used cars in pawtucket ri

How to Save Money on Used Car

Buying a used car is a risk that many consumers are willing to take as they look at making budgetary savings, but if you avoid the traps and find a good deal, it can be well worth your time. Used cars are typically cost-effective when shoppers factor in the cost of depreciation. However, this basic understanding of what makes up the price tag of a used car is not enough to guarantee success.

Know your budget

A good place to start is by determining a maximum price for the car you want to buy. The price you pay should not exceed this amount. For example, if you can afford a $5,000 car, search for used cars in pawtucket ri that cost $3,000 or less with room to negotiate. Once you find a car within your budget range and with plenty of potential room to move, the following pitfalls come into play that will impact your negotiation position.

Know what the dealer makes on each transaction Other than financing and repairs, dealerships typically keep more money than they spend in overhead costs. A major portion of their profits comes from the practice of mark-up or mark-down for retail pricing. The difference between wholesale and retail is referred to as the “mark-up” or “mark-down.” In most cases, automobile dealerships seek a 10%-15% markup on all vehicles sold.

used cars in pawtucket ri

Read between the lines in car ads

The very first step to purchasing a used car is to find one you like and want to buy. The best place to find used cars are in the newspaper classified ads, online classifieds (CraigsList), and online auction sites such as ebay Motors  (in most cases, these have no reserve prices). There is a lot of useful information you can get from reading the ad.

  1. Find the car you want in a newspaper ad or online and call the dealer to set up an appointment to look at it.
  2. Negotiate with the seller before even going to look at the car (call them and explain your situation, that you have found their ad on Internet, etc). You will be able to give them first shot at making a deal if they like your offer over others who have called. They may ask for your name and number so they can contact you if someone else comes in with a higher offer than yours, but don’t give it unless they make you an offer first.