Buying a Used Car 101: Questions to Ask

It’s crucial to learn as much as you can about a car before you buy it. After all, you don’t want to spend money on a vehicle that you can’t ensure is completely reliable. It’s important to ask questions to your salesperson when you’re in the market for a used car, as certain things are nonnegotiable and can ultimately influence your decision on which car to purchase.

Car shopping can be stressful, so we’ve compiled the five most common questions asked when buying a used car. Continue reading to learn more!

Why Buy a Used Car? 

New or used, a car is a big purchase. There are both advantages and disadvantages to buying a new or pre-owned car, but for most people, buying a used car is the smartest financial decision. While new cars come equipped with the latest technological advancements and safety features, used cars take the cake when it comes to price. Used cars are almost always cheaper, can be just as reliable, and usually have lower insurance rates. 

The moment you drive a vehicle off of a dealer’s lot, its value begins to depreciate. Much of a vehicle’s value is lost within the first year of purchase, but used cars have likely already passed this stage of losing value, as less depreciation occurs later in a car’s life. Additionally, used vehicles are less of a financial burden than brand new cars. Used car owners often have lower monthly payments and avoid having to take out a multi-year loan. 

Your Questions, Answered

1. What Is Good Mileage for a Used Car?

Mileage is important to consider when buying a used car, but it shouldn’t be your only deciding factor. A general rule of thumb when shopping for a used car is to remember that the average person drives about 12,000 miles per year. To figure out if the mileage is good on the car you are interested in, simply multiply the age of the car by 12,000. For example, a car that is seven years old should have about 84,000 miles on it. 

However, because mileage can be misleading, there really is no definitive answer as to how many miles are too much on your used car. 

2. How Much Can I Afford to Spend?

What you can afford to spend when buying a used car is entirely up to you and your budget. However, an easy way to avoid overspending on your used vehicle is to remember that no more than 20% of your annual take home pay should be spent on a car. If you can, it’s best to save enough money to be able to pay for your vehicle with cash to avoid having to finance and pay interest. 

3. What Are the Best Used Cars?

The best used car to buy is going to be different for everyone because each individual has a different lifestyle and will want a car that can support them. However, there is such a thing as a certified pre-owned vehicle that is only available at dealerships. Certified pre-owned vehicles are factory certified cars that go through rigorous inspections in order to pass certain requirements. These cars are typically gently used, accident free, and have low mileage on them.

4. What’s With Car Loans and Interest Rates?

Securing a used car loan with a good interest rate could save you thousands of dollars. While a variety of factors are used to determine the calculations of your loan and interest rate, much of the decision has to do with your credit score. Generally, anyone with a credit score of 600 or above will be able to secure a good interest rate on a used car loan. 

5. When is The Best Time to Buy a Used Car?

The best time to buy a used car is of course up to you, whenever you are ready, however, there are a few tips to know about when to do your used car shopping to secure the best deal with the least amount of hassle. The best times to buy a used vehicle are:

• Weekdays
• End of the month
• End of the calendar year
• When new models come out
• Holiday weekends

Buy Your Next Used Vehicle at Lexington M&L

Now that the most common questions from used car buyers have been answered, you can begin your search for your “new” used car. Here at M&L Chrysler Jeep Dodge Ram, we believe that the car buying process shouldn’t have to be a stressful experience. If you’re in the market for a pre-owned or new vehicle, use the button below to contact us to schedule a test drive with one of our incredible sales associates.