To buy used car is a great idea for saving money. Everyone knows that a new car lost 65% of its value in the first 5 years. But the case would be more extreme for a 1 to 2 years old car, it will lost its value 30-40%.
If you don't mind to drive a used car (I mean a 2 to 5 years old car, it looks pretty new) rather than a new car, you may save much money to pay many other bills. If you want to keep the car not too old, you may resell it after driving for 2 to 3 years and buy another newer one. The value of the car will only drop 15% or less for a 5 years old car. Therefore, your driving cost for 2-3 years would only be 10-15% of the car's original value.
The price quote above was only the price you buy from an ordinary car dealer. However, you can buy it much cheaper online.
Before entering the dealership
Before you step foot on a dealership lot, there are several things you need to think about, including what type of vehicle you can afford, what type of car is right for you, and what your credit history consists of.
Once you decide on type of car you need it is time to do your research to narrow down the choices. A number of resources on this site can provide you comparison information rating the vehicles within specific categories. Compare such areas as safety, reliability, fuel economy, warranties, operating costs, theft rates, general features, and options when making you decision.
At car dealer !
1. Check the vehicle's safety features.
Consider a vehicle with air bags and anti-lock brakes. Not only will they make a car safer, but insurance companies sometimes give discounts on their rates for cars with these features.
2. Inspect the mileage.
Mileage is a good indicator of the vehicle's age, and the average consumer will drive from 12,000 miles to 15,000 miles each year. A late model used car may be more cost-effective and come with many features you may not be able to afford in a new car.
3. Check the mechanical condition of the use car.
If you don't feel comfortable doing it yourself, have a mechanic you trust check it for you. Fluids, lights, belts, power steering, the charging system, the air conditioner, the engine cooling system, the brakes and the suspension should all be carefully inspected for any defects and wear. And don't forget to test drive the car.
4. Examine the tires.
Uneven tread wear can be a sign that the car may need an alignment, or that it has damage to its suspension. Make sure the spare tire is in working condition with no damage or excessive wear.
5. Watch for frame damage befor you buy used car.
Seriously damaged cars may be repaired, re-titled and sold in some cases, masking a vehicle that may not be structurally sound. When looking at a used car, check for:
-- rust around the fenders and bumpers, around lights, under doors and in wheel wells
-- cracks, dents and mismatched body panels
Cars that have been previously damaged may be more likely to have mechanical problems, and do not withstand accidents as well as cars that are structurally sound.
6. Check for cosmetic problems.
Common signs of wear and tear in used cars include cigarette burns, dirty upholstery, smoke stains, and paint scratches and chips.
7. Carefully read and understand the terms of any warranty offered on the car.
Don't hesitate to ask questions of your salesperson, and be wary of hidden conditions and exclusions that may be in the fine print. A reputable dealer will answer your questions completely and explain the details of the warranty.
8. Check the price.
The actual price of the car is only one of many factors that will determine your total price. Don't forget to compare financing rates, warranty costs, trade-in values and processing fees. The different features on the vehicle can also make a price difference. For example, a car with an automatic transmission is usually going to be slightly higher in price than the same car with a manual transmission. Research the vehicle you are considering, and find out what comparable prices are for similar vehicles in your area.
9. Look for a reputable dealership.
Ask around, and talk to previous customers of the dealer to find out what their experiences were like. A good dealer is more likely to be fair and up-front in price, value and condition of its vehicles, and won't pressure you to buy a vehicle you don't want. Hassles should never be part of buy used car proces. Be prepared, and know what you're looking for.
How to achieve the best used car price?
Don't buy the first thing you see, or in this case don't believe them when they say that they are the ones with the lowest new car and used car prices, they have to say that, it's their tactics! Be smart and don't enter the dealership without visiting some of these sites Cars.com , InvoiceDealers , Autoweb , Car.com , CarsDirect , Ford Direct and AutoUSA . Find out how much you can buy used car for and then go to your car dealer and let the games begin, of course on your terms! Don't be a dumb buyer as you are expected to be, do your homework if you want to buy used car at the lowest price possible! And one more thing, don't hesitate to buy used car online if your new car purchase quote from CarsDirect is lower than the car dealer. Click buy and they will let you know what is the next step, and in a few days your new car will arrive, and you saved your money and precious time!
