10 Things to Know When Buying a Used Car

A used car is a good option for many people and works out great. It’s easy to be naive and get cheated by unscrupulous sellers. But if you do your research and are well-educated on what you are getting into, you should be able to avoid fraudsters and bad situations. Don’t settle on a car you see at the first dealership you visit and never jump into buying a car thinking it’s a good deal without doing your own research. Be sure to get all the details right and you’ll be set to drive home a great deal. To get a good deal on a used car, here are some tips.

Do your own research

Use the Internet to find out the current price of the car you have in mind, the ex-showroom price, the on-road price, insurance and road tax. This will give you a clearer estimate of how much the car cost the owner originally. Do your research on used cars as well to see how much similar cars are going for.

Get all the information

Find out important information as to the age of the car, the year of manufacture, the model, and features of the car. Also find out how many hands it has passed, meaning how many owners the vehicle has had. Check on the number of kilometers run, power steering, power windows, central locking, autocop, cupholders, music system, glove box, cabin space, boot space and other such features.

Ask any question

You’re paying for the car, it’s not free. Don’t be shy to ask questions even if they might seem irrelevant. Question the history of the car, when it was bought, prior accidents and repairs. You can also ask about the service history of the car.

Get the numbers

You must get these three numbers: the vehicle Identification number, the registration number, and the engine number. These three numbers should match the numbers given in the car papers. You can also note down the driver’s licence number of the previous owner to be on the safe side of any prior violations.

Ignore the word “sale”

Just because there are big “Sale” signs posted all over the dealership or the car, it does not mean that the price is lower. Avoid marketing gimmicks and get the best deal for yourself.

Get a mechanic to assess the car

Find a trustworthy mechanic. Don’t be fooled into an estimate by a mechanic that might be hand in glove with the seller. Get the car fully assessed and an exact value of the car. Check on prior repair work and fixes to the car.

Bargain

Once you have all this information, you can put yourself in a good position to bargain for a better price. Don’t bargain downwards of what the seller has quoted, rather bargain upwards of the value of the car.

Watch out for repaired write-offs

Sometimes a car is deemed unusable but is repaired and sold. These cars will not be covered by any insurance and it is best to avoid buying these vehicles.

Check on loans against car

If there is a loan pending that has been taken against the car as security, it’s not smart to buy the car. If the borrower defaults on the payments, the bank has the right to seize your car. If the car was bought on a loan by hypothecating the vehicle, ensure the car has been fully paid for and owned by the person selling it to you.

Get your finances right

If you are borrowing money to buy the car, make sure you get the best loan and interest rate.

Use these tips to ensure that you get the best deal on a used car. Used cars come with a lot of advantages but also has its drawbacks. There are a number of things to look out for when you opt to buy a used vehicle. The biggest advantage is they a relatively cheaper and more affordable for many people. These cars are also put to good use to teach someone how to drive or for practice. Whether you buy from a trusted dealership or directly from a seller, you need to be careful about what you’re getting yourself into.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017