Learn How to Buy the Best Used Car
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With the rise of the Internet as a car shopping tool and amazing deals out there, you can find a great car that fits your budget and meets your needs. There are many advantages of buying used cars instead of new ones: It will save you money on car registration, insurance, taxes, and depreciation (loss of the car’s value because of wear and tear over time).
Here’s what you should keep in mind when you consider buying a new car:
Set Your Budget
There are 2 ways you can pay for your car: cash or loan. Budgeting is easy if you’re paying cash. Don’t spend all your savings: Keep some funds aside for insurance, registration, and any future repairs.
Generally, people take out a car loan so they can buy a more expensive model and protect their savings. It is advisable to get preapproved for a car loan, as it puts you in a stronger position at the car dealership and simplifies the buying process.
To compute the best auto loan for you, use an online loan calculator. Decide to put down about 10% and finance the car for about 3 years. The general rule of thumb is that your total monthly auto expenses should not exceed 20% of your monthly take-home salary
Choose the Right Car
Take some time to think about how you intend to use this car. For instance, you’ll want enough room for everyone and ample cargo space if you have a family. Narrow down the fields that are most important to you by making a list. As you proceed, make a list of 3 target models that you’d want to research in detail.
Check Reliability and Ownership Costs
Every used car is different: Some have more wear and tear, and some have been driven for more miles than others. However, it is important to ensure that you choose models that are recognized for their dependability. Check ratings of used cars along with their maintenance reports.
The overall cost of ownership is another closely related issue. Even though some cars are cheap to buy, they may cost a lot in the long run because of repairs, insurance, depreciation, and maintenance.
Locate Good Used Cars
While there are many websites that list used cars, check out these 4 good ones:
Craigslist: Used cars are listed on this site for free. It’s ideal for finding low-end cars in your location. However, keep an eye out for scammers.
AutoTrader: Since sellers pay to list their cars, it keeps out scammers and generally provides a list of mid-and high-range cars. AutoTrader allows you to easily filter by price range, year, features, model, and make.
AutoList: This aggregator pulls together information from different places into one site that can be searched.
CarMax: This is a good place to find used cars since it has no-haggle pricing and a large inventory. Negotiating isn’t allowed, and all the prices are posted clearly. CarMax also provides financing and offers an included warranty.