A Few Tips for Buying a Used Car | Cleveland Bradley County Teachers Federal Credit Union
Being in the market for a car can be both exciting and nerve-wracking, and that’s especially true when you’re looking for a used car.
Opting for a used vehicle, rather than a new one, can be a very smart move financially, since it can mean you save thousands by avoiding new-car depreciation. Still, all those stories you’ve probably heard from friends and family or seen on TV about people running into trouble buying used cars may have you nervous.
Fortunately, if you go into the process knowing some details of what you want, what you can afford and what you need to do to get a car that fits both categories, you have a good chance of avoiding many of the struggles. That doesn’t mean you’re guaranteed to get a great car, but you can at least improve your chances of spotting a clunker.
Most importantly, figure out how much you can pay before you go into the process. A good target is spending less than 20% of your take-home pay on car payments. That should leave you enough to manage your other expenses and set a little aside on a regular basis. For help with this step, the car experts at Edmunds offer an auto loan calculator that makes it easier to figure out how much your payments will actually be.
Coming into the process with an idea of brands and/or specific models you’re willing to consider can be helpful. When you’re looking for a new car, the fact the dealers are typically dedicated to no more than a handful of brands makes it a little easier to keep that focus, but used car lots can be a jumble. If you don’t want to settle on specific cars you want, you can at least give yourself some parameters based on factors such as miles per gallon, horsepower or towing capacity.
If you’re certain you only want to consider one or two models or brands, you may want to consider a dealership’s certified pre-owned (CPO) offerings. These typically have some of the depreciation benefit with the reassurance the manufacturer looked them over and found them to be in good condition. Typically CPO cars were used as dealer loaners, fleet vehicles or leases in their previous lives, and they tend to have low mileage and be in better shape than many vehicles you’ll find on an independent lot. Plus, they usually come with a manufacturer-backed limited warranty.
Check a vehicle history database to get the backstory of any car you consider buying. Those can tell you whether the vehicle has ever been listed as stolen, what sort of accidents and maintenance issues it may have had and even if the odometer reading displayed is correct. The Federal Trade Commission recommends using the Department of Justice’s National Motor Vehicle Title Information System and the National Insurance Crime Bureau to do your checks because both are free and provide detailed histories.
When you’re ready to buy your next used or new ride, Cleveland Bradley County Teachers Federal Credit Union is ready to help you get the financing you need!