Buying a used car is undoubtedly a smart investment. That is if you know how to do exactly. The price of a new car will increase as the economy rises. In such a case, a used car is a great alternative to enjoy the same model at a reduced price. As the merits and demerits always come along with it. A used car usually has issues of wear and tear; therefore, it is important to shop wisely in order to avoid the mistakes that you may regret in the future.
1. Line Up Financing Before You Shop
When you decide to buy a car; no matter it’s through a dealership process or via a private owner, be mindful of the way through which you will be paying the amount. Cash is not feasible for everyone to pay through. Such buyers can consider financing. That will not only help them understand the maximum limit of their price range but also helps to make negotiations easier.
In case you are buying a used car from the dealership process, they may provide financing in a wholesale insurance offer but it may also include extra interest rates. You can avoid it by opting for various lenders because each of them has different rates. Ensure that you’ve got approval before you buy the car.
2. Avoid Shopping On Monthly Payments
People who buy a used car in NZ and are short on a budget usually go for a lower monthly payment method. This may prove to be convenient for a monthly budget. This, however, piles up the interest and you have to pay more money in the long run. Instead, you should go for a higher monthly payment this allows you to pay the money back in a shorter time.
A much cheaper way to get a used car is to lease one. Well, not all dealerships provide car on leases provided that its mileage falls under 48000 and the car is less than four years old. Not to forget that you may have to return the car as your lease ends.
3. Don’t Shut Your Eyes and Take a Driving Test
About 20% of the people buying a used car don’t even take a driving test for it. In contrast, people buying a new car usually take several driving tests before they purchase the car. Well, this is actually a risk of purchasing a used car as you haven’t tested the vehicle it may cause problems in the future. And you don’t want problems you can’t fix or afford.
4. Purchasing Without Being Checked by Mechanic
Spending money on inspection by a mechanic is worth spending the amount as it will favor your savings in a long run. This inspection should be done before you finalize the purchase. It might be possible for the seller to pay for the inspection but it’s good to ask them.
5. Try Making Negotiations in Person
Negotiation is very important with the seller in person before you go to make a purchase. Make sure that you’re done with the research and comparisons beforehand. If you’re purchasing a used car with a seller who’s not a professional salesman, then conversations over some used car’s stats on phone will help you gain the upper hand before you actually see the car.
6. Buy a Car as Per Your Needs
If you decide to buy a car, don’t fall for the looks of the car. If you are looking for a tow trailer, then looking for a sports car will be useless. Therefore, don’t waste your time looking for a car that won’t accomplish your needs.
7. Check the Vehicle History Report Prior to Purchase
It’s a plus point if you have taken a driving test and inspected the vehicle by a mechanic. But checking the history report for your car has additional benefits. You can check the past accidents or complications of that car.
Make sure you are aware of these pitfalls before buying a used car. Avoiding these mistakes will help you save money and related issues in the long run.