How To Avoid Overspending On A Used Car

Buying a used car is a lot more affordable than buying a brand new one. But it's still possible to overspend if you don't pay close attention during the buying process. Here are a few tips to ensure you don't end up overspending when purchasing a new car.

1. Set a budget, and stick with it.

Before you even start shopping for a car, decide how much you can afford to spend. Be realistic. Don't tell yourself you can spend $20,000 if that will have you making a $500 payment each month and struggling to make ends meet. If you're not sure how an overall purchase price may translate to monthly payments, use an online calculator to get a better estimate. Once you have your budget, stick with it. Don't give in to the temptation to spend another $1,000 or $2,000 because you're in love with a certain car. 

2. Buy a mid-luxury brand.

You often get the best value for your money when you buy a mid-luxury car used. These cars last longer than the cheaper, lower-end cars, so you'll get more years out of it, even though it is already used. And you'll spend a lot less than if you were to opt for a higher-end luxury vehicle. Lexus is a good mid-level brand to consider. Their cars have a lot of luxury features and are lovely to drive, but they're also fairly priced. So you may want to check out options like a used Lexus gs 350. 

3. Be open to buying privately.

Buying from a car dealership does give you some extra protections in comparison to buying from a private owner. However, casting a wider net will often yield a better deal. Be open to buying from a private seller if they're offering a much better deal on the car. Just be sure to have it looked over by a reputable mechanic, first.

4. Ask for a better deal.

Anyone selling a car, whether they are a dealer or a private seller, expects buyers to offer them less than the asking price. If you just pay the asking price with no questions asked, you're spending more than you have to. Start by making an offer for about 10% less than the listed price. For example, if the car is listed for $10,000, offer the seller $9,000. The worst they can say is "no," and they will usually make a counter-offer, which you can accept and still know you're getting a good deal.