We all know there are risks involved when buying a used car, after all, you can never really be sure of the car’s history, and for a buyer that knows little of the inner workings of a car, the risks are increased. If you are looking to buy a used car in the near future, here are some potholes to avoid.
- Failing to Inspect the Car – You might really like the seller and when he tells you the car is in pristine condition, he might think it is, yet there could be a serious issue that has yet to surface, and when buying used cars in Canberra, always buy from a registered dealer, who would issue you with a fair warranty, which offers you some degree of protection. If you do not have much knowledge about cars, ask a qualified mechanic to take a look, which might cost you a few dollars but is well worth it to know that the car is in good order.
- Buying from a Private Seller – This is not an ideal situation, as the car would be ‘sold as seen’, and that means you, the buyer, have no warranty, and should the car develop a problem the very next day, you are liable for the repairs. The only way to remove the risk is to buy a car from a registered used car dealer, as they would give you a fair warranty, which might be 3-6 months.
- Failing to Compare Prices – Every make and model of car has a trade price, which you can easily find with an online search. Once you know the make, the model and the year of manufacture, there are 3 categories of condition; very good, average and poor, and this will enable you to discover the trade price for the vehicle. Paying too much for the car is obviously not an ideal situation, and you can avoid this with a simple trade price check.
- Failing to Read the Finance Small Print – Many unsuspecting buyers fall into this trap, and when buying anything on finance, one should always read the small print. It is usually small-time car dealers that have associations with dubious finance providers, so dealing with an established used car dealer should be OK, but even then, you should fully understand the legal agreement you are about to enter into.
- Buying Above your Price Range – This is easy to do, especially when you come across your dream car that is sitting on some dealer’s forecourt. With high emotions, we can easily convince ourselves that we will somehow manage to meet the monthly payments, which, of course, will lead to financial stresses. Crunch the numbers and decide the maximum monthly amount you can afford and never exceed that, and you will never fall into this trap.
With the best will in the world, you can easily find yourself in a position where you are not getting the best deal, and by watching out for all of the above, the chances are you will be happy with your investment.