How to Save Money When Buying a Used Car

Now may not be the best time to buy a used car since prices in this market have gone up somewhat since the recession took hold, but the truth is that used cars are still in a lower price range than their new counterparts, so if you’re looking to get something that runs to replace your worn-out rust-bucket, a used car may still offer the best option.  And luckily, there are methods you can employ to save even more when you’re looking to buy a slightly used automobile.  Here are just a few ways to get the best price on a car that will be new to you.

Compare Brands

If you have a class of vehicle in mind (compact, sedan, or SUV, for example) you should start by comparing the prices and features of different brands.  You may find that otherwise comparable vehicles display a huge discrepancy in resale value (simply because one brand tends to be more popular).  All things being equal, you could save a lot of money by going with a brand you wouldn’t normally consider.
Compare model years.  You might be surprised how much you could save by going with just a slightly older model than the one you had in mind, especially if there have been significant changes from one year to the next.  If the vehicle you want seems to be just slightly beyond what your budget will allow, going back a year or two could make all the difference.

Ask for a CARFAX Report

If it turns out the vehicle you’re considering has had accidents or other types of damage (especially frame damage) you have a lot more leverage where the price is concerned.  Plus, you’ll go into the purchase knowing exactly what you’re getting.  This is generally a “buyer beware” situation (since most states don’t apply lemon laws to the sale of used vehicles), so it behooves you to ask for proof of past history.
Haggle effectively.  Most of us have a hard time asking for a lower price, but remember that these vehicles have been marked up by a considerable margin because the sellers expect customers to quibble over the price.  So put on your haggling hat and get to work; you have the power to attain the vehicle you want at a cost you’re comfortable with.  And if you can’t get the price right, just keep looking.

Insurance  

There are certain things that will help you to save money on your automobile insurance and you should take them into account when selecting a car for purchase.  The make and model of the car could make a difference, as could age, class (or size), condition, and safety features.  One other thing that could affect the price of your vehicle insurance is what you have under the hood.  While a hybrid or electric car will save you at the pump, it could end up costing you more to insure because some of the parts are more expensive to replace.  But likely the rates will be fairly comparable; you just need to check with your insurance provider.  And remember that bundling your policies (home, auto, etc.) could save you all around.