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Before you go for a test drive or start looking at used car financing options, read this handy guide and checklist so you know what to look for when buying a second-hand car.
Used cars are vehicles that are pre-owned and bought from a dealership or private seller. The conditions of used cars vary greatly – they may be in almost-new condition or they may be nearing the end of their life. A benefit of opting for a used car is that they are cheaper than buying new (almost always, unless the car is a classic or in high demand), and you can sometimes find a good deal for a pre-owned car in great condition.
Of course, there are risks that come with buying a car that someone else has owned. Many common car problems are not immediately obvious, and the owner may be unaware that a problem even exists (or they may be a snake and intentionally downplay any mechanical issues).
Unless you are a mechanic or have experience with cars, it may be hard to work out what condition the car is in. If possible, take along a mechanic to check for any issues.
Before you buy your used car, you should also do some research on the make, model and year of the vehicle to determine if it is suitable for you. Find out if there are any recalls or common issues with the car, by checking the manufacturer's recall section and enthusiast forums. You should also prepare some questions to ask the seller about the history and condition of the car, and use our checklist when inspecting the vehicle.
One of the benefits of getting a used car is that there are plenty of places you can go to find one. There are advantages and drawbacks to each option, so make sure you choose the one that sounds right for you:
If you opt to go with a private seller, you should always arrange to inspect the car in person before you commit to buying it.
Whether you're looking to buy a pre-owned or new vehicle, it's tempting to buy the first car that you view. But a car is a large ongoing expense, and it’s critical you consider all your options before committing to buy.
Before you start looking for your car you need to decide what you want. Do you want a big car because you need a lot of boot space, or do you want a small car to make it easy to park in the city? You should think about the car's main use and then decide how many seats you want, what kind of features you’d like, fuel efficiency and running costs. You should also determine your budget, how old you want the car to be, and what you are willing to spend on a second-hand car.
When you start looking for your car you need to do your research. Start looking online and in newspapers, and visit a few used car dealerships. It doesn’t matter what seller you end up going with because it’s important to understand the current market prices and what’s available to you. See what your budget will buy, and find out about the different types of cars that you are able to get. Then, when you find the car you want to buy, you know if you're getting a good deal.
This boosts your bargaining power when it comes to the negotiations.
When you go to inspect a used car, you should take the opportunity to ask the seller a few questions about the vehicle, such as the following:
If you aren't satisfied with their answers or believe they may not be telling the truth, get the car checked by a mechanic or walk away and look at a different car. It can be very expensive to fix a faulty or damaged car, so you want the peace of mind of knowing that a used car is in good condition before you buy it.
When you are inspecting vehicles or going for a test drive, use this checklist to make sure you note the car's most important features to help you make an informed decision.
On your test drive
Engine bay
The car's body
The car's interior
The car's exterior
Documents you’ll need
All the factors involved in buying a used car can seem overwhelming, but you want to make sure that you’re purchasing a quality vehicle. Once you know what to look out for and after you’ve done your own research on what cars are available, you can make an informed decision.
If you're looking to finance your used car purchase, you have a few options available to you. Here are the financing options available for used vehicles:
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How long will a car dealer hold a car for you after you pay a holding fee?
Hi Melanie,
Thanks for reaching out to finder.
The holding time will vary from one dealer to another, depending on the contract terms. Before agreeing to a holding deposit, check whether the deposit is refundable, whether the deposit is part of the purchase price and how the deposit should be paid. Read carefully all the terms and make sure you agree on everything that is written on the contract before signing it.
If you decide to leave a deposit to hold your vehicle, you should should ask for a receipt and make sure you put everything into writing and have the document signed by both parties.
I hope this helps.
Cheers,
Charisse
Who offers loans to people on DSP up to 15 k for a car.
Hi Steve,
Thanks for leaving a question on Finder.
Usually, a secured car loan might be an option for you if you are on a Centrelink payment. You can purchase a new or used car and use it as security for the loan to get a lower rate. See our review on Centrelink loan options for your reference. We have a range of secured car loan options on our table to choose from. To help narrow down your options, please enter the amount you need following the loan term then press “Calculate”. You may then sort the table based on the lender’s interest rate, comparison rate, minimum loan amount, term, fees, and your projected monthly repayment.
You can click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
Cheers,
Joel