Are you in the market to buy a used car? Sometimes buying used is less straightforward than buying new. You’ll have to do a lot more homework and be willing to wear out your shoe leather. But what are the other things you must consider when buying a used car?
1. Not all used cars are created equal
We all know every used car has a different story to tell. They all have different Kms on the clock, had different owners and had different purposes. (All questions you should ask your seller, by the way!) But some used cars get dealer certified, which sets them apart from other used cars. Dealers usually sell certified used cars. They are always up to date with maintenance, are checked by mechanics and often come with some sort of warranty or manufacturer guarantee. Certified used cars may be ex-lease, ex-demo or recent trade-ins. They may be pricier than some used cars, but this gives you peace of mind.
2. Used cars are sometimes harder to finance
Used cars that are pushing the end of their lifecycle are often harder to finance than new or certified used cars. There is however still many finance options when purchasing an older car and the best way to get the best possible terms is by speaking with a qualified finance broker.
3. but they’re often cheaper to insure
Used cars are usually cheaper to insure as they have a lower agreed or market value.
4. What is the car’s purpose?
Before you even think of looking at online classifieds or trade magazines, you should figure out what your used car’s purpose is. There’s little use buying a muscle car with after-market modifications if all you’ll be doing is driving it up and back from the shops. Do you need extra room for a growing family? Does it need towing capacity? Can you buy a similar model with better fuel economy? Figure out your absolute needs before finding out what you want..
5. Spending a bit more might save you long-term
Used car logic is often a bit counter-intuitive. Spending more on a used car often saves you money. How? Imagine buying a used car for $8,000. It has 100,000km on the odometer. Imagine the same model is selling for $15,000 with only 30,000km. Which should you buy? You should buy the more expensive car with less km on the clock. That means less engine wear and tear, which means servicing is less expensive and you’ll get a lot more mileage out of it. Sometimes the extra investment means long-term savings.