How to get a good deal on a used car

A car is no longer a luxury. For most households, it has become a necessity. That doesn't mean it has to be new. There are plenty of good used cars out there. But how do you know you've got a good deal? Read on.

used car
Buying a car is a liability because with time its value decreases as the depreciation factor makes its impact. When you buy a used car in good condition, it reduces your cost and gives you the joy of owning a car.

In this article

Planning to buy a new car? Looking for a deal that can fulfill your desire and your pocket as well? But is it possible? The answer is yes. When you buy a used car in good condition, it reduces your cost and gives you the joy of owning a car. 

Buying a car is a liability because with time its value decreases as the depreciation factor makes its impact. As a result, when you buy a car and leave the showroom, its value decreases by 10%. in the first year, it depreciates by more than 20%. After it has completed the full three years, its actual worth is almost 60% of what you paid for. That is the depreciation. 

But for a second-hand car buyer, this is an opportunity. When you buy a car that is 1 to 3 years old, it still has the warranty provided by the manufacturer. And if it is not too damaged, it can still provide you with great usage. That is the deal with buying a used car.

Plan to buy a used car

The question is what you need to take care of while buying a used car. Let us get into it step by step.

The online research

The internet is available easily and thus it is not hard to go online and search about buying a used car. You can set your preferences on what kind of car you want to buy, whether it is a sedan or hatchback, how much mileage it should have, and what are features that you are looking for in a car – these are some examples that you can filter your search with. 

Search through online used car catalog sites in order to know the price of the car you want to buy. You can also visit a website that sells used cars in order to know which type of car suits your budget.

The offline research

Now that you have researched online, you can know in what budget you can expect to buy a car by visiting an in-person store. You can also know the car’s condition and features. You can also go for a test drive and inspect the vehicle you are planning to buy. This will make sure that the car you are buying is free of any damage.

Negotiation with a private seller

When you buy a car from an in-person store, you can negotiate for buying it. As you have already researched online about the prices, you can negotiate the terms with the seller. Though you have to keep in mind that buying from a private seller may not include any warranty which you can get otherwise.

Negotiation with a dealer

When you buy a car from a dealership store, you get to choose from a variety of options. They would have already made sure that the car is in good condition which cannot be the case when you buy from a private seller. Because dealers have a reputation to look up to, they make sure that the services provided to you are up to the mark. 

Negotiating with a dealer depends on your and the dealer’s preferences. You can consider how much trade-in value you might get by buying the car, you can research online about the car’s price and negotiate on that basis, you can also visit other dealers and get a compatible quote, and last you can tell the maximum price that you are willing to pay for the vehicle.

What is a certified pre-owned car? 

Certified pre-owned cars are the vehicles offered by luxurious brands, for example, Mercedes-Benz, Chevrolet, Nishan, etc. provide this option. Because these are the brands, the chances are very less that the vehicle has any damage. They inspect the cars before providing them to new buyers. 

If you ask someone that enjoys driving luxurious cars, this option can prove beneficial to you. You can also ask the dealer to showcase the features of the vehicle and ask for an inspection report to make sure that there are no problems with the car. Each brand has certain criteria for considering a vehicle for a pre-owned vehicle. For example, Mercedes only qualify pre-owned cars that have driven less than 75,000 miles and are not older than 6 years. 

You also get a warranty with this buying option which works really great. Though one thing that you need to know here is that you have to pay additional cash for getting a pre-owned car which is usually a premium of around $1,000. You should buy a pre-owned vehicle at the end of the month because that is the time the dealers are looking to sell old stocks and you can get a good deal.

Last thoughts 

When you are trying to get a good deal on a used car, make sure that you are strategic and persistent. Decide your goal, your budget, and what you want to get in your vehicle and stick to it. Research well and approach the dealer or a private seller based on that. You will get many options, but stick to what you are looking for. Also, keep an eye out for hacks to save money on gas.

Here, persistent means being persistent in negotiation. There are chances that the dealer might make a call to you in a day or two if he has given a second thought to the deal you made. Last but not least, you can check online resources for getting a good deal such as Kelley Blue Book, NADA, and Edmunds for information related to used cars.

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.



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