If you’re seeking a reliable ride on a budget, buying a used car could be the way to go. Used and Certified Pre-Owned vehicles are available at a variety of prices and market segments, but the process of researching cars, visiting a dealership, and applying for financing leaves many drivers feeling stressed and overwhelmed.
At Audi West Palm Beach, many drivers throughout West Palm Beach, Coral Springs, and Stuart come to us to get their questions answered about the used car shopping process. We’ve put together the following post to help you find the right used vehicle at a price you feel good about. Here are six tips to help you save on a used car, truck, or SUV.
1. Set a Budget before Buying a Used Car.
Before shopping for a used car, figure out how much you can spend each month. Look at your monthly income and factor in expenses like rent, mortgage, utilities, and student loan payments, plus the cost of car maintenance, insurance, and gas. This will help determine the amount you can comfortably spend on a used car loan.
2. Understand Your Credit Score.
Get a copy of your credit report at least three months before visiting a used car dealership. Knowing your credit score will give you an idea of the interest rates you qualify for, providing extra leverage when negotiating the terms and conditions of a used car loan at a dealership.
3. Request Used Car Financing Quotes from Several Lenders.
Car dealerships, banks, and credit unions all provide auto loans. After receiving a copy of your credit score, get a quote from each party to find the lowest interest rate. This information allows you to make a smart buying decision when you apply for an auto loan.
4. Keep the Terms of Your Auto Loan as Short as Possible.
It’s tempting to stretch out the length of a used car loan to get lower monthly payments. However, doing so only increases the amount you pay in interest over time, putting you at risk for paying more than what the used car is worth. Keep the terms of your loan as short as you can to reduce interest costs.
5. Make a 20% Down Payment.
When you buy a used car, making a large down payment helps you avoid paying more than the car is worth. Plus, if you suddenly need to sell your car, you might not be able to if you owe more than the car’s value. Putting between 10-20% down when you visit a dealership helps prevent this.
6. Use Cash to Pay for Documentation Fees, Registration Fees, and Sales Tax.
Bundling the sales tax, registration fees, and documentation fees into your used car loan can result in negative equity, or owing more on the car than what it’s worth. Pay for these at the dealership to keep your auto loan as small as possible.
Good Luck Shopping!
Buying a used car is exciting, and following the tips listed above can help you get a great deal on a reliable ride. Audi West Palm Beach has a wide selection of used and Certified Pre-Owned vehicles at our showroom for drivers throughout West Palm Beach, Coral Springs, and Stuart to consider, and we can help select one that fits your budget and driving needs. Check out our inventory to learn more, or schedule a test drive at Audi West Palm Beach today!
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Pre-Owned Inventory