Is It Really A Good Deal?There is a really big misconception when it comes to getting a 'good deal' on a used car. It essentially comes down to 3 main things:
#1 The current condition of the car
#2 How much it will cost to fix up
#3 What is your time worth
The problem is that cars can be very misleading, especially to the untrained eye. A pre-purchase inspection is a close and attentive inspection that is vital to secure before the purchase of your desired vehicle. Without a close inspection of the car, you could find yourself in a money pit very quickly.
There is usually a reason the car is listed lower then other cars of similar makes and models. Most of the time buyers purchase a vehicle for "a good deal"; however the time and effort put into fixing the vehicle quickly becomes a financial nightmare.
The "good deal" now has more money put into the vehicle than if a bit higher priced and well kept car had been purchased initially. This does not even begin to cover all of the valuable time and effort that has been invest in this "good deal".
Lets break this down a bit:
Your initial #GOAL:
Spend the #LEAST amount of money as possible
Now, you are stuck in that mindset. The lower dollar amount means less money being spent. With that mindset, you start to look over the little things to compensate for your initial goal.
After you buy the lowest priced car ("good deal"), you want to make it run perfectly and be more pleasing to the eye. This is where the spending starts to add quickly. The little things may not seem like much at first, but in total they are the difference between a "good deal" and a GREAT deal. It is very common that someone fixes up a vehicle and ends up having more money into then if they had spent a little more money to buy a vehicle that has already been taken care of and fixed up.
Desired Vehicle: 2015 Honda CRV
Listed Price is $3000 below the average value of a Honda CRV (What a GOOD DEAL!) You go look at the vehicle, you are super excited and now you are stuck on buying this "good deal". This is where all the little things with the vehicle are looked over, heck you click here don't even get a pre-purchase inspection (which could have saved you thousands...literally). This is such a good deal, the little things can be looked over (WRONG!).
After buying the vehicle, those small little things start to come out of the wood works.
You find out it has an oil leak from the rear main seal (a pre-purchase inspection would have found this), that costs you $1200.
This CRV has been off-road and needs a CV axle and wheel bearing - $650.
The vehicle has a small crack on the windshield - $200
Bent Wheel - $200
Cracked Tail Light - $50
Front Brakes need to be Changed - $300
The transmission is slipping because the vehicle was driven hard off road, it needs a new transmission - $1600
All these things add up over the next 6 months and now you have $4200 into this vehicle and it is finally mechanically all sorted out.
You have spent $1200 over the market value and lots of your time and effort on a vehicle that has been driven hard off road and probably still needs some work.
Was this CRV really a good deal?
All of this could have been prevented with a pre-purchase inspection. If you are about to make such an investment as a new vehicle for yourself, consider getting a pre-purchase inspection. It could really save you thousands in the end.
(530) 903 - 1291