Things To Remember While Purchasing A Used Car
Investing in a car is a huge investment if it’s a brand new car straight from the showroom or even if it’s a used car. Since the seller often sets the price of a used car, it is important that you do your homework to avoid paying more than its actual worth. The car price is determined by several factors like the year of its manufacture, mileage, kilometres covered, condition, optional equipment and so on.
A used car is usually available at two prices: Retail price or Wholesale price. Retail price generally tends to be on the higher side compared to the wholesale price, since you will be purchasing the used car from a dealership. However, if you are purchasing from a private seller, you can negotiate a lower price. If you are planning on trading in your old vehicle for a new one, remember that the wholesale trade in value is comparatively better than one offered by a dealership.
The first step in assessing the actual worth of a used car is to find out its true book value. This can be obtained by browsing through pricing guides as well as reputed used-car pricing websites. You will need to factor in the condition of the vehicle as well as its mileage to get an accurate answer. Most countries have consumer websites which have pricing guides for used cars, to help prevent consumers from getting duped by used car dealers. Once you have gotten hold of the book value of the vehicle you are interested in, the next step is to find out the car’s value within your region. Since each state within the country has different laws that apply to the sale of used cars, it is important to find out how similar cars are priced around the area you live in. Online websites can also help you in this process; just remember to use the filter to choose your geographical area while searching.
Experts in the used car industry recommend carrying out a check on the car to ensure that it has not been involved in an accident or have any remaining payments to be made. There are several firms that offer this service to potential used car consumers. If you are purchasing the vehicle for a dealership, you can be assured that will have already done these checks for you, thereby making the price for the car slightly higher than what you would expect from a wholesale dealer or a private seller.
Once you have done these thorough checks, it makes it easier to find out whether you are paying an inflated price or not for the used car. It will also help you in negotiating the price of the car. Most dealerships often provide warranty service as well. If the warranty service is a third party, make sure that you read the fine print to be aware of all that is included in the warranty service. This will also help determine whether or not to sign up for the extended warranty service.