Used Car

A Comprehensive Guide to Purchasing a Used Car

You have just viewed some used car advertisements online and you are excited about purchasing your first car, but what are the ways to go about doing it? We will share some of the basic tips that you should look out for, but it is always best to do your research before committing to a purchase.

Checking the condition

Firstly, view the physical condition of the car: are there any scratches, dents, or even some parts of the car that looks a tad different from the original paintwork and bodywork? These indicators may be the sign of a previous accident and you might be able to bargain for a better price. When test driving the car, switch off the radio and listen carefully for any strange sounds that are produced. There could be some faulty parts in the car that require repair. Dealers that offer used cars for sale in Canberra often have a comprehensive checklist in place when inspecting a car, in order to provide a qualitative inspection.

Servicing history

When looking at the servicing history of a car, try to purchase one that has gone through servicing at the official workshop of each car brand. This will ensure that the maintenance records and parts that require repairs are documented properly. It might be costly than going to a third-party mechanic, but it will definitely give you a peace of mind.

Car financing

When it comes to a car purchase, not many businesses or individuals can afford to pay for it in full. Most used vehicles companies do have a tie-up with a finance company (or even an in-house loan) to cover the financial aspect of owning a car. While the interest rates offered may be higher than a bank loan, the requirements to borrow are not so strict. For a business that requires a huge fleet of vehicles, a business loan may make more sense as it provides you the much needed cash flow to pay for other expenses.

Planning your finances

In order to get the best deal, you should compare between the different offerings among all the financial institutions and even your insurance provider. Some used car dealers will offer you a better deal if you take up a car loan and insurance policy from them. Always take note of the additional charges like: transferring of ownership fees, administration fees, or any other taxes. If you have a lack of financial discipline, ensure that you have signed up under a Novated lease, where the monthly instalments are deducted directly from your pre-tax salary.

Warranty period after purchasing

Most used car dealers will often offer a warranty period on their cars, but you have to make sure what the warranty entails. It may cover minor problems like an oil leak, faulty air-conditioning, overheated engine, etc. Major issues like a gearbox problem or an engine overhaul may not be covered and the cost of repairs can be very costly, so be clear about what the warranty covers. To an untrained person, these issues may be unfamiliar to them and they may not know about it during the test drive.

Purchasing a used car can be a scary notion for someone who is entirely new to the scene, especially when they are many unscrupulous used car dealers out there who are out to make a quick buck off you. Be knowledgeable and read up on the basics of checking a car condition, so the salesman will know that you are someone not to be messed with.

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