Why do people prefer pre-owned cars? This requires a factual justification. As per Allied Market Research, the global used car market has a bright future as it will soar to $1355.15 billion in 2027 where it was at $828.24 billion in 2019. That is a whopping 8.3% CAGR in the seven-year span from 2020 to 2027! At the beginning of the year, Johnny’s Car Repair Shop had $60,000 in total assets and $40,000 in total liabilities. The company reported $100,000 in automobile repair income for the year, $55,000 in expenses, and $10,000 in dividends.
However, a thorough analysis reveals a number of factors that are significantly promoting such a forward-thinking trend globally. Automakers have been producing more cars as compared to the past, of course, and offering a variety of cars while taking the needs of the consumer into consideration.
Moreover, people have started to make purchases of pre-owned vehicles because most new cars come with additional accessories, and eventually cost more than their older counterparts.
A car depreciates in value over the years, and it opens the door for the customer to purchase a vehicle with a more specification at a lower price or equal to a new vehicle with fewer specifications. This certainly fuels the pre-owned vehicle market when it has been witnessing a transformation from a completely unorganized to a organized sector.
But there are a few concerns while making such a purchase decision. It requires an accurate assessment of a used car. However, an organized player, such as an authorized dealer, gets you a used car with a warranty.
But, there is still a margin of error, and this article focuses on the factors that have a big impact on your car purchase.
Assessing the car’s condition and mileage
Since you are going to make an investment, the purchase item should be worthwhile enough. A car’s condition has a significant impact on its worth as well as value.
However, it seeks a more thorough understanding of a few elements that impact a car’s worth. Examining a car’s exterior, interior, and, most importantly, engine will help you judge it. It also includes a brief examination of the state of the tyres too.
You must check the engine for leaks, corrosion, and worn hoses while inspecting it. Additionally, a dipstick inspection of the transmission and oil is necessary.
A car’s exterior, however, shouldn’t have any dents, scratches, paint problems, etc. Additionally, the interior should have comfortable upholstery, and you should watch out for any improper electronic accessories.
However, the mileage a car has travelled up to this point. Along with the engine, it is now a factor that significantly influences the car’s valuation. Besides, the tyres condition also plays its role in assessment of car. A car with a good set of tyres appears to be in good condition, but it is not true as tyres are replaceable at any point of time in car’s lifespan.
Even if it appears to be in perfect condition, a car with a high mileage will likely be valued lower than a car with a lower mileage. A car that has been driven far enough is undoubtedly susceptible to further deterioration.
Although maintaining a car in good condition for a long time is simple, there will always be a need for high-quality services like car engine repair and car transmission repair, which are offered at Service My Car.
Check maintenance records properly
All car manufacturers provide a service book with each vehicle. Every time a car goes in for servicing, a record of all the work is documented with receipts and a service book manual.
But, there is a margin of error in maintaining such records, especially in the case of an owner opting for a car service at an external service centre. In such a situation, some people take care of all things necessary to keep proper service records along with receipts filed and dates noted.
On the other hand, some owners do not give keeping records much consideration. They keep a mental record of the frequency of visits to the service centre and the services rendered each year.
However, a car with proper maintenance records is always worth the investment rather than believing in words.
Inspect registration certificate and insurance policy
Check the registration certificate for the car to make sure it is genuine. It will include the owner’s name and information about the vehicle, such as the engine and chassis numbers.
Other documents that must be examined when purchasing a used car include the original purchase invoice, insurance, the receipt for the road tax, and the pollution certificate.
Besides, a necessary check is due diligence of vehicle finance history. It means, a pre-owned vehicle that you are going to purchase, should free from financial liability or if there is any, it should be clearly communicated by the seller.
Keep in mind that the registration certificate must be updated to reflect any changes to the engine’s displacement or the vehicle’s colour. And last but not least, a vehicle should have proper insurance records.
You can make a guess about the vehicle’s accident history by observing these records. However, there are a number of authorized pre-owned car dealers available in the market, but you can also buy a pre-owned vehicle directly from a seller.
Buying from a seller saves you some money that an intermediate dealer costs you, while there are some hiccups to buying directly, as a buyer cannot expect the owner to expose everything about the car’s condition.
If you are buying a pre-owned Volvo and you are looking for Volvo service centre near me then Service My Car will help you to provide best Volvo services such as engine repair, oil change, battery replacement, AC repair and many more at an affordable price.
The above-mentioned points will surely help a buyer in such a condition while there is a car pre-purchase inspection service available in the market. Service My Car is a preferred service provider for your pre-owned vehicle purchase and car repair.
Buy a pre-owned car today and come to Service My Car for best-in-class service contracts at highly competitive prices.