Should You Buy A Used Car?
Most of us realize that most car purchases are not made as investments. We buy cars in order to obtain transportation. That is the reason that a lot of people prefer to buy used cars. They know that new vehicles lose a lot of value the minute they drive off of the long.
On the other hand, you have to be wary when you purchase a used vehicle. You do not want to pay too much, buy a lemon the previous owner wanted to get rid of, or make some other common mistakes.
How Do You Know If A Used Car Will Be Reliable?
Most of us probably have some used car horror stories. I know I sure do. I have learned to check out my purchases a little better before I decided that a cheap used car was really a good deal.
I have had the best luck with late model used cars. Sometimes you can find vehicles that rental companies sell after they are a year old. Other times, you may luck into a low mileage vehicle that is on the market because the previous owner just likes driving new cars all of the time. Other times, you may find a good car on the market because the previous owner needs to move.
Some used vehicle dealers offer warranties. This can offer some protection. If you decide to purchase your vehicle from an individual, take it to your auto mechanic before you buy it! A quick check by a good mechanic can save you a lot of grief in the long run.
How Do You Estimate Good Used Auto Prices?
Figuring out how much you should spend is tricky sometimes. Price guides like Edmund's and the Blue Book may have some value. But they certainly do not always reflect actual buying and selling prices in your local area. You will probably come up with better numbers if you search classifieds or large auto trading websites for actual local prices. These are great sources of real information about today's market in your own city.
Always do your homework before you set out to purchase a particular make or model. This is good advice if you want to buy a car from a dealer or an individual.
If you plan to visit a dealer's lot, make sure you check the company website. The car you want to buy could have a lower listed price on the website than it has posted on the lot. If you do not know that a lower price has been posted elsewhere, no salesman will be likely to volunteer that information.
Be Ready To Deal
Some auto lots do not deal on prices. The sticker price is the actual price. This is, however, uncommon. Most of the time, the sticker price leaves you some room to negotiate. If you have done your homework, and have some facts to back up your offer, you will have an easier time getting a good deal.
Factor In Financing
If you need to finance your auto purchase, you have to take that into account. Interest rates can vary a lot, and a small rate difference can make increase your car payments, and the real cost of your purchase! Of course, you will have an easier time financing a used car with good credit. If you have average or bad credit, it is even more important to shop around for good auto loan rates.
You may want to shop around for auto financing before you ever set out to buy a lot. A lot of banks, financing companies, and even dealers, allow you to get pre-approved for financing.