Print Article for : Buying Used Car Checklist

Your Online Guide » Information on Cars » Used Car

[B1175]Buying Used Car Checklist

by Derek Hudson, Der

While buying a used car you can not only save thousands of dollars in depreciation, taxes and factory costs, but also wind up spending more on your financing. As new car manufacturers lure buyers with 0% interest rates and no-money-down offers, it's hard to find a better deal when you're purchasing a used vehicle.

If you're planning to buy a used car, keep reading for some financing tips that will save you money.

1. Shop Around for a Better Rate

If you need to obtain financing for your used car purchase, try shopping around for the best rate. While the dealership may often offer you a good financing option, you should to check with your bank and other lending institutions to see if they can do better.

Other car financing options that may get you a better rate include a line of credit, which can sometimes be as low as 5%, or simply offer a low-interest home equity line of credit loan from your lending institution.

A slight drop in the interest rate can save hundreds - sometimes thousands - of dollars over the life of the loan, so this is a worthwhile investigation.

2. Be Ready to Walk

If you're obtaining financing directly through the used car dealership and you're not happy with the offered rate, be ready to politely walk away from the deal. Most dealerships would rather lower their interest rate by a half point or full point than see a potential sale walk through the exit door - especially in tough economic times like today when gasoline prices are so high and car sales are low.

Additionally, if you are able to wait until the end of a month to buy from a dealer, you may have some additional leverage with salesmen who are under pressure to meet a monthly or quarterly quota.

3. Pay in Cash

The best way to save on financing costs is to avoid financing and credit all together. If you can do it, pay in cash.

Let's say you're buying a five-year-old Civic for about $10,000 - that can be saved up in a year at a rate of about $833 per month or two years at $416 per month. Rather than taking out a car loan, put that money in a high interest-yielding savings account and you'll reach your goal even faster.

4. Pay it Off Fast

If you can afford to do it, the faster you pay off your car, the less you pay in interest and financing costs. While it would be unwise to stretch your family budget too tight in an effort to pay off your vehicle, you should avoid long-term financing that drags on for four or five years.

5. Refinance Down the Road

Let's say you need a new used car this year but you've just put money in the house, perhaps had a baby, had a dip in your credit rating and money is tight. Well, you might accept a higher interest rate now, but in a year - once things improve - you should investigate the prospect of refinancing that loan with another lending institution that can offer you a lower interest rate.

Do you wish to own a luxurious car but the limited budget is restricting you? Now you can simply fulfill your dream of driving a luxurious car by choosing the option of buying used cars. The auto dealers dealing in pre owned cars offer cars of various makes and models, such as Audi, Bentley, Chevrolet, Ferrari, Ford and GMC.

As a pre owned car can fit the budget of more car owner aspirant. By buying a used car or pre owned car, you can easily save large amounts of money while fulfilling the dream of owning a car.

Used car is the best alternative to expensive new cars, and a smart investment decision too. In terms of manufacture as well as maintenance, used cars provide the same services such as fuel mileage and driving performance as that of a new car.

However, buying cars is not an easy task especially if you are buying used cars. There are various factors which must be taken care so that you make the right choice.

One of the most important points which you must consider while buying a used car is that it should be a certified model. A certified model is a clear indication that the car has already been checked thoroughly by the car selling company and it comes with a warranty period as well. Always go for the car on which an extended warranty period is being offered as it may prove beneficial for you in long run and just incase if something happens to the car. If you want to know more about the car you are purchasing research about its Vehicle Identification Number.

Whenever you are going to buy a pre-owned car, it is always advised to first know about the actual market value of the car and then offer your lowest price. The best advantage of buying second-hand cars is that you can easily negotiate with the prices.

You must also check the history of the car such as accidents in the past or look for any kind of damage. It may prove beneficial for you to lower down the price.

Always read the contract and confirm it before signing to it. There are chances that the company may try to fool you, therefore thoroughly reading the contract is a must. If you don't understand any point get it cleared by the company and consult for further clarifications.

Another important thing to know about the car is its performance and to know that you can take a test drive. Take as much time as you want for the test drive to examine the car performance thoroughly. If possible get it checked by a mechanic.

Article Source : Pg. 6

About Author

Both Derek Hudson & Amit Kothiyal are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Derek Hudson has sinced written about articles on various topics from Used Car. For helpful information on car and truck recommendations, please visit http://www.cartrucktips.com, a popular site providing great insights concerning automotive choices and needs, such as the. Derek Hudson's top article generates over 1900 views. to your Favourites.

Amit Kothiyal has sinced written about articles on various topics from Used Car, Cars and Social Bookmarking. Automarket.com.au is a biggest Australia based automotive site offers free in Australia. If you are looking for buying used, second hand or. Amit Kothiyal's top article generates over 12100 views. to your Favourites.