Millions of people worldwide rely on used cars for their daily commutes and weekend getaways. A recent survey across 18 international markets revealed that around half of global respondents (51%) are open to considering purchasing pre-owned cars, reflecting the increasing demand for affordable transportation.
However, navigating the used car market requires careful consideration to avoid common pitfalls, such as dealing with private sellers and dealerships, hidden issues, and the complexities of paperwork. Understanding these potential mistakes can help ensure a successful purchase. Our article today discusses eight key things to avoid when buying a used car. If you are planning to get a pre-owned vehicle, these pointers will be really helpful.
1. Buying based on looks alone
Don't let looks be your first priority! Before diving into the used car market, identify your needs. Are you looking for a fuel-efficient commuter car or a powerful vehicle for towing? Focusing on functionality will prevent you from getting sidetracked by flashy features that might not be practical for your everyday life. Make a list of your must-haves and use that as a guide when browsing online listings or visiting dealerships.
2. Forgetting to run a vehicle history report
A vehicle history report acts like a biography for a used car. It details past accidents, repairs, and the number of previous owners. This information is vital to avoid buying a car with hidden issues that could cost you dearly later.
Be wary of cars with an accident history, whether buying from a dealer or privately. If the damage was so severe that insurance payouts reached 60% to 100% of the car's value, it likely has a salvage title. This means the insurance company took ownership, selling it for parts or repairs. The key issue is that salvage titles render the car legally undrivable. Buying one is a recipe for wasted time and money. A rebuilt salvage title indicates that the vehicle has been repaired and inspected by the state to determine whether it is roadworthy. While these cars can be 20-40% cheaper, a professional pre-purchase inspection is highly recommended to ensure they're truly safe to drive.
These reports are readily available through various services. While dealerships often provide them, private sellers might not. It's a worthwhile investment to ensure you're making a smart decision.
3. Skipping a test drive
Skipping a test drive before buying a used car can be a recipe for regret. Unexpected issues and hidden problems can surface later, leaving you with costly repairs. Taking a few used cars for a spin before deciding is a smart move. A test drive lets you experience the car firsthand, letting you know if it runs smoothly and feels comfortable. This valuable insight can prevent buyer's remorse and give you the confidence to choose a car that truly meets your needs.
4. Not consulting a car mechanic for a pre-purchase inspection
Having a mechanic inspect the vehicle before you finalize the purchase is a crucial step. Their trained ears and eyes can detect potential problems just by listening to the engine's sounds and feeling its vibrations. This is especially important because the engine and transmission are the heart of any car, and repairs for these components can be very expensive.
While insurance protects you in the event of accidents, it typically won't cover breakdowns caused by electrical or mechanical issues. A mechanic's inspection can give you peace of mind and potentially save you thousands of dollars down the line.
5. Not talking first and simply making the first negotiations in person
Sure, heading to the dealership to check out a used car can be tempting. But before you step onto their lot, consider negotiating by phone first. Showrooms are designed to make you feel comfortable, which can cloud your judgment and lead to concessions you might not otherwise make. Do your research and comparisons from the comfort of your home. Then, when you're ready, negotiate the price over the phone or by email. This way, you'll maintain control and avoid the pressure often present in a face-to-face dealership setting.
6. Overlooking the age and mileage of the car
Here's the thing about age and mileage on used cars: a newer model doesn't always guarantee less wear and tear. Some older models are built to last, while newer ones might rack up high mileage quickly. It really depends on what matters more to you.
A higher-mileage car will be cheaper upfront, and so will insurance. Plus, some reliable models can keep running strong for years to come, even with significant mileage. Sure, age can play a role, but these days, the average car lasts 12.5 years. If a used car has been well-maintained with regular checkups and no major problems, there's no reason to think it'll fall apart after a few years with you. Don't let a little age or mileage deter you – a well-maintained used car can be a valuable and reliable purchase.
7. Disregarding pre-approved financing
Getting pre-approved is really important before buying a pre-owned car. You'll know exactly how much credit you have available, allowing you to shop with confidence. Some pre-approvals even include breakdowns of car ownership costs, like taxes and title fees. The biggest benefit? Leverage! Pre-approval gives you bargaining power with dealerships, as you'll have a loan offer in hand. Multiple pre-approvals from different lenders strengthen your position even more. Dealers will likely try to match or beat the best interest rate you find, saving you money in the long run.
To get pre-approved, just talk to a loan officer at a bank or credit union. They'll run a credit check, which might slightly affect your score. If you're considering multiple lenders, space out your pre-approval applications within a 14-day window. This counts as a single credit check, minimizing the impact on your overall score.
8. Purchasing the car based on monthly payments alone
Cash is king when buying a used car! By avoiding a loan, you eliminate interest payments, saving you a significant amount of money. But if financing is necessary, create a budget to see how much you can realistically afford each month. Don't be swayed by a low monthly payment alone. Look at the bigger picture - interest rates and the total loan cost. While leasing a used car can be an option (with limitations on mileage and age), remember that you won't own the car at the end of the lease. Focus on what you can comfortably afford upfront, and consider a shorter loan term to save money overall.
