If you are one of the practical ones who consider vehicles as a basic necessity to provide ease in transport, getting a used car instead of a brand new one could not be much of an issue. A personal loan could thus cover the financing needed for a used vehicle. Compared to getting a car loan for the purpose, a personal loan can be used for a variety of other purposes and is unsecured. That means that your vehicle will not be repossessed should you fail to repay the loan. This is a common choice among individuals who prefer the flexibility and ease of the loan type.
For pragmatists like you who want to get the best out of their personal loans for the purchase of a vehicle, here are some quick and effective tips to follow in choosing a vehicle to invest in:
Car Age
An older car may be cheaper, but it may also be harder to maintain, more expensive to insure, and have higher taxes. Inspect the car’s mileage and compare it against its age. Older cars are more worn in its parts and you are placed at more risk of doing repairs should failure and breakdowns occur.
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Car History
To know the car’s history, you need a VIN Check which:
a) tells you how many previous ownerships the car has had; and
b) the title and accident – even the lien – history which indicates the likelihood of previous serious damages to the car.
The car’s dealer may also hold service records on the vehicle which will detail some of the repairs previously done to the vehicle. Although this record may not show the total service history of the car, knowing these aspects helps you determine if the vehicle might be in more risk of future repairs. If the history shows clean, that could signal a good deal.
Car Condition
Dents or marks on the exterior, the recentness of the covers, seating, and carpets, as well as the condition of the engine are vital examination points you should most pay attention to. Be meticulous in your examination and make sure the vehicle meets your standards. Remember that it is your security – physical and financial – that is at stake. If it doesn’t, walk away. There are plenty of used car dealers around to shop from. You should not limit yourself to a few choices.
Your Knowledge of the Subject
If you are not too knowledgeable about the technical details, it’s smart to bring along someone who does to get second opinion and make an informed decision.
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Test Drive
Take the car for a test drive to get a feel of the vehicle. Sometimes, a test drive is the final straw that could make or break a decision. Maybe you are not comfortable with the vehicle’s set up or you find the interior too small. The devil is in the details and you don’t want to regret your purchase later just for these little inconveniences. Make sure you like what you handle.
Cost of Ownership
When buying a car, you do not only consider the vehicle’s asking price, or the cost of financing. You also have to factor in the cost of insuring it, fuel economy, maintenance and repair, and taxes. Consider the total cost of ownership involved in doing your estimates.
Finding the right vehicle could save you thousands of dollars on financing. Make sure the build fits the function and that you are paying for your money’s worth. Then your personal loan should go a long way in helping you get the car that fits your needs.
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