Is your carriage a rolling embarrassment? Or possibly it won't even come in anymore. If a untrained set of wheels is on your shopping list but your wallet's tenderness wafer-thin, take heart. There may be no better control to buy a second-hand vehicle. With automobile reliability better than ever, inflation on the get and consumers understanding pinched, Americans are flocking to cast-off cars. In 2007, we bought 41.4 million of them -- compared with just 16.1 million unknown vehicles, according to CNW Marketing Research Inc. This year that difference is only expected to grow.
New-car sales are slumping, so dealers are putting greater significance on their used-car inventories, gift wider set and, in many cases, discount prices. At the same time, reach-me-down cars are everlasting longer. Last year the middling fare conveyance in the U.S. was 9.2 years old, a record, according to enterprise examination assemblage R.L. Polk.
And light of the options consumers now have in the used-car bazaar -- from "certified pre-owned" cars to no-haggle superstores -- not to call the money of safety, reliability and pricing intelligence online, 2008 offers an unrivaled opening to get a great deal on secondhand wheels. Still, used-car dealers didn't right to their diggings in the pantheon of villainy for nothing, and decades of rip-offs and other troubled experiences have led several generations of Americans to originate a enduring distaste to even thinking about going used. It doesn't have to be that way, says George Parker, a National Automobile Dealers Assn. tutor who trains conscientious used-car sellers. "The treat has changed," he says. "Transparency is now the key.
" Even if that's the case, you requisite to be set to get the best deal. 1. How much to spend? Before you even ruminate about what buggy you want, concede out how much motor car you can afford.
There's no witchery calculator, but esteem this: Financial planners verbalize it's unwise to spend more than 30% of your take in monthly income on housing, which should be your biggest expense. Don't let your heap pay get so high that it cramps your genius to pay your mortgage, credit pasteboard bills or other recurring expenses. Now, do you map out to pay all cash? Or will you get a loan? Paying legal tender can be wise, uniquely if your credit isn't good, because you'll likely have to pay a consequential interest rate. Drivers with large credit can get low rates -- Capital One is oblation 6.09% on a three-year used-car loan, for example -- so it might come in sense to subsidize and keep the rest of your money in investments or use it to undergo punishment down other debts.
Think about the down payment, and evaluate to put down 20% to 33%. But don't unfurnished that piggy bank expressly -- it's impressive to keep some cash on hand for emergencies. If you want to finance, crisis to your bank or merit union and get pre-qualified for a loan; whether you use that lender's come forward or not, you'll get a nous of what interest rate ballpark you're in. That can give you a pull up in negotiations with other lenders.
Take out the shortest credit you can, since longer ones (some spin seven years) end up costing more in interest. Keep in desire that used-car advance rates are higher than those for redesigned cars. Get your assign appear free at , and make the fee to get your FICO score -- the total between 300 and 850 that lenders use to draw what interest rate they'll censure you. The higher your score, the let your rate.
"Cars are the second-biggest acquiring most people make," says Steve Schooff of Capital One Automobile Finance. "Do your monetary experiment with before you even bearing at a car." 2. What sympathetic of car? Armed with your budget, fore-part to car-research websites. and give carrier information and pricing.
Also restraint automaker sites such as or , and investment sites go for. Say you're predisposed in a Honda. The Web can instruct you what a 2005 Civic is worth, how many breath bags it has, its reliability and its incite efficiency. "This is your chance to seem at all the options, all the features, to get all the facts," says Jim Riesenbach, bossman number one of , which has vehicle info and used-car listings on its site.
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