Dave Ramsey’s Top 3 Places To Buy a Used Car
Are you currently in the market for a used car? If you find this describes your current car shopping situation, you’re in luck. Money expert Dave Ramsey knows more than one great space where shoppers can find affordable used cars.
Be Aware: 5 Used Cars You Shouldn’t Buy
Find Out: 7 Unusual Ways To Make Extra Money (That Actually Work)
The three main categories for buying used cars, according to his Ramsey Solutions post, are car dealerships, online retailers and private sellers. Let’s look at some of the reasons why these are the best places for buying used cars.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Car Dealerships
There are three different dealerships where shoppers can find deals on used cars including franchise, independent and national dealerships.
Franchise Dealerships
Franchise dealerships are ideal for used car shoppers who want to buy a car in a specific brand, like a Honda or Toyota. According to the post on Ramsey Solutions, shoppers may also find pre-owned vehicles for sale at franchise dealerships.
However, franchise dealerships often have higher prices. Dealers may also push shoppers to finance their used car purchases but to reconsider buying used and get a new car instead. Be ready to negotiate if you decide to shop at a franchise dealership.
Learn More: Avoid These 7 Cars That Will Only Last You Half as Long as the Average Vehicle
Independent Used Car Dealerships
Independent used car dealerships have more used car options compared to franchise dealerships. Used car costs are also lower than they would be at bigger dealerships.
However, the sales staff will still pull out all the stops to convince you to spend more money. The Ramsey Solutions post recommends getting a thorough inspection and a vehicle history report when purchasing a car from an independent used car dealership, ensuring you get the best deal for your money.
National Used Car Dealerships
Do CarFax or DriveTime sound familiar to you? Both companies are national used car dealerships. Used car shoppers can find their locations across the United States and check out their huge inventories of vehicles for sale.
On the plus side, the used car shopping process is largely hassle-free at a national used car dealership. Compared to working with a franchise dealership though, buyers don’t receive opportunities to negotiate the price. The price you see is the price you should expect to pay.
Online Retailers
Used car shoppers can shop online for cars through websites like Carvana or Edmunds. Shopping for a used car online allows shoppers to compare prices and bookmark listings they’re interested in before committing to making a purchase.
Shopping online for a used car, however, means placing some faith in the seller. After all, it’s difficult to fully know what the used car looks like or drives like unless you have personally viewed it yourself. The Ramsey Solutions post recommends using online retailers to narrow down your used car options and seeing the cars in person before committing to any purchases.
Private Sellers
One final place where shoppers can find used cars is via private sellers.
Private sellers may include ads listed in the newspaper or online on Facebook Marketplace or Craigslist. While there are advantages to working with private sellers, like the ability to negotiate a lower price and experience a straightforward shopping experience, used car shoppers should be mindful of any potential scams. When in doubt, the post on Ramsey Solutions recommends asking questions, bringing a friend or family member to review the vehicle, getting the used car inspected and confirming there is a clean title.
The Best Time To Buy a Used Car
The best time to buy shares similarities with the best way to buy a used car. You should always do it when you have cash and use cash only.
Several Ramsey Solutions posts advocate for saving enough money to buy a car with cash instead of taking out a loan. Loans with high interest rates mean you’re spending a lot of money on monthly car payments and extra money in interest over the course of the loan’s term. Buying a car with cash, on the other hand, means you won’t owe anything and can put your money toward reaching your other outstanding financial goals instead.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Dave Ramsey’s Top 3 Places To Buy a Used Car
