Cheap Used Cars

Buying a new or used car is a big expense and a big commitment. Here are some tips to help make it easier.

Determine the car you need. If you don’t have children (or they are grown), don’t have a large dog, don’t often move furniture, and don’t make a habit of off-roading, you probably won’t need a large car. The same applies if your spouse already has a large car; you might want to balance it with a more fuel-efficient vehicle. However, if you have a long commute (or just long legs), you might want to consider comfort over efficiency. And if you do own a small menagerie, have three kids, or own your own bible-selling business, you might want to consider exactly what is going in the car and how much space you will need, as well as ease-of-access and additional features like air conditioning, cup holders and entertainment. If you’re searching for a used car, it’s best to keep your options open. Find 3 or 4 car models that would fit your lifestyle and don’t get tied down to a specific color. Flexibility will help you get a better deal.

Determine a fair price. You won’t get a dealership to sell you a car for less than they paid for it. Car salespeople are people, too, and need to make money. The Kelley Blue Book (www.kbb.com) can help you determine a fair trade-in value or used resale value for a car you are either selling or interested in. For new cars, the MSRP will be posted on each vehicle. You can research the cost of the car you want and the available features and options by visiting the manufacturer’s website. Most car makers have a “build your own” option so you can see the finished product and suggested price.

Use competition to your advantage. Some manufacturer websites will connect you with a local dealership, though be wary. If a car dealership is aware you want a specific car, there will be less room to negotiate. In addition, unless you are buying a very high-priced specialty car, there are bound to be several dealerships in your area that sell the same model. For example, Southern California contains almost 60 Toyota dealerships. Tell dealers point-blank that you are working with several salespeople, and that you are only looking for the best price. Specify you want to negotiate overall price, not what your monthly payment will be. Sure, you can specify you want a $500 monthly payment, but financing for 36 months will get you an $18,000 car, while the same monthly payment for 60 months will get you a $30,000 car. That’s a huge difference in overall price!

Get good financing. A car dealership is not the only place you can get good financing. In fact, shopping for the best rate could save you a few thousand dollars. Get copies of your credit report from the three main credit bureaus: Experian, Transunion and Equifax. You will have to pay extra to get your FICO score, but it is well worth it, as that’s the main criteria used to determine your financing options. Shop around online. There are many sites that will specialize in financing for people with bad or no credit.

The following are some good sites to look at, which may help you obtain financing:

https://carloansuperb.com
https://gassaverautoloans.com
http://instantlowautoloans.com
https://quickerautoloans.com

Negotiate your purchase. Make sure you have an accurate view of the prices dealers are offering you. The price should not include any rebates or incentives, and should include any fees tacked on by the dealer. If a dealer asks, tell them you will be paying cash and not trading in your car. Otherwise, they can use those factors as leverage. Once you determine which dealer has the lowest price, contact the other dealers and ask if they can beat it. Then take the lowest price and repeat until you can’t get a lower offer. Then contact the dealer who gave you the lowest price and tell them you would like to purchase the vehicle. At this point, you can negotiate your trade-in, using the Kelley Blue Book. With the economy in rough shape, you might be able to score a great deal on a new car, especially from an American auto maker. Not only are dealerships hurting due to lack of sales, but General Motors, at the very least, will be phasing out several vehicle lines. If you are looking at getting a Saturn, Hummer, or Pontiac, for example, these cars may be liquidated soon. Both the manufacturer and the dealer might be willing to give you a bargain.

Additional tips:

Don’t negotiate based on monthly payment. There are too many variables. If you are paying cash for your car, and the dealer offers a rebate for financing with them, find out if there’s an early repayment penalty. If not, take the financing and rebate and turn around and pay off the car. Add the numbers yourself. Be aware of any extra add-ons or fees and figure out if they are necessary.