Purchasing a Used Vehicle

If you are in the market for a new car or truck you may find that the best financial move you can make is buying a used vehicle. Not only do previously owned vehicles offer significantly lower prices than new ones but with the advent of certified pre-owned programs by auto manufacturers and services like CARFAX the concerns many people have with buying a previously owned vehicle have been alleviated. In short, you can get a much better car at a greatly reduced price versus buying new. There are several different sources of second hand vehicles.

The classified section in most local newspapers is a good place to start. So is the word of mouth. Then we have the used car dealers not to mention all the vehicle auctions around where you can do a real bargain. Last but not lease I must mention the internet; this is probably the largest source of used vehicles. From one window you have a view to every part of the nation: Here you can search for any make and model, in any price class, in any location all over the country.

While auto financing rates for used vehicles tend to be slightly higher as compared to new vehicles when you look at overall costs over the term of the loan you will quickly find that you will still end up saving a significant amount. In addition, many people find that by buying a used car or truck they can lower the term of the loan which means less interest paid and more money that can stay in your pocket.

When deciding to buy a previously owned vehicle there is a few things that you can do to protect you from buying a problem car. First, you should always obtain a vehicle history report for the car through services like CARFAX. These reports will list all the owners of the vehicle, major accidents, service records and the title history. Once you have verified the car is clean you should have it checked out by a mechanic. Most automotive repair shops offer pre-purchase inspections that cost around $75 and will include a comprehensive report of the areas checked and any problems that have been found.

After you have performed the above you are ready to get down to business. Use resources like Kelley Blue Book and NADA to find out the average price of the vehicle in your area. With previously owned vehicles there is a lot more wiggle room in terms of price than with a new vehicle. Don't be afraid to lowball on the price - you may be pleasantly surprised!