Buying a second hand car represents a considerable financial outlay for the majority of families. Potential quality used cars can be purchased from independent and franchise dealerships, car supermarkets, at auctions or from a private seller.
Although there have never been more ways to buy an auto, it remains an activity that remains fraught with peril. Depreciation may be less of a factor now, but there are more likely to be issues with a used automobile than a new one. The following tips and advice will help buyers to save money through the avoidance of some of the more common pitfalls.
Buying a Second Hand Car: Good vs Bad Credit Car Finance
If sufficient savings aren't available, paying for a quality used car must be planned for well in advance. Regardless of repayment history, it is possible to buy a car on credit because the loan is secured on the vehicle.
Fail to keep-up with the repayment schedule and the automobile will be repossessed. A bad credit car loan may be more expensive, but it is possible to get approval for credit after bankruptcy and account delinquency - not just the less serious credit transgressions. It is advisable to perform some credit history repair prior to purchasing a user car from a dealer as a higher score reduces the cost of borrowing.
Car History Check Before Buying a Used Car from Private Seller
The level of protection afforded to the consumer buying second hand cars from a private seller is minimal. They are sold 'bought as seen'. According to Auto Trader: "A car history check is the smartest investment you'll make when buying a car." It will reveal the following critical information:
- Stolen vehicles. Autos that have been stolen will be listed on the Police National Computer.
- Outstanding finance on the car. Unless the seller has completely paid for the car, it isn't yet his to sell and is still owned by the lender.
- Altered mileage. Has the vehicles mileage been clocked or wound back?
- Chassis number. The vehicle identification number (VIN) on the chassis should match the number what is held on the vehicle registration certificate (V5C).
- Written off cars. There are 5 categories a vehicle can fall into.
- Scrapped cars. An automobile has been scrapped and then repaired.
- Value. Find out how much the car is actually worth.
- Specification. The vehicles make, model, registration date, engine number and transmission will be compared to those that were advertised.
- Previous owners. How many owners has the auto had?
On-the-Spot Checks when Buying a Used Vehicle
- Check a car in the daylight as it is easier to see any scratches, rust and other defects. Bad weather conditions often lead to the buyer rushing his inspection of the vehicle to get home.
- Before buying a second hand car, make sure that there is plenty of tread on the tires. The legal tread requirement in the UK is 1.6 mm.
- Look for evidence of a crash. Open up the car bonnet and check under the car for any signs of welding or rusting. Also, crouch down in front of the vehicle to ensure that the front and back wheels are properly aligned.
- Always test drive the vehicle. Test the steering wheel, hand brake and try the car out on a variety of different road surfaces. Make sure that the engine doesn't make any strange noises.
Haggle Over Price when Buying a Used Car
It is definitely a buyers' market so it is worthwhile negotiating with the seller to see if they are prepared to accept less for a quality used car. Always ask the seller for a price, offer a lower sum and await their response. Don't pre-empt it as they'll either accept or make a counter offer.
Sources
"How to buy a used car." Auto Trader.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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