How to avoid buying a lemon and paying for a peach, and the buyer and the seller both benefit
Buying a used car has become popular
The car manufacturing industry is a major contributor to the global economy, and despite harsh competition among firms for the construction of models with similar features and the subsequent downward movement of prices, there is still room for healthy profits to be made.
However, it is should be pointed out that it is the selling branches of car manufacturers that bring in the money, and that is where actual profits are made.
During the present difficult economic conditions at a global level and, in fact, during any period of time when economic difficulties are faced by a smaller or larger segment of the population, choosing to buy a second-hand car, instead of a new one, is certainly a popular option.
What to check when buying a second-hand car
There are many long-established companies with a good reputation in the market, where a prospective buyer can be given the opportunity to make his/her selection from a wide variety of models and prices.
Another important point to consider, on top of choosing a reputable second-hand dealer, is to carry out a detailed and careful inspection of the car’s service history and MOT history, as well as the date of production and mileage.
A general rule of thumb is not to be tempted to buy a used car if it is older than ten years, for many reasons, such as the fact that technology is quickly made obsolete, and ten years time is a long period of time. Besides, wear is a thing that you have to take for granted, and the older is the age of a used car, the more visible wear is.
A parameter that you should not forget to take into consideration is the fact that second-hand car dealers want to make a profit, and usually a hefty one, in order to cover any costs, operating expenses, and the risk of long periods of business inactivity.
Buying from a private owner-seller
Therefore, every time they buy a car from a private seller to resell it to a customer, they try to reduce their offer, and in fact, they set a “price ceiling”, above which, their profit starts to gets diminished.
On the other hand, the price, at which, they sell the same car to a potential buyer, is not reduced accordingly, which means that they will try every possible trick to maximize their profit margin by buying cheap and selling at a much higher price.
From this point of view, it is a good idea, and it is actually a method that is often used by many used cars buyers, to choose to buy from a private owner-seller.
As a result of following this approach, the chances for a second-hand buyer to get a better deal are higher, since the seller does not run a business, and therefore, they are not really interested into making a business profit.
As an effect, he or she may accept a lower price, in order to make a fast sale, and get rid of a possibly unwanted car that has become a liability, rather than an asset, to them.
What is more, a private owner-seller will benefit from such a deal, as well, in spite of the lower selling price, since it is more likely that they will still get more money than what a second-hand car dealer will offer them.
So, it’s a win-win situation, and if there are is any chance that the buyer and the seller are relatives, friends, or know each other, then the element of trust will be even stronger, and this will serve as informal guarantee of the credibility and accuracy of a second-hand car’s maintenance records, helping the buyer to get a more realistic picture of what the car is actually worth paying for.
Sources and further reading:
How to buy a used car in 10 steps
Buying a used car: Your complete guide
Buying a used car: The ultimate checklist
6 clever tips and tricks for buying a used car
Used Car Buying Guide: All You Need to Know About Buying a Used Vehicle
Originally published by me on vocal.media