10 Smarter Ways To Shop For Used Cars
If you are finding yourself in the market for a used car, you might feel like you are trying to outsmart a game that’s rigged against you. We’ve all seen the stereotypical caricature of a used car salesman in movies and television who sells some clueless buyer a lemon. Don’t get caught up in the trappings of buying a used car that will leave you with a clunker on your hands.
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“Purchasing a used vehicle is the smartest choice you can make,” stated Mark Beneke, owner at Westland Auto, Inc. “You are allowing the bulk of depreciation to take place, letting the market figure out the quirks and common issues with a new vehicle, and getting a vehicle that still has a lot of life left.” Beneke also suggested that “5-8 years old is the sweet spot, but some older ones could also be a good choice.”
GOBankingRates got in touch with Beneke, as well as a few car and auto experts to get a roundup of tips for smarter strategies to use when shopping for vehicles that have been previously owned. Here are 10 smarter ways to shop for used cars.
Preparation is Everything
“Take the time to analyze and prepare well before going shopping,” advised Beneke. “By assessing both your financial situation and vehicle needs, you can determine each part of the process and start looking for areas that could provide you with the best outcome for your specific situation.”
Geoff Cudd, the founder of Find The Best Car Price, agreed. For Cudd, preparation is “essential to thoroughly research the market value of the car you’re interested in and secure financing ahead of your dealership visit. This preparation gives you a clear understanding of what a good deal looks like and puts you in a stronger negotiating position.”
Have Options
“Always begin your shopping online and find all the available types of vehicles that fit your needs around you,” Beneke said. “Having multiple options to choose from will allow you to make smarter decisions as you won’t feel pressured or limited. It will also give you a great baseline for what to expect with the pricing.”
“You can reach out to the sellers and begin asking questions to assess the situation and establish your interest/eliminate those options that are not worth your time (both sellers and vehicles),” Beneke added.
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Improve Your Credit And Save A Good Down Payment
The stronger your credit score, the better your loan will be, according to Beneke. This could lead to reduced interest rates, lower fees, and more available loan options.
“A higher down payment will also give you an advantage as you are reducing the risk of the lender which typically leads to more favorable terms. If neither are options, you could consider finding a solid co-signer,” Beneke offered.
Line Up Your Financing
“Local credit unions and banks you have a long-standing relationship with tend to provide the best auto loans,” Beneke said. “By lining up everything ahead of time, you know exactly the amount you qualify for and can also negotiate as if you’re paying with cash. Many dealer lenders will want to compete to earn your business as well so you can ask to see if any of them can beat the current approvals you have.”
Shop During the Holidays
“The end of the year means a new line-up hitting the market, less demand, and pressure to hit quotas. All of these combined create a perfect recipe for consumers to hold more leverage,” Beneke highlighted.
“Their desire to get rid of old inventory before being forced to take price cuts, hit goals to get their bonus or not get fired, and capture any consumer who is capable of buying in the market that can help them do this is what can lead you to get huge discounts and added value,” said Beneke.
Time Your Buying Window
Timing is crucial in the eyes of Cudd, who shared that ” shopping towards the end of the month can often result in better deals as salespeople strive to meet quotas.”
“The last few days of the month are [a] reminder that a deadline is approaching and quotas need to be met,” Beneke pointed out. “This incentivizes dealers to provide discounts in order to do so. Since the pressure has been felt in the last few days of the month, this also carries into the beginning of the next month as they want to make sure they get a head start and don’t leave things for the end of the month again.”
“Opting for weekdays, particularly Monday or Tuesday, can also be advantageous due to lower customer traffic,” added Cudd.
Inspect the Vehicle
This includes an entire and thorough history report of the vehicle you are interested in purchasing.
“Paying a third-party mechanic to inspect a vehicle you are seriously considering moving forward with can save you thousands both in the short and long run,” Beneke suggested.
“The inspection findings can be used as points of negotiation based on facts,” Beneke said. “It can also be a safeguard against taking on defects you are not ready or willing to repair, even at a discount, and a safeguard for the future to know what you might expect moving forward.”
Learn To Negotiate
Negotiating properly will earn you a ton of money and make everyone involved feel like they got a great deal, according to Beneke.
“Start by gathering facts like the going market price, history report, other available vehicles in the area, and inspection findings,” shared Beneke. “Set a number you feel comfortable with, make them the offer, and do not budge. Show interest in their side of the deal and acknowledge that you appreciate them trying to work with you.”
Stick To Your Offer
Next comes the crucial move that lots of people back down on: do not budge from your offer.
“Don’t be afraid to make the same offer more than 3 times and if you cannot get it, be willing to walk away,” advised Beneke. “Once you’ve got that figure, stop negotiating for price and focus on adding value instead. Ask for any additional things they could include like a free warranty, service, or anything they can throw in that increases the value of your purchase.”
Focus on Price, Interest Rate, and Long-Term Costs
Beneke cautioned buyers to not focus on getting a certain payment like most people. Instead, he suggested they place attention on finding the type of car that will be easy and affordable to maintain, fuel efficient, and low on insurance costs.
“Then, stay focused on negotiating the price of the vehicle as this is the factor that will influence your total cost most. If financing, then make sure to negotiate the interest rate and fees as these will add to your total cost of the vehicle,” concluded Beneke.
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This article originally appeared on GOBankingRates.com: 10 Smarter Ways To Shop For Used Cars
