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What Is A Used Car Worth?

Type and budget: What type of car are you looking for? A hatchback, sedan, crossover, SUV, or truck? Pick one depending on how you need to use it. Once you know the type of vehicle you need, shortlist the manufacturers you’re willing to consider. After this point, the factors you need to consider include engine size and displacement, automatic or manual, two- or four-wheel drive, two- or four-door, interior options, technology, and infotainment systems, safety and driver-assist features, etc. Figure out what matters most to you.

Next, tackle your budget. If you’re paying cash, set a price that will not trouble your finances, loans, or payments. If you’re financing the car, work out how much you can offer as down payment, and ideally get preapproved for a loan. That way, you can negotiate the best price for a car by bargaining on the total price instead of getting caught in the monthly payment trap. Never exceed your limit at any cost.

Reliability: Once you have a shortlist of cars to choose from, go online and read the reviews posted by reputed automotive publications. Search for owner’s forums online and check what they’re saying about their cars. See what people are saying about what the car models you are interested in are like on a long term basis.

If you’re buying a used car, then ensure that you get that car’s entire service history. Crosscheck the report with the car’s VIN too. This will also help you understand the actual value of the vehicle.

Test drive: These are the things you need to know. If you’re meeting a private seller, ask why they’re selling the car, how long they’ve owned it, and what they know about its previous owners. Inspect the exteriors and ask about any accidents. Pop the hood, inspect the engine bay, and ask if any mechanical work was done in the last six months. Find out how often they changed the oil and rotated the tires. Find out if any aftermarket parts were installed. Ensure all parts are working and take a car for an extended test drive. Listen to any issues and see how it handles. All this will help you figure out how much the car is really worth.