Financial planners often recommend purchasing used cars rather than going out and buying a new car. The reason behind that is that when you purchase that sparkling new vehicle from the dealership lot, the value decreases almost immediately – and significantly too. By purchasing a used car, you can avoid that instant deflation, and put your hard-earned money to better use.
The average price of a used car in 2018 was $20,390 compared to the average price of a new car which was a whopping $35,250. Of course, you don’t want to get a lemon either – by shopping smart, you can get a great used car and enjoy the savings too.
Shop Online First
Avoid spending hours and hours of your time driving around to a bunch of dealerships and haggling with car salesmen by narrowing down your search online first. If you already have an idea of what make and model you want to purchase, search online first to see which dealerships have the vehicle available. Since you are buying used, not every dealership will have the car you want, in the color you want, with low miles, and in your budget.
Purchase from a Reputable Dealer
One of the most important things you can do is to do some research to be sure that you purchase your used car from an established, reputable dealership. The small corner lot dealer may have the lowest price, but more than likely that haven’t done a full review and quality check of the cars they’re selling. Well-known dealerships like Toyota, Ford, and Chevrolet, can be found in every state and provide a guarantee as to the condition of their used cars. You should also know that these dealerships have used cars in many different makes and models, not just their own.
Another benefit of purchasing from some large dealerships is no-haggle pricing. Search for options in your area like DGDG that don’t pay commission to salesmen and negotiating the cost of the car is generally off the table, since they tend to price vehicles at the lowest market rates. It makes the entire process much less stressful and dramatically reduces the chances of getting “taken.” If you own a house among Scottsdale real estate in Arizona, for example, you’re likely to find many of these reputable dealerships in the area, although they can be found in most major cities these days.
Get a Warranty
It’s essential to ensure that the used car you purchase comes with a good warranty. Most manufacturers offer coverage for three years or 36,000 miles but ask your dealer about an extended warranty for five years or 50,000 miles, or the longest warranty available which may cover the vehicle for as long as 10 years or 100,000 miles.
A bumper-to-bumper warranty will cover the cost of damage to all parts of your car, except for normal wear items, such as tires, brakes, and windshield wipers. Powertrain warranties cover all moving parts, including the engine, transmission, and suspension.