How to save money on a used car
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Saving money when buying a used car can be done quickly and easily by following a few simple steps. Used cars can be purchased from your local newspaper, car auctions, online, or from your local dealer. In any case, make sure you have installed...
Saving money when buying a used car can be done quickly and easily by following a few simple steps. Used cars can be purchased from your local newspaper, car auctions, online, or from your local dealer. Either way, make sure you set your budget, find out about any problems the car might have, and find out how much the car is really worth. By keeping these factors in mind, you can save money and get a quality used car. In the following article, you will learn how to save money on a quality used car that suits your needs.
Method 1 of 3: Buying a car through a local newspaper
Necessary materials
- Local newspaper (used car section in classifieds)
- Cellular telephone
- Computer (for checking vehicle history)
- Paper and pencil
Looking at used car ads in the classifieds section of your local newspaper is one way to find a good price on a used car. Many listings in the classifieds section feature vehicles sold by their owners rather than dealerships, although you may find dealership offerings as full-page ads.
Buying from a private owner can cut many of the fees associated with buying from a used car dealer, although dealerships may offer special offers such as financing and warranties.
Step 1. Determine your budget. The first thing to do before looking for a used car in local newspaper ads is to determine your budget.
Using a car loan calculator, such as a bank loan calculator, can help you figure out how much you'll pay each month for your car.
Knowing how much you can spend helps when compiling a list of available used cars that fall within your price range.
Step 2: Choose the cars you like. Browse used car ads and select those that feature cars in your price range.
Keep in mind any particular make, year, or models that you are most interested in.
Pay attention to the mileage of the car. The average mileage of most used cars is around 12,000 miles per year.
- AttentionA: The higher the mileage, the more maintenance issues you can expect. This may increase your personal expenses in addition to what you pay for the car.
Step 3: Compare Asking Prices to Market Value. Compare the price the seller is asking for the car against the actual market value of the car online on sites like Kelley Blue Book, Edmunds, and NADA Guides.
Prices vary based on mileage, trim level, model year, and other options.
Step 4: Call the seller. Call the dealer about the used car you are interested in. At this stage, ask the seller about any features of the car and find out more about the history of the car.
Topics you should ask about include:
- Learn more about any mechanical problems
- How was the car serviced?
- Features that are included in the car
- How many tire miles were on the car
The answers to these topics will let you know if there are any potential costs to consider after making a purchase.
- FunctionsA: When buying a car from a dealer, make sure your credit score is in order. A bad credit score can lead to a higher annual percentage rate (APR) and can literally add thousands of dollars to the amount you have to pay off when financing a car.
You can find your credit score online at sites like Credit Karma.
Step 5: Test drive the car. Be sure to test the vehicle to determine how it idles and how it behaves on the open road.
If you are really interested in the car, also consider taking it to a mechanic at this time to check it out for a pre-purchase check.
- AttentionA: Any potential problems with the vehicle can give you an edge when trying to get the seller to lower the price.
Step 6: Get a Vehicle History Report. If you're satisfied with the car, be sure to run a vehicle history report to make sure it doesn't have hidden issues that the seller doesn't tell you about.
You can outsource this to a dealer or do it yourself using one of the many auto history sites available, such as Carfax, AutoCheck, and the National Vehicle Name Information System, which offer a wide variety of auto history sites for a small fee.
On the vehicle history report, make sure the title does not have any collaterals. Deposits are rights to a vehicle from independent financial institutions, such as banks or financial loan services, in exchange for help paying for the vehicle. If the title is free from any liens, you will be able to take possession of the car after payment.
Step 7: Negotiate the best price. Once you are sure that you know about all the problems of the car and its total cost, you can try to bargain with the seller.
Be aware that some sellers, such as CarMax, do not haggle about the price of their vehicles. What they offer is what you have to pay.
- FunctionsA: When buying from a dealer, you can save some money by negotiating the car price, interest rate, and the value of your exchange item separately. You can try to negotiate the best terms for each of these aspects in order to get the best deal possible.
Step 8: Sign the title and bill of sale. Complete the process by signing the title and bill of sale.
Make sure the seller has completed all relevant details on the back of the name at this time to make the name change process as easy as possible.
Method 2 of 3: Buying a car online
Necessary materials
- Компьютер
- Paper and pencil
Many used car dealers and private sellers are now using the Internet to sell cars. Whether it's through dealer websites like CarMax or classifieds websites like Craigslist, you can find a wide selection of used cars at a decent price.
- A warning: When responding to an ad on a site like Craigslist, be sure to meet potential sellers with a friend or family member in a public place. This will protect both you and the seller if something bad happens.
