Buying a used car is a great way to save money. However, there are many used cars to choose from, making it difficult to know where to start and which one to get. It's important to understand the factors that go into a secure used car purchase in order to make sure you're happy with your new vehicle. In this article we'll provide you with some tips for buying a used car and how you can find the ideal model for your needs at Huffines Chevrolet in Plano, Texas.
Setting Your Budget
Before deciding what to buy, it's an excellent idea to set your budget. Knowing what you can afford allows you to narrow down your options and find the ones best suited to your financial situation. Here are a few factors to consider when setting your budget.
First, how much can you afford to pay as a down payment on the day of purchase? Bearing in mind the higher your upfront payment, the less you'll have to borrow. If you intend to trade in your current vehicle, you can use that car's value toward your down payment, reducing your loan amount further. Find your trade-in value today to better determine your budget.
Next, what can you afford to pay monthly? When you take out a loan to pay for your used car, the amount you borrow will be divided by the loan term to determine your monthly payment. For example, a $3,600 loan over 36 months would be $100 monthly in payments - the interest is then added to give you the monthly payment figure.
After determining what you can afford each month, multiply this by the loan term, which is typically between three and six years. This amount, including your down payment and trade-in value, will give you a rough estimate of the amount you can spend on a used vehicle. To make these calculations easier, try using our payment calculator.
Understanding Financing Options - Loans vs. Paying Cash
There are two primary options for paying for your vehicle - cash or a loan. Both options have benefits and drawbacks, so it's important to understand both before deciding on an option.
Paying with cash is fairly straightforward. You pay the purchase price of the vehicle after deducting your trade-in value, if pertinent. There are no monthly payments, but you must have the correct amount of cash on hand. Considering that used vehicles typically cost thousands of dollars, most people don't have that amount of cash readily available.
This is where loans come in. You borrow the necessary amount and pay it back through monthly payments over a fixed period of time. Loans make it easier to get the vehicle you want now while paying for it over a few years. However, loans come with interest, and you end up paying more for the vehicle than what you initially borrowed.
It's for this reason that many people choose a combination of cash and a loan. By using your available cash and trade-in value, you can lower the amount that you need to borrow. A lower loan amount means lower monthly payments, a shorter payment period, and less interest charged. If you're interested in getting a loan, you can get preapproved today and learn how much you're eligible to borrow.
Choosing the Right Used Car
Once you know how much you can afford and how you want to pay, it's time to choose your vehicle.
Building a Target List of Desired Vehicles
We recommend building a list of vehicles that interest you. Determine your personal needs and preferences. Here are a few factors to consider:
- Number of seats
- Fuel efficiency
- Cargo space
- Off-road capabilities
- Safety technologies
- Comfort and entertainment amenities
Use your personal needs to narrow down your used vehicle options. For instance, remove any vehicles that don't have the required number of seats or cargo space. Try our used vehicle inventory search - it provides plenty of filters to help you define your options.
Evaluating Body Styles and Essential Features
After creating your list of potential vehicles, investigate each one further. Compare them against each other, considering factors such as the car's age and mileage. Explore the essential features of each vehicle, moving ones with your preferred features to the top of the list. You should get a good idea as to which vehicle best suits you.
Used or Certified Preowned Cars?
While you're exploring used models, consider going with a certified preowned (CPO) car. CPO vehicles have gone through a rigorous inspection process and have met certain standards from the manufacturer in terms of age and mileage. They're often a great way to get a newer vehicle at a more affordable price. Additionally, CPO vehicles come with benefits such as extended warranties and roadside assistance, providing more value.
Finalizing Your Purchase
When you've decided on the vehicle you want to purchase, finalizing the process is a breeze. Our team will work with you to complete the sale, helping you secure financing, if necessary, and trading in your current car. We answer all your questions along the way and ensure that you leave with a used vehicle that fits your needs and budget.
Ready To Explore Used Cars for Sale?
Find your next used vehicle at Huffines Chevrolet of Plano, Texas. We have a wide range of options for you to choose from, with vehicles coming in all the time.
Contact us today to schedule a test-drive in any of our used cars, including our CPO models. With our help, you'll be behind the wheel of a great used vehicle in no time at all.