3 Things to Consider When Buying a Used Car

Here are the top three things to consider when buying a used vehicle.
Written by Elaine Duvet
In today’s market, it can be tough to find a pre-owned vehicle you can afford. While the
used car
price spike has cooled off for now, analysts agree that prices are still much higher than before the pandemic. 
Jerry
, the
trustworthy insurance comparison app
, drops some serious knowledge on the top three things to consider when buying a used vehicle. 

Options for buying a used car

When searching for a used vehicle, check out trusted websites like TrueCar and Consumer Reports Used Car Marketplace. If you’re comfortable purchasing from an individual, it’s possible to make a safe purchase from Facebook Marketplace or Craigslist. 
In today’s market, sellers aren’t likely to hold on to cars for extended periods, so be prepared to act fast. While deals move quickly, make sure you don’t overlook important details. No one wants to end up regretting their big purchase. 
Most lease contracts come with a buyout clause. If the buyout price for your current vehicle was determined before early 2021, there’s a good chance it’s much lower than what the car is worth on the open market. Buying the car you’ve been leasing may be your smartest option, plus you can maintain the level of features you’re comfortable with.  
Pickup trucks and SUVs tend to be the most popular choices among car shoppers, so opting for a used hatchback, sedan, minivan or front-wheel-drive SUV may be your best bet. You’ll have more options to choose from and may even strike a better deal. 
MORE: 3 Safe and Reliable 10-Year-Old Used Cars
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Consider the following:

Safety Equipment. It’s commonplace for modern cars to offer optional if not standard advanced safety and driver assist features. More used cars that ever now offer readily available features like adaptive cruise control and automatic emergency braking (AEB). If possible,
Consumer Reports
strongly recommends opting for blind sport warning and AEB with pedestrian detection. 
Age of the vehicle. Since it’s still a seller’s market, cars under two years old haven’t gone down much in price. Cars three to five years old (or older) will offer you a much better value. But make sure you don’t buy a used car that will be worth less than what you’d owe on the loan a few years down the line. 
Essentially, purchasing a used vehicle at a higher price than you’re used to could mean the car depreciates sooner than expected. 
Strong Reliability. It’s a good idea to consult Consumer Report’s surveys to field down models with top reliability ratings. We also recommend having a professional and trustworthy mechanic inspect any used car you’re thinking about buying. While it may be difficult to schedule or get a seller to agree to a mechanical inspection, the hassle may be worth it.

Financing your used car 

Before you go to the dealership, get a preapproved offer from your credit union or bank. Your budget should be determined by the overall costs, and what the auto will cost you every month. If you want a big leg up on negotiation, step foot on the lot with a secured loan and your financing in check. 
While extended warranties may seem like a good idea, most programs aren’t worth it. Consumer Reports notes that it usually costs less to pay for repairs out of pocket than to purchase a plan you may or may not use. 
Look for a model with a great track record of reliability if you can’t find a used car that’s still covered by its factory warranty. Certified pre-owned vehicles often come with warranties as well. 
If you want to buy warranty coverage for a vehicle with an iffy reliability record, know what the plan covers and what it doesn’t. Not only do extended warranty contracts contain complex legal jargon, but dealers can also jack up warranty coverage prices at different rates for different individuals. 
Lastly, think twice about leasing a used car. The risks of going this route include the potentially high cost of having to repair a vehicle that isn’t even yours. If you do choose to lease a used car, consider buying extended warranty coverage (if there’s not a lot of exclusions). You may also be able to locate a model that’s still under factory warranty. 
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