8 Tips For Getting A Good Deal On A Used Car

“Buying a used vehicle almost always makes more sense than buying a new car, if you’re looking to get the best deal possible,” says Tiger Okeley of Oak Motors.

“A new vehicle is going to depreciate by about 20 percent in the first year and up to 60 percent after the first five years.”

When you buy used, on the other hand, somebody else has already taken that “hit” – allowing you to buy the vehicle at a much lower price point while still getting to enjoy a car that has a lot more mileage left in it.

As you shop for a used car, here are 8 helpful tips for getting a good deal:

1. Do Your Research

Before you even set foot on a car lot, you need to do your homework.

• Start by researching the type of car you want.

• Look into different makes and models that fit your needs and budget.

• Check online resources like Kelley Blue Book, Edmunds, and Consumer Reports to see the average prices for the cars you’re interested in.

Knowing a car’s fair market value gives you a strong starting point for negotiations. It also allows you to identify different vehicles, models, and trim levels that you might not have previously considered.

2. Set a Budget and Stick to It

It’s easy to get carried away when you see a car you love, but it’s crucial to set a budget and stick to it. Make sure you look beyond the purchase price; consider the cost of insurance, taxes, registration, and potential repairs. Having a clear budget helps you avoid overspending and keeps you focused on finding the best deal within your price range.

3. Time Your Purchase Right

Believe it or not, the timing of your purchase can impact the deal you get. The end of the month, end of the quarter, or end of the year are often the best times to buy a car. Dealerships may be trying to hit sales targets and might be more willing to negotiate. Additionally, think about buying a car during the off-season, which is typically late winter or early spring, when demand is lower.

4. Check the Vehicle History Report

Always check the vehicle history report before making a purchase. Carfax can provide you with detailed information about the car’s past, including any accidents, repairs, or title issues. This report may save you from buying a car with hidden problems. (And it can also give you leverage during negotiations.)

5. Inspect the Car Thoroughly

Never buy a used car without inspecting it thoroughly. If you’re not confident in your ability to spot issues, hire a professional mechanic to do a pre-purchase inspection.

Any good mechanic will know how to perform a pre-purchase inspection. They will look for signs of wear and tear, rust, and any irregularities in the paint job. They’ll also do a quick look at the tyres, brakes, and everything under the hood.

After inspecting the vehicle, the mechanic can tell you (a) if anything is wrong at the moment, (b) if it appears there will be any problems down the road, and (c) what to be aware of with vehicles of this make and model.

6. Negotiate Like a Pro

Negotiation is a key part of getting a good deal on a used car. Start by making an offer below the asking price, but within the range of your research. Be prepared to walk away if the dealer won’t meet your price. Sometimes, showing that you’re willing to leave can lead to a better offer.

Don’t offer a ridiculous number, as dealers won’t take you seriously, but do offer a number you’re comfortable with. For example, if the car’s price is $25,000, but you know the KBB value is $23,500. You could come in and offer $23,000. They’ll either stand firm, or they may back down to something like $24,000. It all depends on the vehicle, the state of the market, and the salesperson – but it doesn’t hurt to negotiate!

7. Consider CPO Vehicles

Certified Pre-Owned (CPO) vehicles can offer peace of mind and added value. These cars have been inspected, refurbished, and certified by the manufacturer. They often come with extended warranties and other benefits. While CPO cars may cost more than other used cars, the additional security can be worth the extra expense.

8. Know the Financing Options

If you need financing to buy your car, make sure to understand your options before heading to the dealership. Check rates from banks, credit unions, and online lenders. Sometimes, dealership financing can be more expensive, so it’s good to have pre-approval from another lender as a backup. This knowledge can also give you more leverage in negotiations.

Buying a used vehicle in this market might be more challenging than it was, say, five years ago. However, that doesn’t mean you can’t find a good deal. It’s all about doing your due diligence and knowing what to look for. Rather than seeing it as you “versus” the dealer – start seeing the dealer as being on your team. They have knowledge and resources that can help you get in the car that’s right for you. It’s just a matter of patiently finding the right fit for your needs.