Can I buy used cars cheap?
Many consumer finance experts and financial advisors have been saying it for years: A used car is the best type of investment when it comes to purchasing a vehicle. That’s because newer models are not only more expensive, but lose more of their value after finding an owner and leaving the lot. Used cars demand a price that is closer to their actual value, and hold onto that value longer after they leave a dealer.
That being said, buying a used car for cheap does still require a good amount of research and investigation. Customers should buy from sources that offer the lowest prices, and they should know the approximate value of any used car they have their sights set on. This will prevent an overpriced, undervalued used car from becoming a burden on consumer finances in the long run.
Make sure you have sufficient auto insurance for your used car by entering your ZIP code into the FREE comparison tool above now!
Always Know a Car’s Value
It’s certainly possible to find a cheap used car, but consumers must know what the car is worth in order to judge whether or not it is truly cheap. After all, a car might have a low sticker price but have so many miles, and so many years of usage, that it’s actually not worth what is being charged. Remember that a car’s value is based on its age, its mileage, and the condition of its interior and exterior.
The leading resource that takes into account all of these variables is the Kelley Blue Book. Originally printed as an actual book, and still sold in this format at some dealerships and auto parts stores, this guide to used cars is now primarily accessed online. The Kelley Blue Book is a free service for consumers considering the purchase of a used car, and its online form makes the valuation process easy.
Determine if a Car is Really ‘Cheap’
Those in search of a used car, or those who think they’ve found on but want to double-check, simply log onto the Kelley Blue Book’s website and describe the used car in question. The website has a few easy steps to make entering this information easy and straightforward:
- Customers enter the year, make, model, and mileage of the car they wish to buy.
- The website returns a list of trim levels that the manufacturer has produced for that model, and the customer selects the one they plan to buy.
- The website presents an option for the customer to customize power train and optional feature information, although this is pre-filled based on the trim level selected in step two.
- The Kelley Blue Book verifies whether the car is being sold by a private dealer or certified used car dealership, or whether the customer just wants the retail value of the car.
- The buyer then selects the condition of the car being sold, and a value is displayed to them in the final step.
Private Parties: The Best Way to Find a Cheap Used Car
One thing that becomes obvious when using the Kelley Blue Book’s online service is that used vehicles always cost less when purchased from a private party than when purchased from a certified used car dealer. This is due to a number of factors, not the least of which is that a dealer must make a certain amount of profit on each vehicle they sell. They also charge extra for these vehicles because they are “certified,” meaning they have been thoroughly inspected for any problems and have survived that inspection.
Private parties perform no such inspection, and their need to make a profit is far less than what is required of a used car dealership. Instead, their primary goal is simply to sell the car; for most private dealers, simply make the sale is considered profit. Therefore, private dealers offer lower prices on used cars in order to ensure that they are successfully sold to a new owner.
Following Up on the Sale: Cheap Used Cars and Affordable Car Insurance
Buying a new car necessitates interaction with a customer’s insurance company, as they must be informed of the customer’s new car and adjust policy rates according to its new value and the associated risk it poses on fellow motorists. The average consumer assumes that the good deal they got on their old car’s policy will simply carry over to the new vehicle’s coverage. This is wishful thinking, and consumers would do themselves a service to compare rates between other companies.
Each company treats every type of vehicle slightly differently when calculating insurance rates, based on their own in-house assessment of risk and the value of a car should it be totaled in an accident. Therefore, the good deal found on the customer’s old car might just be a fluke, or good luck. In order to ensure that they’re getting the best deal on their cheap used car, a comparison is in order.
These comparisons can be done using an online insurance quote tool which submits information about the new vehicle to every major insurer. The results returned will compare crucial information, including discounts and deductibles, and a consumer will be able to judge whether they should stay with their current company or transfer their policy to a lower-cost provider.
Cheap Used Cars are Easy to Find
A vehicle purchase might not be known as one which is easily affordable, or able to be described as “cheap,” but the right combination of vehicle research, private party shopping, and insurance comparison quotes can ensure that consumers get a good deal from front to back when seeking out a new set of wheels. Enter your ZIP code into the FREE tool below to easily compare auto insurance rates!
One Response to “Can I buy used cars cheap?”
April 12th, 2012 at 12:41 am
It is truly a nice and helpful piece of info. I’m glad that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.
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