Many people across the U.S. turn to auto loans when it comes to buying a car, but not everyone is in the right financial circumstances to have a loan for a brand new car approved. In these cases, individuals need to look for an affordable and reliable vehicle. We've previously shared seven important steps to take when searching for a used car and now we'd like to add two more points to consider.
According to experts, the best price for a used car you can depend on is around $2,500. For each extra $1,000 available, newer cars with fewer miles become available. Car dealer Mark Scroggs says, "There are diamonds out there, but it takes a lot of legwork to find them."
- Manage your expectations – An auto loan might enable them to buy a large family car that's just rolled off the manufacturing line. However, $2,500 is likely to get a vehicle that is at least a decade old and has over 100,000 miles on the clock. While the mileage might sound worrying, Scroggs revealed that traditionally a car with such mileage was ready to be scrapped, whereas now "you don't change your spark plugs until 100,000 miles."
- Use the correct search terms to find potential cars – For example, search for a maximum of $3,500 even if your budget is lower because there is often the chance to negotiate sellers down. Initial mileage should be set at 150,000 miles. It is best to start searching locally and then expand to a broader area. Finally, do not make the initial search by vehicle model.
Finding a used car can be a challenge, but with the right approach, the perfect vehicle might appear and the right lender might even offer you a loan to help finance it. If you are interested in an auto loan, visit our curated list of top lenders.