Guide to Buying Used Cars

Looking to buy a used car? Here are all the steps you’ll need to follow to find the right model, secure affordable financing, and minimize the chances of overpaying for an unreliable car. Read on.

Setting a Budget

Deciding on a budget for a used car is not as simple as looking for a pre-owned truck, car, or SUV that has a monthly payment you can afford. While the monthly payment has to be affordable, you need to look beyond it at the total cost of owning the car. This includes checking the parking costs, maintenance expenses, etc.

Picking the Right Model

Finding the right used car is harder than finding a new model. With a new car, you just have to find one that meets your needs and budget and head to the nearest dealership to purchase it. In the case of a used car, not only do you have to find the right model, but you also have to make sure it has a low-enough mileage and is in good shape. In short, there’s a ton of research you’ll need to do. Start by looking at the places you usually drive to, how many people commute with you daily, and how you drive. Then, match those requirements with your budget. So, for instance, if you need to take your kids to soccer practice every day, don’t purchase a sports car like the Mazda Miata.

Finding Affordable Financing

If you have enough money and intend to pay for the car in cash, you can skip this part. But if you’re like the majority of used car buyers, you’ll need a loan to help pay for your vehicle. It is true that you can arrange financing through the dealership’s finance department. But if you want to save money, you should get a pre-approved financing offer from a bank or credit union before going near a car dealership. A dealer may be able to beat your pre-approved financing, but they will have no reason to do so if you don’t have one.

Decide how To Purchase the Used Car

Just as there are numerous ways to secure financing, there are multiple places where you can look for a used car. Each has advantages and disadvantages in terms of service, convenience, and cost. Before you purchase a car, you should try to learn as much as you can about the company or private seller who is trying to sell the car to you. So, for instance, if you are purchasing a car from a used vehicle dealership, check the company’s rating on your local Better Business Bureau.