Buying Guide for Used Cars for Sale in Melbourne
Used cars are some of the best values you will find in the Melbourne automotive market. This is particularly the case when the models you are shopping for are two or three years old. Their price will definitely be lower than a new car of the same model or make and ownership expenses such as taxes and collision insurance will also be low. Used cars for sale in Melbourne give you the opportunity to buy a nicer car that you can afford hence replacing the desire for a new car you cannot afford at the moment.
Whether you are looking for a private or a certified pre-owned sale, or buying from a dealer, the guide below gives you some of the essential information you require so that you can get a good deal.
Striking a Balance between Risk and Value
When assessing the value of a used car, you need to check on a number of factors such as the reliability, warranties and repairs, depreciation, interest rates, and insurance. The used cars for sale in the market today have fewer problems than those that were up for sale years ago. However, you need to check on the health of the engine and transmission system as well as the applicability of the warranties as this can reduce your cost of repair should there be a breakdown. When insuring a used vehicle, the premiums you pay will be much less than those of a new vehicle hence more value and less risk.
The Budget for Your Used Car
You need to look at the down payment and the monthly payment when assessing how much you can afford to spend on a used car in Melbourne. It’s advisable that you put at least 20% as down payment so that the overall cost of your loan can be reduced. The higher the down payment, the lower the amount you need to borrow hence lower weekly payments thereafter. As a rule of thumb, your total debt payment should not exceed 36% of your gross income.
Be on the Lookout for Lemon Cars
Used cars that are put up for sale may contain some hidden problems that you need an insightful eye to detect. Some of the vehicles have histories of accidents that you may not be aware of and this can affect their performance, reliability and safety. In order to avoid buying a lemon and ensure you get the best value for money, you need to ask your dealer or private seller the right questions to help size up their history and condition, check its mileage, how it is equipped as well as its body and interior. In case the dealer has service records, you should ask him to show them to you so that you can check on the maintenance history. Be sure to ask him why he is selling the car and pay particular attention to his answers. If he sounds evasive, be wary.