Buying a Used Car in DFW (when you are in a low budget)
Are you in a budget and looking for a used car in Dallas-Fort Worth area? There are many used-car dealers in DFW, however, should you go to the nearest one to your home? Or should you travel 1 hour across DFW to find the perfect dealer? Well, this article will hopefully give an answer to your dilemma.
Buying a car is a big investment even if it is used. You want to make sure ahead of time how much trouble this new acquisition is going to cost you in the long run. You don’t want to discover on the day of your special date with your loved one that your car has stopped working. Well, I will try to write what to do in case that happens too in a different article. However, this article is meant to tell you how to prevent trouble in the future by buying the perfect budget used-car.
If you are in a budget, you probably are either a student or have a low paying job and/or have some kind of debt that you need to pay off. In that case, follow these procedures:
Choose cars that are easy to repair, and are not costly to repair. Example makes and models include: Toyota Camry, Toyota Corolla, Honda Civic. Do not buy a luxurious car like V6 Volkswagen Passat or even a Lexus. They might cost you too much money to repair.
Buy a car that costs $2000-$4000. Do not try to go for expensive cars above $10,000. In few years, the value of your car will depreciate maybe 50% of the original price. Do the math! Let’s create a hypothetical situation where you bought a car (Car A) for $10,000. Let’s say the value of this car depreciates by 50% in 4 years. Also, suppose a cheaper car (Car B) that would have cost you just $3000 depreciates at same rate in 4 years. In 4 years, you will lose $5000 with Car A, but just $1500 with Car B!
Do research about the car (online). Do as much research as you can about the make and model AND the car history. First check if the seller is selling in market value or over charging you. Google “Kelley Blue Book” and find out what should be the range of prices for the make and model you are buying. Google “CarFax”, take the VIN number of the car being sold and check the vehicle history report! You will see on the Internet that people warn you to to stay away from cars that have been in floods, or were totaled. Try to see if the car has any signs of being in floods in the past.
Google reviews about the seller/dealer. If you can, find out if this dealer has good rating online. If they have low ratings, try your best to stay away.
Be wary of the salesperson! They will manipulate you into buying the car anyhow. Do not fall into any kind of trap. Make decision based on research.
Get help! If you know someone you can trust who knows a lot about cars, get their help. Always go with a friend to buy the car! (And be careful when you meet strangers!)
Check the details and Test Drive! Do not forget to take the car for a test drive. Take it to the highway, and see everything is okay.
Get the most out of the dealer. If you are buying from a dealer, and something is wrong with the car, tell them to fix it before you will buy it. Fixing it later might be costlier. This will save you money.
Get extended warranty if possible. Most extended warranties are sold through a loan service. So, this is suggested if you get a loan.
If you must get a loan, get loan from a Credit Union. Credit Unions are easy to approve you and are much nicer to you than traditional financing companies. If you know someone who has an account with a Credit Union, tell them to refer you. Get as low interest rate as you can! Find out when you can refinance and get a lower interest rate.