Cheap cars
Cheap cars can be found just about anywhere, it is the quality of the cheap car that you need to be concerned about. Individuals that are shopping for cheap cars normally need them to be used as a commuter car, teen-agers car, or as an alternative to their expensive car. A cheap car simply needs to fit your needs at the lowest price possible. Cheap cars will come from two sources: used or pre-owned. While they sound the same, they are a little different. A used car is available from dealers, individuals, internet sites, and at auctions. Pre-owned cars are sold "as is" and they normally come with some type of warranty.
If you don't want to buy a used car or certified pre-owned car, you have the option of leasing your car. Leasing is a great option for individuals with a small credit history or for individuals that do not have a big income. Instead of buying the car and putting down a large amount of money, you can drive off the car lot in a brand new car that is still under warranty. Car companies love leasers because they usually keep the car and turn it in for a new one within 3 years; this means they will be a long-time customer.
Leasing means you are only paying for the cost of the vehicle for the time you use it. You aren't getting a loan to finance the total cost of the car. It's kind of like renting an apartment, you will sign a contract saying you will keep the car for a certain number of months and you will pay the monthly fee. The down payment will be much smaller than buying a new car. This is why you see so many people driving around in brand-new cars that they can't afford to buy. In order to lease a car, you will need to put down a security deposit, which is about the cost of the first month's payment.
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Each dealer has different leasing options. With some dealers, you may have to put down a large down payment and pay for other fees. It mostly depends on your credit score. If you have excellent credit, you will get a better leasing agreement. The lower your credit score is the larger the down payment amount and the higher the monthly payments. If you have poor credit, you won't even be approved for a lease.
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"How to avoid buying a lemon"
When you are shopping for cheap cars, you need to do your research. Several buyers wind up with a lemon and end up paying more in repair costs than the value of the car. One way to know if there has been a problem with your particular model is to contact the National Highway Traffic Safety Administration to see if there have been any recalls on your car. The Center for Auto Safety (CAS) and auto web sites will also provide you with information about safety recalls and maintenance history. It is important to look up reviews of the car so you know what the common problems are with the car. You can also contact your local mechanic to find out how often this particular car model shows up in their shop for repairs. If your friends have the car, ask them if they are satisfied with the car and if they have had any problems. If you are purchasing a used car, always order a copy of a vehicle history report. The vehicle history report will let you know if the car has been in any accidents or involved in illegal activity. Carfax.com is a great web that will provide you with vehicle history reports. If you are buying from a used car dealership or from an independent seller, ask them if you can test drive the car and take it to your local auto mechanic. Taking the car to an auto mechanic will let you know if the car has had any problems or if it has frame damage. Ask the owner how many people have owned the car. You want to try and find a used car that has only been owned by one or two people. This will give you a better understanding about the history of the vehicle. You also need to check the Kelly Blue Book value of the car before you buy it. If the seller has the car listed at a higher value, try to negotiate for a lower price. It is always important to ask the seller why they are trying to sell the car. |
The benefit of a lease is that you simply take the car back to the dealer if it has problems. You only need to perform routine maintenance like gas and oil changes. Once the lease is up, you take the car back to the dealer and you have the option of buying out the lease or you trade it in for a newer car.
When you are negotiating the terms of a lease, you need to be prepared to walk away from the dealership and check out a different one. Some dealerships have strict policies on leasing agreements and they don't always give you the best offer out there. You need to consider the depreciation costs of the vehicle and how much money you will lose right off the bat. Leasing a car means you will be upside down on the value of the car for a few months. To stay ahead, lease a car that has a higher resale value.
If you don't want to lease a car, consider shopping for a used car. Used cars can be found just about anywhere. Dealerships will offer warranties for some cars, which can cover the cost of expensive repairs. When you are searching for a used car, you need to do your research. Make sure the car hasn't been in any major accidents and check the number of owners the car has had.
Used cars that are sold at dealerships are usually pretty good. The longer the car has sat on the car lot, the more desperate the salesman is to get rid of it. You will be able to negotiate for a lower loan amount and possibly save yourself thousands of dollars. The used cars at dealerships are usually vehicle trade-ins. The cars tend to be newer because the older cars tend to go to independent-owned dealerships.
Independent car dealerships can give you some great car options. They always have cheap cars that have been purchased at auction or from the larger dealerships. You can get cheap cars for a great deal, but you need to watch out for "lemons". Always run a vehicle history report to make sure the car doesn't have any hidden problems. Used car lots don't offer warranty's and they usually do not have a return policy.
You may be seeing commercials for the "no credit check" car lots. These car dealerships will promise to sell a car to anyone, regardless of their financial background. The problem with "no credit check" car lots is that they often have high interest rates on the car, sometimes around 20 percent. The payment terms are very strict. If you miss a payment, the company will charge you large fees and you only have a specific amount of time to pay back the money or the car will be re-possessed. If you purchase a car through one of these dealerships, ask about automatic bill pay or online payment, this can help you avoid monthly late fees.
Cheap cars can also be found at the new car dealerships. If you have good credit, you can get a brand new car for a killer deal. There are several rebates and incentives that are offered by the car manufacturer, especially on domestic cars. The rebates can make a brand new car cheaper than a used car. Car lots are desperate to dump their new cars during the 4th quarter because they need to make room for the New Year's models. Car manufacturers have also begun manufacturing cheaper cars. You can purchase a brand new car for about $10,000; you just can't be too picky about your features or the model of the car.
Don't forget to go online for cheap cars. Autotrader.com and UsedCars.com are two of the largest online used car buying services. They have thousands of cars listed all over the country. You can get used cars for under $1,000. Using the online web sites, you can input the total amount you are willing to spend, the car make and model, and how far you are willing to travel. You might have to travel a few thousand miles to get the cheaper car, but if it's a good deal it might be worth it. It might be time to take a family vacation to that city, just so you can get a cheap car. They also offer financing services and they can negotiate a lower amount for you. This makes the entire car buying process much easier for you.
EbayMotors.com and other online car auction web sites also offer cheap cars. You have the ability to bid on a car of your choice and if you are the highest bidder, you win the car. EbayMotors.com also protects against accident fraud so you don't have to worry about losing your money.
Another way to get a cheap car is to search for a "get paid to drive program". These programs mean you need to put a wrap on your own vehicle or an advertisement for a company. It is basically a vinyl ad that you have to place on your car when you drive around. You won't get paid much, but it can cover the cost of gas and other vehicle expenses. If you can get in with the right company, you are almost driving a free car. It is easy to qualify for an advertised car program since you don't have any background checks.
One other place to get a cheap car is to look for damaged cars. These are low-cost cars that can be found at salvage lots and auctions. Insurance actions also have damaged cars. If you purchase a damaged car, you will need to know how to fix it or you must be able to afford to pay someone else to fix it. You can get a great deal, but if you don't know what you're doing, it can be money pit.
Government car auctions and police auctions are two other great places to get cheap cars. These cars have been seized by government officials and law enforcement from law breakers. These cars are normally in luxury condition and are brand new models. You can get outstanding bargains at government and police auctions.
Rental car companies also sell off their older cars for a great deal. Enterprise Rent-a-Car often sells their late-model vehicle in public sales. You can get cheap cars from them, but you need to watch out for car problems. Some consumer reports have stated that the rental car companies do not maintain the cars well and this causes a lot of problems later on for car buyers. Rental cars are not trying to make a profit off the cars, so you can negotiate for some great bargains.
