Buying a car has always been an emotional roller coaster, let alone to buy a used car.
Most people know that when you buy a car, the moment you drive it out of the lot. Just going around the block and returning it to the dealership, the car has lost value already.
Keep in mind that upgrades depreciate more in the long run. That means when you buy a car for $15,000 with a roll-up window and basic features vs. a 2-3-year-old car that has full features at the same price. Gives you more value for your money in the long run and you can enjoy more of the amenities of the upgraded car than the trimmed down version of the model.
Buying a used car will be the best option that you have. 30%-40%
Get your own financing
Getting your own financing removes the additional fees that a dealership might tackle-in. If an independent lender gives you a 3.99% rate and dealerships tries to beat that.
Do your own research and use a car loan calculator. This way you can see the financing and the monthly note will give you a have a specific number to play around with.
Shop on the internet
With the power of research on your side, shopping on the internet has never been easy. If you have a specific kind of car, look into those inventories.
It is also important you consider the dependability of the car. Read ranking cars by reliability, most newer cars are fairly reliable, you just need to know that they have done the basic maintenance to the car.
A used car is not perfect, but most of the newer vehicles have 100,000-mile major maintenance schedule to it so basic maintenance like oil changes, tires change, or brake pads replacements are typical below the 100k mark.
Work on the price of a car, not payments
Do not fall with the question “how much payment you’d like monthly?” Dealers will just stretch your payment, making you pay more on the financing and you’ll end up with a very old car by the end of the loan term.
Always work-in your trade for last
If your trading your car, always discuss it on the very end.
Dealerships can only deduct the trade after you have discussed the final price of the vehicle.
Leave all the add ons for yourself
It’s always cheaper to buy floor mats, paint protection, or roof racks outside the dealership.
These are the main add-ons that they usually tack on and make money from. Don’t get me wrong but dealerships are a business and they need to make a profit, but some these items are so overpriced it’s far cheaper for you to get them yourself.
If they are pushy about it, tell them that you’ll get them if you pay invoice price for the items.
They may not budge and just completely say “No thanks!”
Be polite but stern, you’re too far in the game and used most of their time already for them to not make a deal with you, they know that you are serious anyway.
Final thoughts
There is a sensible way to save more by buying used cars. I understand that it’s stressful and full of details to consider moving forward.
Fees are sneaky way dealers push their commission and cost to you, but these guides could lower your cost and make more bang for your buck in the long run by keeping the car longer.
We have a variety of tips and tricks that you can take advantage of and learn from. View some of our posts and news here.
