Five Tips For Buying Second Hand Cars

During these tough financial times, more people are opting to buy second hand cars instead of going for the expensive brand new ones. This is not at all a bad choice, but buying used car will require more from buyers than just merely whipping out a loan calculator and filling out an application form. More than just finding a good loan provider and scouting for the lowest interest rates, opting for second hand cars also involves looking into the specific condition of the car you are considering to ensure that you will get the most out of your investment.

Finding the right used vehicle may be relatively easy but with the number of cars to choose from, it can get utterly confusing at times. Here are five foremost guidelines every buyer should factor in when looking for your new set of wheels.

Estimate your Budget

Most buyers look at cheap cars for sale because of economic reasons and obviously your monetary capacity should be on the top of your list. First off, determine how much of your savings you can put towards your loan. You would also need to incorporate additional expenses such as insurance, gas and even technical assistance to help assess the condition of your desired car. Ask yourself whether you are realistically capable of financing this type of investment. If not, you might as well lower your expectations and go for a cheaper car model. When it comes to your budget, the mantra is to stick to what you can afford.

Scan for Your Car

After determining your budget, you can now begin your exciting and tiring sojourn towards finding your car. To narrow down your choices, you can pre-select cars based on how much you can afford, this way you can choose to maximize and thoroughly exhaust the possible used car choices that are well within your budget.


Buying a vehicle that has been previously owned requires more patience that buying a new one. For one, you need to make sure that you have the right lender who can reward you with the friendliest interest rates. Secondly, you need to make the necessary precautions to ensure that your car of choice is still at the prime of its performance and not a damaged car that has been fixed up for resale.

Work on your Credit

Like any other loan, used car loans are also based on your particular credit standing. The better you are in paper, the better deals you will get. Research where you stand financially before stepping onto a car lot so you would know how much of a leverage you can get in bargaining for a better deal.

Look to your Local Banks

Some customers take the local or union bank route instead of hitting the office of major lenders. This could work well for you, especially if you have a bad credit, as these local banks are known to be more accommodating to their private customers. Plus they may have some repossessed cars for sale that you could find a good deal on.

5 Repo Auto Auction Facts

If you are planning to buy repo cars for yourself or to engage in a buy and sell business, then I suggest you to buy them at repo car auctions. These are good places for you to buy vehicles at a much cheaper price compared to cheap cars sold by dealers (avoiding mark up prices).

Foreclosed cars are mainly bank repo cars, from banks and other lenders that will be sent by them to various auctions and dealers to immediately incur profit and cover the outstanding balances from the loans that were unpaid by the previous owners of the repo cars.

The best way for you to end up with a great deal on these repo cars for sale is by keeping yourself informed with the current market prices of these vehicles and current and future auctions that will be held near your area. On the other hand, if you have no problem in buying a car through the web, then there are sites where online auctions for repossessed cars are held, although, you should always check the credibility of the site where you will be bidding.

With all that basic information laid out here, there are 5 important tips and facts that you should always remember in participating in auctions;

1-Most auctions allow inspections before the actual bidding starts. It is important for you to check and inspect your prospect car or cars if you are planning to buy several to sell them later with a much higher price. This will allow you to decide if the money you are going to pay for the car/s is worth it.

2-Always keep your composure. Be patient. There are a lot of cars in different auctions. If you are in an auction with a lot of competitors, you should expect a tight battle. While, if you are in a quite auction with less competitors, then it might be a good chance for you to get that repo car easily.

3-Auctions require registration before one can actually participate. So it is very important for you, to register and follow the auction rules of payment, actions, and etc. To avoid future hindrances and delays.

4-Most repossessed vehicles are in good condition, although there will always be some damaged cars with minor or major damage.

5-Always leave yourselves with other options, if you don’t succeed with one auction, then you can always try again on other auctions or maybe resort to plan B.