if you are looking for a car for your daily commute, then a hatchback or a sedan will be perfect. If you are looking for a car to travel long-distances, you might want to consider an SUV. The best buy will be one that fits your lifestyle and requirements.
Set your budget
After you have zeroed in on the car type, you need to set a budget and the amount you are willing to spend. This enables you to start looking for cars available in that price range and prevents you from overspending. While creating a budget, you should add the cost of initial repairs, refurbishments, and ownership transfer expenses to the total cost.
Research all available financing options
Do a thorough research of all the financing options available to you. While self-financing may seem like a promising option, it is advisable to check if there are lenders providing finance at low rates or offering other great deals. Used car finance rates vary from lender to lender and depends on the car type and the price range it falls in.
Taking a used car loan can help ease your financial burden and enable you to redirect your resources towards other needs.
Get the car professionally evaluated
A typical car has approx. 10,000 moving parts, and it is impossible to check all the parts just by visual inspection. Therefore, getting the car inspected by an expert should be part of your buying process. This will help you verify the car's condition and also reveal any mechanical issues or defects. This evaluation will also enable you to negotiate the price of the used car.
Go for a test drive
This is the most important part, taking the car out for a test drive and it is better if you do it with an expert. You should run a variety of tests to check the car's performance under different situations. If you do not find the performance up to the mark, then you should walk away without any second thought.
Review the vehicle history report
Checking the vehicle history report is an absolute must to get an accurate picture of the condition of the car. You need to review the accident history and service history of the vehicle you are considering. This includes checking instances of insurance claims, whether the car was involved in any type of accident etc.
Transfer ownership documents
Before you transfer the ownership documents in your name, you should check if the previous owner bought the car through a loan, and whether it has been repaid. You must also ensure that the pre-owned car is free from hypothecation. Always check the transfer ownership documents and confirm the details with the RTO while buying a used car. Also, make sure that the car is free from any kind of liens or litigation.
Get the car insured
You are legally bound to insure your car before you start driving it on the road. If the previous owner had insured the car, you can either transfer the insurance in your name or purchase a fresh policy of your choice. If the car suffers any damage or is involved in an accident, it can be a huge liability in the absence of proper insurance.
A used car is still your first car and it is necessary that you do your due diligence before making the purchase. Do thorough research to find the car that best suits your needs and always opt for a verified lender. Buying a pre-owned car has a number of advantages and the more prudent you are while making the purchase the more beneficial it will be in the future.