Tips for Buying a Used Car

Tuesday March 20, 2018

Buying a used car is a great option to consider when purchasing your next vehicle. If you do your research, a used or certified pre-owned car can be just as reliable as a brand new car and can save you thousands of dollars.

Determine Your Budget

Before you start exploring your options, you need to determine your budget. When planning your budget, be sure to include the costs for:

One important consideration drivers tend forget during the purchase of a used vehicle is the price of future repairs. While repairs may be less of a concern with late model vehicles, repairs can be tricky with older vehicles. Be sure to research the maintenance and repair costs associated with different models of various years. For example, an older vehicle may be cheaper to purchase up front but it may be costly to get rare parts for any replacements needed down the road.

Used vs. Certified Pre-Owned

A used car is a typically sold from an owner or used-car dealership directly to the new owner. Only authorized dealerships can sell certified preowned vehicles. Typically, Certified Pre-Owned vehicles cost more than used vehicles but they also come with more assurances than a used vehicle.

Certified Pre-Owned

Although they are typically more expensive than used vehicles, there are many advantages to purchasing a Certified Pre-Owned vehicle from a dealership.

Certified pre-owned vehicles can include vehicles returned after a leasing period or sold to the dealership by a previous owner. These vehicles are inspected, repaired (if needed) and deep cleaned before they are made available for purchase. Any repairs to the vehicle must meet the original manufacturer’s requirements. The vehicle is then listed for sale as a certified pre-owned vehicle.

Often, certified pre-owned vehicles can be purchased with an extended limited warranty with the option to upgrade the warranty, if desired. You can also ask the dealer to provide a history report outlining any repairs that have been made to the car.

Know Your Trade In Value

If you have an existing vehicle, you may be eligible for a reduction in the purchase price of your next vehicle. Talk to your dealership about their trade in options and find out what your trade in would be worth.

By selling your existing vehicle to the dealership, you can reduce the purchase price of your new vehicle. However, be sure to research the value of your existing vehicle. Knowing the value of your vehicle will help you negotiate the best deal!

Used Cars

A used car is not certified by the original manufacturer. Therefore, any repairs that have been made may not have been done so according to the original manufacturer’s requirements or standards. As a result, it may not run as smoothly as it if it were a certified pre-owned vehicle. As a result, used cars are a cheaper option when buying a previously owned vehicle.

Dealership vs. Private Sale

You can buy a used vehicle from a used-car dealership or through a private sale. When purchase from a dealership, they often complete all of the paperwork required during the sale and purchase of the vehicle. A dealership may also be able to offer you financing options that are not available in a private sale.

To be sure you are dealing with a reputable business, do your research. When purchasing from a dealership, you should be able to find information about the business online. Beware of any dealership that receives bad reviews or complaints.

If you plan to purchase a vehicle through a private sale, be sure to protect yourself.

Reducing the Risks of Private Vehicle Sales

To minimize the risks associated with purchasing a used vehicle through private sale, be sure to:

Lastly, the seller will be required to provide a Safety Standards Certificate for the vehicle before the ownership is transferred. You can request to see the certificate before you agree to purchase the vehicle.

In addition to researching the specific history of the vehicle, do your research on the seller from whom you are planning to purchase the vehicle.

In the case of a private sale (sale by owner), you may need to use your intuition to determine if the seller is reputable. For added protection, have a trusted mechanic inspect the vehicle you intend to purchase. If at any point something doesn’t feel right, move into other options.

Beware of “As Is” Vehicles

When a vehicle is being sold “as is”, it likely requires repairs. In some cases, an “As Is” vehicle may not be road legal on the road until it the repairs have been completed. If you intend to purchase an “As Is” vehicle, have any repairs quoted by a variety of mechanics. This will help ensure you know what you’re getting into before you make the purchase.

Compare Prices

Before you make your decision, be sure to research the market value of the vehicles you are considering. Compare prices for vehicles of the same make, model, year, condition and with similar mileage (kilometers indicated on the odometer). If you’re not happy with the value, consider negotiating with the seller.

Getting Insurance

Once you have refined your search, call your insurance broker. Give your broker the make, model and year of the vehicles you are considering. With this information, your Easyway Insurance broker can provide you with insurance quotes for each vehicle on your list. That way, you can understand how the purchase of your vehicle will impact your overall budget.

If you have questions about purchasing your next vehicle, call Easyway Insurance today.

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