Do you want to buy a used car?

  Buying a used car? Experts Say Ask These 5 Questions First

Buying a used car can be a great way to save money, especially as the pandemic continues and more Americans buy vehicles for travel. In June, used car sales were up 22% from the same period last year, according to Edmunds, an auto industry analyst site. If you're buying one, here's what the experts say you should know.

Where can I buy a used car?

Independent dealers like CarMax and Carvana are good places to start, AAA's repair systems manager, just to see. They will show you a wide variety of vehicles and prices. Also, he says, "don't forget about your fellow consumers."

"A third of vehicle sales are consumer to consumer," Look around your neighborhood, and on sites like Craigslist to see who is selling a car near you.

Does it need to be used certified?

When a vehicle is certified as used or CPO, the manufacturer guarantees that it will be inspected and reconditioned to the manufacturer's standards. A CPO vehicle is also often more expensive than a vehicle that is not.

However, if a car is certified used "it doesn't matter,"

"It just gives you peace of mind, especially with the warranty associated with that vehicle," he says. But you can buy your own warranty that will cover defects and breakdowns caused by the vehicle's design: "You can purchase extended warranties on your own just for that peace of mind and protection."

How much should I spend on a used car?

The price of used cars varies a lot and prices are on the higher side right now because demand during the pandemic has increased. The median price for a used car for July was $ 21,558, according to Edmunds, an auto industry analyst site. This is $ 708 more than a month earlier. Also, new cars are in short supply. "The inventory of newer vehicles is lower than normal," due to lower production during the pandemic.

Before looking at any car, you need to decide how much you are willing and able to spend. A good way to see what you can afford is to shop around for financing and get pre-approved, You can do this at your local bank or credit union. For example, if your budget for a used car is $ 15,000 and you will make a 20% down payment, Wells Fargo has a monthly payment of $ 236 per month, while Capital One has $ 244, based on September 2020 data. from WalletHub.

By doing that, you already have that baseline of a percentage rate that you are going to spend on your loan, This will help you set a price. After taking this step, you can begin your search.

What steps do I need to take to ensure my used car is safe to drive?

There are three things every used car buyer should do,

Check the vehicle's history. This will let you know how many people have owned the car in the past, how many accidents it has had, or if there are open recalls. When a car has an open recall, it means it has a problem that has not been addressed; If you buy a car with an open recall, you will have to address the problem yourself. "It can be anything," says Voss. "It could be air bags or engine fires, but it could also be something minor that might not be such a big safety issue. If you take it to a dealer, they will fix it for free."

Get an independent inspection. Choose a mechanic you trust. An inspection will cost between $ 50 and $ 100, Voss says, but it's worth it. "A vehicle that has been in an accident is not necessarily a bad buy," says Voss. But you want to make sure it is safe to drive. "An inspection will help them know if the repairs were done correctly."

Try it. "Try it on the road you usually drive, "So, if you drive a lot on the highway, be sure to take the highway test drive."

A vehicle that has been in an accident is not necessarily a bad buy.

What is the most common mistake people make when buying a used car?

It's important to look beyond looks, make and model, Look at the specific vehicle. Each 2018 Ford Explorer is not worth the same amount. Two vehicles can leave the same lot on the same day and could have very different values   [years later]."

This is where the value of knowing your vehicle's history comes in - details like the number of owners, miles driven, and accident history affect the value of the car. And remember, don't get caught up in fun flashy ones, "A lot of people like sunroofs, but how many people actually use sunroof all the time?"

By researching the specific vehicle you want to buy and making sure its features align with your needs and budget, you can save money while shopping for a car.