Consumers today are recognizing the savings when they buy used cars when compared to the cost of new cars. A new vehicle averages about $25,000. A year or two later that same car, still in good condition and with low mileage, can be found on a pre-owned dealer’s lot for 50 to 75 percent of that price; as in the first two years of ownership, new cars will depreciate up to one-third of their original value.
Before you begin your search to buy used cars, however, consider carefully what you can afford per month and how many years you want to be re-paying. Then look around for the best deal. Credit unions are often a great source of reasonable, low-interest consumer loans. And of course, you will want to get an appointment with the banking institution that you normally deal with and discuss terms as well.
It is also a good idea to check your credit rating. A discharge of a former loan may not have been reported to the credit bureau in your area and a prospective lender will not get a true picture of your financial status.
If you can budget ahead, before it is time to begin the search to buy used cars, and have even a few hundred dollars saved to use as a down payment, you will have a lower monthly payment and perhaps a shorter term. Depending on the time of year you are considering the purchase, you may also want to consider using your savings for winter tires on sale.
Today’s vehicles are built to last longer than the vehicles of yesterday. When you buy used cars you can often get the warranty along with it, and these cars are inspected carefully before the deal is finalized. You can often even continue the roadside assistance programs and other extra features that were offered to the original buyer. These warranties may include certified pre-owned programs as well as the extension of the factory warranty. Be sure to consider the number of miles on the tires as well and include winter tires on sale in your purchase budget.
Be sure to do your homework before setting out to buy used cars. Many online sites can be accessed which will show what the going rate is for your choice of vehicle that is one or two years old. Go to the dealerships armed with an idea of what the best price should be so you will recognize a good deal when you see it. See if the vehicle comes with an optional set of tires or if the dealership has winter tires on sale that can be negotiated in the purchase price.
Online sites can also allow you to input several different possible scenarios to see how the monthly payment may be affected by length of term, amount of cash used as a down payment, and so on. And use insurance brokers when it is time to purchase coverage as they can get you the best deal.
Most of all do not be rushed. Try to anticipate when you will need to buy used cars and take your time with your preparations. Then you will be able to drive off the lot with a trustworthy vehicle in good shape, with low mileage and just the right financing to meet your budget.