Buying a used car can often fetch you significant savings. While new car may bring lesser worries, used cars can provide a great alternative as long as you know how to shop for one.
Getting a used car usually provides an opportunity to live more economically. However, all used cars would, by definition, have issues from regular wear and tear. Therefore, it is always important to avoid making these costly mistakes when you are shopping for a 2nd hand car.
Failure to understand your financing options
It is paramount that you understand how you are going to pay for your next car purchase before shopping for a car. If you are like 90% of most car buyers in Singapore, you will likely be unable to lay down the cash for a car in full. This means that you will have to explore all the financing options available to you.
Understanding your loan options also allows you to understand the upper limits of your purchasing power. And knowing your budget, means saving time from applying for loans that you might not qualify for and allows you to narrow down your options.
Checking with a Car Financing Specialists like Otua.sg will allow you to avoid costly high interest rates that some dealerships might push to you. We are partnered with most major Banks and financial institutions to provide the most competitive rates in the market.
One thing to remember is that used car financing rates are generally higher than those for new cars. That’s because lenders run a lower risk from borrowers who purchase new cars. The reason is simple. In the event that you default on your loan and the lender has to repossess the vehicle, they are able to get a better resale value on a newer car.
Failure to understand the real cost of owning a car
You can save a lot over the long term if you have enough money to buy your used car outright with cash. However, if you do not fall into this category, you’ll have to make up a budget and determine how much you can afford.
One of the biggest financial mistakes we see people make when looking to buy a car – they often ONLY think about the monthly instalments when planning their budget. It is important to include all other costs of owning a car – road tax, insurance, parking fees, sudden repairs etc.
Our Car Experts usually recommend that car buyers set aside a small sum of money for any unforeseen repairs that they might have to bear. Alternatively, it could also be a smart decision to get a comprehensive warranty to protect against costly repairs.
Failure to perform a proper test drive
If you are new or unfamiliar with shopping for a used car, we strongly recommend that you bring along a friend or mechanic to your test drives. There are many nuances to properly test a used car and all 5 of your senses (ok maybe except taste…) have to be used to professionally test the car.
When you do not test the car you are purchasing enough, you run the risk of experiencing buyer’s remorse. Hiring our Car Experts not only protects you against buyer’s remorse but also ensures that your next car is running properly and avoiding costly repairs.
Failure to have the car checked by a mechanic
While most people test drive cars before making a purchase, few have sent the used cars for a car evaluation by a trained mechanic. While it is industry practice to have to pay for the inspection yourself, it could potentially save you a lot of money in the long run. The cost of a major servicing can run up to several thousands of dollars while an expert evaluation of the car’s condition would cost you less than $200.00.
Having the car properly evaluated and checked out by a professional mechanic is part of the car buying process of Otua. Our Car Experts will ensure that the condition of a successful sales would include an evaluation of the car’s mechanical condition.
Failure to properly negotiate the price and condition of sales
If you are shopping for a used car, it going to be the salesman’s goal to get you down to their dealership as soon as possible. Why? Because you’re much more likely to leave with the car you’re interested in once you’re in their office.
It is important to first do all of your research and comparisons at home, and try to negotiate over the phone before heading to the dealership. Knowing your figures also make the negotiations much easier.
If numbers and figures aren’t your thing or you are too embarrassed to ask for a discount, just leave the tough and awkward negotiations to our Car Experts. They know everything there is about the car’s market price and valuation, and are much better equipped to help you negotiate for the best price possible.
Failure to understand your needs
Before you even begin looking for a car, whether online or face-to-face, it’s important to assess exactly what you need from your car. If you’re looking for any economical commuter car, don’t waste your time looking at massive full-sized SUVs. If you’re looking for a vehicle that can ferry your older parents, don’t bother looking at sports cars.
In a nutshell, it is important to prioritize your needs over your wants. If you’re too busy to find the right fit for your family, our Car Experts offer a free consultation to help you narrow down and find the best car for your needs.
Failure to ask for the servicing records
In addition to performing a test drive and having the car inspected by a mechanic, it’s important to ask for the servicing records. With the maintenance history and servicing records, it’s possible to check for any persistent problems with the car and see if the owner have been meticulous with maintaining the car’s mechanical condition.
When in doubt, seek an expert’s help to buy a car
We understand that most Singaporeans do not have the technical know-how or experience with buying a used car *properly*.
Otua Car buying service provides a free non-obligatory consultation for car buyers. Our Car Experts will be there with you through out your entire car purchase journey – from testing of the car to successful handover.
Find out more about our Car Buying Service Here.