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Money makes the world go round as some people would say it but not everyone has that much money to obtain the latest cars with the ever evolving technology. Hence, the number of people leaning towards buying used cars is becoming a trend in the society as it is considered a lot more cheaper. Considering rebates, comparing prices from different dealers and choosing the right car for you could save you a lot of money. Here are 5 smart tips that will reveal the trick on how to buy a used car using minimal of your budget.
1. Consider Rebates Into Price Of The Car
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PARF and COE rebates are 2 things to take into consideration when you plan to buy a used car. PARF, also known as Prevailing Additional Registration Fee, is the rebate you will get back when you sell your less than 10 year old car. Just like COE, it will depreciate as you use the car but it has a minimum point where it will not depreciate any lower than the specified point. A 9-10 year old car will give you 50% of the ARF that you paid in the beginning when you bought the car. The downside about PARF is that it will not be applicable to COE renewed cars.
COE renewed cars will not possess the PARF rebate, it will only possess the COE rebate where it will depreciate everyday and it has no minimum point. Hence, it will depreciate till it goes to zero. For example, if you bought a new car and you used it till the last day before the COE expires, your COE rebate will be zero.
These are the 2 rebates that you can get back from selling your car. But the eligibility of the rebates are dependant on the age of the car. Hence buying a COE renewed car may be cheaper but you will not get the PARF rebate at the end of your driving period, or you could even get back nothing if you use the car till the final day of the renewal period. While buying a car which have not had its COE renewed allows you to get both COE and PARF rebate at the end of the 10th year.
Thus, it really depends on how much you're willing to spend at the point of purchase. You may not have much rebate at the end of the COE cars but it sure will cost you lesser than buying a PARF rebate. It is advised for you to remove all the rebate value in the price of the car to view the actual price you should compare with.
2. Making The Right Comparison
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If you already have a specific car in mind, you might just grab the car from the first dealer you find who has it. But what if other dealers are selling the same exact car at a much lower price? It is advisable that you do not make rash decisions when buying something, especially a car.
By making the right comparison means that you always ensure that you do your proper research from the different sources that sells the same car. Compare the prices and the car conditions. From there then you could narrow down the possible dealers that you could buy the car from.
Keep in mind that price itself is not sufficient for you to make a decision. One example would be, the PARF and COE rebates as mention above, plays a part too to determine the real value that you need to pay for the car. Best thing to do is to stay calm and reserve some time to sit down and slowly pick the best deal that you feel is suitable for you.
Remember, rash decisions only bring regrets! Getting a car which is cheaper than others might not mean you have saved a lot of money. Sometimes spending a little more money to get it back at the end of the usage period is more cost-efficient and is the real deal!
Motorist.sg offers a wide range of cars available for sale and you could own them in a flash! Our friendly consultants would be more than happy to advise you on the cars that are more worth it to buy than others.
3. Focus On What You Need From The Car
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It is a common understanding that the more luxurious the car is, the higher the price will be. Hence this is the reason why you need to set an objective for having a car. Let's say you need a car just for yourself to travel, then you would not need a big car like a Range Rover Evoque, unless of course if you are filthy rich and not sure what to do with all your money.
Other than that, objectively-speaking if the main purpose of you having a car is solely for travel, you may want to look at probably Honda Jazz which could still bring yourself around the island. But if you have a big family, obviously a Jazz could not accommodate to your family's needs and space. An MPV would be the ideal type of car for you if you have a family of more than 4 members.
In this case, branding plays a part too. If you want to save as much money as possible then Japanese/Korean cars would be the ideal type for you compared to Continental cars. Size of the car will also affect the price.
It will be a little more pricier when a Japanese-make MPV is compared to a Japanese-make hatchback. Hence, choose your car wisely and eliminate all the extra features that you might not even need in a car and you will soon realise you're becoming more budget-savvy in terms of the products you purchase in the future.
4. Do a thorough check on the car
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You may find that cars with their COE expiring in 1 or 2 years tend to be cheaper. But bear in mind that these cars are 8 to 9 years old. Their mechanical structure and engines might not work as perfectly as how they did 8 to 9 years ago. This increases the possibility of the cars breaking down or malfunctioning. It may result in you not spending a lot of money in buying the car, but spending more money for maintenance and repairs instead.
One tip that we could provide you is to inspect the car's engine, mechanicals and electronics physically before buying the car. Ensure that they are all in good condition. It may not be in perfect condition but good condition cars are a better bet than having a car with poor engine. In this kind of situation, your mechanic will be your bestfriend that you could trust. So try to source for the best mechanic in town and send the car for a thorough inspection to get the green light.
If you do find that the car have certain issues not mentioned by the dealer at the point of purchase, head back down to the dealers to address the issues and settle it in a peaceful manner. In an event that the dealers are defensive, there is something called the lemon law for you to act as a lawyer for yourself. Lemon law basically protects consumers against defective goods, including used cars, that requires repair work or replacement of parts.
5. Don't Get a Car With More Than Average Fuel Consumption Level
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Buying a cheap car may be a plus point for you but if the fuel consumption level is high, you might be burning your pocket topping up the petrol to run your car. A litre of petrol will cost you around $2.43 (98) on average in Singapore. This may lead to an increase in the cost to run the car and it would not be of any advantage to you.
Hence, before buying a car, research on the fuel consumption of the specific car. A car that is considered averagely fuel-efficient by LTA, can travel approximately 10KM/litre of petrol. If it is over the average, you might find yourself stopping at almost every petrol station along your route! Cars with lower fuel consumption could save you a fortune in the near future.
Now you are all set to save more money on buying a used car! If you've done everything in this guide, you'll have no more worries about dodgy dealers, or administrative troubles! For more help with buying or selling your vehicle, or to get other helpful driving articles like this one, download our app at the Apple Appstore and Android Playstore!