Mistakes to avoid when getting a used car

Ajay was in a hurry to buy a used car. He had recently got his driver’s license and could not wait to start driving his own car. In his hurry, he ended up buying a car whose engine was not very powerful. He had to get rid of the car within a year’s time. Apart from being ad is appointment, this was a huge financial loss as well.

People make some common mistakes when buying a used car. Read this article to know more, and learn how to avoid these mistakes.

1. Not preparing a budget:

The used-car market is vast and offers endless options. This makes it important to have a budget in place when shopping for a used car. Without a budget, you may be tempted to buy a higher-priced vehicle that is not suited for your needs.This can later put a massive strain on your finances. A budget will help you find the right vehicle that meets your financial and personal requirements. 

Related: Have women become more open to car loans?

2. Not inspecting the car:

This is one step that you simply cannot afford to skip. Are you buying the car from a trusted relative or from a dealer? Either way, ensure you inspect the car carefully. Check the engine, brakes, body, tyres, and the interiors. Make sure the car looks good. It should also be in a drivable condition. If you buy the car in a hurry, without inspecting it completely, you could end up with a poor and unusable model.

3. Not checking for past legal issues: 

Check the legal background of the car; are there any previous legal issues related to the vehicle? This is a simple test, but it is extremely important. Suppose the car was in an accident? Or it could even be a stolen car. As the new owner, you will be held responsible.Find out all the details associated with the registration plate. Buy the car only if the previous owners are clear of legal issues. 

4. Choosing a wrong loan or EMI: 

Most people use loans to finance their used car purchase. However, before applying for the loan and signing the papers, find out everything about the loan. Make sure you search for ideal interest rates and understand the repayment scheme. The deal does not end once you get the car keys. Remember, you have to repay the loan, so choose an affordable EMI option. Defaulting on the loan could severely affect your future finances. So, make sure you can repay the loan without letting it affect your daily living costs.

5. Not negotiating: 

Try to negotiate the price of the vehicle before buying it. Do not feel embarrassed about this, or you could miss out on some big savings. If there are any parts that need changing or have not been well maintained, you can use this to leverage negotiations.You should be successful in most cases.

Related: 5 Ways the used car loan industry is making it easier to own a car

To sum it up

You must be careful when buying a used car. Do not attempt to buy the first car you see. Take time to find a used car that suits all your needs. Inspect and compare all the cars you see until you find the best option for you. Keep these tips in mind to find a great used car.