Buying a used car instead of a new one is a good decision. You get the most out of your money, plus it is a more economical decision, especially if you need a replacement vehicle.
But the process of finding the right used car is trickier since they are prone to more wear and tear. Here are four mistakes you should avoid when you’re in the market for a second-hand car.
Not Having Clarity on Your Financing Options Before Starting the Process
Whether you plan to apply for a loan or pay for the car upfront, you should have your finances in order before you purchase your future car. Why? Because if you don’t have enough money saved up, you’ll have to go through the lengthy process of applying for an auto loan.
If that’s the route you choose, remember, the financing rates charged on used cars are higher than those for new vehicles
Only Considering Monthly Payments
Buying your car outright can help you save a lot of time and money. But if you don’t fall into the category of people who have enough saved up, you need to consider other options. Experts recommend creating a budget to determine how big a loan you can take out and what kind of down payment you can make. While securing a lower monthly payment might seem like a good fit for your monthly expenses, it also means an extended payment period. Which could mean more interest, causing you to pay more than what your car is worth. Consider other options like leasing (yes, you can lease a used car) that might be cheaper.
Failing to Test Drive the Car
Statistics show that 20% of used car buyers don’t test drive the vehicle before purchasing it. Failing to test drive the car before buying it puts you at risk of experiencing buyer’s remorse. It is imperative to test out a few options before coming to a final decision to make sure the car is in running condition and fits your needs.
Not Getting the Car Examined by A Professional
While test driving the car can help you understand if it’s comfortable to drive, you absolutely must have it checked out by a mechanic before finalizing the deal. A professional can give the final seal of approval and help you save a lot of money in the long run.