Step 1: Decide what kind of car you want. Browse available models on the dealer's website, or check out the listings when viewing private listings on Craigslist.
The great thing about dealer-run sites is that you can categorize your search by price, vehicle type, trim levels, and other considerations when looking for the car you want. Private sellers, on the other hand, cut many of the fees that dealerships add.
Step 2: Run a vehicle history check. Once you've found the vehicle you're interested in, run a vehicle history check like in method 1 to make sure the vehicle doesn't have any potential issues, such as an accident or flood damage, that could prevent you from buying a car.
Also, check the mileage to make sure it is within acceptable parameters. Typically, a car averages about 12,000 miles a year.
Step 3. Contact the seller.. Approach the person on the phone or contact the dealer through their website. Make an appointment to inspect and test drive the vehicle.
You should also have the car checked by a third party mechanic to make sure it is in good condition.
Step 4: Negotiate a Price. Bargain with a car dealer or private individual, keeping in mind the car's fair market value and any potential issues that arose when checking the car's history.
Remember that you will likely have more luck if you get a discount when you buy from a private individual.
- A warning: When dealing with a car dealership, look for an increase in another area (eg interest rate) if they agree to lower the price.
Step 5: Pay and complete the paperwork. Once you are satisfied with the amount for the car, pay for it in any way the seller prefers and sign all necessary documents, including title deeds and bills of sale.
Also be sure to purchase any warranties when buying a car through a dealership.
- Functions: It is important to have a warranty, especially for older cars. A warranty can save you money when an old car breaks down due to its age. Find out when the warranty expires.
Method 3 of 3: Buying a car at an auto auction
Necessary materials
- Компьютер
- Inventory list (to determine which vehicles are available and when each will be auctioned)
- Paper and pencil
Car auctions offer another good way to find a great deal on a used car. The two main types of auctions include state and public auctions. Government-sponsored events showcase old cars that the relevant agency wants to dispose of. Public auctions feature cars sold from members of the public and even dealers.
- A warningA: Be careful when buying from the public auction. Vehicles at public auctions are usually those that won't be sold at dealer auctions or that have serious problems, including flood damage or salvaged engines. Be sure to check the history of a car before bidding on a car in a public auction.
Step 1. Determine your budget. Determine the maximum amount you are willing to spend on a used car. Be sure to specify a place for bidding.
Step 2: Check the lists. Browse your inventory list to find the vehicles you're interested in, keeping in mind how much you're willing to spend.
If possible, you can visit the auction website to view the car listings in advance. For example, here are the lists of available cars on the iaai.com auction site.
Step 3: Attend a preview session the day before the auction.. This allows you to check any of the vehicles that interest you.
Some, but not all, auctions give you the opportunity to take a closer look at vehicles, including running them to see how they perform.
Be sure to write down the VIN number for later use when creating a vehicle history report.
You can find the vehicle's VIN on the top of the dashboard on the driver's side (visible through the windshield), in the glove box, or on the driver's side door.
Step 4: Run a Vehicle History Report. Run a vehicle history report as in methods 1 and 2 to ensure there are no unreported issues with the vehicle.
Avoid bidding on any vehicle that looks like it has been faked, such as an odometer.
The best way is to see if the odometer has been changed on the vehicle history report. Vehicle mileage is recorded at every repair or service. Verify that the vehicle's odometer reading and the mileage reading on the report match.
You can look for missing screws on or near the dashboard to see if anyone messed with any of the dashboard components.
Step 5. Bet Carefully. Bid on the car you want, but be careful not to get bogged down in the bidding.
You might even consider visiting a few auctions in advance to get an idea of how the whole process works.
In addition, you should pay attention to the mood of the crowd in the auctions leading up to the vehicle you are interested in to see if the crowd is bidding high or being more economical in their bids.
- FunctionsA: Leave room in your budget for shipping if you plan to buy from an out-of-state auction.
Step 6: Pay your winning bid and complete the paperwork. Pay for any car you win a bid on with cash or approved credit. Do not forget to also sign all necessary documents, including the bill of sale and title deeds.
Buying a used car is a great option if you're looking for a more affordable way to own a car. There are many used cars that you can find through car dealerships, local listings, and car auctions. By following this guide, you can confidently find a quality car at a lower price.
If you complete the purchase of a vehicle, you can confirm its condition by having a pre-purchase inspection by a certified specialist, such as AvtoTachki. Our certified mechanics come to your place to inspect the vehicle to make sure there are no surprises after you have made your purchase.
