Financing a used vehicle will probably be one of the most exciting yet frustrating experiences that you will ever have to go through. Finding a car that is in good condition while still in your budget can be daunting. To build on your stress, you probably still harbor the fear of being hustled by a jinky used-car salesman. To calm any anxious feelings that may hinder your selection process, here are four things that you should look for when financing a used vehicle.
1. Examine Your Financial Standing
Before even searching for vehicles, you need to determine where you stand as a leaser. This includes becoming aware of your current credit score and establishing a budget so that you don't accept a deal that puts you in debt. Understand that your financing terms will ultimately be determined by how financially trustworthy your lender deems you to be. This means that financial instability, low credit scores, or past repossessions may affect you in a negative way. Learn how to get the best rate on your car loan.
2. Obtain A Vehicle History Report
Once you have your heart set on a set of wheels, always request to obtain a vehicle history report. While most dealers have these on hand, you may have to go through a third party to get one. This report will list the current odometer reading, title status, accident history, number of owners, and many other important details.
3. Pay Attention To The Odometer
Many inexperienced buyers make the rookie mistake of purchasing a vehicle with high mileage, despite its age. While some high-mileage cars are highly-functional, it is often wise to avoid them like the plague. The amount of miles on the odometer represents how often the car has been used. Some salesmen may tamper with the odometer to convince potential buyers that it hadn't been used much, but this can often be detected by assessing the vehicle history report.
4. Check The Value Of The Vehicle
The prices that dealers place on their vehicles often do not reflect that of their true value. To ensure optimal profit, sellers will usually up their asking prices by several hundred or even thousands of dollars. There are many standardized methods that will help you determine a car's actual cash value, or ACV. After you become aware of how much the car is truly worth, be prepared to negotiate the price. Learn how to effectively negotiate with car dealerships.
Financing a pre-owned vehicle usually isn't as cut and dry as you would prefer it to be. While there are plenty of used cars that are in stellar condition, there are just as many lemons. In order to avoid making a huge financial and lifestyle mistake, you have to be as informed as possible.
Tom James,