Buying a vehicle is a luxury for many people, despite being a necessity in everyday life. The price of cars can be as financially strenuous as purchasing a house, which means taking out car loans can drive up your monthly mortgage payments too.
Seeing as financing a brand new vehicle is not feasible for many people, second-hand options are the next best thing to do. Unfortunately, finding a quality vehicle that performs in its best condition at a slashed price can be tricky, so the tips below should guide you in your hunt for a pre-owned car:
Tip #1: Consider the Mileage and Study the Car’s Periodic Maintenance Schedule
If you already have a model in mind, the best way to start your search on the right path is to first consider the vehicle’s total mileage. Remember that the higher the miles, the more parts will undergo wear-and-tear.
When it reaches the 60,000 to 70,000 mark, then your budget will likely increase if you consider replacing essential features like brake pads, fuel filters, and even the transmission overhaul, radiator, and more.
Be sure to ask for the vehicle’s maintenance schedule so you can dig deeper into its parts and see how well-cared for it is before you seal the deal.
Tip #2: Consider Two Things in Your Budget: the Price of the Initial Cost and the Repair Fees
It’s true that opting for a second-hand vehicle should save you money, but that doesn’t mean skimp out on paying a premium for a smooth-sailing road experience. When setting a budget, compare the initial prices and double them to cover future repair or replacement costs.
The ideal addition is to increase at least 20 percent of the initial purchase price, so you can cater to any parts that need improvement and steer clear of the risk of costlier breakdowns along the way.
Tip #3: Check the Car’s History
Many people are excited to jump the gun and go for a test drive once they find a good second-hand vehicle but don’t forget to dig into the car’s history first to save time in the future.
You’d want to avoid falling in love with a pre-owned vehicle that was either stolen, flooded, met an accident, or played a part in a crime, so it helps to narrow your choices by looking into the car’s Certificate of Registration (CR), Original Receipt (OR), and other records issued by the Land Transportation Office (LTO).
The Bottom Line: Getting the Best Deal on a Second-Hand Car
Buying a pre-owned car comes at a more affordable rate, but ensuring everything is in good working condition is significantly more difficult compared to a brand-new vehicle. With that in mind, consider the tips above to ensure you make the right choice.
Why Choose Finance Corp?
All of the Finance Managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance.
If you’re looking for a mortgage broker in Cockburn Central WA to help take the drudgery away from your car loans, we’re the best ones to call. Get in touch with us at 08 9417 5550 to see how we can help get you behind the wheel of your dream vehicle!