Guide to Buying Used Cars

One of the easiest ways to save some money when purchasing a vehicle is by checking out the used car market. When you purchase a new car, your vehicle’s value will start to depreciate the minute you leave the dealership’s lot.

When you purchase a used car, however, the original owner of the car absorbs most of the steep loss in value because most of the depreciation happens during the first few years. There’s also a good chance that you are able to find a great quality used car for a low price. If you’re not too sure about how to buy a used car, this guide is for you. Read on to know how to go about buying the right used car.

Set a Budget You Can Afford

Setting a budget for a used car isn’t as simple as looking for cars that have a monthly EMI you think you can manage. While the monthly payment needs to be affordable, you have to look beyond it and check the lifetime interest cost of the loan, how much it will cost to insure it and maintain it, etc., to arrive at the right budget for the vehicle.

Shop for Used Cars

Shopping for the right used car can be quite challenging. After all, you have to find a model you like on sale and ensure it hasn’t been crashed, has a low-enough mileage, and has been serviced properly in the past. That’s why it’s a good idea to check out a few different dealerships around where you stay.

Considered CPO Cars

If you are not sure about buying a used car because you’re afraid of the quality of the car, you may want to consider buying a CPO car. CPO, which stands for certified pre-owned, cars come with a manufacturer-backed warranty while also being affordable. These cars usually have low mileage and are not too old.

Look for An Affordable Loan

If you’re like most used car buyers, you will need to get an auto loan to finance your purchase. We recommend comparing offers from different lenders including banks (online and offline), credit unions (if you are a member), and dealerships. Never make the mistake of assuming that the dealer will give you the best rate.