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7 Mistakes to Avoid When Buying a Used Car

Cars Lined Up in a Dealership Shop

With new car purchase prices increasing with the rising economy, a used car can offer an excellent alternative if you know how to shop for one. That's because while it provides an opportunity to live more economically, a used car, by definition, has issues from regular wear and tear. But you can get the most bang for your buck- just avoid the following mistakes when buying a used car. 

Key Takeaways:

  • Buying a used car can be one of the smartest buying decisions if you know how to shop for one.
  • You should line up financing before you go car hunting.
  • Always test drive the car before taking it home.
  • Having the vehicle checked by a certified, independent mechanic is a step that should never be skipped.
  • If you don't like the auto deal, there's nothing wrong with walking away.

Failure to Line Up Financing Before Shopping

Before buying a used car, whether through a dealership or from a private owner on a website, you should figure out how you'll pay for it. Not everyone can fully lay down the cash for a vehicle- even for a used car. As such, you have to consider financing. Financing allows you to understand the upper limit of your price range, which makes negotiating prices easier. 

One key thing to note is that used car financing rates are typically higher than those for new vehicles. That's because if you default on your loan and the auto lender has to repossess the vehicle; they can get a better resale value on a new car than they can on a used car. 

Shopping Based on Monthly Payments

When people are looking for car financing, they often consider the monthly payments they'll have to make. And while a lower monthly payment is good for your budget, a more extended payment period means you end up paying more in the long run. Due to compounding interest, it might make more sense for you to take on a higher monthly payment since it's possible to pay back the principal within a shorter period. 

Buying Based on Looks

Buying a used car based on looks alone is a huge mistake. It's wise to consider why you need a car before buying one. That will help you buy a car that suits your purpose, needs, and preferences. Also, consider what you truly require out of a car- do you travel long distances and want good mileage? Is it necessary to have a large trunk space? Or do you need a lot of interior space for your big family? Make a list of priorities dictated by your lifestyle and buy a car based on them. 

Skipping the Test Drive

Did you know that first-time buyers of new cars test drive as many as seven new cars before making the purchase? On the other hand, as many as 18% of buyers of used cars don't test drive the car before making the purchase. This disparity in statistics could be the reason there are several third- and fourth-owner used cars on the roads. Unfortunately, when you forego to test drive the car before purchasing, you risk buying a car that's not running properly and experiencing buyer's remorse in the long run. 

Foregoing the Vehicle History Report

Whether buying your car from a licensed used-car dealer or a private party, getting a vehicle history report is a vital step in the car-buying process. A vehicle history report includes detailed information, such as where the car came from and whether it has been involved in an accident, stolen, or has outstanding finance. The report also provides insight into the vehicle's service history, mileage, and other attributes. Keep in mind that these reports contain only information that was reported and sometimes don't cover everything. So, always have an independent mechanic perform a thorough inspection to verify the report. 

Not Having the Car Inspected

When buying a used car, its condition is everything. Even the most reliable car might turn into a lemon if it has costly issues sometime down the line. So, before buying a used car, have it scrutinized by an independent mechanic that does routine diagnostic work. A skilled mechanic should be able to tell you if the vehicle has been in a major accident or has a hidden but costly problem. Ask for a written report detailing the vehicle's condition, noting any issues found and what it'd cost to repair them. You can use the report to negotiate with the seller to adjust the price accordingly.

Mixing Your Emotions and Your Money

Every buying decision human beings make is an emotional one, whether we realize it or not. But a car is probably the second most expensive purchase you'll make in your lifetime; so that emotional decision could cost you money. So, never buy a car impulsively or on the same day you test drive it. Instead, give yourself a few days to mule over it. 

Moreover, it's easy to get stubborn about the time you've spent getting the right price for the right used car. Sometimes, you might think you've already spent too much time on the process and simply want to get it done. So, instead of walking away, you'll accept terms you didn't want and ultimately resent the purchase and the process. 

Need Help Buying a Used Car? Contact the Experts!

A lot goes into buying a used car, and it's easy to get overwhelmed. Preparation and research should be your friends. Don't visit the dealership without securing financing, knowing the amount you want to pay, and having a list of must-have features. Overall, keep in mind that there's more to a car than its monthly payments. For more information about car buying or to check out our vast array of used cars for sale, contact us today!

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9 Dashboard Warning Signs You Should Never Ignore

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