Want to buy a new car? Don’t go anywhere without reading the list below first. Countless Americans find themselves losing money unnecessarily when visiting car dealers, from odometer fraud to spending an excess on basic models. This is nothing to say of people being in the dark concerning auto financing and credit deals! A car is meant to be a companion, not a hindrance, and setting a good foundation now will pay off in the future. If you need a little help getting on the right track, take a glance at the list below. Everything from auto financing to the market for used cars will be analyzed, giving you a better head start than the average buyer!
How Common Are Used Cars?
Did you know the average vehicle will have at least three owners in its lifetime? As you can imagine, used cars are pretty common and will only continue to be so for their quality performance and competitive prices. Studies have even shown the majority of cars on the road not being new, but being used. Between private-party and dealership sales, nearly 40 million used cars exchange hands on a yearly basis. But what does this mean for the market at large?
How Common Are New Cars?
While new cars are still considered rather competitive, they’re starting to fall out of favor in car sales statistics for their high price ranges. The most common new car are hybrid models, widely considered the most environmentally safe option for the open road. According to a recent survey by the 2015 Used Vehicle Market Report, there are an estimated 40 million used vehicles sales worldwide. This is even considered the best annual tally in the past eight years! When it comes to buying smart, there’s no need to spend thousands of extra dollars on a brand new model when a used vehicle comes with the same quality.
What If I Need To Take Out A Loan?
Many first-time and second-time buyers need to take out a loan when delving back into auto financing. In general you will pay at least 2% higher APR for a used car than you would on a new car loan — while this may seem like a downside, you’ll generally spend less on the car itself than you would if you found a brand new model. If you need to buy a vehicle that’s more than five years old, it’s highly recommend you consider one that’s certified pre-owned at the dealership. Most banks will not give you a loan for a car older than four or five years old, after all, and it’s necessary to be prepared.
How Can I Save Money?
Cars are massive responsibilities. Between buying gas, taking your vehicle to the repair shop and keeping an eye on your winter tires, there’s a lot of money to spend in exchange for the freedom and independence. As such, car owners are always looking to save a bit of cash. Consumers have been found to lose as much as $4 billion every year to odometer fraud, with the average rollback being 15,000 miles or so. Think you got it all down? Let’s talk about auto financing.
Where Do I Get Started?
Now for the fun part — actually buying a used car! Virtually all car dealerships will offer the convenience of one-stop shopping through on-site consultation and financing offerings. This helps consumers who are still struggling to figure out auto financing and could use a little extra assistance in the process. In fact, most dealerships work with at least five different banks in order to present the most competitive deals possible. The most common price range for used cars is under $5,000, with many used car dealerships offering quality selections and auto financing as a result. There’s no reason to waste your money — with a little common sense, the right car can be yours in no time at all.