Things to Do Before Buying a Secondhand Car

Buying a secondhand car can be a practical and budget-friendly way to own a vehicle. It allows you to enjoy the benefits of car ownership at a lower price point than purchasing a brand-new model. However, purchasing a pre-owned car will require due diligence on your end to ensure that it’s working in top condition and that you’re getting value for your money.

Here's a comprehensive guide to help you navigate the process of buying a secondhand car.

Compare Car Ownership Costs with Alternatives

Before committing to buying a secondhand car, evaluate whether it’s the right choice for your needs. For instance, comparing car ownership costs with ride-hailing expenses can help determine if owning a vehicle is a sound investment.

Car ownership involves ongoing expenses such as fuel, maintenance, insurance, and registration fees. On the other hand, ride-hailing services might be more practical for those who only need occasional transportation, especially in urban areas. However, if you require regular and long-term mobility, owning a secondhand car could be a more cost-effective and convenient option.

Research the Market Value and Prices

Once you decide to pursue buying a secondhand car, research the average market value of the specific make and model you’re interested in. Doing so helps you identify a fair price and spot any red flags, such as unusually low or high pricing.

Factors like mileage, model year, condition, and added features significantly affect a vehicle's value. Check online marketplaces, dealership websites, and local classifieds to compare prices across various sources. This research helps you create a realistic budget and strengthens your negotiation position.

Set a Budget

An important thing to do when buying a secondhand car is setting a budget.

Even if you’re looking to buy a secondhand car, it’ll still require a huge amount of financial commitment from you. Before you approach a dealer, you should have your finances ready by applying for a personal auto loan or a personal loan to ensure that you have the funds ready for the purchase.

Looking for loans early on can also give you enough time to check through car loan contracts from different lending institutions so you can find the best fit based on your budget, loan terms, and interest rates. Choosing the right loan terms ensures that monthly payments remain manageable and aligned with your financial situation.

Check for Warranties or Guarantees

Some secondhand cars, particularly those sold by dealerships, may come with limited warranties covering certain repairs for a specific period after purchase. This warranty can provide extra assurance, particularly if unexpected repairs are needed soon after the sale.

For added security, consider investing in an extended warranty from third-party providers. Although this may add to the initial cost of buying a secondhand car, it can save money on major repairs down the line and ensure peace of mind.

Inspect the Car’s Condition

Carefully assess the car’s overall condition, focusing on its exterior, interior, engine, and undercarriage. Check for rust, dents, and signs of wear and tear. Inside, ensure that the upholstery, dashboard, and electronics are in good working order.

For the engine, look for leaks, unusual noises, and fluid levels. If you're unsure about how to conduct a thorough inspection, enlist the help of a trusted mechanic who can provide an expert opinion and identify any hidden issues.

Test Drive the Car

A test drive is an important step in determining the vehicle's condition beyond a visual inspection. Take the car on a varied route, including both city streets and highways, to evaluate its handling, braking, acceleration, and overall comfort. Pay attention to how the car responds during the drive.

A thorough test drive helps reveal potential mechanical issues that might not be visible through a simple inspection.

Request a Vehicle History Report

A vehicle history report offers valuable insights into a car’s past ownership, accident history, mileage records, and whether it has been reported stolen. In the Philippines, you can obtain this information through the Land Transportation Office (LTO) vehicle verification services.

This report is particularly useful for spotting discrepancies, such as tampered odometers or undisclosed accidents, helping you make an informed purchase decision.

Review Important Documents

Aside from the vehicle history report, there are other important documents to check when buying a secondhand car.

• Original Receipt (OR) and Certificate of Registration (CR): These documents confirm the car’s ownership and registration with the LTO. Verify that they are authentic and match the vehicle details.
• Deed of Sale: This legal document transfers ownership from the seller to the buyer. It should contain accurate details about the car, buyer, and seller, along with their signatures.
• Maintenance Records: Some sellers provide a maintenance history, which can indicate how well the car has been cared for. Look for records showing regular oil changes, brake checks, and other essential services.

Confirming these documents verifies the vehicle’s legitimacy and prevents issues during registration transfer. 

Buying a secondhand car is a great way to get a vehicle at a fraction of the cost. While the process of buying secondhand will require careful planning and due diligence, it’s well worth the effort for the value you’re getting.

By following the steps outlined above, you can confidently purchase a reliable secondhand car that fits your needs and your budget.