Deciding to buy a used car could save you thousands of dollars. Know that every car loses value the moment it moves out of the showroom and hits the road. Used cars are priced lower due to depreciated value of the car. The actual condition of the car is not the main reason for its low price. In fact, you can find a used car in perfectly good condition from experienced used car sales in Perth.
Used car offers a better deal as compared to new car. A used car does not incur depreciation similar to a new car. So it is able to hold onto its value longer as compared to a new car. It means that you could sell the car at almost the same price you bought it around 2-4 years after the purchase. The new car value on the other had depreciates significantly in the first year.
Are you thinking about buying a used car? If so, you can save your money smartly while buying used car by making the 10 smart moves given below.
1. Shop Around for the Best Deal
The most important advice when buying a used car is to shop around to find the best deal. Know that different car dealers sale the same used car model at different price and with different features. You should look around and select a car that best suits your requirements and budgets. This will also give you greater bargaining power when negotiating for the car price.
2. Obtain the Best Term on Loans
Another way to save money on used car purchase is to select a finance institution that offers the best deals on the loans. You should compare the terms and agreements of car loans provided by banks, credit unions, and car dealers. You should use an auto loan calculator to determine the monthly payment that you would be required to pay on loans.
Make sure that you can easily pay the monthly loan payments. Non payment of the loan amount would negatively affect your ability to obtain loans for important expenses in the future. You can find score of different car loan providers online.
3. Consider Buying from an Auto Dealer Experienced in Used Car
You can save your money smartly while buying used car by purchasing it from an auto dealer experienced in used car sales in Perth. The auto dealer offers various seasonal sales discounts. You can save a lot of costs if you want for an upcoming sale season to buy the used car at lower prices.
Apart from saving cost on used car purchase, buying from a dealer provides various other perks and benefits like good condition of the car, warranty and spare part service, and financing options. This provides greater convenience in buying the car as you can arrive at the car dealership, secure finance, and drive away in your dream used car all in the same day.
4. Buy a Certified Used Car
Certified used cars that are sold at dealership undergo strict inspection and testing before they are sold. So, buying a certified used car will save you money as you won’t have to spend any on repair and maintenance costs. The certified cars have a few cosmetic problems and low mileage. They come with some type of warranty but the exact terms of the warranty may differ considerably.
The only con of buying a certified used car is that you will have to pay a little more as compared to buying a non-certified used car. You should be prepared to pay around $1,000 more for a certified car at the dealership.
5. Buy a Car with High Fuel Economy
You can save thousands of dollars in the long run by buying a used car with low fuel consumption. The lower the fuel consumption measured in mpg (city and highway), the greater the fuel cost savings. When it comes to fuel economy, hybrid cars generally provide the best fuel economy. In addition, compact and sub compact cars also feature considerably high fuel economy as compared to mid size and full size cars. Buying such vehicles will generally turn out to be a smart move that would save cost on fuel.
6. Don’t Buy From Dealers with Bad Reputation
You shouldn’t buy a used car non reputable car dealers. Make sure the car dealer is in the business from a long time. One way to determine reliability of the car dealer is through reading online reviews and testimonials. Moreover, you should also check with the general attorney general to see if previous customers have filed large number of complaints against the dealer.
7. Buy a Car with High Safety Ratings
You should make safety a priority when buying use cars. Read online reviews to find out how the car scores in safety testing. Most reliable cars receive the NHTSA 5-Star Safety Rating or IIHS Top Safety Pick award. You should think twice before selecting a vehicle with poor safety tests. Buying a car with top-notch safety features and higher safety ratings reduces the chance of car injuries that makes a big dent in your pocket.
8. Verify Vehicle History Report
Before purchasing a vehicle, you must verify the vehicle history report. The vehicle history report can be obtained from various online government and private agencies such as Australian Motor Vehicle Database, CarHistory, Vehicle History and many others.
9. Motor Vehicle Guarantee
Under the Motor Dealers Act 1974, car dealers in Australia are required to offer a guarantee on used vehicles that it will perform without defect 5,000 km after purchase, or 3 months after purchase, whichever occurs first. You must make sure that the dealer offer the express ‘dealer guarantee’ when buying the second hand vehicle.
10. Request the Car’s Service Records
A final point you must consider when purchasing used cars is the vehicles service records. If the vehicle does not have a service records, it indicates that the owner didn’t take steps to keep the car well maintained. If the dealer isn’t willing to provide the car’s service records, you must go elsewhere.