Part 1 - Getting a pre-owned car

New cars are no longer as cheap to buy. It will be hard pressed to see COE prices fall back to the sub-$10,000 levels again. This means that entry-level cars are now priced at where mid-level cars used to be.

If you are in the buying market and compromising means getting a lesser car, the pre-owned section would be where you might want to take a look. To that extent, here are things that you might want to know about pre-owned cars.

To maximize the value that you will get for your money, use these steps as a guide to paying lesser than what you really need to.

Step 1: Research Car
As with getting any car, whether new or pre-owned, it is always advisable to read up on the car you are interested in buying. This will give you a better sense of how the car performs, what is the fuel consumption like and what the standard features are. Even better, test-drive one at the authorized distributors provided that they are still in production. Proper research will ensure that you are buying a car that meets your expectations and not regret it after signing the paper.

Knowing the car is also crucial when comparing it to a pre-owned version as you can than judge more accurately if the pre-owned car has any flaws.

Step 2: Research Prices
A pre-owned car price is subjective to many factors. Do some research and get quotations from different pre-owned car dealers or direct sellers, to get a sense roughly how much the car of your choice should cost. You should be taking into account the age of the car and mileage covered for comparisons.

Step 3: Shop around for the best Loan and Insurance
Although some dealers have in-house financing, it is advisable for you to shop around and get quotes from different financers and insurance company. This is will ensure that you are getting the best rate to your credit score as well as not having to pay more than what is needed for insurance.

Step 4: Do a thorough check on the car
"Accident Free" or not, do not believe what was told to you, inspect the car yourself to determine the integrity of the car. Read "Put On Your Classes, We Are Going Car Shopping" to learn what are some of the tell-tale signs you are buying a lemon. As an absolution, send the car for inspection for a fee at any reputable inspection centres such as STA and Vicom. If the dealer refuses, walk away. He probably has something to hide.

Step 5: Negotiate Price
Read up on "Determining The Right Value For Your Car" to understand how to calculate the basic cost of a car. This will tell you roughly how much the car should cost to the dealer. Compare this price to the dealers and you can tell roughly how much the car has been marked up for sale. This will in turn give you a sense of how much discount you can negotiate for.

It is also common for pre-owned car dealers to price their cars around 3000 - 5000 more than what they are willing to accept. So make sure you factor that into your negotiations.

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