5 Useful Tips For Buying A Pre-Owned Vehicle

Investing in a pre-owned car can be smart for someone looking to buy a replacement vehicle. Many people don’t have the means to pay the bill for a brand-new car. In such cases, pre-owned vehicles are the better alternative if you know what to consider when shopping for one.

A pre-owned car allows you to live more economically; for starters, you can use your cash somewhere else you may need to. However, they also have a higher chance of developing issues from extended wear and tear. Hence, it is important to assess your potential future vehicle and in doing so, stop yourself from making costly mistakes. After all, you don’t want to invest in a car and experience buyer’s remorse later when it causes problems.
A used car can give you the most bang for your buck if you purchase it wisely. Here are some tips you can follow to ensure your purchase is satisfactory.

Make A Down Payment

Many lenders will let you buy a used car without a down payment, but this is usually a bad idea; making a down payment is beneficial in several ways. Making one can lower your monthly payments, get a shorter loan, and reduce your loan-to-value ratio, making your loan more promising to lenders. In turn, they could offer you lower interest rates.

Making a large down payment will decrease the money you have to borrow, along with your monthly payments. A down payment of 20% is a good benchmark to aim for. Making a big down payment means you’re less likely to owe more on the car than its value, i.e., being “underwater” on a loan. Saving less and making a larger down payment will save you money in the long run. 

Being underwater can damage your financial health, especially in an accident where your vehicle is irrecoverable. In such cases, the amount of money you’ll get from your insurance company won’t cover the loan if you’re underwater on a loan. Plus, you would still owe its difference to your lender.

Consider a CPO

A certified pre-owned vehicle (CPO) is a used car option with factory warranty coverage and a used car’s affordability. These cars are certified by their manufacturers and come with service records, plus seldom any history of accidents or damage. Such cars include those returned at the ends of leases, those driven by dealership staff, those loaned by dealerships, and the like. 

The difference between CPOs and non-certified pre-owned cars is that they undergo a thorough inspection and refurbishment procedure when they arrive at the dealership. This procedure meets the rigid guidelines provided by their original manufacturer. Moreover, unlike most used cars, CPO cars come with manufacturer’s warranties that typically exceed the car’s original warranty coverage.

Several CPO programs give buyers extra facilities such as roadside assistance and trip interruption coverage. In addition, CPO programs also give you special pre-owned car financing deals. Even though used car loans usually cost more than new car financing, a CPO financing deal with low interest can seriously reduce how much you have to pay on your auto loan.

Compare Loan Offers

Your monthly payment should fit into your household budget. However, it would be best to look beyond the monthly payment when deciding which loan offer to go for. An important thing to consider is the total cost of the vehicle including financing. 

To find this out, multiply the monthly payment by the number of months in the loan term and add the down payment you’re making. You should be told of the monthly payment within the loan offer itself. However, if you haven’t been informed of the exact amount, use a car loan calculator to determine the size of each monthly payment. 

Get An Independent Mechanic Inspection

Buying a pre-owned vehicle means you’ve got to be on the lookout for unforeseen problems later. To ensure you’re not purchasing something that’ll be pocket-friendly now but wallet-draining later, request a vehicle history report from the seller.  It would also benefit you to get an independent mechanic inspection.

Make sure the mechanic you go to works for you, not the seller. And yes, an independent mechanic inspection will cost you from $100 to $200 – but bear in mind that this couple hundred dollars can save you from major mechanical repair after your purchase. Plus, if it highlights issues with the vehicle, you can use them to increase your bargaining power during negotiations. 

Beware of sellers who refuse your request to have the vehicle inspected. Sometimes, they just think it’s not worth the extra effort, but other times, they may be trying to hide issues within the vehicle. Hence, you need to be firm; if they refuse the inspection, you should refuse the sale.

Good mechanics will be able to estimate how much repairs would cost for whatever hidden issues they find. Their experience will tell them what problems are specific to the model you’re looking at, and they can identify when a car has been consistently maintained and repaired. 

Hence, employing the services of an independent mechanic will give you more insight regarding your potential purchase. Also, if your mechanic finds small problems, it doesn’t mean you have to discard the deal altogether; add them as a bargaining point in your price negotiations. 

Find A Used Car

So, where exactly can you find a good pre-owned vehicle that caters to your needs, and how? Thankfully, the hunt doesn’t involve scouring minuscule newspaper ads or visiting hundreds of car lots – not anymore, at least. Instead, you can find nearly every pre-owned car today on the internet.

Craigslist is the most popular place to find vehicles for sale by private sellers (not dealerships!), along with eBay Motors and Facebook Marketplace. However, if you’re looking to buy from a dealership,  nearly every pre-owned dealership has its inventory listed on its website. For a broader search, you can visit the U.S. News and World Report’s used car listings, narrowing the search to your area and the model you want.

Conclusion

Investing in a pre-owned vehicle is a smart, economic, and beneficial decision – but only if you know how to go about it. Luckily, there’s no shortage of dealerships you can buy from either, and most of them have their inventories available for you to browse through online. 

Here at Auffenberg Chevrolet Buick GMC, Farmington, we have a vast variety of new and pre-owned vehicles, including certified ones. Our team of experienced professionals can guide you to finding the car best suited to your budget and requirements. So what are you waiting for? Head to our website to schedule an appointment or browse our inventory now.