Things to Consider When Shopping For A Used Vehicle

Updated:
July 12, 2018

While buying a used vehicle will save you money in the purchase price and help you avoid depreciation costs, it is important to do your research before you purchase one. To avoid purchasing a car with hidden problems, consider the following buying precautions.

Buying Used Vehicles

  • ‍Excessive wear and tear in the interior, regardless of what the odometer says.
  • Damp, musty odours are indications of leaks in the windshield, weather stripping or heater core.
  • Cars that ride lower in the front as compared to the back indicate worn springs.
  • Vehicles that bounce when pushed on indicate worn shocks and struts.
  • Tires with worn outer edges from the front end represent the need for an alignment.
  • Clanking noises when the vehicle is in gear point towards a problem with the drive shaft universal joints.
  • Repainted body panels.
  • Motor oil that is not full indicates that the engine may be leaking or burning oil.
  • Knocking and ticking sounds that increase as the engine speed increases represent major problems and costly repairs.
  • Transmission fluid that is black or brown may indicate internal damage.
  • Banging, grinding, or squeaking noises indicates a damaged or broken transmission mount.

Safety First

Do not be fooled by the mileage on the odometer! To see if the instruments have been tampered with, look for fingerprints or scratches inside the plastic covering. Mile numbers that don't line up properly on the odometer offer another fraud clue. This may be a crude attempt at getting you to buy a vehicle that has far more miles (and problems) than what the low mileage would suggest.

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

  1. Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
  2. Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
  3. Provide investment advice and portfolio management services.
  4. Offer guidance on retirement planning, estate planning, tax planning, and insurance.
  5. Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
  6. Educate clients on financial matters and empower them to make informed decisions.
What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
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It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.