Buying a used car can be a savvy financial decision if you can find one in good condition with budget-friendly car financing.
In this guide, we cover the key factors to consider before driving away with a new ride, including checking the vehicle’s history and finding the best car loan rates.
People Driven Credit Union (PDCU) provides credit union car loans to buyers all over Michigan. We want to take the stress out of car shopping with quick decisions, low interest rates, and flexible terms. Apply easily online today!
Check the Vehicle History Report
Learn the car’s history to reveal hidden issues and learn more about its condition. Most vehicles today have a history report you can obtain from CARFAX or AutoCheck that will show you accident history, title status, previous ownership, and maintenance records.
Be on the lookout for red flags, such as salvage titles, odometer rollbacks, and frequent ownership changes, which could indicate problems. If you see one of these flags, raise the issue with the seller or dealer.
Finally, verify that the Vehicle Identification Number (VIN) on the report matches the car. You don’t want to inadvertently purchase a stolen vehicle.
Inspect the Mileage
On average, a driver puts between 12,000 and 15,000 miles per year on their car. Check the mileage of the used car and compare it to its age. Does the math add up?
Very low or very high mileage could both potentially be a problem. If the mileage is extremely low, that could indicate the car has been sitting unused. An idle car can possibly create maintenance issues. If the mileage is extremely high, evaluate that alongside the vehicle’s service history and overall condition. Research the average mileage lifespan of that brand and make of the car.
Choosing a vehicle with high or low mileage isn’t always a bad decision; just make sure you do your research.
Look for Signs of Previous Accidents or Repairs
As with mileage, a previous accident or repair isn’t always a dealbreaker, but it is something to research further. When looking over the car, check for mismatched paint, uneven panel gaps, or overspray, which could indicate past repairs. Inspect the frame and undercarriage and look for signs of damage, rust, or welding joints.
Ensure proper alignment and functionality by opening, closing, and turning on everything possible: doors, hood, trunk, windows, lights, and all other electronics. Run both the heating and cooling systems—not just the one for the season you’re in!
If you suspect an issue, request more information from the dealer. You don’t want to buy an expensive car only to discover that it needs costly repairs soon after.
Assess Normal Wear and Tear
Continue your visual and manual self-inspection, noting typical wear and tear. Examine the interior, including the seats, dashboard, and floor mats. Test the seat mechanisms, including removing any removable seats.
On the outside, inspect the tires for uneven wear, which could signal alignment or suspension problems. Pop open the hood and check for leaks, corrosion, or worn-out belts and hoses.
To help you assess properly, consider doing more research on what constitutes “normal” wear and tear. This will help keep your expectations about a car’s condition realistic.
Take it for a Test Drive
Now for the big functionality qualifier—the test drive! Don’t just start the car and wheel out of the lot, though. Take your time.
When you start the engine, listen for unusual noises, such as knocking, whining, or rattling. Then, once you start driving, notice and evaluate how responsive the acceleration, braking, and steering are. Do the gears shift smoothly? There shouldn’t be any jerking or delays. If there are, the car might have a transmission problem.
Choose a route that offers the most holistic picture possible. You want to know how the car performs at various speeds and under different road conditions.
Get a Professional Inspection
You may think the car looks good, but we encourage you to take one more step. Have a trusted mechanic perform a pre-purchase inspection to reveal any hidden mechanical issues. The cost of an inspection is well worth the peace of mind you’ll gain.
Explore Low-Interest Auto Financing Options
Once you feel confident in the car itself, it’s time to determine how you’ll pay for it. Here’s how to save on auto loans:
- Variety is the spice of life. Compare offers from different lenders, including credit unions, banks, and dealership financing.
- Your local credit union. Credit union car loans often provide lower interest rates and more flexible terms than traditional lenders. Look into becoming a member.
- The big picture. Before signing anything, consider all the factors, including loan terms, interest rates, monthly payments, and total loan costs.
- Budget-friendly car financing. Use online calculators to ensure monthly payments fit your budget.
Finalize the Purchase
Finally, it’s time to negotiate and buy! Bargain for a price that accounts for market value, history, and inspection results.
Perform these last checks and steps:
- Verify the title is clean and has no outstanding loans or liens.
- Ensure all necessary paperwork is completed, including registration, insurance, and any warranty options.
Your diligent research has paid off. Congratulations! Now it’s time to enjoy your new ride.
Affordable Car Loans From People Driven Credit Union
Buying a used car can be a stressful experience, but following these steps will help you avoid hidden issues and secure the best deal possible. Taking the time you need to fully investigate your options can ensure you find a reliable and affordable car that meets your needs.
Speaking of meeting needs, PDCU has been doing just that for over 100 years. As a member-owned financial institution, we take pride in our commitment to transparency, integrity, and service excellence.
Our affordable car loans can make your new-to-you car a reality. Learn more and apply online in minutes.
