Here at Quoted, we think a lot about car buying and
selling—how to pay for them, how to make sure
you’re getting the best deal, and even what paperwork you need, but
sometimes when you’re in the market for a new (or new-to-you)
vehicle, your situation or budget narrows your options to what a less
generous person might label a clunker. But don’t fear—great cars can
still be had for bargain prices. Below, we’ve asked the experts how
best to navigate shopping for a vehicle on a tight budget, without
sacrificing safety and reliability.
Can a Safe, Reliable
Vehicle Really be had for Under 5K?
Short answer: yes, with the big attached asterisk that
you must be a careful and thorough shopper. Details below, but first,
some cautionary tales:
Sally Elizabeth from PeopleClaim.com
told Quoted about two clients who bought used cars on a budget that
turned out to be salvaged cars—unbeknownst to them until after the
purchase.
Case One:
The car buyer, we’ll call her Mary, unwittingly purchased a car whose
frame was split, and therefore uninsurable. Mary’s mechanic (who she
had look at the car after she bought it) showed her the broken frame,
crumpled and split rails, the unsupported bumper, and the filler in
the body of the car (essentially, Bondo). Even more disconcerting?
Mary actually had another car dealership inspect the car two weeks
before she bought it. That dealership caught none of the glaring
damage, which also included rust. The moral of Mary’s story? If you
lack the expertise to inspect a used car yourself before purchase,
find a mechanic you can trust and
always—always—have them thoroughly examine the car before you buy.
[shareline text="Finding a good, cheap car is
possible but it requires thorough research."]
Case Two:
Our second victim, we’ll call him Jim, bought a used vehicle through
his credit union. When Jim got the car home and had it inspected, the
mechanic told him the VIN on the body and the motor
didn’t match. The lot where Jim purchased his lemon presented him
with a clean CARFAX report (obviously forged)
and “promised there were no problems with the car,” (here—though we
do feel terribly for Jim—we are thinking, Jim probably should’ve
known better than this). Jim actually contacted the Federal Trade
Commission because his salvaged car was sold as clean, which of
course is highly illegal.
Elizabeth told us, “We'd strongly advise that
consumers are particularly cautious about Buy Here, Pay Here dealers
and that they read all complaints about any dealers they're
considering buying from—and any published responses. There are always
two sides to a story; it's intelligent to read both and make up your
own mind.”
How to Actually Find a
Good Vehicle on a Tight Budget
Now that we’ve—through vivid, frightening
description—reiterated the importance of hiring an outside mechanic,
running your own checks, and thoroughly researching all vehicles
yourself, we can get into the details about how, exactly, to
accomplish this task.
Where to Shop
Despite the wariness some people feel about Ebay and Craigslist, both can actually be
good choices for shoppers looking for a vehicle on a budget. Maurice Davis, a criminal
defense lawyer, told us, “Between the two, it’s easy to search by
price range and model depending on your criteria, and it's likely you
can strike a deal with the seller. However, exercise caution and be
wary of scams.” Ali Ahmed, of NowCar also cautioned, “You're
buying from a person, not a dealership, so the vehicle hasn’t necessarily
been inspected by the seller—so the buyer may not be aware of some
important past information that dealers are required to provide.
Dealerships are required to inform the customer if the vehicle has a
bad title, has been a rental car, or doesn't meet emission control
standards.”
Kelley Blue Book and Edmunds.com
are also great resources. Davis says “Oftentimes these used cars come
with expert reviews, pictures and ratings. With information like
this, you will likely get a reliable car well worth the price. In
addition, you may save money on costly repairs down the road by
researching the car.” Both sites can also be used to verify True
Market Values as a check to see if the seller is pricing the car
fairly.
[shareline text="Auctions, rather than dealership
lots, are a great way to get a good deal on a used car."]
Ken Bodnar, of Selectbidder, told us something
that the average person might not know: “There are used car auctions
which are open to the public.” Bodnar says the cars at auction are
bank repossessions or trade-ins that dealerships don’t want. The best
part: Bodnar says auctions sell cars at wholesale prices, not retail.
Bodnar’s auction-buying tips: “Go to the lot a few days before, pick
out a car or two, and have a mechanic look them over. Auctions will
generally let you do that. It is a great way to get a lot of car for
less money than if you bought off a dealership lot or a used car
dealer.”
Ken Beckstead seconds Bodnar’s
tip about auctions, and says tow yards can be another great
resource. Beckstead adds that smaller towns often have more cars than
bidders (unlike in big cities where there are usually many people
bidding. All you have to do is call tow yards and ask when their next
auction takes place.
Finally, Mindy Jensen says, “Tell every
single person you know that you are looking for a good, reliable car.
You never know who has a friend who is selling theirs.”
What to Look For
Jensen says, “If your budget is under $5,000, your
best bet will be an older, sort of
general model. You won't get a reliable high-end car for that price,
and
you won't get a newer car for that price.” Jensen says look for cars
from the late 1990s and early 2000s.
[shareline text="Dents, dings, and rust are to be
expected for a truly inexpensive car."]
“When you're looking for an inexpensive car,” Jensen
adds, “the exterior doesn't really matter. Dents, dings, and rust
will be there—that's part of what makes it so inexpensive. The
interior doesn't really matter, either. In fact,” Jensen says, “you
only need to concentrate on the engine. If you aren't well-versed in
car engines, have a good mechanic take a look at it
before you buy.”
More specifically, Bodnar lists the following makes as
top picks: Subarus, Honda Civics, Dodges with bigger
engines, Silverado pickup trucks, and Mazdas.
Why? “These have a fairly large market share, and
hence are inexpensive to fix with readily available parts.” As a
counter to Jensen, Bodnar says a low mileage older (ten years) luxury
car can be a good bet. If they’re still in good shape at this point, you
can bet they’ve been treated well, he says. But, narrow your search:
Bodnar says either a domestic or European make will be the best bet
here.
Monique Prince says, “Don't
worry about the mileage. High mileage means the car has proven its
worth.”
A few other things to be sure to check: Ahmed advises:
“Before purchasing, inspect the car’s tires and test the brakes.
These are two of the most costly maintenance items to replace on any
car.” Also, says Ahmed, check out fueleconomy.gov to compare
annual gas prices across all types of vehicles.
Last, online forums can also be good resources for
details about how to choose the best vehicle for your money—like this
one at Reddit.
Important Tips When Buying
Used
·
Be sure to get your car
registered as soon as possible.
Davis cautions: “If not, you could suffer from an
array of costly citations and even grand theft as a consequence.”
·
Don’t forget about
additional expenses.
Ahmed notes: "When you are buying a car off
Craigslist [or Ebay] consider the cost of sales tax, cost of
transferring or buying a new tag, and the cost to register the
vehicle, not just the price you are paying the buyer. All of these
fees and taxes vary by county or state so be sure to check the rates
and fees in your area for accurate pricing.”
Financing a Used Car
Even when buying on a tight budget, you don’t need to
have a trade-in or to pay for the vehicle outright. Financing is
usually available to used car buyers, either from a dealership (if
that’s where you purchase) or through private credit unions. Just be
aware of all interest rates and fine print (more on that here and, as we’ve previously
noted, a good rule of thumb: “Finance used cars for 3 years with
about 10 percent down.”
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I love to write about reality. I write best when I am sitting in front of a large body of water with the waves pounding the coastline.
I have published 18 novels available at AuthorsDen.com/machermann
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