Many people think that buying a used car is better because of the bargain price they can get. The moment a new car leaves the lot, its value decreases. Smart shoppers search for pre-owned cars that are barely used; they are much cheaper than new cars of the same model because of the instant depreciation in value. There are a few things you should assess before buying a used car.
Budget - The first item you need to determine before buying a used car is your budget. If you decide to finance your car, you will be able to afford a more expensive model. However, this will also force you to pay more in interest over the duration of your loan. Your budget is the biggest factor in determining what type of car you will buy.
The car’s purpose - Consider what type of car suits your household's needs the best. If you have a large family, a mini-van or SUV may be your best option. For people with a long commute to work, a fuel-efficient compact car or a luxury model may be a better choice. Determining how you will use your car allows you to make a more informed decision for what type of car you should purchase.
Additional costs - You may find additional costs associated with the type of car you decide to buy. Some vehicles such as sports cars and SUV's can cost more to insure. A larger vehicle will consume more gas, costing you more money at the pump. If you buy a German luxury car, you will have to pay higher maintenance expenses. Consider these factors so that you avoid buying a vehicle that you cannot afford. The sticker price of a car is not the only expense to consider.
Comparison shopping - After calculating your budget and deciding what kind of car you want, research which dealerships offer the best deals and prices. Every dealership has different offers. By shopping around, you will be able to find the best deal in your area. If plan to pay in cash, consider buying directly from an owner as you may avoid some of the dealership costs.
Budget - The first item you need to determine before buying a used car is your budget. If you decide to finance your car, you will be able to afford a more expensive model. However, this will also force you to pay more in interest over the duration of your loan. Your budget is the biggest factor in determining what type of car you will buy.
The car’s purpose - Consider what type of car suits your household's needs the best. If you have a large family, a mini-van or SUV may be your best option. For people with a long commute to work, a fuel-efficient compact car or a luxury model may be a better choice. Determining how you will use your car allows you to make a more informed decision for what type of car you should purchase.
Additional costs - You may find additional costs associated with the type of car you decide to buy. Some vehicles such as sports cars and SUV's can cost more to insure. A larger vehicle will consume more gas, costing you more money at the pump. If you buy a German luxury car, you will have to pay higher maintenance expenses. Consider these factors so that you avoid buying a vehicle that you cannot afford. The sticker price of a car is not the only expense to consider.
Comparison shopping - After calculating your budget and deciding what kind of car you want, research which dealerships offer the best deals and prices. Every dealership has different offers. By shopping around, you will be able to find the best deal in your area. If plan to pay in cash, consider buying directly from an owner as you may avoid some of the dealership costs.