FIN 3220. BUYING A USED CAR. Business & Marketing Essay

BUYING A USED CAR
Information and Considerations
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Buying Used Car Information, Considerations, and Insurance
Guidelines for buying a used car
Understand your personal needs and preferences in acquiring a car
What is the right age of the Used car? - The right age would be one to two years, use it for two to three years, and dispose of it before prices slump. It is also easier to improve on their safety than the old ones (Bauer, Zavolokina & Schwabe, 2019). It is important to conduct thorough research on prices and models as well as the evaluating choices within one's financial budget.
Understand the financial impact of purchasing a car on your finances
One should get to know the source of financing on whether its credit financing where terms were chosen should be favorable enough to the buyer.
Negotiate for better terms and conditions of sale and the best price
It will be unwise to walk into a car showroom without first knowing what is being offered in other markets, the range of market prices. Understanding your budget as well as the financial impact the transaction will have on your personal finance is very prudent for a buyer. Don’t admit your preferences to the seller because that way you will lose your negotiating power. A buyer should endeavor to know what you want and minimize consulting the dealer to avoid manipulation and later read carefully all terms and conditions of sale before committing to the contract.
Markets to purchase used car
A car dealership can be carried out from either the private sellers, car hire firms, and insurance companies. These would constitute the official places where one can get full disclosure on the status of a machine car to buy.
Online used dealers
Several online dealers for used cars such as AA auto sales, R & L Motors, iSeeCars.com, and Cars.com tend to offer the best deals. Above are one of the known used car dealers, however, the buyer should consider the adverse selection of the dealers to up their bargain.
Aspects that determine affordability
A buyer should have a checklist to confirm affordability which will entail; amount to be paid, buyers financial constraints, Source of financing that is, Credit or owners’ capital, cost of credit, a monthly installment in the case of credit financing, operation cost, insurance cost, cost of monthly, quarterly or annual insurance policy installments. Other aspects to be considered will include Safety measures, age & model of the car, trade-in, and cost of fuel.
Insurance
A contract that gives financial protection and reimburses loss suffered. An insurance policy for used cars will include the following details: premiums formally thought to be cheaper calculated based on maintenance by insurers, condition and safety features of the car, cover of the vehicle, 20 days is the grace period given to acquire insurance cover in some states in the USA and lastly make market research for the right insurance covers.
Example of the suitable Insurance covers for Used cars
Liability coverage has two aspects, bodily injury cover and property damage cover that are caused by the driver. Secondly, coverage for Uninsured and Underinsured motorists covers medical bills and car damage if you are involved in an accident with an uninsured or underinsured automobile owner. Third is the comprehensive cover (one of the best) which covers damage on the car like fire, theft, vandalism, etc. fourth, collision coverage which covers accident with another vehicle or if it hits objects like a fence and last example is the medical payments coverage which would cover medical bills of the passengers of members of the family if they were driving the insured car.
Importance of research on insurance policies for used cars