When you consider depreciation factor buying a brand new vehicle could be as high as 30% the first year from what you paid out the door, buying a use vehicle becomes an attractive option subject to buyer having done proper homework getting valid value and not ending up with a lemon parked in the driveway.
A well maintained 1 to 4 year old used car kept for a few years will give you just as good service as a new car for about half the price, anything older generally requires more costly maintenance.
Used cars from about $ 25,000 and less depreciate about $ 2500. a year while cars higher in value will have a much higher depreciation factor.
If your considering financing a good rule of thumb, if you make a down payment around 20% on a used car, in most cases that will cover depreciation factor the first year, should you want to trade you most likely will not be in a negative situation.
Franchise Dealerships
Consider yourself lucky if you happen to be at a dealership at the time a trade has just arrived that meets their requirements and available for under $10.000. a franchise dealer will not purchase cars for re-sale under $ 10.000. their main concern is having a high profile in the community, customer satisfaction, repeat business and a warranty available with every car.
Non Franchise Dealerships
There will be great selections under the $10.000 range at non franchise dealers, small corner lots, buy here pay here type dealers, it becomes more risky as your most likely dealing with older model years with high miles, its buyers beware and having learned the steps in the buying process that will steer you away from lemons, there will be many good buys but also a fair amount that is not.
Here are some answers as to how these lower end cars end up on at non franchise car lot...a franchise dealer will wholesale or take to auction any trade-in vehicle that don't meet their strict recondition program and smaller type car lots will bid on these inexpensive vehicles
Buying Private
Buying private is buying AS IS and you must take vehicle for an independent inspection, if seller wont allow prior to purchase you walk away, buying private there is no recourse, many consumers make the mistake having purchased AS IS only to find cost of recondition added to purchase price made it a bad deal...
Buying from Public Auction
Unless you really know what your doing be cautious many of these vehicles will be entered by Curbside rs and wholesalers not licensed to sell public.
Here you will find many inexpensive vehicles, i strongly recommend buyers stay away from public auctions unless they really have the experience, the law of average is not with you.
YES
All dealers buy from an Auction but not the same as a public Auction...these two type auctions are about as far apart as heaven and hell. Some public Auction advertisements says NO DEALERS ALLOWED... that statement alone should make buyers stay away..
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