Used vehicle sales make up three out of four automotive sales in the United States. Since newer vehicles are seemingly costing more and more each year, many more Americans are likely going to start searching for used cars for sale instead of shelling out a significant amount of money for newer models.
“With the gap between the average new and used monthly payments continuing to widen, we’re seeing more prime and super-prime consumers shift toward used vehicles,” said Melinda Zabritski, senior director of automotive financial solutions for Experian.
According to Experian Automotive’s finance report, the average new-vehicle monthly payment for the fourth quarter of 2018 was a record $545, up from about 6% from 2017. The average used vehicle monthly payment increased 4% to approximately $387.
That uptick in new vehicle cost is causing many prospective vehicle buyers, even those with excellent credit history who would otherwise qualify for new vehicle loans, to opt for used cars and save money.
“Historically, consumers have always shopped for vehicles based on monthly payment,” added Zabritski. “And, the shift to used vehicles is one option for people to keep their monthly payments manageable.
Despite the fact that more and more people are checking out used cars for sale, it’s still important to proceed with caution in order to drive off a lot with a quality vehicle for a fair price. Here are two great tips for used car buying in 2019:
- Always be cautious — This is still a predatory industry and car buyers need to be really careful when they even begin the car buying process. Though there are plenty of legitimate dealers who want to help, there are plenty that would rather take advantage.
- Get a professional opinion — It’s important to get an independent mechanic to look at the vehicle you’re thinking about buying before agreeing to purchase it. You should never buy a vehicle unless you know for sure it’s safe and reliable.
If you want to learn more about the benefits of owning pre owned cars or find some quality used cars for sale at trusted used car dealers, contact Auto Sales and Service Inc. right away.
The world of pre owned vehicles isn’t without tales of woe, that much is certain. It’s an unfortunate truth, but one we must square with. It’s even more unfortunate that these tales of woe usually eclipse the vast majority of perfectly wonderful purchases of pre owned vehicles.
However, with the average price of new cars in the United States surpassing $35,309, pre owned vehicles are becoming more attractive choices. Used cars are wonderful investments, but the purchasing process must be approached with a certain level of wariness. This wariness will protect you, your investment, and, ultimately, your safety. Let’s look at some ways to practice reasonable wariness during the used auto sales process.
Vehicle History Reports
Because a pre owned vehicle isn’t coming right out of the proverbial box, it’s smart to find out where it’s been and what it’s been through. If a dealer hasn’t gotten these reports already, that’s a good reason to be skeptical. Most places selling pre owned vehicles will have these as an assurance of quality. However, even if you do receive a vehicle history report, that shouldn’t necessarily be trusted on its own.
See It, Feel it, Bring Some Experienced Eyes
The vehicle history report might sparkle, but no report can perfectly tell you the quality of a pre owned vehicle without personal inspection and a good old fashioned test drive. You know what to look and listen for in a car when you’re driving it around even if you’re not an expert. There’s something to be said about the feel of driving a vehicle. When any warning flags are flying, ask to get the vehicle inspected by a trusted mechanic of your choosing. Finding damages only visible to trained eyes is important to determine the true value of a pre owned vehicle.
Do Some Snooping
Hop on Google and research the make and model of the pre owned vehicle you’re looking into buying. Are there any recalls to note? Check to see if those have been done and insist on seeing proof of repairs. Beyond this, try to gain access to contact information for the vehicle’s previous owner. They could have valuable information that a less than savory salesperson chose to omit to boost the vehicle’s value.
Shopping for pre owned vehicles isn’t a whole bunch of crooks trying to take advantage of you. Most of the time, buying pre owned vehicles is a smooth and worthwhile process. Still, remember to be wary of the few things we mentioned and you’ll have your bases covered from the beginning of the process to driving your pre owned vehicle back home.
Many people think of the car buying process as being intimidating and not pleasant. A number of people buy used cars and trucks. The sales of used cars and trucks in the United States have been going up every year for the last seven years. If you are thinking about working with a used car dealer, you are not alone. Having a good plan before you go to look at pre owned vehicles can make a big difference.
- Go over your budget. Before you even start to think about buying a car or truck, you need to take a cold, hard look at how much money you bring in every month and what bills you have to pay. You should spend no more than one-third of what your household brings in every month. It is important to remember that the sticker price is only one thing you have to pay for. You also have to pay for insurance and to register your car or truck.
- Pull your own credit report with a fine-toothed comb. Before you talk to your bank, credit union, or the used car dealership, you should get a copy of your credit report. There are a few reasons for this. You do not want to be surprised when you are asking for a loan by anything on your report. There are also often problems and errors that can be removed from your credit report. It makes a lot of sense to look it over and deal with any inaccuracies you find before you ask for help to pay for your new car or truck.
- Get approval for a loan before you go to see used car dealers. It is true that the vast majority of new and used car and truck buyers finance their purchase with a loan they got at the dealership, you can get a much better deal if you want in with an offer from your bank or credit union. You should start your search for a loan with the financial institution you bank with. If you have a mortgage, the bank or lender that has that loan should be consulted before you talk to the finance department. A bird in the hand is worth two in the bush.
- Think about what you plan to use your “new” car for. There are a lot of reasons a person or family may need a new car or truck. Maye your current car or truck has reached the end of its lifespan and needs to be replaced. Maybe you need a truck to haul items around. Then you may just want a fun car to tool around in on the weekend. Knowing what you want to use the car or truck for can have a big impact on what make and model you end up selecting.
- Go in and take a look at the used cars for sale. Many people think of used car dealers as being similar to vultures circling their prey and ready to pounce at any moment. Used car dealers have a reputation for not letting prospective buyers leave a lot without making a purchase, whether they can afford it or not. The good news for would-be car buyers is that this is an outdated and inaccurate image. Car salespeople want to make their customers happy and not oversell them or get them a loan they cannot afford to pay back. They want to help and can be great sources of information. When you talk to used car dealers and give them your budget, they can and will help you stay under it by showing you only the cars and trucks you can actually afford.
Buying a car from used car dealers or other places can be a fun experience. A lot of people enjoy trying out new and different makes and models of cars and trucks. Thinking about it this way can take a lot of the stress out of the process of getting a new car or truck. A good attitude can go a long way when you are making a big purchase such as a vehicle.