If you have need of transportation but a new car isn’t in your budget, there’s no need to cringe at the thought of buying a used car. In addition to budget matters, there are plenty of good reasons to seek a used car instead of a new one.

Wait and Watch Before Buying the Newest Model

Anyone who has ever bought a new model fresh off the assembly line just to have an assortment of problems with it in the first year of ownership will tell you that buying previously owned cars has its perks.

If you are attracted to a new car model being manufactured, wait until the end of the model year to learn how the cars are holding up. You might be surprised to learn that the manufacturer plans to discontinue the line or is having a major recall.

Program Cars Offer Low Miles with Some New Car Perks

We all know that a car begins to depreciate as soon as it is driven off the lot. Keeping that in mind, it makes sense to buy a program car that has minimal miles on its odometer. Maybe the car was driven by a salesperson from the dealership as a “demo,” or maybe it was used just a few times as a loaner car for people whose car was in for service. With many program cars, the buyer can still qualify for manufacturer and dealer rebates and other incentives.

Always deal with a reputable seller, whether buying from an individual or a dealership. Research is the only way to guarantee this happens. If you found your used car in a classified section, learn all you can about the seller before making the transaction. The same goes for dealerships. Work with those that have a good, fair reputation.

The most important thing to have on your side when buying a used car is a sales representative you can trust. Understand that the rep gets paid commission and will benefit by selling you a car. A good rep will want to do more than just earn commission; he/she will want to help you find the car to fit your needs and your financial guidelines. If you ever get the gut feeling that you’re being scammed, find another rep or dealer.

Financing Your “New to You” Car

When it comes time to pay for the used car, you’ll need to have a general idea of how you’d like to pay the car out. Maybe you can pay cash all at once and be done. Most, however, have to make payments. Many dealerships offer financing even for used cars on their lots. If buying from an individual, you’ll have to check with your bank or credit union for a loan. If you have the option of doing either, check to see which program will give you the best deal. Banks and credit unions generally offer lower interest rates, but you never know until you actually compare!

When looking at your finances to see if you can afford the used car you’ve selected, don’t forget to include insurance coverage. Check with your agent to determine if you need full coverage or partial coverage for your car. Get estimates for both and pencil those figures into your budget. Can you afford to buy a used car or truck?