When you’re looking to Buy A Car, the first decision to make is whether to buy a New Car or a Used Car. Although a New Car has many attractions, it depreciates very quickly and you will save a lot of money buying a Used Car.
A new car loses most of its value in the first three years and may only be worth two-thirds of its cost price. In addition, a car can drop $1000-2000 as soon as you drive it off the forecourt.
Here’s how to get the best deal from a used car.
Be Prepared
Narrow down your choice to one or two makes and models. Research as much as you can. Look on the web - of course! - check magazine reviews, ask friends and family.
You want to find out not only if the car is suitable for your needs, but also how much service and maintenance costs are. It’s not good buying a cheap car if repairs will cost as much as the car! Also, your search will be much easier if you’re only looking at one or two models. You’ll find it easier to compare them.
Another thing to consider is the cost of insurance. This varies enormously from car to car and, of course, it depends on the driver and your experience. But if you fancy a high-end car, check out the cost of the insurance to make sure you can afford it.
Value vs. Price
You know the saying about the man who knows the price of everything but the value of nothing (a cynic, according to Oscar Wilde) - that’s worth bearing in mind when Buying A Used Car.
From your research you will know what price range the car you’re looking for will fall into. If you see a car at the lower end of the range, you can be sure it’s there for a reason. Maybe it needs some repairs or maybe the engine or bodywork hasn’t been well maintained. Better pay a little more for a car that’s been well looked after It will save you time and hassle in the future. And you can always negotiate on price - coming up...
However, just because a car is at the top of the price range, doesn’t mean it’s good value. Of course, you have to take many factors into account when looking at the price. You want a car in good condition, etc, at a fair price.
Buy What You Can Afford
This should go without saying but it’s very common for salesmen to try to talk you up to a more expensive model to increase their commission. Many people in this situation find themselves paying more than they can afford.
So, determine how much you can afford to pay and stick to it.
Check The History
Check the car’s history for possible problems such as flooding, accident damage and so on. You can do this with the vehicle’s VIN number through online services such as carfax.com. You can see if there are records available for free although you have to pay a $30-40 to actually see the reports.
When you’ve found a car you’re interested in, check out the bodywork and mechanics thoroughly. It’s worth paying a competent mechanic to take a look.
Check The Paperwork
Don’t rely on what the owner or salesman tell you. Check the paperwork. If buying privately, make sure there are no liens against the car and that the person who signs the Bill of Sale is the car owner.
If buying from a dealer, check the warranty. You may be able to transfer any existing manufacturer’s warranty to your name. If the salesman has promised something and it’s not in the paperwork, get it in writing.
Negotiating The Deal
Many people don’t like negotiating on price. Others negotiate for everything even in shops and for items with a ticket price of $20!
First of all, be friendly the salesperson, Tell them your name and shake hands, be nice to them. People are much more likely to want to do a deal with someone they like and even small niceties go a way towards that.
Make sure that the car is the one you want and the salesperson knows you’re a serious buyer. They will be more likely to negotiate downwards if they think they will sell the car.
If you have seen similar cars elsewhere at lower prices, use this as leverage. Ask if they can beat the price.
Fix in mind the very top price you’re prepared to pay - and don’t go over it! Now offer rather less. Say the car is advertised at $16,000 and you don’t want to pay more than $15,000, offer $14,000. There will inevitably be a little to-ing and fro-ing but if the salesman thinks you want to buy he will often give you the best price he can.
In fact, one ‘trick’ used by salesmen is to ask, “If I can do if for $X, will you buy it at that price?” They then know they have a sale.
Extras
While negotiating, think of extras that would cost the garage less to include than for you to buy. For example, new mats or new tyres. You can also try the old favourite - a full tank of gas! As the garage will have an allowance for test drives and so on, and they pay less for the gas than you do, it won’t cost them as much as it would you.
Feel Good
Finally, don’t Buy A Car unless you ‘feel good’ about it. This isn’t just about using your intuition or ‘gut feeling’, but if something niggles - maybe the steering feels loose or it doesn’t drive smoothly - then simply move on. There are millions of Used Cars out there - one will meet your criteria and be right for you.