Used cars for sale are a big purchase that requires careful consideration. A buyer needs to have a clear understanding of their maximum spending limit and be sure that extra costs like options and add-ons are not being tacked on at the dealer. Additionally, buyers should thoroughly inspect the vehicle before making a final decision. This includes a complete walk-around and a mechanical look-see. Older Vehicles Are Cheaper The decision whether to purchase a new or used vehicle comes down to your budget, the cost of ownership and, in some cases, the availability of new models. However, there are advantages and disadvantages to both options. Purchasing an older car means that most of the depreciation has already happened, so you’ll save money upfront. But an older car may require more maintenance and might not have the latest safety features or technology. It’s important to carefully weigh all of the options when deciding between a new and old vehicle. If you have a tight budget, purchasing an old model can make more sense than getting a new vehicle that will depreciate faster. But if you’re looking for a new vehicle that will provide the most bang for your buck, keep in mind that prices are still high and could be headed higher. The COVID-19 pandemic has lowered the number of trade-ins and off-lease vehicles on dealer lots, which has pushed up prices. The Best Time to Shop Is Early in the Year A good time to shop for a used car is early in the year. This is when dealers typically have the largest selection of outgoing models on their lots, and shoppers can benefit from a mix of current and previous model years. Depending on the make and model, some model years have better track records for reliability or resale value than others, so research the specific vehicle you’re interested in to see which year may be a good fit. Ideally, you’ll avoid the first-year model of a significant redesign since automakers often address problems and improve the vehicle in subsequent years. You’ll also want to keep an eye out for sales on CPO vehicles, especially around holidays like Black Friday and Memorial Day. Dealerships and private sellers may offer incentives around these times to get rid of vehicles they don’t need, or they’ll be able to sell the cars for closer to their true market value (TMV). That way, you can get more car for your money. You Save More Money by Opting for an Older Vehicle In addition to saving money on the initial purchase, buying used means you avoid the steep depreciation that comes with driving a new car. That is a big deal over the long term, especially if you plan on owning the vehicle for an extended period of time. Another advantage of older vehicles is that they tend to have established reliability. This is because they’ve been on the road for a while and have had the opportunity to prove themselves. Many of these cars also come with user reviews and ratings, which can help you decide if this is the right fit for your needs. Additionally, older cars may cost less to insure, since insurance companies view them as a lower risk. This is particularly true if you’re able to skip some of the add-ons that often come with newer vehicles. These include things like navigation systems, sound systems and other luxury features. These items can add up to more than $400 a month in addition to your monthly payments. The Sweet Spot Between Old and New The sweet spot between old and new cars is a great place to save money, but it requires shoppers to be willing to shop around, inspect carefully and live without some modern features. It also relies on the condition of the vehicle, which can be influenced by how well it has been maintained and the age of the engine. As interest rates fall and used-car prices rise, many owners of 1- to 3-year-old vehicles can trade them in for a new car and lower their monthly payments significantly — sometimes by $93 a month or more. This creates a win-win situation for both parties, and consumers can enjoy the benefits of cutting-edge technology while saving a significant amount upfront. For more information, check out online auto shopping tools like Kelley Blue Book or Edmunds, which provides in-house reviews and side-by-side model comparisons. Additionally, websites like Vroom allow shoppers to buy and complete financing from home. used cars for sale