There are many ways to buy car but only one is right!
A car dealer isn't your only option - Online car purchase will save you time and money!
This is the best car purchase option you will ever find, because you will find everything you need to buy used car from the comfort of your home. The whole buy used car process can be done online if you know the right way, but we are here to show you how and where. Online you can find and choose your dream car, find specification options, finance options, delivery details, extended warranty, carfax record check,auto loan approval, your credit score and much more.
Getting ready to buy used car
Do your homework first and make much wiser decision before you buy used car. To determine ahead how much negotiating room you have on basic cars and extra options, draw up awork sheet for each type of new car you considering. Using updated price lists available from above sites, write down the dealer's cost and list price, for the particular make, model and trim line.
For each car, list the options you want, describing them with the invoice number. Also before you decided to buy used car, write down the dealer's cost and the list price. Look up the destination charges for that car, and include this in both the dealer's cost and the list price, since there is no murkup. The destination charge is the cost the dealer pays to get the car to the dealership.
Now compare the dealer's cost and the list price for that car. The difference is your negotiating room. Do the same thing with each of the options. You may be able to negotiate on individual options before you buy used car.
Can people with bad credit get a car loan?
Of course they can, they just have to know where to look. If your credit score is below 680 and you keep getting rejected submit an application to a bad credit auto loan resource like AutoCreditFinders . It specializes in searching bad credit car loans for people with bad credit. But again you will have to meet certain minimum criteria, such as : your credit score must be 525 or above, bankruptcies must be discharged, and you should be working for at least 6 months and have no bad credit in the last 6 months.
And one more thing, you will probably pay more APR than others with good credit, but don't worry, this can actually help re-establish credit for you. But that is not all, if everything goes well, meaning you've been paying your loan on time over a certain period of time, you may be able to auto refinance to a lower APR . Anything is possible, so good luck!
Do trade in or do it not?!
If you are thinking of trading in a car you owe money on to buy used car , well think again! If that is yor only option at least make the dealer put in writing that he, actually the dealership, will pay off the car in 10 days as the bank requires. Very often the dealer doesn't pay off your loan on time and the bad news is that the car loan still legaly belongs to you! I've heard of many cases where the dealer never paid off the car loan, and can you guess to whom the bank charged late fees?! Be smart!
Don't pay MSRP when you buy used car!
True Dealer Cost = Invoice Price - Rebates
Your Rock Bottom Price = True Dealer Cost x 1.04
1) Bookmark this page, it contains valuable links you will need in your car buying journey.
2) Research invoice price at Cars.com , InvoiceDealers , Autoweb , Car.com , CarsDirect , Ford Direct and AutoUSA . Make sure you add the invoice costs of all options you are looking for to get true invoice
3) Search for dealer to customer rebates , and manufacturer to dealer rebates . Add these two numbers together to get your total rebate. Most cars will not have a manufacturer to dealer rebate, so don't worry if you don't find one.
4) Subtract the total rebate found in step 3 from the invoice price calculated in step 2 and you have true dealer cost.
5) Multiply the true dealer cost by 1.04 to get your bottom line price. This is 4% profit for the dealer, and is more than fair.
6) Get a used car price quote and start negotiating with the dealer on your terms. I have had dealers offer me less than my bottom line, so when you fill out the form, don't let them know what you are willing to pay ! This quote is not binding, and you will not get spammed .
Inspect that car and run CARFAX Vehicle History Reports
Once you've seattled on the pre-owned wehicle of your choice, it is strongly recommended to have the car inspected by a qualified and trustworthy mechanic. Make sure to check the car's history by purchasing a Carfax report by visiting Carfax website . Any problems that either the report or mechanic may uncover can either be used as bargaining tools to help lower the cost of the car or as to avoid the deal altogether.
Get Yourself An Extended Warranty For That Used Car
I have one more good advice for you: get an extended warranty whenever you buy used car. We'll review car warrant y companies like 1SourceAutoWarranty and Warranty Direct. Be sure to read our Extended Warranty gude. It's a mus t.
