Used Cars: A Great Deal!

Nearly everyone would prefer to drive off the parking lot of a car dealership in a new car. But buying a new car isn’t always the smartest move financially. And buying new doesn’t always mean the best deal on an automobile. If asked, most people would probably say they prefer new to pre-owned vehicles. But for every consumer who buys a new car, 2.5 decide to purchase pre-owned. Keep reading to find out why!

Used Cars Are Valued By Consumers

In 2006, nearly 17 million new cars were sold by dealerships. This seems like a substantial number. But compare 17 million new vehicles to the 44 million pre-owned cars that found new homes with buyers who chose to purchase used. Pre-owned cars offer smart consumers quality vehicles at competitive prices. This is one of the primary reasons why nearly 70% of all car buyers choose pre-owned over new when financing their automobiles.

Crunch the Numbers, Save Big!

The average new car costs $21,800. Compare that to the average cost of a pre-owned vehicle at $13,900. From a purely fiscal perspective, the difference between a new and pre-owned vehicle is $7,900. Depending on your financial situation, it may make more sense for you to purchase a quality pre-owned car. For auto buyers with sub-prime credit, a lower loan amount will not only make your chances of being approved by an auto dealer, bank or credit union more likely, it will also increase your ability to finance your monthly auto payment at a more affordable rate. Another great option to consider when selecting a pre-owned car is leasing a vehicle through a dealership.

How to Finance Your Pre-Owned Car

Many people in the market for a pre-owned car make the mistake of finding the car they want and then negotiating an agreement for auto financing. Don’t make that mistake! First, sit down and examine your monthly budget. Evaluate how much you can reasonably afford to invest in a monthly auto payment. Once you’ve arrived at price that’s realistic for your budget, begin the process of finding a car that’s right for you. By starting your search for a used car after establishing your financial need, you’ll feel more confident in the choice you make when you finally find the vehicle that’s best for you!