Buying a used car in good condition instead of a new one is a great way to save money and keep your insurance rates low. If you’re not sure where to find reliable used cars for sale, here are a few different approaches and their inherent advantages and disadvantages.
You can find private owners who have sold used cars through online sites, newspaper ads, or simply by word of mouth. This approach can land you great deals. If you try to go to real estate sales or explore your neighborhood for vehicles with "On sale" signs on them, there’s always a chance you’ll strike gold by finding a cheap car with low mileage. Some private owners are trying to get rid of their cars quickly because they have to move or need money fast. Others haven’t done the research to find out how much their car is really worth. Others just don’t care and just want the vehicle off their property. No matter what the circumstances, your loss is your gain.
However, buying from a private owner has some clear drawbacks. You will discover that some people are attached to their cars and are unwilling to part with their memory, thus making negotiations more difficult than they should be. Also, you don’t have any consumer protections when you buy from a private owner, since most state warranty laws do not extend to private sales. So if you buy a car from a private owner and find it has serious mechanical problems when you drive it home, you’re going to have to suffer the repercussions, whether or not the previous owner knew your car had problems.
On the other hand, if you can find used cars for sale from a reputable dealer, you’ll enjoy the peace of mind that comes with knowing you have certain consumer protections. You may be protected by implied warranties or warranties under your state’s merchantability laws. Plus, buying a car through a Certified Pre-Owned program could give you the extra security you need. Certified Pre-Owned cars are subject to a thorough mechanical and cosmetic inspection before they are offered for sale, and are often covered by warranties that provide helpful additional features, such as roadside assistance.
The negotiation process is usually much smoother with dealerships. After all, they are selling products, not your prized possessions. Sometimes they offer additional free services to seal the deal.
If you don’t have all the cash available for your new vehicle, a dealer can provide financing services. When you buy from a private owner, you will either have to pay the full amount up front or get a loan from a bank.