Ways to Save Money - Part 4 in a series by David Ning

Transportation: Used Cars

1. Always buy used. A two-year-old car may have depreciated in price by 50%, but it’s still got 70% of its useful life left. That’s why used cars are nearly always a better deal than new. Plus, the insurance cost is lower.
2. Always be pre-approved for a loan before you shop. Like with new-car shopping, you want to have all the loan details worked out before you go shopping. That way when you find what you’re looking for you can pounce before it gets away.
3. Do your homework. Check the cost of repairs, maintenance, licensing, fuel and insurance before you decide on a make and model. Then arm yourself with the suggested retail and wholesale prices. You can find them at car websites (see number 26 above), in used car guides at the library or through your credit union or other lender.
4. Check with private sellers. Dealers offer the advantage of broader selection and in some situations, warrantees. Private sellers may offer you a better deal, however, and you also get to see who’s been driving the car and how it’s been kept and maintained. But the greatest advantage of private sellers is that you don’t have to feel outclassed sales-wise.
5. Make friends with a mechanic or two. Mechanics often hear of people who want out of their car. They cannot only help you find a great car at a great price, but they can sometimes vouch for the condition of the car.
6. Don’t think of buying a used car without a thorough inspection. Even if your car of choice was driven only to church on Sundays, have it thoroughly inspected by a qualified mechanic before you think of buying it. This cannot only help you avoid a nightmare, it could also help you negotiate a better price