Before we answer this commonly asked question, just think about what is better for you. It is obvious that you have 2 options; a brand-new car or a used car. As a well known fact, buying a brand-new car can make you lose some money because the price of the brand-new car will be depreciated as soon as you buy that new car, but buying a used car can make you avoid that depreciation.
With a large selection of used cars nowadays, there is no greater value than buying a used car. However, it is also the highest risk, especially if you have no idea about what you should do to get the best deal without getting scammed by the unscrupulous people who are ready to cheat you. Therefore, it is highly recommended that you arm yourself with all the needed research and collecting the most possible information about the specific used car you wish to buy.
Buying a used vehicle is a big challenge, especially if you have no idea about the car you are going to buy, so it’s highly recommended that you take your time to collect the needed information and research via the internet to arm yourself before going into the battle of buying used cars. To avoid the pitfalls of buying used cars, do your research online and through multiple dealerships and used car lots.
According to my research there are easy, but powerful steps that will enable you to buy the used car you need. Read them carefully and imagine yourself doing them while reading to memorize them quickly and to be able to implement them effectively in the real life to get the best deal like never before.
Consider the benefits of buying a used car
According to the experts at Kelly Blue Book, “In three years a brand-new car could depreciate by as much as 73 percent of its value. At the best it will retain only 62 percent of its value after three years. That’s one major advantage to buying a used car.”. Therefore, why do you throw money away with buying a brand-new car while you can get a high-quality and recent model used car.
Here are some other good reasons that encourage you to do that:
- Skillful used car buyer can explore bigger deals.
- Certified used cars are widely being sold nowadays, such as certified pre-owned cars which you can purchase with peace of mind because they have been thoroughly inspected and are covered by warranties.
- Used cars are now more reliable than ever before.
- Used cars from 1 to 3 years old are generally still covered by factory warranty.
- You can find the history of the used car by using the car VIN (Vehicle Identification Number) and by using the vehicle history report. And you can get that report easily from CARFAX or Autocheck.
- Online, you can check the safety ratings and crash tests for almost any used car.
Set a budget for your purchase
Next, you will need to consider how to finance the car before you go for shopping. Use online tools to help you with that and make a financial plan that suits your budget. Experts at edmunds.com say “Make sure that your monthly payment does not exceed 20 percent of your salary”. It is essential to see how much your specific car really costs. Tools like True Market Value (TMV), True Cost to Own (TCO) on edmunds.com and website like kbb.com will help you with that.
By using affordability calculator and other online calculators, you can determine how much you can pay as a monthly payment. Determine how much you can pay as a down payment for the car if you are going to take out a car loan. It is important to realize that you will not pay only the car price, but you should also consider the other costs of vehicle ownership, such as insurance rates, extended warranties, maintenance, and fuel costs.
There are two ways to buy a used car; either you pay cash or you take out a loan. Taking a loan to buy a car is also called financing the car. You can finance for your used car through a bank, online lender, credit union, or a dealer. It is highly recommended that you finance through the first three, especially bank and online lender.
Choose the right used car
Used car buying has become very popular nowadays, so you will find a large selection of car models to choose from. Search on T.V, magazines, internet or at used car dealerships. Consult friends or relatives. Nowadays the Internet has become the most valuable tool. You can research the large selection of different car models and prices.
Make a list of several used car models that you are interested in and then narrow your list down to 3 or 4 cars. Before you take your list of preferred cars and go to the dealership or private party to purchase, research the car and collect as much information about the car as you can to arm yourself with all the needed knowledge that will save you money and make you get the great deal without getting scammed.
Before you decide on the car model, you should decide whether you will pay the price of the car in cash or you will finance on the car and pay monthly payments. Ask yourself does that car suit your needs? How big you want the car? Does it have headroom and legroom for you and the other passengers? How many passengers will ride in it? Do you need cargo room or towing capacity?
Once you have decided the right model or body style that is excellent for you, you should start collecting detailed information about that specific used car using its VIN. The VIN is included in many online car listings. Websites such as CARFAX OR Autocheck can help you do so easily. Use this VIN to get the vehicle history report which is vital to know the overall condition and history of the car. You will know whether that specific car has ever been totaled, flooded, stolen or whether the odometer has been rolled back.Those are essential information when you consider buying used cars.
If you want to save money, read the consumer reports and car reviews of the model that you are interested in. Compare Kelly Blue Book values, research resale values. By doing your research up front, you can avoid any model if it has a potential issue.
Best places to find used cars
There are a lot of places where you can find used cars, such as online websites, CarMax, dealerships, Auctions, and private party. Each place has its own pros and cons.The certified pre-owned cars are the most expensive used cars. If you want to know more about them you can check out the certified pre-owned vehicle programs at edmunds.com. Make sure that you do not buy a lemon used car.
Test drive and inspect the used car
Test driving and inspecting the used car that you have decided to buy is a very important factor in determining whether or not you proceed with your purchase, you may keep this vehicle for years to come, so make sure that the car is reliable and high performance. Try it in different roads to explore any potential problems you may find later, after you will have bought it.
After you collected the necessary information about the car, contact the seller and arrange an appointment to test drive the used car.When you go to test drive the car, bring along a mechanic because it is highly recommended that you take a mechanic with you to inspect the used car.