Buying a car is a significant investment, and for many people, a used car can offer excellent value. Used cars are sometimes called a “pre-owned car” for marketing purposes since it sounds better than a “used car” or “secondhand car.” Every year, more second hand cars are sold than first hand ones. But how can you be sure you’re making a wise choice? Understanding what to look for in a used car can help you save money and find a vehicle that will serve you well for years to come.
The Age vs. Mileage Debate
One of the first things potential buyers consider when looking at a used car is its age and mileage. While both are important, they can offer different insights about the vehicle’s condition and value.
Age can indicate the generation of the car and its features. A newer car may have advanced safety technology or infotainment options. However, a well-maintained older vehicle can still be a good buy.
Mileage, on the other hand, tends to be a more direct measure of wear and tear. A car with high mileage has been used more, and all else being equal, may have more mechanical wear than a similar vehicle with lower mileage. However, maintenance matters too. A well-maintained high-mileage car might be a better buy than a low-mileage vehicle that hasn’t been cared for properly.
It’s up to you to find the ideal balance between age and mileage within your price range. For example, the average car does around 20,000 km per year. A six year old car with 50,000 km on it is far below the 120,000 km expected mileage. this might be a better buy than a two year old car with 125,000 km on it. That second driver sure drove a lot in two years! As a result, the car may need a lot more repairs sooner than later.
In the end, neither age nor mileage should be a deal-breaker on their own. Instead, consider them as part of the overall picture of the car’s condition.
Buying from a Dealer vs. Private Sale
There are pros and cons to both dealer sales and private sales when buying a used car. Dealerships often offer warranties and must adhere to certain consumer protection laws, offering a level of security. They may also offer financing options. However, buying from a dealer can be more expensive than a private sale.
Private sales, usually directly from the car’s owner, can offer lower prices and a better chance to learn about the car’s history directly from the person who drove it. However, they come with fewer protections. If something goes wrong after the purchase, you may have less recourse to address the issue.
The Rust Factor: A Silent Killer
When examining a pre-owned car, be sure to check for rust. Rust can affect the car’s structural integrity and lead to costly repairs down the line. Check the undercarriage, wheel wells, door edges, and trunk for any signs of rust. A car with significant rust issues may not be a good investment, even if it’s mechanically sound.
Car Mechanic Inspection Checklist
A comprehensive inspection by a qualified mechanic is a critical step when buying a used car. Here are some items the mechanic will check:
- Engine: The mechanic will look for leaks, wear, and damage. They’ll also check the oil and the condition of the belts and hoses.
- Transmission and Clutch: They will check for smooth shifting and listen for any noises that might indicate problems.
- Brakes: The mechanic will assess the condition of the brake pads, rotors, and lines.
- Tires: They will evaluate the wear patterns on the tires, which can indicate alignment or suspension issues.
- Exterior and Interior: The mechanic will check the body for damage and rust, evaluate the condition of the seats, and check all the lights, buttons, and switches.
- Suspension: They will look for signs of damage to the struts or shock absorbers.
- Exhaust System: The mechanic will look for signs of corrosion or damage.
Remember, a good mechanic can spot issues that you may miss and can save you from buying a car with serious problems.
Importance of Car History Reports
Before purchasing a used car, it may be helpful to acquire its history report, such as a Carfax report. These reports provide a detailed history of the vehicle, including past ownership, maintenance records, accident history, and title status. They can uncover potential red flags such as salvage titles, inconsistent mileage records, or evidence of flood damage. Keep in mind that while such reports are comprehensive, they may not include every incident, especially minor ones that were not reported to insurance companies. Regardless, a car history report is a valuable tool in your used car buying journey.
Understanding Vehicle Depreciation
It’s worth understanding that every car depreciates, but at different rates. Luxury cars and certain brands may depreciate faster than others. This can be advantageous when buying a secondhand car, as it might be possible to find a higher-end model at a lower price than expected. However, bear in mind that a car that depreciates quickly can lead to lower resale value down the line.
Consider the vehicle’s fuel efficiency. With fluctuating gas prices, a car that is more fuel-efficient can save you a significant amount of money over time. Also, choices like hybrids or electric vehicles can offer long-term savings from gas prices. However, since they are more harmful for the environment, they may not be such a good option. Moreover, expect the cost of electricity to go up (e.g., electric usage tax) as fewer cars needing gas as fuel are around.
Technology and Features
While an older used car might come at a lower purchase price, it may not have the latest safety or entertainment technology. Consider your needs and wants for features such as backup cameras, blind-spot detection, Bluetooth connectivity, and navigation systems. While some of these might be considered luxuries, others, particularly safety features, are worth having for the additional security they provide.
The Pros and Cons of Financing
Paying outright for a used car can save you money in the long run since you won’t be paying interest on a car loan. However, many people don’t have the funds to do so and opt for monthly or even weekly or bi-weekly payments. If you’re considering financing, be sure to understand the terms of your loan, including the interest rate and the total cost of the car with interest. Financing can make a car seem more affordable by spreading the cost over time, but it can also lead to paying more overall due to interest.
Savings on Buying Used
One of the biggest advantages of buying a used car is the potential for savings. New cars depreciate quickly, often losing a significant portion of their value in the first few years. By buying used, you let the first owner take that initial depreciation hit, resulting in a lower purchase price for you. However, keep in mind that older cars can come with higher maintenance costs. Consider setting aside some of your savings for future repairs and maintenance.
Insurance is a significant factor to consider when buying a used car. Rates can vary greatly depending on the make, model, age, and history of the vehicle. Be sure to get insurance quotes for the specific car models you’re considering to ensure it fits into your budget.
Consider Resale Value
Some vehicles hold their value better than others, making them more valuable as secondhand cars. Resale value depends on factors such as the car’s make and model, its condition, and market trends. Do some research to find out which models hold their value well and consider this when choosing your used car. You’ll thank yourself later if you decide to sell the car.
Buying a used car can be a smart financial move, but it’s important to do your homework. Check the age and mileage, look for rust, consider the resale value, and calculate your potential savings. Always have a trusted mechanic inspect the car before making a final decision. With careful consideration and a thorough inspection, you can find a pre-owned car that offers great value and reliable performance. Understanding what to look for in a used car and getting professional advice can help ensure you make a wise investment. It may seem like a lot of work, but the effort will pay off when you drive home in a reliable, pre-owned vehicle that meets your needs and budget. When buying a used car, remember that patience is a virtue. Don’t rush the process. Be prepared to walk away if the deal doesn’t feel right, or if the vehicle doesn’t pass an independent inspection. It’s essential to make a purchase that feels right to you and fits within your budget. The perfect pre-owned car is out there, and with these tips in mind, you’re well on your way to finding it.