EVERYTHING YOU NEED TO KNOW ABOUT BUYING, MAINTAINING AND SELLING A USED VEHICLE
The debate over whether a car is a luxury purchase or a necessity has been going on for decades. Considering our modern lifestyles and the pace at which the world is commercializing, a car is no more a luxury but a necessity. According to studies, the distance that we travel in a week is equal to that travelled by people of the last century in their entire lifetime.
Now that you have decided that you need a car, it is time that you ask yourself the most crucial question, “Do I need a new car or a used car?”
Used Car Vs. New Car – Choosing Wisely
Purchasing a car is the second biggest expense of your entire lifetime, the first being your house. As a vehicle does not come cheap and can drain you out of your entire life’s savings, you need to choose between a used and new car wisely. Not considering all the available options is the biggest mistake a first-time car buyer can make.
Whether you are purchasing your first car or wish to replace your old ride with a new one, analyzing all the available options is a crucial part of the process.
The first thing that you need to do after deciding that you need a car is to understand your needs and make up your mind about whether you need to invest in a new car or a used car would work fine for you. It is a very crucial step in the process, especially for first-time buyers.
A Glorious New Car
Every time you see a TV ad commercial of a brand-new car, doesn’t your heart skip a beat?
Well, this is exactly what every car fanatic goes through. Nothing can make a car lover happier than driving a car that belonged to no one but them; the feeling is priceless.
Pros:A new car comes with a warranty, which can bestow you with peace of mind over a used car without warranty at all. It also comes equipped with state-of-the-art technology, which enhances its performance and offers the most satisfying experience. Arguably, a new car is safer than a used car because it features the latest in safety and technology. The technology used in the latest automobile models not only helps in reducing emissions, which is a primary concern for many people, they include navigation systems and safety features like advance collision warnings, blind spot alerts and even emergency breaking. Finally, you hardly have to worry about car maintenance costs when you buy a new car. |
Cons:Remember that a car is not an investment and it never will unless you are purchasing a classic model, which by nature, is not a new car. Therefore, no matter if you are buying the latest model, every new vehicle suffers from depreciation. A new car goes through the most significant depreciation within the first three years of ownership. Expect to lose several thousands of dollars when you purchase a brand-new car. New cars are much more expensive than used cars. Not only is the initial price high, but you will have to pay more for its insurance and even pay a higher sales tax. |
A Rough-and-Tough Used Car
As much as buying a new car seems desirable, it has its downsides. The majority of car buyers go for a used car instead of a new car due to its many advantages. The fact that used cars are generally cheaper than new cars will help prevent putting a dent in your wallet, which makes it the right choice for many car buyers.
Pros:You can expect to pay a much lower upfront price in comparison to new cars. Sellers are open to negotiations over the price, and you can actually bargain with a seller for a lower price. Because a vehicle goes through a significant depreciation within the first three years, you do not have to worry about it. A used car does not go under a substantial depreciation. Moreover, you will have to make much lower premium payments for insurance, a relief for the young and new drivers. In short, buying a used car is much less of a burden on your checking and savings accounts in comparison to the brand-new vehicles. Some even argue that a used car is an environmental-friendly option as a major percentage of the carbon dioxide a vehicle produces is at the time of manufacturing. By choosing a used car, you are reducing the carbon dioxide output into the environment |
Cons:There is no denying the fact that a used car may not be as reliable as a brand new one. No matter how extensively you inspect a used car, you will have to pay for repairs eventually. Paying for repairs can be a headache, if there is no warranty to cover it. Many used car dealers include a warranty plan within the cost and financing of the vehicle. This really helps used car buyers manage the uncertainty of purchasing a used car. Another downside to buying a used car is that even though you can find thousands of models and colors to choose from, getting the exact car you wanted is difficult. The options are limited, and you might have to settle for a car that you aren’t fully satisfied with. Some dealerships, like Shabana Motors, get new cars on a specific day of the week, in our case on Thursdays, which is the perfect opportunity get first dibs on the new inventory. You can weigh both options based on the pros and cons and make up your mind. Try researching for different models, carry out a comparison of features, and do your loan calculations before you reach a decision. Choosing the right car requires a lot of time, effort, and research because the wrong choice, new or used, can put you in an uncomfortable if not difficult situation. |
Factors To Consider When Buying a Used Car.
Buying a used car is a smart option, but the chances of you getting caught up in used car scams are high if you do not take the right precautions. If you are buying a used car, there are a lot of factors that you need to consider. Failing to do so might make you end up paying colossal repairing costs and even force you to replace the car in a shorter time.
To stay safe from the used car scams and to choose a car that is a top-scorer in terms of performance, you need to bring some essential factors into consideration. Missing out on any of these factors will create problems for you in the future. Look for a used car dealership that has many, many years of operation, thousands of satisfied customers and great reviews, like Shabana Motors.
1. Vehicle History
The first and the most important thing to do is to check the vehicle’s history of a car you like and wish to purchase. Ask the private seller or a dealer for the vehicle history report as it serves as a window into the car’s past. These reports consist of crucial information about the vehicle, such as its ownership history, mileage, accident history, title status, and any outstanding financial issues.
