Shopping for a used car can be a daunting experience if you don’t know exactly what you’re looking for. Making good decisions when purchasing a car can either help keep you financially on track, or break the bank if you’re not careful with your purchase. Here are some tips you should always keep in mind when you’re shopping for used cars:
One: Look for a car that is not missing its title. If you shop at a car dealership for used cars you will not need to deal with this problem because the dealership will have all of the paperwork ready to go for you. However, if you buy your car from a private party, you will need to make sure the seller signs the title or ownership certificate over to you when you buy the vehicle. You need to also make sure the seller has the original title and that the car is in the seller’s name.
Two: Watch out for “salvaged titles.” Salvaged vehicles may seem like they’re going to be a really good deal because they’re cheaper, however many salvaged cars have had a large claim and were then restored back to the point of being drivable again. That claim may have been something very serious like a theft, fire or bad accident, so it may be hard to determine potential problems the car could have in the future. This could also make the vehicle more difficult to insure.
Three: Be aware of the information in your credit file. When you are finally ready to buy your used car, it is likely you will need to qualify for a loan. You don’t want to be caught off-guard if there is negative information in your file.
Always remember that potential lenders are looking for the three C’s of credit: capacity, character and collateral. They want to be sure you will be able to repay the debt in a timely fashion and that it will not be difficult to get you to do so.