Even though the U.S. economy is undergoing a rough patch, it has opened a pocket of opportunities for buying value new or used cars. The auto dealers across the country hold a ready inventory of cars from different manufacturers. Before actually acting on your decision on your purchase of a new or used car, do a little bit of homework on prevailing rates and condition of auto-financing, the methods by which the dealers determine the purchase value of your existing car and the mechanical and technical efficiencies of the car, new or used, which you intend to purchase.
Financing your Car:
People’s accessibility to buy a car increases when they can opt for some type of financing. Almost all the auto dealers have an in-house financial arrangement which disseminates information on the terms and conditions of the finance being offered. Though your credit rating plays a role in obtaining finance, given the current economic conditions, the dealers may not insist that you should have a flawless credit rating to become eligible for getting a loan. Since they have surplus funds with them, auto dealers would not mind a few minuses here and there in your credit.
Still if your credit rating does not entitle you for the purchase of a new car, do not lose hope as you can always look for good deals to buy used cars. Attractive deals of used cars could be found if you do some research and by searching for them at the right places. A used car does not mean the car is as old as the term implies; it merely states that it is a second hand vehicle. You may be able to find almost a new car in a secondhand condition. It is also possible that the car may be older in terms of years from the date of manufacturing, but can still be new, if it has run a lower mileage. Since used cars are less expensive, it may be possible for you to buy with a lesser quantum of finance or by paying the full payment thus avoiding the need for financing completely.
The Ways Car Dealers Determine the Value your Existing Car:
The trading in option can be exercised when you have decided to sell off your excising vehicle but at the same time do not want to have hassles associated with it. The car dealers, after purchasing the car, sell them after carrying out some sort of refurbishing methods, or depending upon the condition, they might auction them.
Kelly’s Blue Book provides rough guidelines in determining the value of your used car, but the real value would depend on a number of factors which may or may not have been factored in these guidelines. Certified assessors of the auto dealers look at the condition of the car, and car dealers also take into account what they think the value would fetch in your area. The trade in value serves as a down payment in the purchase of your new or used car.
Size of the Car and its Relationship with Fuel Efficiency:
Whether it is a new or used car, size and fuel efficiency are two important factors that have to be take into account. There is always a trade-off between the size and fuel efficiency because it is common knowledge that the larger the size of the car, the lesser the fuel efficiency is. The larger the car the more the gas it needs and it is also more expensive to maintain larger vehicles. Again the space you think you need would matter in making a decision.
If your driving needs involve commuting longer distances, it makes sense to go in for a smaller fuel efficient vehicle. Though hybrid cars are the latest additions in the market, it is possible to buy a used, fuel-efficient compact vehicle in place of an expensive hybrid car.
As the auto dealers across the country have huge inventory of new and used cars, you will not find a better time to buy one because it is only under this economic condition that a buyer’s market can exist.