If you can not afford a new car, buying a used car may be your only option. And it may be the smartest one, too! When you buy a new car, the moment you drive it off the lot – its value has already depreciated. Buying a used car, you may be able to drive a car that is almost as good as the brand-new one – but for a much smaller price!
You will also be able to save money on the car insurance, and the car itself may still be covered by the factory warranty. Used cars are nowdays more reliable than ever before, and now it is also possible to buy a certified used car (with a warranty). You can easily trace a car's history thanks to its vehicle identification number. And, if you know the right questions to ask your used car dealership, you may be able to negotiate a good price: there is a possibility for a real bargain on a used car.
Do you already know what you want? You may have already decided on which car you want to buy, but do not limit yourself too early: if your choice is a popular one, you will pay more. The price of a used car depends on its condition, performance, mileage … and popularity. It is smart to consider a less popular, but comparable model of a car.
Much more important than that is to know how are you planning to finance the purchase of the car. To make an informed decision, you need to decide on your budget before you even step a foot into the used car dealership. After that, you have three options: you can pay cash, you can arrange financing through a dealership, or you can finance through a bank or credit union.
Make sure you run a car's history report based on its vehicle identification number before you decide to buy. If the car is between a year and three years old, and has fewer than thirty-six thousand miles on the odometer, it will still be under a factory warranty. It goes without saying, the car needs to be thoroughly inspected before buying.
Still, buying a car from a used car dealership is for many an intimidating experience. Sure, we've all heard the stories and, yes – there are some risks involved when buying from a used car dealership, but is not that a case with everything in life?