5 Expert Tips to Consider When Buying Used Cars
Buying a used car is one major way of reducing the cost of car ownership since majority of new cars lose roughly 40% of their value in just the first year. But the fact that it’s a used car means that you need to be very careful because each car is unique. In this article, we explain to you how to go about buying used cars for sale in Melbourne.
1. Find the right car
To start off, find the used car that you would like to buy. Search online used car classifieds to get a used car in Melbourne. There are some very good automotive websites that deal specifically in used cars. Look for dealers who have large selections of second-hand cars so you can choose the one you want.
2. Investigate the history of the car
It is very wrong to buy a second-hand car without first investigating its history. Do not fall for the outward appearance of the car as there are body shops that specialise in making a vehicle look good. If the car’s VIN is not properly listed, or the seller is reluctant to give it to you, may be you need to move ahead. It’s very [possible that the seller wants to hide something. Also, it is important to know of the problems that the car faced before you buy it. Have a professional do a background check of the car for you before you commit to buy.
3. Financing a Used Car
Most banks are reluctant to finance cars older than four or five years. Generally, you will need to pay a minimum of 2% APR for secondhand car than on a new car loan. However, you can bypass this by enlisting the help of an online-based lender that specialise in financing used car purchases. It’s important that you have a credit score above 680 as this means that lenders will see you as a prime lender, which will give you the best rates possible. If you have bad credit, you may have to first repair it before buying a car.
4. Negotiate Like a Pro
The most challenging task in the whole process of buying a secondhand car in Melbourne and indeed anywhere else is the negotiation bit. You need to make the most of the advantage in your possession to bring down the cost of the car. Before you start negotiation, do a lot of research. Research on the price of similar cars from other websites so that you have a rough idea of how much the car will cost.
5. Closing the Deal
After agreeing on the purchase price with the seller, the next thing is to close out the deal. It’s not recommended to pay cash because should anything go wrong, you could have trouble getting refunded. Also, it’s quite dangerous to walk with large sums of cash. If possible, pay for the car using your credit card or even any type of cheque. A cheque or a credit card gives you a paper trail as well as some recourse should anything go wrong.
Among the trickiest things that you will have to deal with as you finalize on buying a used car is when the car still has debt. This can only occur if you are buying from a private seller, the best way to find out if a car has a previous mortgage against it is to do a “Vehicle Security” check on the PPSR (Personal Property Securities Register) webpage. Used car dealers must guarantee the clear title to a car they are selling, so there is no risk buying from a licensed dealer.
Buying used cars for sale in Melbourne is not a simple thing. It is fraught with many risks but the good thing is that they are things you can avoid. By doing the due diligence and sticking to the above tips, you will no doubt get a good secondhand car for a good price.