Here are a few important considerations when selecting a used car:
Private Seller vs. Dealership
At a dealership, you need to negotiate a few things: The car’s final selling price, the amount the dealership is willing to give you in trade for your old car (if you have one to trade in), and, if you aren’t paying cash for the car, the interest rate on the loan. The advantage of working with a dealership is that you are dealing with a business, so they have a reputation to uphold, and there are laws that govern what they can and cannot do. They surely don’t need any bad publicity from an unhappy customer, but they also are in business to make money, so they need to have to build in a little profit, too.
A private seller has more room to negotiate, so the selling price might be lower, but they will want the money ‘up front’, so you will need to work with your bank separately if you need a loan. And, while you probably can get the same car for less through a private seller, you need to take precautions against being sold a previously damaged car, or even a stolen car. Make sure to check the various online websites for the approximate value of the kind of car you’re looking for.
Accident and Maintenance History
Running a vehicle history report is very important. You can see if the car you want has been involved in an accident or sustained other damage, and how extensive the damage was. A service history will help you determine how well the automobile has been cared for. Whether you are purchasing from a dealer or a private party, insist on seeing the service records for the car. Take a look at its history of oil changes, tire rotations, and any brake jobs or transmission overhauls that have been done.
Certified Pre-Owned vs. Used
Purchasing a Certified Pre-Owned vehicle from a dealer can give you peace of mind, since you’re getting the backing of the dealer and a limited warranty. If you’re buying from a private seller, make sure to get the car inspected by a licensed mechanic for any pending problems (transmission, brakes, engine) BEFORE handing over the money. Even though it will cost some money to have this service performed, it’s better than buying the car only to find out it needs thousands of dollars in repairs.
Need a Car Loan?
If you go to a dealer to buy your used car, don’t just settle for whatever loan rate the dealer presents. Shop around at your bank or credit union to see what rate and length of loan that they offer. Most dealers make a good deal of their money through higher rates on loans. Bring a couple of other quotes with you when you finalize the deal at the dealership. If not, you may end up paying twice what the car is worth over the life of the loan!
One Owner vs. Multiple Owners
A one-owner car is usually the best buy, especially if they have complete maintenance records. Since they bought the car when it was new, chances are they took pride in it and kept it looking and running well. A car with multiple owners has a lower value, since subsequent owners are not going to be as diligent in maintaining a used car. So, before you become the second, third or fourth owner of the car, make sure to check that vehicle’s resale value.
Low Insurance Rates
Finally, before you sign on the dotted line for your car, call SAV-ON Insurance to see what the cost of car insurance will be. Although used cars cost less to insure than new cars, some models can be considered luxury or classic cars and will mean a higher premium than what you may think. Also, if it’s considered a sports or high-performance car, those rates will be higher, too. Call us at 800-867-2866 to get a quick quote on your insurance and feel confident when you finally get the car you want that it will be a good match!
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