Used Car Purchase: How to Get the Best Deal

A used car which is also known as a second hand cardetails like history of registration, odometer readings,
or a pre-owned car is a vehicle that is previouslymajor accidents, lease or Finance details, stolen and
owned by one or more owners. Used cars are soldwarranty check. A check on the VIN (Vehicle
through a variety of franchise and independentIdentification Number) can be made by comparing the
dealers and rental car companies. Individuals can alsoVIN with the title to the number on the car to make
purchase and sell used cars through online andsure they are identical. The VIN is usually located on
newspaper classifieds.the dashboard under the windshield, on the door,
Purchasing a used car can save a lot of money. Ahood and engine.
new car depreciates fast in a few years and is worthStep 5: Finance for the car can be done through
only about 50-60 percent of the original price after asCash, Bank loans or Financing through the dealer.
short period as three years. It is true in general thatUnless it is planned on purchasing by full payment in
a new car requires less maintenance initially and duringcash, it is suggested to get pre-approved financing
the original warranty coverage period offered by theand the cost of Insurance is also to be factored.
manufacturer, most of the problems would beUsually the interest rates on a used car will be higher.
covered. Still, buying a new car will not always meanStep 6: Used Car markets. Used cars can be bought
that the buyer will get complete perfection. Buying afrom Private parties; new car dealerships used car
used car still involves a bit of a risk - there is nolots and auctions.
guarantee that the car has been properly maintained.Step 7: Test-driving. On a test drive, the aspects like
There may be some hidden problems in the engine orAcceleration from a stop, Engine noise, and
automatic transmission that may not be felt whenHill-climbing power are to be checked.
the car is test-driven while buying. Maintenance costsStep 8: Negotiation. The foundation of successful
are typically higher for a used car. However, usednegotiation is information. A thorough study on the
cars are more preferred these days but some care isprice prevalence for similar type of cars should be
exercised before buying. Moreover many carknown before buying.
manufacturers offer used cars of previous modelsStep 9: Closing the deal. A thorough review of the
under Certified Pre-owned programs where the usedcontract is required. The charges like cost of the
cars are inspected and reconditioned and packed withvehicle, documentation fee, smog fee, smog
additional warranty coverage.certificate, sales tax and license fees are to be
Steps to buy a used car:understood.
Step 1: which type of car? Typical factors are howLemon Law: <>
may people are to be transported, distance toLemon laws generally apply to new cars sold to
commute, safety features, mileage, accommodatingprivate people. Used car lemon laws cover non leased
in the parking area or garage.cars bought from dealers. Some of the steps to
Step 2: How much can be afforded? Down paymentavoid buying a lemon are as indicated below:
in a single stroke or determining a realistic monthlyThe VIN # has to be checked. There are possibilities
payment that will fit into the budget is an importantthat even a new vehicle might have been damaged
first step.or written off and not disclosed by the seller.
Step 3: Used car bargains. The price of a used car isObtaining a report from authorized agencies like
based on its brand name, condition, mileage,CARFAX (in Canada and the US), is recommended.
performance and reliability. Hence, prudent bargainingConfirmation in writing should be obtained that
should be exercised.“there is no lien“on the vehicle.
Step 4: Research the prospective used car. An onlineAn independent mechanical inspection is to be
research can also be looked for used cars in thearranged.
desired price range by reading car reviews, buyingAll implied or expressed warranties are to be
tips and safety ratings. Car buying tools whichobtained in writing. This is required especially on an
provide model information and side by side featureused vehicle as normally warranty will not exist. If
comparison can be examined. Physical inspection ofthere is a warranty, period and coverage of the
the interiors and exteriors can be carried out in thesame will have to be obtained in writing.
first place to satisfy that all the interior componentsSalespeople are not mechanics. A copy of the report
lighting system and tyres are in good condition. Anyof the mechanical inspection completed by the dealer
defective items requiring replacement after theand signed by a certified mechanic is to be insisted
purchase will increase the cost of the used car. Arather than merely relying on a verbal mechanical
review of the vehicle history report can indicate thereport from a salesperson.