Purchasing a pre-owned automobile is probably a great way to get behind the wheel of a vehicle without the steep cost of the current year’s models. Car prices have also reached new heights of late due to the combination of the pandemic as well as semiconductor shortage, and so buying a used one can certainly help you save money.
But if you’re not keen enough, purchasing a pre-owned car can turn out to be expensive than buying a new sedan because of the frequent repairs. Therefore, below are some crucial tips you have to keep in mind for you to get the best deal of a second-hand vehicle.
Have a Realistic Budget
The most convenient way to save money when it comes to a large purchase is to be honest with how much you can afford. And so it’s no different when it comes to purchasing a used car. If you already have an affordable car loan, then you may have to try to stick within that range. Butyou should know that experts mostly recommend car buyers to spend 25 percent or less of their budget on car-related expenses.
Also, you have to consider both the monthly loan payment and other additional vehicle costs that are likely to pop up. And this might include fuel costs, insurance and regular maintenance too. It’s also wise for a second-hand car buyer to take advantage of an auto loan calculator before he or she starts on pre-owned vehicle search. This helps car buyers to have a firm understanding of their budget, the interest rates and the loan terms the person can possibly afford.
Make a Large Down Payment
Actually, the larger your down payment the less you’ll have to borrow and the lower your monthly payment will likely be. Probably, a down payment of at least 20 percent is usually the best option for car buyers. Yet with the increase in vehicle prices, you should at least try to save 10 percent of the automobile’s sale price as a down payment.
Saving up and making a large down payment upfront is critical as it can save you money as you drive. Since you’re borrowing less, you may also have a better chance of being approved for a loan hence potentially get a lower rate. If you think buying a pre-owned KIA Stonic is good for you, you may also need to conduct a detailed car inspection since purchasing a used car comes with additional risks.
Lina Mark is the Partner and Editor-In-Chief at Keulj.us. She loves technology and is always hooked on new technology in the market. You will often find her browsing the web for interesting content (mostly sci-fi and tech). She is addicted to movies (mainly action) and loves to read interesting books every once in a while.
