Every year, used cars outsell new cars in the U.S. by about three to one. This isn’t too surprising considering that many drivers appreciate the lower costs available to them this way. Not only do used cars sell for less, but they also tend to come with lower insurance rates, which are two things appealing to people buying their first car, especially if they’re already dealing with other expenses, like student debt.
If you plan on buying a used car, you have several options you can pursue. You can browse the personal ads, go to a used car dealership, or search online. While the personal ads might have great deals, they’re correspondingly more risky to arrange. You might end up with a great car for the price — or you might pay way too much for a car that’s two months away from having a major engine issue. Do you need tips on buying a used car from a dealer? Here are three mistakes you should avoid making.
1. Waiting Until the Last Minute
Some people don’t go used car shopping until they absolutely need a car. They’re getting someone to give them a ride to work, and they’re desperate for a new vehicle. This isn’t the right time for you to get a car, because you lose a lot of control and bargaining power. For this reason, trading in old cars rather than waiting for them to completely break down is wise — if the deal you’re offered isn’t what you hoped for, you can come back in a few days and see what else is there.
2. Not Knowing Your Finance Situation
If you can pay for your car entirely with cash, that’s great. However, the majority of people can’t, or would still prefer structured payments. For this reason, you should know ahead of time what your financing options are. Dealerships are not the only companies that can help you with this — what’s the interest rate at your local bank? It’s worth looking into.
3. Not Having a Mechanic Take a Look at It
You should always opt to have a good auto mechanic check out the used car you’re thinking about buying. Why? Although a vehicle history report can tell you a lot about the car — especially regarding past accidents that haven’t caused visible damage — they won’t reveal anything. Did you know that used car dealers are currently not obligated under law to tell you about any recalls on the vehicle? While this is something you can check yourself, it highlights the gaps that sometimes exist between what a dealer knows or what they want to tell you, and what you end up finding out.
Finding the best used cars out there doesn’t have to be difficult. Do you have tips on talking to used car dealers? Let us know in the comments. More on this topic.
