A car can be a good investment but many would-be buyers are reluctant to purchase a new car knowing that it will begin depreciating in value the moment it leaves the car dealership. By the time it rolls out of the store, the car will only be worth about 91% of its original value. Many buyers are reluctant to shoulder this cost and would rather spend their money on pre-owned vehicles that are reliable and still offer excellent value. By purchasing used cars, you can avoid some of the depreciation cost and save money in the process. When buying used cars, keep these tips in mind:
1- Do your research first.
Identify the most important features you need in a car along with your preferred brand, make and model. Some car brands and models also depreciate better than others and are thus more reliable as secondhand buys. Keep the cost of maintenance, upkeep, parts and accessories in mind since these can easily make a seemingly great deal an expensive headache. Consumer reports and reviews can be useful guides to help you decide which pre-owned cars offer the most value as secondhand purchases.
2- Buy a car you know.
Purchase used cars only if you know their history. If buying directly from the owner, ask for maintenance, repair and restoration records. Used cars that have been in serious accidents or floods and those that have gone through heavy use (rentals are a good example) are best avoided. The car's history may also be verified using its VIN number, something that can also be obtained through a used car dealer.
3- Inspect the car.
Never purchase used cars without a physical inspection. Even experienced buyers can be misled by information provided on an ad. A thorough inspection of the vehicle will help you identify potential problems, particularly those lurking under the hood or chassis. Many of these issues are not readily apparent from pictures and descriptions, no matter how detailed. It is also a good idea to bring a trusted mechanic or at least someone who is knowledgeable about cars to help you inspect it for defects.
Before closing the transaction...
4- Consider if the car comes with a warranty.
Private sellers are not required to provide warranties for preowned vehicles unless your agreement says otherwise. If the car is relatively new, check if the manufacturer's warranty is still active. Find out how long the covered period is and if the warranty is extended to the car's new owner. If you still have coverage for a reasonable period of time, buying an extended warranty may not be necessary. However, if the car does not come with sufficient coverage or if you foresee future expenses due to repairs, buying an extended warranty is a good idea.
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