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Is it a good time to buy a used vehicle? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by offering interactive financial calculators and tools that provide objective and original content. This allows you to conduct research and compare data for no cost - so that you can make informed financial decisions. Bankrate has agreements with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site come from companies who pay us. This compensation could affect how and where products appear on this site, including for instance, the order in which they may appear in the listing categories and other categories, unless prohibited by law for our mortgage or home equity products, as well as other products that lend money to homeowners. However, this compensation will have no impact on the information we publish, or the reviews that you read on this site. We do not contain the entire universe of businesses or financial deals that may be accessible to you.



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4 min read. Published September 30, 2022
Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the details of using loans to buy the car they want.







Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain confidence to control their finances by providing clear, well-researched information that break down complex subjects into bite-sized pieces.









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A used vehicle comes with a variety of advantages, including a lower rate of depreciation, lower costs and a lower upfront cost. The present state of the new car market reinforces the final aspect -- the new cars have reached record levels in the last week of summer, making this the perfect time to think about buying a second-hand car. Current state of the used car market summer ended with high prices. The average used vehicle sold for $28,219 in July, and the $28,061 mark in August as per Kelley Blue Book. However, used cars are considerably cheaper than those available at new car dealerships. Since the start of the epidemic, the car market has dramatically shifted away from normalcy, and has been inching back towards normalcy without much success. However, it's not all negative. While we're still not at 2021's levels of used price and availability however, it is a good location to buy secondhand, encourages Chris Frey, Cox Automotive's chief economist and industry research. The cost to finance, own and operate vehicles is still at record levels. made by the Federal Reserve make the cost to finance your vehicle higher and fuel prices fluctuate as well. However, financing a used vehicle is still cheaper than buying new ones at $515 per month, compared to an average of $667 during the first quarter 2022 according to . If you choose to purchase use a cheaper, used vehicle you can save money on your monthly installment. Used car prices are decreasing, but not by much. overall, prices for used cars are dropping according to Henry Hoenig, a data journalist at Jerry however, not significantly. The Jerry team looked at the top selling vehicles in 2022 and then compared them to 2021 lightly used models and concluded that "As as of August, just seven out of the 10 cars were worth more than used than the sticker price on pre-owned models." This implies that prices for used cars are higher than they have been historically, but on par with the current market volatility. The used car inventory is also much more than the dealerships, since they are still struggling to catch up with supply chain issues. Therefore, although prices may be higher than they have always been before, supply of used vehicles is higher than the availability of brand new vehicles. The inventory of used cars has increased by 10 percent to the same time last year, as per Cox Automotive's third quarter market research, a positive sign for the upcoming year. "Prices remain high because there aren't enough vehicles," Hoenig says. "It's important to be aware that this isn't like some of COVID-related shortages like we faced." While manufacturers of other products used in daily life were able to pick back up fairly quickly, cars are more difficult to make. It's important to be aware that the market for used cars is based on drivers quitting their cars which is why if there aren't so many people who are buying new vehicles, it could have a domino effect on used availability down the line. Because of these factors, you may be met with greater competition and possibly more expensive prices for used cars, but that doesn't make buying a second-hand car an undesirable option. Should I buy a used car? The issue of purchasing a second-hand car boils down to the need. There's no ideal solution and there are many macro-environmental impacts increasing cost. Because while experts predict that new vehicle inventory should be back to normal by the spring of 2023, many motorists don't have the luxury to wait for prices to fall. If you are looking to buy a vehicle, buying used over new can save you money. The factors that make up high demand for new cars and the low inventory with the usual high rates of interest mean that the price of vehicles is higher regardless, however, purchasing used vehicles is significantly cheaper. Top 5 questions to ask when purchasing a second-hand car While comes with a reduced price, it may also bring an additional skepticism that is associated with an unknown vehicle's past. To alleviate these worries make sure you ask the right questions to understand the history of your potential new vehicle. 1. What is the owner's history of the car? A vehicle with many owners is not always good news, but it could mean that the car was plagued by major issues that drivers tried to avoid fixing -- or were unable to fix. Ask the dealer about the number of owners it had along with the amount of time each driver had it. A lot of owners with short spans of time can be cause for anxiety. Bankrate tip
You should think about purchasing a vehicle. These vehicles must meet additional requirements created by the manufacturer. They must also be covered against any vehicle defects.


2. Did the vehicle have any crashes? While it is easy to look up a car's accident record through sites such as Carfax or AutoCheck however, it is recommended to inquire with the dealer prior to purchase. Even if the accident was minor , it's crucial to know how the damage was handled and if you will have to take care of any repercussions in the course of ownership. 3. Can I look at the maintenance records? Most dealerships that are authorized to sell vehicles keep records of any maintenance done on the vehicle, however asking directly can be a good way to gauge the vehicle's care. You should avoid buying a vehicle that hasn't undergone regular maintenance as it could mean higher costs later on. 4. Is there a clear vehicle title? A clear title for a vehicle indicates that the vehicle does not have any remaining disputes in regard to its ownership, confirming that the vehicle isn't subject to any restrictions that hinder it from being sold. If the seller is unable to present a clear title for the vehicle, take this as a red flag and walk away from the transaction. 5. Do I have the opportunity to take the car for a test drive? It is vital to get a feel for the car prior to signing on the dotted lines, particularly when you are purchasing the used vehicle. Take your time when test driving, and get a feel for the car's handling and condition. of the vehicle. This is also a great opportunity to speak in a relaxed setting and ask the salesperson any questions about the vehicle. Following steps: Buying used is the best way to get behind the steering wheel of a relatively new vehicle while still saving money. Although prices may be higher today, buying used is still less expensive than buying a brand new option. The secret to finding the best used car comes down to making the appropriate inquiries and for the most favorable financing offer. Find out more


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Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the ways and pitfalls of borrowing money to purchase an automobile.



The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing precise, well-researched and accurate information that breaks down complex topics into manageable bites.






Auto loans editor




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