Published: April 29, 2021 | Updated: May 5, 2021 | Posted by: Venus Zoleta | Car Insurance
You’ve decided to purchase a used car, and you’ve started to hunt for the right one for you. The next steps will be a lot trickier than the car buying decision. Of course, you want a vehicle in the best condition possible at the lowest price. Just because you’re buying a second-hand car doesn’t mean you’ll settle for a huge piece of junk, right?
Used cars are raging in the Philippine auto industry today. Take it from all the online communities where car advertising websites and car sellers are in speaking terms.
Buying a used car can help you get value for your money. However, purchasing a second-hand car is more difficult than getting a brand new one. This is why apart from getting auto insurance in the Philippines, it’s important that you be very meticulous and careful when buying a pre-owned vehicle. Here are some tips on how to buy second hand car in the Philippines.
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Before contacting sellers, make sure you arm yourself first with enough knowledge about the used car model you want to buy and its price range.
Compare all the cars in your mind with your budget. Check your prospect’s specifications, variant, and model. This way, you can trim down all your options and will just stick to what precise car you really need and want.
Compare prices and read reviews of your desired car. Listen to what others have to say especially to those who have first-hand experience of buying or owning the car. If you’re looking online, check out what netizens have to say about a certain post. Most of the time, they give out the information you’re looking for.
You can also ask for pointers and leads from your friends and colleagues who bought a second-hand vehicle. Join forums, especially the ones that focus on your target make or model, and ask questions. Check out the second-hand car listings on classifieds on newspapers and websites to know how much your preferred model costs.
As you browse through different buy-and-sell websites, make a price comparison of the model you want to buy. Also, check out the specs of the lowest-priced units—they might have higher mileage or they might be older year models. This is one of the most important tips on how to buy second hand car.
Planning to purchase a second-hand car through an auto loan? Compute first how much you’ll be paying for the interest and compare how much it will cost you versus paying the full amount in cash.
During your research, don’t focus only on the prices. The cheapest used cars aren’t necessarily the best ones to purchase—they typically have higher mileage. The higher the mileage is, the older the vehicle is. The older it is, the more parts you have to replace.
So be sure to check or ask the details on the mileage of the car you’re considering to buy. Avoid those vehicles with a mileage higher than 60,000 km. because these units’ parts are likely to be worn out.
To verify a car’s mileage, pay attention to the pedals and steering wheel during your vehicle inspection. Their condition can speak volumes about the real age of the car.
On top of the car’s purchase price, set aside an amount for the repair and replacement costs that will prep it for the road. TopGear columnist Andy Leuterio recommends allocating at least 20% of the used car’s price.
For example, set a budget of PHP 100,000 for fixing a second-hand car worth half a million pesos. This way, you’ll spare yourself the stress of taking out cash from your wallet each time a component of your newly-purchased vehicle breaks down.
The biggest risk of buying a second-hand car is its history. It may have been stolen, involved in a crime, met an accident, or flooded. How will you know about the service history of a pre-owned vehicle? This is important when learning how to buy second hand car. To protect yourself, here are some ways to find out.
Keep the original copies and photocopy in multiples. Always ask for a receipt or any paperwork with all the seller’s full details on it. Sign a Deed of Sale and have it notarized. For transfer of ownership, bring the car to Camp Karingal for macro-etching and secure a PNP clearance.
Don’t be fooled by scammers and know your facts and deeds when you want to get a quality used car.
Never agree to buy a used car without doing a thorough inspection yourself. Be as meticulous as possible—check not just the body but also every nook and cranny. Look for red flags that indicate that the car has been involved in an accident or flooding.
Not confident with your vehicle inspection skills? Take it to a trusted mechanic and let him do the job for you.
Sometimes, you don’t get what you really want when you see posts online or talk to the seller on the phone. It’s best to see the seller and your car by yourself.
Ask if the car has any records of accidents or major repairs such as transmission rebuilds, valve jobs, or engine overhauls.
Did the car pass your visual inspection? Good! The next step is test driving the unit. Insist on driving it for a test—if the seller refuses, just walk away. You don’t want to waste your hard-earned money on a vehicle that’s cheap but will cause you headaches in the long run. Refer to this full checklist when test driving a second-hand vehicle.
You will get great deals when you ask for it. Put yourself in the shoe of the seller. Wouldn’t you put a higher price at first because you’re familiar with this buying phase? If not with the price, negotiate with the car add-ons like car insurance and accessories.
A full inspection and test drive should give you an accurate idea of the used vehicle’s condition. With that information, come up with a price to be negotiated with the seller. Raise your chance of getting a lower price by pointing out the red flags you discovered while inspecting and test driving the vehicle.
Make sure that the car you plan to buy is clean. Check these documents with the seller to avoid inconvenience upon purchase of the second-hand vehicle.
If your newly purchased second-hand car doesn’t come with an insurance plan, you’ll have to buy one on your own before you take it out for a spin. Used cars, like brand-new ones, aren’t exempt from accidents that can drain your money if yours isn’t insured.
Buying a second-hand vehicle may sound like a tedious process but it can be easy if you know your options well. Take the buying process seriously to ensure a wise purchase. Note down our tips on how to buy second hand car.
Venus is the Head of Content at Moneymax, with 15+ years of experience in digital marketing, corporate communications, PR, and journalism. She invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Outside of work, she’s crazy about cats and Korean dramas. Follow Venus on LinkedIn.