Once you’ve passed your driving test, you’ll probably want to purchase a car as soon as possible, right? Even so, it’s important that you don’t simply select the first model you come across. You should take your time when looking to buy a new car to ensure you get the best-possible vehicle for your money.
Opting to purchase a brand new edition is never a good idea. With that in mind, today we’re going to give you some basic tips that should help you to avoid common mistakes when obtaining a second-hand product.
General Car Buying Tips
The first thing you’ll need to do is find a reputable supplier. It’s far too risky buying second-hand vehicles from private sellers unless you have an understanding of mechanics. There are just too many things that could go wrong. Considering that, spend a few minutes reading through all the advice listed below. Hopefully, you will then be in the best position to get things right.
Check all paperwork is in order
No matter where you buy your used car, you should ensure that all the relevant paperwork is in order. You should receive the logbook and information relating to the car’s history at the time of purchase. If you notice any discrepancies between the details the seller gave and what is said on the paperwork, you should look elsewhere. If they’re willing to lie to you about one thing, who’s to say they’re not lying about other details?
Assess the mileage
While it is uncommon for major used car sellers to illegally alter the mileage on their vehicles, it’s not completely unheard of. For that reason, you should take a look at the clock and then spend some time working out whether the mileage seems correct. If the car is ten years old and it has apparently only done 10,000 miles, there might be something dodgy going on. Again, if you encounter any issues like that, you should move onto another seller.
Take it for a test drive
Test driving a vehicle is one of the best ways to determine how well it has been looked after. You should aim to stay behind the wheel for at least fifteen minutes as that will be enough time to ensure you notice any major issues. If the seller refuses to let you drive a car, it’s probably because they know you will discover a problem. So, walking away and finding a more reputable dealer would be a wise move.
Don’t let sellers pressure you
Some sellers will try to pressure you into making a purchase by saying lots of other people are interested in the vehicle. Don’t fall for it. If they had so much interest, the car would have been sold already. That is just a technique they sometimes use to make you part with your cash before you’ve considered all your options thoroughly. If you think you might be susceptible to such a technique, it might be worth taking a friend along. That way, they can stop you if they think you’re making the wrong decision.
Types of car finance available
Hire Purchase
Buying your new car via a hire purchase agreement allows you to drive it away after putting down a deposit and signing a contract. You will need to repay the purchase price in installments – usually over a period of two to five years. There is also usually an option to purchase fee at the end of the agreement. Although hire purchase car loans can get you into your new car on the same day as your loan application is processed, the vehicle is not truly yours until the loan has been fully settled.
Personal Contract Purchase
This form of car loan works in a similar way to a leasing agreement. It usually requires a smaller deposit than a hire purchase agreement, and the monthly repayments are typically lower. However, there is a significant final fee to pay at the end of the contract if you want to take full ownership of the vehicle. Alternatively, you can simply hand the car back at the end of the agreement.
Personal Loans
A personal loan from a mainstream bank or building society will give you full ownership of your vehicle from the moment you purchase it. This means that you are free to sell the vehicle at any time. However, unlike loans that are secured on the car, there is no statutory right to voluntarily terminate the loan agreement after half the repayments have been made. And because there is usually no security attached to a personal loan agreement, the interest rates charged are usually higher.
Peer-to-Peer Loans
Peer-to-peer platforms provide a convenient and affordable way to secure the car you want from the dealership of your choice. Application processes employed by most peer to peer platforms are usually streamlined, so you can have your loan approved and paid out within just 72 hours.
A peer-to-peer loan can be used for just about anything, including the purchase of a new car. And as long as you have a favorable credit history, you may be able to secure a highly competitive interest rate. This is because peer to peer lending is based on savers lending directly to borrowers. There is no bank involved, which means the overheads and bureaucracy of such a large financial institution aren’t causing delays and pushing up the cost of borrowing.
The bottom line
If you follow all those tips, you should have the perfect second-hand car in no time. Remember, it’s better to spend a week looking and purchase something reliable than it is to buy one too quickly and end up wasting your money.
Good luck!
