Living in the UK and want to buy a used car? You are not alone, millions of people in the UK prefer to buy used cars over new ones and this is why the UK’s used car market is the largest in Europe. According to a report published by the University of Buckingham, ‘Price’ is the most important factor that consumers look at when buying a used car. If you too are thinking about buying a used car any time soon then you should evaluate a car before financing for it. Here are some tips to evaluate a car in order to avoid the possibility of buying a lemon.
Perform a Pre-Test Drive Inspection
No matter how glossy and attractive the car looks from the outside, it’s the engine and various other internal components that should be inspected first because the car’s performance depends upon them. So before you sit inside the driving cabin, you should first open the bonnet of the car and inspect the car’s engine, engine oil, coolant, transmission fluids and many other internal parts.
Ask for Claim History of the Car
The cars that are insured have a proper history of how many times they have been damaged in accidents and the money claimed for its repair. This will give you insight on the true resale value of the car. Remember, a car that has been damaged numerous times is likely to have a low value and should not be purchased.
Drive With Windows Down and Radio Turned Off
Nothing will give you an idea about the car unless you drive it yourself. After you are satisfied with the internal components of the car and its insurance claim history, it’s time that you fasten your seatbelts and take the car for a test drive. Remember that the radio of the car must be turned off and the windows must be rolled down so that you can notice any unusual sound made by the car while driving it.
Don’t Believe the Price Tag, Determine Fair Value of the Car Yourself
The price of the car doesn’t reveal anything about the car itself. Your mind might trick you into believing that a car carrying a high price tag might be the best but this case is seldom true. You must vet the car diligently and look for any faults that the owner of the car is not pointing out in fear that it will reduce the value of its car. After your analysis, you must determine the fair value of the car and must never pay any more than its fair value.
After performing all the above tasks, it is time to contact a car loan provider and avail the financing for the car. Most people do not do a thorough evaluation of the car and thus end up with a lemon. Remember that used car market is the one in which many people are fooled thus Nobel Laureate Mr. Akerlof gave the example of this market to explain the lemon problem, so keep your eyes open!…