According to the 2015 Used Vehicle Market Report, there were 38.3 million used-vehicle sales industrywide, the best tally in eight years. Between private-party and dealership sales, nearly 40 million used cars change hands every single year.
The average vehicle will likely have three owners in its lifetime. In general, there are many benefits to buying a used car:
- Lower price tags due to depreciation
- Avoiding the state sales tax often applied to new cars
- Getting all the newest features of a new car for less money
- A decline in registration fees
- Avoiding paying extra fees that come with buying a new vehicle
- Getting a vehicle that’s in pretty good condition
When it comes to buying a used car or pre-owned car, it’s important to do your homework there too. Whether you’re buying from dealers of pre-owned vehicles at a used car dealership or dealing with a private seller, here are some steps to take when trying to find the right pre-owned vehicle.
- Choose the right vehicle: presumably this is a car or truck you plan on driving for a while, so it important to pick a make and model you’re comfortable with.
- Set a budget: figure out how much you’re willing to spend for a vehicle and find something that fits your needs and meets your budget. In general, the most frequently searched price range for a used vehicle is under $5,000.
- Go for a test drive: again, it’s going to be your car, so take it for a spin and see how it handles. An estimated 20 percent of used car buyers don’t take the opportunity to test drive a car before buying it. The last thing you need is for a previously unknown issue to pop up because you didn’t take the time to test drive a vehicle.
- Price cars: Pricing guides such as NADA Guides and Kelley Blue Book can give you an idea of what the car you’re looking for is worth and how much you might expect to pay for it.
- Locate good cars: You can go online and peruse through sites like CarFax and AutoTrader to find your perfect car. You can also do it the old-fashioned way and visit used car lots. Dealers of pre-owned vehicles should be able to give you a good idea of what a particular dealership has in stock and whether or not that dealership has what you’re looking for.
- Know a vehicle’s history: Use a vehicle’s VIN number to get a rundown on the history of the car and to make sure there’s nothing shady going on. Customers lose as much as $4 billion per year on odometer fraud, with the average rollback being 15,000 miles.
- Negotiate a price: If you’ve done your research and know how much your perspective vehicle is worth, you can negotiate with dealers of pre-owned vehicles and make sure you don’t get swindled.
- Wrap it up: Once you’re done negotiating, make sure you’ve got all the proper paperwork taken care of and a payment plan set up. Virtually all auto dealerships offer the convenience of one-stop shopping through on-site financing offerings that assist customers in securing financing.
Most dealerships work with at least 5-10 different banks or finance companies so that they offer competitive deals to customers A record-breaking 107 million Americans are currently paying on an auto loan and in 2017, Americans owed more than $568 billion in auto loans.
If you’re able to secure a used car that’s fairly new and in good condition, you can potentially use the car to secure a registration loan. Registration loans are available in Arizona and allow drivers to use their car as collateral for a loan. Registration loans allow drivers to have a fast, easy way to a short term cash loan if they so need it.
Due to the depreciation in value of used cars, not all places can give registration loans. In some cases, again keeping in mind that registration loans are available in Arizona, finding another option for a short term cash loan may be a better option.
Having a plan when you go to buy a used vehicle will make the whole process a lot easier and make negotiations with dealers of pre-owned vehicles a lot less stressful.