6 things to do when shopping for a used car
Are you thinking of buying a used car?
You might look at the advantages to buying a pre-owned car instead of a new one.
Many car lovers jump at the opportunity of buying a brand new car without exploring the option of finding the best quality used cars at mouthwatering prices.
There are many good reasons to buy a pre-owned car.
The biggest one of all being affordability. If your goal is to save money, then buying used rather than new can save you a lot of cash.
Shopping for a car can be a stressful time. And with so many used cars on the market, finding the right one can be daunting. Figuring out financing, finding specific models, inspecting the car for damages and repairs, it can bring many unique challenges.
Before you agree to buy a used car, here are a few things you should do during the car-shopping process.
Set a budget
Before you look around for possible vehicles, you have to know how much you can afford. You shouldn’t search for cars with an average price range. Instead, you should use your income to determine the sale price. A good rule of thumb is to use only 25 percent of your household income. That should include the cost of fuel, insurance, repairs and maintenance. But experts say dividing only ten percent of your gross income to a monthly car payment is a wiser and smarter move.
Figure out the best financing option
When financing is in place, buyers are empowered to negotiate like a cash buyer for any car at any dealership. If you would like to take out a loan, it’s recommended to try out banks and credit unions instead of dealerships. Some lenders might add extra costs in fees. So it’s recommended to shop at both banks and dealerships and then crunch the numbers to see which financing offer makes the most sense.
Expand your car search
Staying local keeps the used car buying process simple, you might get a better deal by searching for a car in nearby cities. Many shoppers don’t always realise that car prices vary across the country. So you can decide whether you want to buy a used car in Gauteng or in the Northern Cape. Expanding your search can yield savings and it might be worth it if you’re driven by price. There are many regional hot spots where you can see legit savings by opening your search to a nearby city. So it’s important to expand your used car search to ensure you get the best deal possible.
Research the prices
One of the popular ways to research used car prices is an online reference that lists pre-owned vehicle prices. It’ll give you a general idea of what used cars are worth. Just remember that it might not be completely accurate. So it’s still important to go to different dealerships. The price of used cars will vary, depending on many factors, including the desirability of the car. If the vehicle you’re looking for is popular and in high demand, you might end up paying more than what the online references say it’s worth.
Shop around at different dealers
Except for a home, buying a car will be one of the biggest purchases you’ll make in your life. So it’s important you get the lowest price possible. And one of the best ways to get a good deal is to shop around at different used car dealerships. You should not only visit one dealership. Find similar cars at different dealerships and compare the prices. You might negotiate other perks into the deal if a dealer won’t budge on price. And you shouldn’t be afraid to walk away if you don’t get the value you’re looking for. It’s best to know your alternatives and never feel you have to stay and buy a specific car. There’ll always be other vehicles.
Work on your negotiating skills
After you’ve searched for the different prices at competitive dealers, it’s time to start the negotiation process. This is generally one of the unpleasant parts of the car-buying process. But there are ways to make it shorter and encourage the odds to be in your favour. It might be best for you to anchor the parameters of the negotiation by making the first offer. Dealers won’t want to bid against their own prices. So don’t be afraid to put in an offer below the dealer invoice price. Prepare yourself for a bit of back and forth. It’s not unusual for this process to happen two or three times, so leave room in your negotiation for these. It’s nice to think a dealer will cut to the chase but the reality is that most won’t.
Fall in love with a car by all means, but negotiate the deal as if you might just walk away. And if you follow these six tips, you might find it easier to shop for a used car.