Buying a Used Car? We Have Listed Down Everything You Need to Know!
Buying a used car is an affordable option but entails some risk. You may be worried about the condition of the vehicle. Moreover, the warranty may no longer be available and any breakdown after your purchase may be expensive to repair. However, you may mitigate the risks by considering some factors.
Here are three such factors you must consider before purchasing a used car.
You must clearly determine the maximum amount you want to spend on the car. While preparing the budget, you must consider the insurance premium, maintenance and operational expenses, and registration charges. Moreover, financial institutions offer used car loans; therefore,if you do not have the entire amountyou may avail of a loan to own the vehicle.
- Brand and model
While deciding the brand and model, it is important to anticipate your current and future lifestyle and needs. Checking with your friends or relatives about the vehicles or browsing through the Internet to understand performance and review of various models prior to making your choice is recommended.
If you have a limited budget, it is advisable to opt for a hatchback that is a few years old. This is because if you opt for a larger and older car, the maintenance expenses would be higher. It is beneficial to avail of a second-hand car loan to purchase a vehicle that is three to five years old and in good condition.
Before you make your decision, it is important to follow these five steps.
- Conduct extensive research
You may have a predetermined budget while buying an old car. However, you need to ensure you are paying the right value. Most lenders use an independent consultant to determine the value when you apply for used car finance. You may also determine fair value by choosing a certified second-hand car dealer.
- Test drive
Avoid checking the vehicle in the night or while it is raining. It is important that you test drive the car before finalizing the purchase. Seeking advice from a mechanical expert is also beneficial. You must check for any unusual noises or shaky steering. Furthermore, you must testdrive the vehicle on different types of road to determine its performance.
- Examine interior and exterior
While checking the exterior, look out for any dents or scratches. Ensure the hoods shut properly and there is no rusting. You must also check underneath, exhaust components, and fluid leaks. It is equally important to check the interior of the vehicle. Parts like horns, seatbelts, audio system, windows, air conditioner, and lights must be in working condition. If there are any faults with the vehicle, it is recommended you ask the owner to fix these.
- Make an offer
Once you are convinced, you may make either an oral or written offer. You must mention any conditions you may have for completing the deal. Moreover, you need to ensure you are able to avail of finance at a reasonable used car loan interest rate.
- Close the deal
You may consider the transaction to be completed once you and the buyer mutually agree on the price. However, you need to keep in mind certain things before you may drive away in your vehicle. It is important you take the registration papers from the seller and get these transferred to your name. This is also mandatory to avail ofsecond-hand car finance. In addition, you need to ensure the vehicle has pollution under control (PUC) certificate and insurance coverage. You must also check the service history to ensure regular servicing has been done. This is important for the smooth working of the vehicle.
It is recommended you buy a used car from certified dealers. They check the condition of the vehicles before putting these up for sale. Furthermore, you may be able to receive a warranty from these dealers, which makes it more convenient and affordable in case repairs are required.
Buying a used car has many benefits. Moreover, banks and non-banking financial companies (NBFCs) like Capital First offer loans for used carsat affordable interest rates, making it convenient for you to own a vehicle. You may either apply for a loan for second-hand car online through the lenders’ websites or visit the closest branch to avail of the loan.