Buying a new car in Singapore could mean breaking the bank. The cost of purchasing a new car can set you back quite heavily and as a result most of us resort to buying used cars. After all, it’s a set of wheels at the end of the day.
Purchasing used cars is quite common in Singapore. You’d be quite surprised by the kind of gems you can find when you go looking for a used card in Singapore. But there are some things that you you should keep in mind before buying a used car to ensure it doesn’t fall apart within 10 miles and to make sure you do not end up getting conned. Read on to know things you should keep in mind before getting a used car in Singapore.
1. How are you paying for the car?
This is the first question you should ask yourself. Are you going to pay for it from your savings or take a loan? If you plan on taking a loan then you need to consider the amount you can apply for and the type of loan as well. The first option would be a car loan, more specifically, a used car loan. Many used car loans, like those offered by OCBC and POSB, will offer you up to 70% of the valuation of the car.
If a car loan does not work out for you then you could even consider a personal loan. But in either cases you will have to make sure of two main things. The first is that you are eligible for the loan and the second, that you can afford it. There is no sense in taking a loan you can’t pay back.
2. Look under the hood
Yes, we know cars are loud and noisy. Especially ones that have been on the road for a while but it is important to pay attention to these sounds when you are purchasing a new car. If the car makes unusual noises, it might indicate deteriorating engine conditions. The engine is the heart of a car, you wouldn’t want to buy a car with a failing heart, would you?
Some of the main things you will have to make sure are fine would be the body (check it for rust). You’ll have to ensure that the key components like the suspension, steering assembly, tyre assembly and the gearbox is fine.
Take a friend along when you are shopping for a second hand car. We are talking about that one friend we all have who knows everything about cars. Your friend can tell you about the brands out there that are known for breakdowns and higher maintenance costs. You wouldn’t want to get a car only to realise later that you have to spend a bomb in servicing it.
3. Does the car have all its documents?
Before you even start negotiating the price of the car, ask the seller if they have all the documents. Just because you are buying a second hand car it doesn’t mean that you do not need the required documents. The service history of the car is one of the important documents that you should keep an eye out for along with the other documents. The service document will help you know the internal condition of your car.
4. Age of the car
One of the main factors that affects the resale value of a car is the age of the car. Knowing the number of years of ownership will help you know how much the car has depreciated from its original value. It is common knowledge among Singaporeans that automobiles are not exactly one of the best investments you can make, as the value depreciates as soon as the purchase is made. It is safe to say that you can pass up on cars that have been on the roads ever since you started dreaming about your first ferrari.
5. Beware of the seller
It is always good to be aware of where you are buying your goods from. Many people look at advertisements online where the car looks in perfect condition only to meet the seller and realise that the car looks nothing like the picture they see on the website. Let’s say, the car looks exactly like it and probably even better, this doesn’t mean you are still not getting conned.
It is important to check the ownership documents carefully to ensure that you are not getting conned into buying a stolen car. We don’t want you to end up behind the bars because you were too eager to purchase your dream car!
These tips will definitely help you make the right decision while purchasing a second hand car in Singapore! It will need some research and analysis on your behalf but as long as you check these boxes, you could end up with a good car.
The post 5 Things You Should Keep in Mind Before Getting a Used Car in Singapore appeared first on BankBazaar.sg.
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