Where can I find used cars for less?
Buying a used car offers many advantages, especially the fact that someone else has taken the hit from depreciation. A good used car can provide just as much driving pleasure and reliability as a new car, at a much lower price tag. Where the American Dream used to be a new car every few years, more and more people are buying quality pre-owned cars and driving them longer. One reason for this is the cost saving, and another reason is that driving a flashy car now doesn’t have to mean driving the latest model off the showroom floor.
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The key in getting a fabulous used car is knowing how and where to buy good used cars for less than you might pay at a dealership. Ten important used car buying tips are listed below.
Use Price Guides Carefully
Too often, car buyers look up the “blue book” price on a car and proceed to pay the suggested retail for that vehicle, in that condition. Definitely use the used vehicle pricing guides, but try to pay the wholesale or trade-in value on the vehicle, not the retail value. Although sometimes the final price will be more than trade-in value, the goal should always be to buy at wholesale value.
Make a Low but Fair Offer
Most people selling a car will take less than they ask. Make an offer that is lower than the advertised price, but not so insulting that they will immediately turn it down. If the seller isn’t sure or says they can’t go that low, leave a phone number and ask to be called if they change their mind.
Have a Mechanic Look at the Car
Saving money means buying a good used car at a good price. Have a trusted mechanic check out the car and make a list of any repairs it’s likely to need in the next year. Add the cost of these potential repairs to the cost of the car to determine whether it’s a good deal.
Network About Your Car Needs
Tell friends, coworkers and family members about the car search. Ask them to be on the lookout for the particular type or model of car desired. Many times someone will know someone else who has a car for sale or is getting ready to sell their car. These opportunities only come about through word of mouth, so use it liberally.
Check Out Auctions
Look for public auctions, where anyone can bid on cars. These auctions sometimes have very good deals. Another option is to befriend a dealer and ask to go along to a dealer auction. A dealer may also be able to help find just the right car, in addition to providing access to the auction. When accompanying a dealer, it’s a good idea to offer a thank you gift of one hundred dollars for the favor.
Buy an Ugly Duckling
If price is more important than appearance, consider buying a car that has been sitting on a dealer’s lot for weeks or even months. Confirm that the car is mechanically sound. If the reason it has not sold is cosmetic, the dealer may be willing to sell it for a lower price than advertised. Sometimes a car in an ugly color or with unfortunate aftermarket accessories can be bought for significantly less than a comparable car with no appearance problems.
Get a Carfax Report
For $25 Carfax offers one month of vehicle background checks. This should be more than long enough for a used car search. Carfax reports on accidents involving the car, the chain of title, and even safety information and reliability scores for that make and model.
Look for Repossessed Cars
Some smaller banks and most credit unions sell repossessed cars on their own. Find these car sales by contacting local banks and credit unions. These sales usually involve written bids with a $50 deposit, refunded to non-winning bidders.
Buy from Rental Companies
Rental companies sell their older cars when they get new cars in. These cars are a good buy when they can be purchased at wholesale value or less. However, avoid paying too much because these cars have had many drivers and have experienced more wear than one-owner cars.
Buy the Company Car
Many companies sell their off-lease vehicles to employees or employees’ family and friends. In fact, according to the Wall Street Journal, as many as 33 percent of company cars are sold in this way. Buying an off-lease vehicle from an employer can mean a savings of several hundred to a thousand or two thousand dollars over buying the same car from a dealer.
Buying a used car is both simpler and more complicated than ever. It used to be a matter of following up on an ad in the paper or going to the local dealer. Now there are more opportunities than ever to save money on a used car. These choices can seem overwhelming, but by carefully reading and following the tips above, car buyers can easily find a great used car at a great price. Be sure to save on car insurance as well by entering your ZIP code into the FREE comparison tool below now!
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