Risks of Buying a Used Car from a Private Seller

Rising economy has significantly impacted new purchases, be it a new car, house, or any product. For mobility, used cars are a great alternative and a wise investment as long as you know how to get them. The benefits of used cars include better value for money and low insurance and registration fees.

As the amount is low, the used car loan interest rate will also be affordable if you choose to avail of a loan. Therefore, you can get the most of your money, but remember that a used car comes with its past wear and tear. Consequently, it's essential to be extra careful when purchasing one.

When you talk about getting a car for yourself, there are two options – a dealership or a private seller. Let's understand the differences first so you can make the right choice.

A private seller is an individual looking to sell their vehicle for maximum value to another person. Whereas a dealership purchases and sells huge numbers of cars yearly, they also have to follow regulations. Doing business with certified dealers is easy. You could save money by buying from a private seller, which is the one of the benefits of used cars.

Buying a car from a private seller offers advantages such as low prices and negotiations. In addition to this, you need not worry about additional charges like dealer fees or other warranties. However, buying a car is an investment for years, so you need to focus more on the risks and see whether you're okay with it.

Risks of Buying from a Private Seller

The first thing is that dealerships follow specific regulations and are fined if they don’t comply. Hence, the cars they provide are well taken care of, and some may even offer warranties. On the other hand, you can't expect anything from a private seller. You might get a warranty only if the manufacturer's warranty is still in effect. If there is a problem with the car, it will be your problem soon, and you won't be getting any help from the seller. Also, you cannot be assured about the registration and other details of the vehicle.

When you get a used car from a seller, you will have to invest time and effort for completing all the formalities. You must go through several websites, research cars, contact the owners, discuss suitable meeting times, schedule inspections, and manage all the paperwork. The whole process could get time-consuming and frustrating.

There are no guarantees whether the seller is genuine or not. Several people face fraud, so you must judge better if you're going for a used car. If it's too good to be true, you might want to dive deep into more details. Beware of sellers that offer meager prices and avoid fraud.

Also Read :- How to Get a Used Car Loan for a Great Rate?

Handy Tips

It's important to assess the specific details of the type of car you need before you go to the seller. Know what you want from the vehicle, so you don't waste your time on something that doesn't fulfill your needs.

When people enter the showroom to buy a brand-new car, people ensure to take a test drive of different cars. As weird as it sounds, some people forget to do this while buying a used car. You need to test the asset you're buying! You need to know if your future car is running the way it should.

Moreover, you could also get it checked by a mechanic you trust. Private sellers might not offer this, so you could get it done yourself. Don't mind the extra amount for inspection as it could save you a lot in the long run.

In addition to that, you can also run a vehicle history report. This will inform you about past accidents, issues with the car, and the number of previous owners. You might have to pay the bill for this third-party service.
Always remember that you are under no obligation to purchase the vehicle right away. So, you could ask questions, check the available reports, get it inspected from your side, go with your instincts, and even walk away if something looks suspicious.

Financial Tips Before You Purchase a Used Car

Budgeting well will ensure that you know the upper limit of your purchase range. You can negotiate better when you know your budget.

It's always recommended to make the initial negotiation in person. Always be ready with your research and comparisons before you reach the seller. You can mention a few used car statistics to the private seller and gain the upper hand.

Lastly, it's crucial to line up your financing before the purchase. You must figure out how you'll pay for it, irrespective of who you're getting the car from. Not everyone has the cash or the account balance to pay the whole amount, so some might have to consider getting a Pre-owned Car Loan.

If you're getting it from a dealership that provides financing, consider it carefully. Sometimes, they build an insurance offer that may add extra interest rates. Undoubtedly, you should look for one on your own. Shop around so that you know the different rates levied by different lenders. You can even use a used car loan EMI calculator to determine which interest rate and loan repayment tenure suit your budget.

It's important to understand that used car loan usually have a higher rate than that of new cars. So, you must choose among the best and most trusted lenders offering you a low used car loan interest rate.

Poonawalla Fincorp is a trusted Non-banking Financial Company (NBFC) that offers online used car loans with an easy 5-step application process. We offer high-value sanctions, flexible loan tenure, and competitive Pre-owned Car Loan interest rates and charges.

The most important thing is that you can avail of a loan with minimal documentation, quick processing, and approvals. You can get a loan of up to ?30 Lakh with no hidden charges and get doorstep services by availing of our online Pre-owned car loan. So don’t wait anymore to get your car home!

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Pre-Owned Car Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply