4 Things to Know About Used Car Financing

Shopping for a used car is very different from shopping for a new car. For one thing, you don't have to worry about the mechanical problems of a new car because it's fresh from the factory. Knowing how to spot the best used cars on the lot is vital to ensure you purchase a quality vehicle at a good price. more How to Spot the Best Used Cars on the Lot Do Your Research First Before you even begin shopping in person, go online and identify car models that have the features you want, are not prone to mechanical issues, and have a reputation for reliability and longevity. This will weed out any vehicles that are known to have issues so that you don't even bother looking at them in person. Of course, you'll want to have several models in mind when you go shopping in case some aren't available where you shop. Look at the Window Sticker By law, every used car that's for sale must have a window sticker that tells you whether the vehicle is being sold "as is" or if it comes with a warranty. If a warranty is included, it will explain how repair costs will be covered and what percentage you'll be required to pay. While you don't necessarily need to have a warranty on a used car, it does provide some assurance that your purchase will be protected. Inspect the Body Look the entire car over for dents, scratches, rust, and body filler. All panels, the roof, and fenders should be carefully inspected to ensure the body is in good condition. If you think you've found a spot that's been patched with body filler, place a magnet against the area. If the magnet doesn't stick to the spot, body filler has been used. Body damage is not necessarily a deal killer, but you might be able to get a better price. Tires Cars with fewer than 20,000 miles should probably still have their original tires. If the vehicle you're looking at has fewer than 20,000 miles and brand new tires, think twice about that car. The vehicle may have been driven harshly, which may have caused early wear on the tires. Or, it may not have been maintained properly. Either way, it's a sign that the car may not be as good of a deal as it seems. Interior Besides the obvious wear and tear on upholstery,, there are certain things to look for when inspecting the interior. Turn the car on to make sure all warning lights illuminate and that the car starts up right away. Turn on all lights and look for signs of water leaks from windows and doors. If you smell a musty odor, it could mean the car has water damage, so be sure to ask for a vehicle history report. Mechanics If at all possible, have a mechanic inspect the engine and other mechanical components, especially if you're not familiar with cars. This will ensure you're not getting a car that has mechanical problems that are going to cost you even more money in the long run. Additionally, purchasing a used vehicle from a reputable dealership will remove this doubt as well. Searching for a used car is not always easy, but if you know what to look for, you'll find the best deals on the lot. Come by Rath Auto Resources of Fort Smith to check out our inventory of fully-inspected, mechanically sound used cars.

A car is a huge purchase, and new cars are just getting more and more expensive. The sticker price of a new car is just one of the reasons to consider buying a used vehicle, though. There are many other reasons that buying used makes more sense than buying new. Here are some reasons to make your next vehicle purchase a used one. 1. The Sticker Price You can save thousands of dollars when you buy a used car. According to recent data, you can save over $13,000 by choosing used over new. The biggest reason for this is depreciation. New cars depreciate quickly over the first five years, with the majority of it occurring in the first two years. While some makes hold their value better than others, the majority of new cars will lose 30% of their value in just the first year. more 2. The Availability of Certified Pre-Owned Cars Almost every automaker offers some kind of certified pre-owned program to help buyers feel more secure when they buy a used vehicle. A manufacturer pre-owned certified vehicle usually includes some kind of warranty based on mileage or time along with extras such as roadside assistance. Dealerships also offer certified programs too. You can often purchase a warranty on a used vehicle for extra peace of mind. 3. You Get More for Your Money If you go into sticker shock when looking at just the entry-level trims on new vehicles, consider what you can get in a used vehicle for the same amount of money or even less. Your budget will get you much more in the way of extras if you look at cars that are a few years old. The top-level trim for a three-year-old vehicle with low miles is a much better deal than the base trim of a new car. 4. Reduced Cost of Insurance and Registration The value of the car determines the cost of insurance. Since a used car has less value than a brand-new car, it will cost less to insure it. Once a vehicle is older, you can even drop some of the coverage to save even more money. Collision and theft insurance is not always necessary for older vehicles. Just like with car insurance, the cost of registration is based on the transaction price. The less you pay for a car, the less you'll have to pay to register it. 5. The Variety There are thousands of different makes and models of used vehicles available. Car manufacturers discontinue trims every year and discontinue models regularly. These become available as used vehicles that you can no longer find new. For example, many carmakers are switching to crossover SUVs and limit the number of sedans that they produce. If you look for a used sedan, you'll have tons of options available. These are just a few of the reasons that it is a good idea to buy a used vehicle instead of new. The initial costs are lower, it is cheaper to insure a used car, and you'll have lots of options. Image via RathAuto.com

Buying a used car is an exciting process, but it can also be a little nerve-wracking. You want to make sure you buy the best vehicle at the best price, and that you have all the information required to make an informed decision. Next time you're in the market for a vehicle, keep these questions on the top of your mind. They will make the shopping process easier and more enjoyable. 1. Can you test drive the vehicle? You should always take your potential vehicle for a test drive. Before talking price with the dealer, make sure you can take the car for a test drive. You might even be able to take an extended or overnight drive. Offer proof of insurance and put it in writing that you'll bring the car back with a full tank of gas and less than 100 new miles on the odometer. The longer the test drive, the better. That's how you can find out if it's really the used car of your dreams...or a dud. more 2. Has the dealer done any service on the vehicle? You could be test driving a car that has sat on the dealership's lot for weeks or months. Ask the dealer if they've done any repairs or maintenance since they received the vehicle. This could help you save money. If they have serviced the car recently, you won't have to deal with repairs soon after purchasing the vehicle. Additionally, you should ask if the car has ever been in an accident. Even if it looks fine on the outside, it could have issues inside. 3. What about the certification? For a vehicle in the best possible condition, you want to look for a manufacturer-certified pre-owned car. These have gone through an extensive investigation and inspection process. Ask to see the certification paperwork so you can look over the inspection notes, check the mechanical condition, and understand future service needs. Certified pre-owned cars have become more and more popular, as they are often low-mileage lease returns that have been maintained by the dealer. 4. Does the dealership accept trade-ins? If the dealership will handle this for you, selling your old vehicle is one more thing you can check off your to-do list. This will save you the hassle of selling your car and help pay for your new used car. Remember, you can get a better price and a smoother transaction if you trade in a car similar to the ones the car dealership stocks. 5. Are there any finance or lease agreements available? This answer to this question will depend on the dealership. Many newer franchise dealers offer manufacturer-backed financing. Make sure the rate is equal to or lower than what your bank or credit union would offer. Alongside the natural stress of searching for a new car, the process should be enjoyable. Hopefully these questions will help you feel more confident and clear-headed the next time you are visiting used-car dealerships. Good luck, and happy car shopping! Image via Flickr by Jackie.Ick