The rising price of new and used vehicles has made bargain-hunting tougher than ever. Supply chain issues that started during the pandemic continue to plague the auto industry, with material shortages disrupting the supply of new vehicles and raising the floor for used vehicle prices.
If you haven’t been on the car market in some years, you may be in for a nasty surprise when it’s finally time to update your set of wheels. Although used car prices have fallen to some degree, there are still used vehicles that are even pricier than new ones.
Given the state of the market, buyers have to be smarter and more strategic than ever. These are five strategies for buying used cars at a discount that you need to try when you replace your vehicle.
#1 Buy from a Private Seller
Buying from a private seller is a great way to start saving money. Car dealerships have a lot of overhead, and the people who work there are professionals at selling cars. Not only do they know how to upsell, but their livelihoods depend on it.
It can take a bit more time and research to find the right vehicle from a private seller, but when you do, you can wind up saving considerably. Most private sellers are just looking to recoup some costs for their own vehicle upgrade, and selling it yourself is usually a better deal than a trade-in.
#2 Research Your Financing Options
Recent reports show that the financing rates on auto loans can range anywhere from 8% to 22%. A 22% APR is in the same range as a high-interest credit card, while even the low range of 8% is dramatically higher than interest rates just a few years ago.
In the era of high interest rates, don’t get fooled by limited-time 0% APR deals. Make sure you know how much you’re going to pay when that sweetheart deal expires and take the time to find the best financing available.
#3 Buy Less Popular Models
When it comes to the most popular models for used cars, the law of supply and demand applies. The more popular the car, the more buyers it will have. If you want less competition for the best deals available, consider looking at less popular car models.
#4 Buy an Older Model Year
If you’re committed to your model of choice, an alternative way to save is by buying an older model year. Older doesn’t always mean that it’s had more use. If you can find a lightly used vehicle, buying an older model really only means that you might be sacrificing more contemporary infotainment features. At the end of the day, an older car is still a car.
#5 Don’t Sweat Cosmetic Damages
No one wants to buy a used vehicle that’s been in a serious crash. Major collisions can cause lasting issues with the body or the engine that will haunt a vehicle for the rest of its lifespan, but that’s not the same as a few unfixed scratches and dents.
Cosmetic damages can knock a lot off the price of a used vehicle. A lot of buyers will pass over vehicles with scratches and dents. If you’re willing to live with them, or you can get them fixed for a reasonable price, this is one smart way that you can still find bargains in today’s market.
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