With a recession looming: Five tips on buying a second hand car right now

During a recession, money can be hard to find. With businesses trying to stay afloat and are reluctant to spend, the scariest consequence would be the rise of unemployment. And with the recession looming, you may have asked yourself if it is a wise decision to buy a second-hand car. 

Buying a used or second-hand car can still be expensive, although not as expensive as purchasing a brand new car. For most people, buying a car would entail borrowing in-house or through a bank to finance the purchase. Repaying your loan may not be a problem if you have a stable job and income, but what if the unexpected happens? 

Many people are afraid or hesitant to buy a car at this time because if they lose their source of income, they may end up with exorbitant loan charges and fees, or worse, having their car seized or collateral seized by the lender.

To avoid getting into a bad situation when buying a second-hand car right now, consider these five practical tips:

Tip #1. Know your budget

First thing you should do before you start checking your options is to know your budget. You need to determine how much you are willing to spend on the car. If you purchase it in cash, how much is your price cap? If you’re going to get financing, how much of your monthly income are you willing to spend on the loan repayment?

Of course, aside from the cost of the vehicle, you should also consider other expenses associated with owning your car such as fuel and maintenance among others. With money hard to come by when there's recession, you need to assess your ability to pay for all those expenses. 

Tip #2. Compare extensively

Once you are confident that you can handle the cost and associated expenses of owning a car, it's time to compare your options. When you compare, compare extensively by checking multiple car brands and models. 

When you have chosen your preferred brand and model, don't just settle for the first car you encounter. Instead, compare multiple cars of the same make and model based on different factors such as age, mileage, price and the overall condition of the vehicle among others. 

Tip #3. Don't forget to do a thorough check and test-drive

If you are not sure how to check the car to assess its quality and to spot any hidden defects on the car, it's a good idea to bring a trusted mechanic who can help you in checking and test driving.

Tip #4. Watch out for red flags

Buying a used car entails some risk which is mostly associated with dishonest sellers who withhold vital information that can affect your decision-making. As a buyer, don't take the seller's word for it. Instead, do your own research and watch out for red flags such as an old car with low mileage, extremely low price, sketchy interior, recent repainting job or a pushy seller. 

Tip #5. Buy from a reputable dealer

There are many dishonest sellers out there who may sell cars at a much lower price. However, beware of those sellers as you may end up spending more on unexpected repairs because the seller did not disclose some vital information about the vehicle.

When buying a second hand car with cars24, you won't have to worry about hidden defects. All the cars we sell undergo various checks and tests to ensure and maintain quality. Your satisfaction is our top priority. If you are not happy with the purchase, you can even return the car to us as long as it is within 7 days of purchase. 

With the expected recession, it's important to be extra careful where you spend your money. If you are planning to buy a used car, check out the tips we listed above so that you'll be happy with your decision.