One of the best ways to give your life more convenience and independence is owning a car. It cuts travel time in half, allows you further freedom and helps immensely with supporting friends and family. However, buying a car is often considered a difficult and time-consuming process. Just where do you get started with pricing, insurance and the myriad of different brands on the market? When it comes to auto sales and car buying, doing a little research will serve you best. Let’s take a look at what creates the best car buying experience and, likewise, what you should b be mindful of when browsing.
Did You Know?
It’s time to clear the air with lesser known facts about certified pre-owned vehicles. Studies have found the average vehicle will have three owners throughout its lifetime and more than half of all cars on the open road are used models. According to a report by the 2015 Used Vehicle Market Report, there are nearly 40 million used vehicle sales industrywide — this is considered the best annual tally in the past eight years. The most frequently searched price range for a used vehicle ranges at $5,000 or so.
Insurance
When buying a certified pre-owned vehicle it’s essential to consider the insurance you’re going to need. Industry professionals recommend you do not drive a car without insurance, as you’re putting yourself at severe risk for heavy fines should you get into an accident. In fact, some insurance companies will even offer discounts in exchange for routine safe driving throughout the year.
Prices
Concerned about prices? A certified pre-owned vehicle will not only be cheaper than a new model, it will be just as efficient. After all, used car dealerships put their cars through a strict regulation process to ensure they’re fit to drive. Consider the total costs of financing a vehicle outside of the monthly payment — it’s necessary to compare different payment plans for both your monthly payment and the total amount of payments required. For example, a 36-month/3-year compared to a 60-month/5-year credit purchase. Longer contract lengths usually mean lower monthly payments and higher total finance charges.
Loans
The majority of banks will not give you a loan for a car older than four or five years old. If you want to buy a vehicle that is less than five years old, a certified pre-owned vehicle is an ideal option (shortened to CPO). Virtually all car dealerships will offer the convenience of one-stop shopping through their on-site financing offerings — a used auto dealer will work with anywhere from five to 10 different banks or finance companies to ensure your unique financial needs are met.
Buying A Used Car
Buying a certified pre-owned vehicle has never been easier with the aid of online support, loans and insurance options. With prices averaging around $31,000 for a new vehicle, more and more people are turning to the affordability of a used car — studies have shown the average used car will yield little more than $17,000, meaning you can spend the rest of that money on proper financing, repairs and gas. Dealerships wrote more than 200 million repair orders back in 2015, with nearly $98 billion in service and parts sales both. When buying a used car, rest assured this convenient and independent addition to your life will last you for years to come.