Moreover, this document helps in determining if a car you want to purchase is recorded as stolen. The report is one of the most important documents that you need to ask a dealership for when purchasing a used car. Unfortunately, these reports do not generally include the maintenance records for the vehicle, so before you buy, make sure the vehicle has been thoroughly inspected by a qualified mechanic.
2. A Thorough Inspection
Carrying out a thorough inspection of a used car before the purchase is crucial. You need to check for leaks as leaking fluids is a major red flag when it comes to purchasing a used car. Take a look under the car, and you will be able to analyze whether there are any leakages or not. If you see a black fluid, it is an indication of leaking oil. The reddish fluid is a sign of leaking power-steering or transmission fluid, green, yellow, or pink fluids point towards antifreeze leakage.
Do not schedule an inspection during the night or when it is raining. You must take along a mechanic or a friend who possesses extensive knowledge about cars and inspection.
Check the interior for any damage and check whether the locks and windows are functioning correctly. In addition to this, you need to stay alert about any unusual car odors.
3. The Performance of the Car
After you have carried out a thorough inspection and gone through the vehicle history report, it is time to evaluate the drive of the car. You will not be able to thoroughly analyze the performance of a vehicle until you get on its driver’s seat, start the engine, and take it out for a drive. Test driving is an essential step in the car purchase process. Whether you are buying a used car from a private seller or a dealership, test driving is essential.
Before you start the test drive, turn the key to the accessory position. When you do this, you will see all the warning lights, which is an important step when inspecting a car.
4. Get a departmental store cards
It is a viable option since, in some cases, these cards do not ask for credit history, the interest rates are lower than in bank cards and also offer exclusive benefits in the department store. However, you have to be cautious and not fill the portfolio with these cards. The idea is to get one of these, pay the bills on them in a responsible and timely manner. This helps you put points on the board for being a responsible spender.
5. Inquire About Aftermarket Parts
Another critical factor to consider is the installation of aftermarket parts. Car buyers, specifically the first-time buyers, do not realize that purchasing a used car with aftermarket parts installed can be dangerous. Some aftermarket parts add to the value of the vehicle, while some can lead to reliability issues in the future. Cold air intakes, exhaust systems, turbocharges, aftermarket blow-off, and tires are some of the aftermarket parts which can create reliability issues and can affect the performance of your car. In fact, while purchasing wider rims and wider tires may look incredibly cool, the fact is, said tires may lead to the vehicle’s instability a provoke a rollover.
Aesthetics are important when it comes to purchasing a vehicle, but you should never base your decision of purchasing a car only on its aesthetics. There are other important factors that play a crucial role when purchasing a car. These are the factors that every car buyer looking for a used car must consider. A lot of first-time car buyers miss out on these critical factors of consideration and end up making the wrong choice.
Gifting a Used Car in Texas
If you are buying a used car to gift it to your loved one, you need to understand the entire process. Gifting a vehicle is not as simple as it sounds. There are a lot of factors that you need to bring into consideration before you can gift a car to someone you love. The car ownership title and tax implications are the two most important factors.
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Transferring Car Ownership Title
The odometer reading is an essential factor when it comes to gifting a car in Texas. You must record the reading on the odometer at the time of transfer, as you will have to mention it in the title transfer document. If the used car you purchased is not older than ten years, you need to prepare an Odometer Disclosure Statement.
You and the recipient of the gifted car are both required to fill out the Assignment of Title section, which is an essential step of signing the car title over to the recipient. The documents that you are required to submit at the time of transfer include title application, odometer statement, signed title, and Affidavit of Motor Vehicle Gift Transfer.
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Tax Implications on Gifting a Car
According to the Texas State Law, if you gift your immediate family member a car, they will have to pay the gift tax. In Texas, the gift tax amount is $10. Under the law, the people that come under the category of immediate family members include parents, children, grandchildren, spouses, siblings, grandparents, and legal guardians.
However, if you are gifting a car to someone in exchange for their services, you will be liable for paying the gift tax, and the recipient will have to pay income tax only.
Preparing a Car for Sale or Trade-in
The performance of your car, aesthetics, interior cleanliness, quality tuning, and quality of engine are the factors that play a vital role when it comes to selling or trading-in your used car. The chances of you getting a great deal are high when your car is a top-scorer in both performance and aesthetics.
1. Clean Your Car
By using professional cleaning tools and giving a thorough wash to your car, you can give your ride a just-like-new look. The better your car looks, the higher the chances of getting the desired price for it. You can use plastic restorers to clean your car from inside and out. It can give your vehicle back its life.
2. DIY Inspection Checks
After giving your car a clean and sleek look, it is time that you get down to the technical business. You can hire a professional mechanic to carry out an inspection of your car. If you want to save some money, you can do it yourself. Start with wiping up the engine, but do not steam clean it as it raises suspicion in buyers, top up the engine oil, and fill up the coolant bottles.
3. The Paperwork
The essential documents that can help in increasing the value of your car are V5C registration, MoT certificate, and servicing schedules. Full-service history is a way to show a buyer that your car is perfectly maintained.
4. Adding Extra Value
You can even enhance the value of your car by performing some additional work on it. You can upgrade your car’s headlights and install a car safety alarm. In addition, you can even wax your car and hide the bad paint job.
These are the most effective ways you can enhance the look of your car and add value to it. All these steps will help you get a price that you desire as it minimizes the factors of negotiation for a buyer.
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