Buying used is a great way to get behind the wheel of a vehicle without the high cost of current-year models. And with vehicle prices hitting new highs in recent months due to the combination of the pandemic and semiconductor shortages, buying used can help you save money. Even the used purchase could not escape the price increase. The monthly payment for a used car in Q3 2022 was $525, according to Experian. But buying used is still cheaper than buying new. So, as you explore your car buying options, keep these tips in mind to get the best deal.
- Set a Buying Budget
Setting a budget for buying a used car isn't as easy as finding a used car, truck, or SUV that makes a monthly payment that you think you can handle. While the monthly payment should be affordable, you should look beyond that to get an accurate idea of the total cost of owning the car. This includes the interest cost on your car loan, how much you have to pay to insure your new ride, and parking and maintenance costs. You need to find a balance between the initial cost and the ongoing cost. If you buy an older vehicle, you can expect a lower price. However, the older the car, the more likely it will require an expensive repair.
- Explore Financing Options
Choosing the right financing option for your vehicle is akin to finding the perfect used car for teens under 3,000. Your options include banks, credit unions, online lenders, and merchants. Almost all lenders offer used car loans within a specific mileage or model year, so you shouldn't have any trouble finding the right loan. Shop around to make sure you get the best auto loan rates and terms available.
- Inspect the Car
Inspect both the exterior and interior of the vehicle. Look at the exterior of the vehicle, CARFAX says, and look for scratches, dents, and rust. You probably don't have to worry about small dents or scratches, but larger damaged areas may be cause for concern. CARFAX also recommends checking that the body panels are evenly aligned, as uneven panels can indicate that the vehicle has been in an accident but not repaired properly. It's also a good idea to open and close the doors, hood, and trunk to see how easily they move.
- Take a Test Drive
According to Edmunds, a test drive can help you determine the condition of the car and whether it's right for you. You might want to turn the key to the "accessory" position before starting the engine, says KBB. You should see all the warning lights illuminate on the dashboard. If they don't light up or stay on when you turn the ignition on, make sure the problem is investigated. When starting the engine, KBB recommends listening for knocks and clicks, which could indicate a problem. Keep your eyes and ears open for a test drive.
