Used cars for sale or on finance (2024)

FAQs

Is it better to put money down on a car or finance? ›

Putting down a larger down payment will increase your equity because you won't need to finance as much through a lender. Cars are a depreciating asset. As the value of your vehicle decreases, you're more likely to go upside down on your loan — when you owe more than your car is worth.

Cars.com, Carvana, Edmunds, CarMax and TrueCar are our top recommendations for used car websites. Whether you want to find your ideal pre-owned vehicle or find the right buyer for a car you're selling, these sites are easy to use and offer excellent customer support.

There's no rule to how many miles on a used car is too much, but by attempting to stick to the 12,000 miles per year rule is a great place to start. Find out how old the car is, multiple the number of years by 12,000, and if the number on the odometer is significantly higher than that, some concern might be warranted.

Used car loans are riskier for lenders because a used car's value is harder to assess than that of a new car. As a result, you'll generally find fewer loan options and higher interest rates when trying to finance a used car.

If you're considering a car that costs $25,000, putting down between $2,000 and $4,000 would be wise. However, the true answer to this question depends on your negotiation strategy. If you can negotiate a lower price or better terms, putting more money down may not save you much interest.

A down payment of 20% for a new car or 10% for a used car is ideal, though any size down payment will reduce your total loan cost.

You cannot negotiate with CarMax. The company's offers are good for seven days. That gives you time to compare offers from other companies and see which one is best. CarMax has a no-haggle policy, which means you can't negotiate the price.

If you want the best price for your car, consider placing an ad on a private seller marketplace or to potential buyers in your local area. However, dealers and online car buying services may be your best choice if you want an easy process with a quick turnaround.

If you're a high mileage driver, then it's important to focus on the car's mileage rather than its age. This is because a car with low mileage is likely to be more reliable and require less maintenance than a car that has a high mileage. But if you don't drive a lot of miles, then age may not be as important.

What is the best age and mileage for a used car? ›

So, for a four-year-old car, you might reasonably expect it to have around 58,000 miles. We suggest you consider a 4- to 6-year-old vehicle with less than 50,000 miles.

A conventional car can last for 200,000 miles. Some well-maintained car models will reach 300,000 or more miles total. The average passenger car age is currently around 12 years in the United States. Choosing a well-built make and model can help extend your car's longevity.

Typically, a bank won't finance any vehicle older than 10 years, even if you have good credit. If you don't have great credit, you may find it difficult to finance through a bank, even for a new car.

However, used cars may have higher interest rates than you would find on a new car loan. This is because it's harder for lenders to accurately value a used car compared to a new one. Remember that the rates you'll be offered for a loan will also be affected by your financial history and credit scores.

What Are the Disadvantages of a Large Down Payment? Providing more money down doesn't guarantee a lower interest rate, and it can cut into your savings. Depending on the vehicle you choose to buy, 50% can be a lot of money to put down on an auto loan.

It's good practice to make a down payment of at least 20% on a new car (10% for used). A larger down payment can also help you nab a better interest rate. But how much a down payment should be for a car isn't black and white. If you can't afford 10% or 20%, the best down payment is the one you can afford.

In general, you should strive to make a down payment of at least 20% of a new car's purchase price. For used cars, try for at least 10% down. If you can't afford the recommended amount, put down as much as you can without draining your savings or emergency funds.

You'll be out of debt sooner.

Paying off your car early will not only save you money, but it'll also get you out of debt faster! If you decide to be different and throw as much money as you can at your car, you could cut years off the life of your loan.