Now a Good Time to Buy Used Car
If you read my Used Car Buying Guide, you'll know that buying a 3 to 5 year old used car and holding onto it for many years is the best way to save maximum money when it comes to car ownership. A "slightly" used car which is at least 3 years old gives you the best compromise when it comes to reliability vs cost.
Basically, a 3 or 4 year old car should still be highly reliable, while also having depreciated by at least 50% from MSRP.
Now the good news - this week Edmunds.com released a report showing that NOW is the best buyer's market they've seen in a very long time for 3-4 year old used cars. This is due to a glut of vehicles coming off lease, and residual values taking a hit.
My prediction is that prices for these vehicles will continue heading down even further, so if you can wait a few more months you should have even more to choose from. This is because most lease deals are signed in the fall and towards the end of the year, which means more lease returns in later months.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid