Happy Home InsiderNothing beats that new car smell. But when you consider that new cars came in at an average price of $39,000 in 2020, you can surely beat that price by opting for a used vehicle.
While used cars are cheaper since they let someone else take the depreciation hit, they can be risky. Here are some tips to ensure you get the best deal on your used car, so you save money while scoring reliable transportation.
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The Benefits of Buying a Used Car
New cars depreciate so quickly that they can lose 20 percent of their value in the first year. As mentioned, buying used makes the original owner absorb that depreciation so you can get the car at a much lower cost.
Besides being cheaper, used cars can give you similar benefits to new automobiles. It’s easy to find used cars nowadays that are still low in miles and in excellent condition. You can even find them with original warranties for added peace of mind. Depending on the age and how it was kept, you could also get that new car smell that’s so desirable.
When to Buy a Used Car
Is there a time of year when you can score the best used car deals? Yes, and that’s usually when dealerships hold sales events to move their new models. Times of year when such events seem to occur include Labor Day, Memorial Day, July 4th.
Beyond those dates, try to look for used cars around September or October. That’s when model years end, which means dealerships need to clear out their inventory to make room for new vehicles. The end of each month or quarter are also great times to snag used car deals, as dealerships need to meet their sales goals.
As for when you should avoid shopping for a used car, that’s on the weekends when more customers are present, and sales staff are busy. You’ll be less likely to receive help on these days versus weekdays.
Where to Buy a Used Car
The number one goal when buying a used car is to avoid purchasing a lemon. This can result in a nightmare, which is why your best bet is to shop at franchised car dealerships.
If you can afford it, opt for a certified pre-owned car. It’ll undergo a rigorous inspection, have lower miles, and probably still be under warranty.
Where should you avoid buying a used car? Your mileage may vary, but independent car lots with suspiciously low prices should probably be avoided. Not only could you be looking at a lemon, but you could also get hit with higher interest rates if you finance through them.
Does this mean all small dealerships are a no-go? Not necessarily, as you could find a diamond in the rough. Search for online reviews before making the trip.
If you’re looking to buy a used car online, try sites like Carfax, Kelley Blue Book, Autotrader, or Edmunds. All can give you a glimpse into what’s out there for your budget. You can then schedule in-person test drives.
To get the most bang for your buck, you may want to look into buying from a private seller. They can tell you more about how the vehicle was maintained and can offer a lower price.
Before buying from a private seller, know that you’ll be getting the vehicle as-is. You’ll also need to secure your own financing. Don’t make a deal without confirming that the seller has a clear title to the car. And to make sure the vehicle doesn’t have any hidden issues, get a Carfax report and have your mechanic inspect it.
