Jean Chatzky: Best Time To Buy a New Car
Financial expert Jean Chatzky came by Today to talk about what a great time it is to buy a used car. She said it’s the best time to buy a used car in the last five years. She said that there weren’t enough used cars on the market because of the economy. This year, there will be an additional half million cars off of leases that will be sold used.
What You Should Know About Buying a Used Car
Jean Chatzky said that buying a used car is not the same as buying a new car. She said if you’re buying a brand new Camry, they’re all the same, regardless of where you go. But when you buy a used car, they’re all different. One might have fewer miles, while another might have different features. “It’s a lot harder to get a sense of what these cars are worth,” Jean Chatzky said.
But there are new websites to help you get a sense of how to find out what they’re worth, like cargurus.com. The site will tell you what the particular car in question is worth.
Look As Far and Wide As Possible
Jean Chatzky said that you can buy from a dealer, but you can also buy from individuals. She said that most people want to go in a sixty mile radius. She said that you should expand your search to up to two hours away, because the wider the net, the lower the price you’ll find. Research from Cargurus shows that if you buy in an urban setting, rather than a rural one, you’ll save on average up to $3000 more.
Used Car Financing Tips
Jean Chatzky said that when you go to a dealership, you shop for the car, but you also need to shop for the financing. Interest rates are as low as they’ve ever been. The average used car loan is under three percent now.
Haggling Is Good
Jean Chatzky said that haggling is a great idea. Over the last seven days, people have saved up to $1500 off of the cars they’ve purchased.
Be Careful Buying Used Cars
After Hurricane Sandy, the market was filled with used cars that had been flooded during the storm. She said that to be sure, pay a mechanic yourself to look under the hood and to make sure the car’s all right.