Financial Blog

Are you looking to buy a secondhand car? Make sure you get a good deal and not someone else’s problem.

 When done properly, buying a secondhand car can be one of the smartest financial decisions you can make. It costs significantly less than a brand-new one, and there are plenty of options available in the market. But how do you know if it’s a good deal?

Here’s what you should look for before buying secondhand:

1. Know the market price

Firstly, do your research! Before choosing, make sure to browse the market and compare the prices of similar models from the same time period. There are sites where you can browse such as AutoDeal, Carmudi, or Facebook Marketplace.

Through research, you will see which prices are fair and which ones may be suspicious. If the selling price is too low, there might be an issue. Ask the seller if possible.

2.   Check the mileage

The mileage indicates how often the car was used. The lower the mileage, the better. It should also come with a proper maintenance record.

• Benchmark: Lower than 20,000km per year
• Red flag: If the car is old and the mileage is suspiciously low, there is a possibility that the odometer might have been manipulated.

3.   Inspect the car’s condition (both inside and out!)

When inspecting the condition of the car, it is better to have a mechanic or someone who is knowledgeable about cars with you. The following are things you should look out for:

• Exterior: Check for rust, scratches, repaint jobs, or uneven gaps between panels
• Interior: Look for damage on the dashboard, seats, and controls
• Under the hood: Inspect fluid levels, engine belts, and battery age
• Tires: Uneven wear could mean misalignment or suspension issues

 Watch out for a musty smell, as this could mean flood damage. Also, mismatched paint can be a sign of accident repair.

4.   Review the car’s documents

Always check for complete, updated, and clean paperwork:

• OR/CR (Official Receipt/Certificate of Registration)
• Deed of sale (if buying from a private individual)
• Service records (to verify regular maintenance)
• LTO Clearance (to ensure it’s not carnapped or involved in legal issues)

 Make sure to:

• Ensure all documents are original and not forged.
• Verify that the dates on the documents are current and match the car’s information.
• Make sure the seller’s information on the documents matches their ID.

 It is always better to consult with a professional. If you’re unsure about any aspect of the car’s documentation, consider getting a professional inspection.

5.   Take it for a test drive

Test drives are essential. If possible, take the car for a test drive in the city, on bumpy roads, and on highways. Feel out if the car runs smoothly.

 Listen for strange noises, observe if the steering pulls to one side, and check the brakes, clutch, and air conditioning.

 The car should feel responsive, stable, and comfortable.

6.   Ask the right questions

Whether you’re buying from a dealer or a private owner, don’t be afraid to ask:

• Why are they selling the car?
• Has it been in any accidents?
• Are there any upcoming repairs or issues you should be aware of?

 Their answers can tell you a lot and help youcan help you in your decision – making. 

7.   Secure financing that fits your budget

You can still get an auto loan even when buying a secondhand car. Security Bank has auto loans for secondhand cars with flexible terms and competitive rates.

Security Bank  has a car loan that can help you figure out what is within your budget before going car-shopping.

A truly good deal on used cars is not only measured by a good price — it is also about the car’s condition, history and how well it fits your needs. Allot time to research and double check, be detail-oriented, and don’t rush the process.

And when you’re ready, Security Bank Auto Loan is here to help you turn the key and drive your next car.

 Start your journey today!