From time to time, we have threads about buying new cars. Any tips for someone looking to buy a used car. I'd like to aim for something in the 18k to 23k range and that will last at least a good 5-8 yrs. Planning on putting about 6k down and financing the rest.
I just bought a car about 6 months ago. Here are some rules I followed: -- Don't fall in love with a particular make/model. -- Never tell the dealership what monthly payment you can afford. Figure it out before you go and if they ask tell them you'll discuss it when the time comes. -- Always check for specials, especially since you are planning to finance. Although used cars don't typically see specials new ones do you can usually get sub 2% interest rates on used cars at times. -- Research and after that research some more and then research some more after. EVERYTHING. The type of vehicles you want, the dealerships you plan to use, the average vehicle prices in your area, etc. -- Never be afraid to leave. If you find a car you want and begin to negotiate the price, it can last all day. The dealership will do everything they can to wear you down to submit to a price they want but if it doesn't meet your requirements, as long as they are reasonable, don't be afraid to WALK OUT. This is especially true if you have agree upon a price and the dealer introduces fees at the end to bring the price up. -- Try to negotiate online. This is how I bought by vehicle and couldn't be happier with it. Here are some websites for some additional information and tips: http://www.edmunds.com http://www.artofmanliness.com/2010/06/16/how-to-negotiate-for-a-used-car/ http://www.artofmanliness.com/2010/04/11/how-to-buy-a-used-car/
I think the reason is that because interest rates are so low right now, you'd come out better off if you invested that money rather than putting it down on the car since the finance charges will be minimal.
i would try going thru your bank or credit union you have now.. they usually get you better rates anyways for $18-23k that's good for a new car. if used..find one that still has warranty.
Search online first. Don't step foot on a lot until you have a car your are interested in. I would also recommend going to the dealer to find a salesman rather than use the online salesman. The Internet sales guy makes a lot more money and will be less likely to negotiate price. You can control the negotiation with a lot salesman if you come prepared. Go to the nada website and find the clean trade value of the car. Add $700 over that number and write it down. That's a good number to demand, and eventually the dealer will fold. Dont tell them how you came up with that number, just say its what you will pay. That gives the dealer a small profit, and covers the salesmans commission. You will get a fair price on the car and it will make the negotiation quick and less painful. Make sure to take the car to a mechanic. This will probably require a small deposit on the car, $500 or so, but you need to be careful. A lazy tech could have done he 36 point inspection. Just my 2 cents. I sold cars for a few months last year after I graduated college. Also my brother in-laws family owns a few dealerships.
Also purchase near the end of the month. Managers will be sweating over their quotas and will need to sell as many cars as they can. There is no such thing as a used car special, don't be fooled. Those only apply to new cars. Only "specials" would be lower interest rates for certified pre owned vehicles.
Thank you..wasn't being a smart ass just didn't know his situation to help. If he has good credit he may qualify for a rate that puts his payment right in his wheel house without putting money down. We got 0% and 72 months on my wife's vehicle. Check out incentives first. Chevy offers super low rates on there qualified used vehicles.
Everyone has great info, but I might add, don't rely Carfax completely. If someone has done repairs on the car and didn't do it with the insurance, the history will not pick up the repairs done. Also, pre-owned cars is where they make money on you besides those ridiculous 30,000 mile, 45,000, etc.. maintenance jobs at the dealers. It maybe more cheaper buying from private individuals and they probaly kept it better. Some brand new models have 0% while used ones don't offered 0% unless you pay in full.
Use the technique I used. I was told the car I purchased was the lowest sell for that car they have had. It was a new car, but the same principle works for used. Find the car you want, and find SIMILAR deals of the same make/model at other dealers. Communicate through email, and have dealer A drop his price to a tad below dealer B's price. Then, show dealer B what dealer D is doing and bam, he outbids dealer A for your money.
Looks like there is a lot of stressors in the used car buying process. No one has attempted to eliminate them yet? There's no dealership out there with no salesman or something? Seems like that industry is ripe for the innovating if the process sucks so much.
In order to check to see if a car has been into a wreck is to put your fingers between gap between the hood and the windshield. With your finger on the hood, just run your fingers down through and see if its smooth or rough. If it's smooth, there's no replacement or damages to it, and if it feels sandpaper-esque, then there has been repairs done to it. Rinse and repeat on the doors and on the trunk. Noticed that all the used car people were doing that to each car in the auction when I was kid. Just thought I throw that tip out there.
Here is what has been working for me, specifically for new cars... Always let the dealerships fight it out. Go pick out your car, talk to the salesperson and get a rough estimate on their pricing. Do not let them know you are super interested even if you are. This will let you walk out without too much hassle. Call another dealership and tell them you are interested in the same car and that you have been shopping and have an offer from somewhere else (your first dealer). You will immediately be asked about your offer, quote them a lower price then what was quoted to you by the first dealership (be realistic though). Watch the dealer instantly agree to your price. Repeat this process back with your initial dealer and watch how they drop prices for you to come in and make the deal. This has worked for me last three times and has saved me the hassle of driving to various dealerships while getting close to the price range comfortable to me. Also, it's just fun to see these dealers fight it out to get your business while you sit back and enjoy!
