7 Money-Saving Tips For Buying A Pre-Owned Car

The top reasons why people buy used cars in India is because they cost less than new cars, have a lower depreciation rate, and the insurance cost is lesser as well. Plus, there are plenty of options these days, and even if you take a loan to finance the purchase, you will owe less than in case of a new car. In the light of the pandemic, these private vehicles can also make daily commuting safe and easy.Even if your financial situation has been impacted by COVID; there are 7ways in which you can save money while buying a pre-owned car.

1. Consider old or base models - One of the best money-saving tips is to go for base models or cars that are at least a few years old.A discontinued model might be a good bet too, as long as it serves your purpose. They might not have snazzy features like navigational aid, Bluetooth, or might not come in the latest design or colour. However, you will save a lot of money and you can always add special features later on.

1. Focus on durability and maintenance - If you are looking for the best second hand car to buy, do not just look at the popular brands or models as they often come with hefty price tags. Maybe, you can do with a slightly smaller car or something slightly less stylish yet hardy. Focus on the vehicle’s longevity or durability before saying yes to it. This way, you will get your money’s worth. Moreover, research well and pick a car that needs minimal maintenance, so that long-term costs are low.


2. The sticker price is not the total cost–Do not just go by the sticker price while buying a second hand car. You should also account for the costs related to fuel, registration, insurance, taxes and possible repairs in case of accidents. Your total ownership cost is way higher than the sale price. For starters, make sure the car gives decent mileage and replacing a part will not cost you the earth.

1. Inspect thoroughly - Never sign the dotted line before inspecting the car well and taking a test drive. You can also take along an experienced mechanic, so that even small problems can be detected early on. For example, if the used car is leaking transmission fluid, and you notice it a couple of weeks after the purchase, the repair job can be expensive.

1. Negotiation is mandatory - Always negotiate the listed price, no matter how much it is. If you spot any defect in the car, like a dent or flaw anywhere, use it to lower the sale price. For instance, there might be a long scratch on a door or the tyres might look worn out. One of the creative ways to save money is to buy from a private seller (especially someone you know or trust) rather than go to a dealership.Dealers often mark up the price to include the security or quality guarantee they offer. However, if you are buying from a reliable private seller, you can be rest assured about the quality and land a great deal too.

1. Timing is everything – Wait for the right time or season when sellers are keener to negotiate and clear up their inventory to accommodate newer models. At certain times of the year, they have to meet targets to collect their bonus cheques. And that is when you should approach them to get a good price.

1. Borrow with care - If you are taking a used car loan to finance your purchase, try to make a large down payment. This way, your loan amount and your EMIs will be low. If possible, avoid going for a long tenure, as the total interest cost will be high in that case.

Also Read:Guide to Financing Your NEW Used Car!
 

To wrap up, assess your needs and budget carefully and remember the above tips to save money while purchasing a pre-owned car. If you really like a current model but it is a little much for your budget, try and wait a year so that newer models can arrive and make this less expensive.And if you are availing a second hand car loan, compare different financial institutions and loan features before taking a call.