Buying A Used Car
Buying A Used Car
So you’re in the market for a used car? When looking at used cars for sale, most people are sort of wary because nobody wants to be left holding the short end of the stick when all they were trying to do was finding a bargain. Fortunately, when you’re looking for a used car to buy, you have a couple options, each with its pros and cons. So if you’ve been looking all over for that elusive 1969 camaro for sale, here’s what your options look like when it comes to finding one.
Buying from a used car dealer.
When you go that route, you avoid all sorts of problems down the road. Some people even consider it to be the best and safest option because of the (limited) time warranty and let’s not forget that arranging for financing is much more straightforward that way. You can either get the financing from the dealer himself or from a financial institution, and that’s hardly an option when buying from a private seller or at an auction. But you pretty much give up the chance of finding a “steal”.
Buying from a private seller
If you choose to buy a used car from a private seller, it’s very probable that you’ll end up paying less than you would have if you had tried to purchase that same car from a registered used car dealer. Keep in mind, though, that your risk is far greater. There is a lot that can go wrong in this type of transaction and your very first step should be to check the car’s papers (to know if it’s on a hire purchase or lease agreement) and its Carfax history. If any red flags are raised, stay away from the “deal”. Most likely it will only be a deal for the seller, not for you.
If the car is on a hire purchase or lease agreement, then it is the legal property of the financial institution that financed it. If it was stolen, it’s likely to be traced back and restored to its previous owner. If you didn’t do due diligence and paid money to acquire such a car, in both cases you’ll be left with no car AND no money. Only use this option if you personally know the seller.
Buying at an auction
Just like buying from a private seller (or even more so), the lure of buying a car at an auction is finding that great bargain. The only thing is that you must keep your eyes open and be very cautious. Since most cars sold at an auction have been repossessed, the main problem with them lies in the situation of the previous owners. More often than not, they were people in very bad financial shape or companies that have been liquidated. As such, those cars’ maintenance records tends to be, at best, spotty. The cars likely have been neglected and not serviced when it was necessary. However if you have inspected the car thoroughly and decided before the auction how much you are prepared to bid on the car and stick to this figure, you can buy a bargain at auctions. Only buy a car at an auction if it still is in a good condition and the price you bid does not exceed 50% of the book value of the car.
Good luck hunting!
Buying A Used Car
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