Used cars might not give you great pick up or an outrageous top speed but they are better than not owning a vehicle altogether. Cars are important for us, especially for a daily commute to work and traveling within a city. A used car is ideal for you, if you are running a tight budget for your purchase. There are many used car dealers near you who can provide good deals on used cars. Following are a few points that can help give you a clearer idea about buying used cars.
What are the factors to consider before buying a used car?
- Previous owners
When buying a used car, it is important to know the number of previous owners, especially if you’re looking for a used car under $500. It is preferable to buy a car from the first owner as there is a possibility that a car purchased from the second owner might not be in the best shape.
The number of miles the car has covered is the most important factor while buying a used car. A car that has covered more than 200,000 miles should be a complete no-no even if it is a used car for sale under $500.
- Manufacturing year
The price and condition of a car can change significantly, depending on the manufacturing year of the car. The same model launched in 2003 and the one launched in 2004 while vary massively in terms of condition, mileage as well as price.
Which are the different categories of used cars available under $500?
This type of car is the most popular among used cars under $500. Hatchbacks are smaller than other cars, which means they require lower maintenance and a lower base price.
After hatchbacks, it is the sedans that one can opt for when buying used cars under $500. Used sedans from companies like Chrysler, Toyota, and Ford make up for a major chunk of these type of cars under $500.
- Pickup trucks
It is slightly difficult to get a used pick up truck under $500 in almost-prime condition. However, it is not impossible, there are many dealers who can help you get used pickup trucks from companies such as Dodge under $500.
What are the benefits of buying used cars?
- Low insurance premium
The insurance premium for your car is calculated on the basis of the market value of the car. It is obvious that the market value of a used car will be significantly lower than that of a new car.
- Certified warranties
If you buy a car for a certified owner or certified pre-owned cars dealers, you will be eligible for certified warranties for certain parts of the car. This will reduce the money you will spend in case an accident takes place.
- Lower customization costs
A used car does not require you to settle for dealership expensive add-ons. You can visit a local customization store and get upgrades for your car without spending a massive amount of money.
Which are the various ways of financing used cars?
- Direct loans
There are multiple loan providers that take interest in financing your purchase if you are buying a new or used car. It will be significantly easy for you to get a direct loan if you are buying a used car under $500.
- Dealer financing
If you visit a dealer for the purchase of a used car, there is a high possibility they will have a set of financiers available. These financiers have customized deals for individuals looking to buy used cars.
- Buy here pay here
It is a method you can implement in case you have a poor credit score. In this case, the dealer will extend credit for you and help you purchase the car. The interest rates for this type of financing will be significantly higher than those of the other methods.