When you’re in the market for a used car, it’s important to do all of your homework in order to get the best deal. There are always risks associated with purchasing used automobiles, however being aware of what to look for will protect you the most.

Price

It’s important to remember that is a price seems to be good to be true, it usually is, so be cautious. There’s a benefit to used cars as there is an opportunity to avoid high depreciation and to pay less upfront. Used cards lose less value after purchasing as opposed to new vehicles. Also, used vehicles are also generally priced with negotiation in mind.

Warranties

Australian dealerships have statutory warranties. This is required by law of all licensed car dealerships. This warranty means that dealerships are obligated to fix any defects that occur soon after the purchase of the vehicle. The length of the warranty will vary from state to state. Typically, it is three months or 5,000 km for vehicles under 10 years old. For older cars or those with more mileage, a shorter warranty is used.

Financing Your Used Vehicle

Determining whether you will finance in the dealership or outside is your own personal opinion. Getting pre-approved before going to a dealership allows you the chance to know exactly what your interest rate will be and to save yourself time while at the dealership too.
Dealer financing has some advantages. Mostly, it’s convenient. Also, a dealership may be less strict than traditional lenders in terms of credit approval, making it easier for those with bad credit to get loans easier. In exchange for financing, a loan origination fee or higher interest rate may be added to this loan however, so be careful to pay attention to all the details of a loan before committing to it.
For those with good credit, finding your own lender may be a better idea for your used car loans. Take time to compare the rates that different lenders are offering to get the best deal possible. When you secure lending outside of the dealership, you will need to provide proof of the funding. This will include a document stating the grounds of your loan including the amount being put down, how long the loan term will be, your interest rate and the amount of your monthly payment.

Setting Yourself Up for Success

Please note that not all used car loans require a down payment, however the more money you put down, the less you will have to finance. By taking time to secure your own funding, you can be in control of your payment. You will arrive at the dealership and know exactly how much you have secured for a loan, so your bargaining chip is worth that much more especially when you tell them you’re pre-approved. Good luck on your journey to purchasing a used vehicle!
 
Author Bio: InstaAuto is an Australian company whose mission is to simplifying the car buying process with the use of technology. Funded out of California, our proprietary finance application technology allows customers to quickly compare various financing options on both new and used vehicles with ease.