With the current state of economies worldwide after the pandemic, prices everywhere are surging. And automotive prices are more expensive than ever. So, if you’re planning to buy a car, truck or SUV then be sure to brace yourself. According to recent data gathered by CoPilot, prices for new vehicles have a 30% increase and 34% for used cars compared to the previous year.
For most people, though, having a car is a necessity. If you’re one of them and need to buy a car, a used one may be a better option. And with a strategic approach, getting a used car at the best price is still possible. Read on for some tips on how you can do just that.
Buying Used Cars: Things to Keep in Mind
Since the auto industry hasn’t fully recovered from the effects of the pandemic and the semiconductor shortage, the surging prices are not something you can wait out if you need a vehicle now. Here are things that might help you navigate that.
- Be patient if you can. Experts say we might see car prices improve in the coming 6 to 12 months. As manufacturing resumes and dealers get more inventory, the price tags on those vehicles will start to normalize. So, it would help if you waited a bit before buying.
- Buy used cars that are at least 1-3 years old. If you must buy a car and can’t wait for prices to level, looking for near-new vehicles in the market is advisable. These used cars will usually be cheaper by 3.6%.
- Consider getting used SUVs or wagons. If you want the best deals on used cars, consider getting an SUV or a wagon. Since these are a bit expensive on fuel, buyers tend to steer away from them – forcing dealers to lower prices to move inventory.
- Get credit union financing. Interest rates are also high, so paying for your car in cash is more advisable. However, that’s often not possible, so your next option is to secure financing. Credit unions offer lower interest rates, so getting car financing from them will benefit you.
- Go local. It’s true that the prices will be high no matter what make or model you buy. But, if you compare local and foreign cars, you will still get the best deals from domestic brands like Pontiac, Isuzu, Mitsubishi, and Saturn. These are the less inflated brands, so they will also be on the cheaper side of the price tags. If you’re located in the PInellas County area, be sure to utilize OfferMORE when selling.
- Use your old car as leverage. If you have an old car that you want to replace, you can leverage it and do a trade-in. Prepare your old car for selling or trade to get the maximum value. Things like cleaning the dashboards, removing any trash or debris in the interior, and getting new tires – can help you get the most money out of your car. Sell your old car to a car buying specialist like OfferMORE to get the most possible return on your investment.
How to Avoid Paying More for A Used Car
It is common for people to make big mistakes when buying cars – new or used. Some people can even get into debt – paying for their old car and new purchase. Here are some simple tips so you can avoid paying more.
- Get pre-approved for a loan. Before you even think about going to the dealership, it’s advisable to check for financing first. This way, you’ll know how much you can pay for a new car and will likely stay within your budget.
- Keep it simple when you visit the dealership, focus and avoid giving the salespeople too much information. If you have a budget, go to the cars within that price range.
- Avoid add-ons. The people at the dealership will make you all kinds of offers to make you spend more money. Stay focused on your goal, and don’t get swayed by all the add-ons they offer. Remember to stay within your budget.
- Avoid long-term loans. As much as possible, loan terms exceed the normal 5-year range. Yes, longer terms will mean lower monthly payments, but you will also pay more on interest.
Now that you know how to buy used cars at the best prices, it’s time to plan for your purchase. But first, trade-in or sell your old car to have some funds. If you live in St Pete or Pinellas, you might want to check out OfferMORE. We have the best deals and the highest appraisal. Bring an appraisal to us, and we’ll beat their offer by up to $1000 cash on the spot.