The used car market can be a tremendous source of value. Vehicles sold here tend to be cheaper, since much of the depreciation is already priced in. You’ll also get access to a much broader selection of vehicles. However, you’ll need a little bit of luck if you’re going to find the right vehicle. So, how can you improve your odds?
Pre-Purchase Research
To begin with, you’ll want to set a price that you can comfortably afford. Then, you can think about your needs, and narrow down your options to a handful of suitable models. At this point, you’ll be able to consider particular vehicles. Look for used car dealers that are close to you. That way, you’ll find it easier to visit the prospective purchase for an in-person inspection.
Check vehicle history reports
Often, the paperwork that comes with the vehicle can give an indication of its underlying condition and value. Look at the MOT history, and the V5C vehicle log book. If there are any gaps in the service history, ask after them. It might be that there’s a genuine reason for the gap – or, it might be that you need to consider a deeper, more thorough inspection.
Research common model reliability
A great way to save money in the long term is to look for vehicles that are cheap to run. This tends to mean looking for the most fuel-efficient vehicles, and the ones that need maintenance less often. When your car is forced off the road, you might pay a financial penalty – especially if you’re relying on it for work. Pay attention, therefore, to consumer surveys, and look for vehicles with a good reputation.
Understand market value and pricing
If you know what the going rate is for a particular vehicle, then you’ll be in a much stronger position when you enter into negotiations. You’ll know when the vehicle you’re looking at represents good value, and you’ll know when it’s time to walk away. If you’ve already narrowed your options, then you’ll find it much easier to build that all-important knowledge.
Recommended resources
So, where do you get the knowledge from? From an objective perspective, there are resources like the Kelley Blue Book and Carfax. Both of these, however, are American companies with a specific focus on the US market. For a similar service that covers a more general range of products, there’s Consumer Reports.
Physical Inspection Techniques
It’s essential that you inspect your would-be purchase in person. Make sure that the tyres are inflated and aligned and that there’s minimal wear and tear visible, both within and outside the vehicle. If the paint is inconsistent, or there are any major dents or scratches, then the vehicle might have been involved in a serious accident. In this case, it’s often a good idea to walk away. Rust and corrosion, similarly, might indicate that the vehicle will need to be maintained.
If you know what you’re looking for, you can also look at the engine itself. Look at the condition of the engine, the performance of the transmission, and the suspension. It’s often worth bringing in a professional mechanic. A few hours of their time might be justified, especially if you’re spending upwards of five figures.
In Conclusion
When inspecting a vehicle, it’s important to be patient and thorough. Do your research, arrive early, and make sure that you’ve done everything you can to identify potential risk in advance of a purchase.
