A car’s value depreciates by 20 to 30% by the end of its first year. This means that your car’s value starts dropping once you drive it off your Volkswagen dealership in Albuquerque, NM. It can lose up to 11 percent of its value during its first few days of use, and will depreciate by 15 to 20% every year until its fifth year. By its fifth year, the car has already lost more than 50% of its intrinsic value.
It’s no surprise that many car buyers prefer a used car to a brand new one. Not only is it cheaper, but it also depreciates at a steadier rate. Some used vehicles are even in good shape and have good mileage. But how do you know if the used car you’re buying is a good one? Note that purchasing a pre-owned vehicle comes with risks, so finding a good-quality unit isn’t easy. This simple guide may help.
Check Your Credit Score
Are you planning to get a car loan? Check your latest credit score first to know what loan programs you qualify for and how much you need to prepare. Don’t go shopping around for a used car, completely unaware of your financial limitations. Contact any of the country’s leading credit bureaus and ask for a credit report. They give one free credit report yearly.
Set a Reasonable Budget
Even used cars don’t come cheap. They cost anywhere from a few hundred to a few thousand dollars. Whether you are paying for the vehicle with cash or through a loan, it’s essential to prepare an affordable budget. This way, you can avoid borrowing more money than you can repay. Factor in the monthly payment, insurance fees, maintenance cost, parking fee, and all that goes into the cost of owning a car. Deciding on a budget also helps you narrow down your choices.
Choose a Used Car
Now that you have a budget range, it’s time to find the right unit. But it’s not just your budget you should focus on. See that the vehicle looks nice, is in good condition, has been serviced properly, isn’t flooded, and has low mileage. If you have no prior experience inspecting a vehicle, ask a friend or colleague with significant experience buying used cars to help you out.
Consider buying a certified pre-owned car. As the name suggests, this used car is certified, meaning it has undergone a series of repairs and detailing before being sold off. To be sure of the car’s quality, get a vehicle history report. Some dealerships charge a few bucks for running this report, but you can find a Volkswagen dealer in Albuquerque, NM, that will offer it for free.
Apply for a Loan
After finding the car you like and fits your criteria, apply for financing. Most large banks and financial institutions offer auto loans, but some consumers don’t prefer them because of their strict requirements and high-interest rates. To help buyers get the best deal on a car loan–even if they have bad credit–some dealerships offer financing solutions themselves. You may consider this option as well since it provides a lot of benefits.
Test-Drive the Vehicle
Don’t close the deal without a test-drive. Remember that you or the technician you brought to inspect the used car can only do so much to check for damage and malfunctions. You have to make sure that the used car is safe and comfortable to drive. Listen to the sound it makes when speeding up. Observe how the steering feels and how the brakes respond. Ensure that your hands, feet, back, and butt feel comfortable when maneuvering continuously for several minutes.
Being meticulous can help you find the best deal. But you can also minimize the effort you have to put into the purchase by choosing a reputable dealership. Check out your Fiesta Volkswagen dealer in Albuquerque, NM, for more car buying information and tips.