For many of us buying a brand new car isn’t an option, and shopping for a used car can be like walking in a mine field. Our guide to buying a used car shows you what to check, from wipers to wiring, and will help you to ensure that you get the best deal!
Benefits of Buying a Used Car
There are a number of benefits of buying a used car. The chief advantage that comes to mind is the lower price and has a lower depreciation rate. Buying a car brand new is expensive and as soon as you have driven it from the dealership you’re losing money. In the first two years of ownership, a new car can lose about 30% of its original value.
Your resale options are much brighter with a user car, as a used car is much more cost-effective and when you do decide to sell it on you won’t lose as much money in the resale. The final benefit is that you’ll have a wider selection to choose from, as you widen the selection of cars you can afford.
When you decide to buy a used car there are two options available to you; buy through a dealership or from a private owner. Both have advantages and disadvantages, but equally offer a good option on buying your car.
When buying from a dealer you have to deal with a harder negotiation process, but more often than not you have additional consumer rights. If you choose to buy through a private sale you’ll often find the prices are drastically lower without the dealership commission, but you are buying the car ‘as is’ which could be risky.
The trickiest part of buying a used car is carrying out the inspection. There is one golden rule; get a comprehensive report of the vehicle’s history, while these reports often cost money, but they are worth it. For the initial inspection you’re going to have to look for physical issues with the car e.g. check the body for rust and look around the engine.
Once you’ve determined that the car is sound you should take the car for a test drive, to see if there are any issues with the way in which the car operates when being used.
Finally, buying a used car can be difficult. It is important to remember that most dealers build about 20% gross margin into the used car’s asking price, so you can use this figure to calculate a fair price. In any negotiation, be ready to walk away. Be flexible in your choice and don’t get too attached to one car.
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