When you think about your first car, how does it play out? The dream is to drive off with the latest, swankiest model, straight from the showroom, right?
Well, the annoying reality is this may not always be a possibility. Unless of course you have a benefactor, or have been extremely diligent about saving.
Related Post: Why It Is Better To Buy Your New Car Using Finance
And yes, there exists the option of financing. With a good credit score, you could get fantastic interest rates and flexible repayment periods.
So now, it dawns on you that you may have to go for a pre-owned vehicle. This may come as a surprise. But, there could be several advantages to going this route. Our article unveils some myths and truths that may prove to be of interest to you.
Myth 1: Expect Trouble with a Used Car
People only trade in cars because they are not in good condition, right? Well, that is not always the case. Walk into any Florida Toyota dealership. One thing you will notice is the range of used car options. And, they are all in mint condition. You could end up driving out with your dream car. The reality is that there are various reasons why someone will give up a car.
- The seller could be looking for quick access to cash for various reasons.
- The elderly or sick may no longer want to drive. So, keeping a car in the parking lot would make no sense.
- Some people trade-in so that they can upgrade to something bigger or more suited to work/family purposes.
- Others could be relocating to other parts of the country or world. They can decide not to move with their vehicle.
Deal with a reputable dealership when looking for used cars. They would not stake their reputation on selling vehicles that are not roadworthy.
Myth 2: You Cannot Get a Warranty with a Used Car
You may think that only new cars carry a warranty. Well, according to the Federal Trade Commission, that is not the case. Dealers may offer a full or limited warranty.
Do check what the warranty covers, though. Some will only apply it to specific car components. The coverage also varies depending on the dealership.
Keenly read the terms and conditions, and ask any questions to avoid any surprises down the line.
Myth 3: You Cannot Get Financing For a Used Car
Well, we can dispel that notion quickly. Lenders will offer financing for both new and used cars. And, their only condition is that you can make the repayments. Some institutions may insist on additional insurance for the vehicle.
The Credit Reference Bureau, Experian also offers additional insights. Financing options will depend on where you buy the car. Consider taking advantage of the financing facilities offered by dealerships. They have partnered with lending institutions and can get you some favorable terms.
The bureau goes further to caution against purchasing from private sellers. You could be buying junk if you don’t have the know-how. If you are confident that it is a good buy, take a private loan or use your credit card.
But, cover yourself by getting a mechanic to inspect the car first.
Myth 4: You Could Be Paying Above the Car Value
Depreciation is a very real scenario when buying a new car. Within the first year, the value drops by 15-35%. Keep the car for more than three years, and it will be worth half what you paid for it.
For new car owners, it is easy to calculate depreciation. But, what if you are buying the car secondhand? It is justifiable to think that you are paying more than it is worth. You very well may end up doing so if you don’t do your due diligence.
The most important step is to learn how to calculate the value of a pre-owned vehicle. Here are some ways to go about estimating the car value.
- Check the Manufacturer’s Suggested Retail Price (MSRP)
- Research the price from different dealerships, both online and offline
- Read up on the car history.
- Ask for the vehicle history report from the seller. Do note, though, relying on history fully can be misleading. There is no 100% guarantee that the report is accurate or tells the entire truth.
- Let the experts inspect the vehicle.
Myth 5: The Lower the Mileage, the Better the Car
Several things are wrong with this thinking. Let’s get the first one out of the way, and that is unscrupulous sellers. It is possible to reset the odometer. We will leave that one there.
The second thing you want to ask yourself is this. Why would someone sell a car that has barely run? Red lights and warning bells should be setting off in your head right now. That low mileage could be indicative of serious issues with the car.
But wait, let’s go back to our first myth. The reasons for selling a car are many. It is possible the owner bought the car but could not continue to keep it.
Do let a mechanic you trust do a thorough check of the car. Or, buy it from a dealership, which provides a warranty.
It is time to dispel myths around used or pre-owned cars with a few hard truths. And, we have highlighted some of the most common misconceptions. Buying a pre-owned vehicle has many advantages.
There is a wide range of options in the market. You could very well drive your dream car. Something that may not be possible if you were to buy a new car.
Lenders are willing to give financing if you need it. Some dealerships offer the same facilities to customers. That means you also have options of where to get car loans. Do take the time to shop around before settling on a car.
Private sales come with their own risks. This is especially true if you don’t know what to look out for. Bring along a mechanic to inspect the vehicle first.
Your best option, however, would be to buy from a dealership. They have a reputation to maintain, and would not sell you a vehicle that is not roadworthy. And, they will offer warranties. Something you cannot get from a private seller.