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How do I find the cheapest used cars?

If you are looking for a cheap used car today, you are not alone. Many drivers have realized with past ownership experiences that some vehicles are more expensive to own than others. You may be aware that shopping for car insurance by entering your ZIP into a rate comparison website can help you find affordable insurance, but what can be done to find an affordable car? There are several different costs of ownership. Understanding these costs can help you to determine which is the most affordable vehicle to buy.

The Different Costs of Ownership

Many inexperienced car buyers consider the cost of ownership as it relates to price of the vehicle. The price of the vehicle will factor into cost of ownership, but it is not the only factor to consider. There are several regular costs associated with owning a car, including:

• The sales price
• The financing available for the car
• The fuel efficiency rating
• Repairs and maintenance costs
• Car insurance

Understanding how each of these factors affects cost of ownership and researching vehicles that are most affordable in each of these areas may help you to identify a vehicle that is most affordable for you.

The Sales Price

If you have heard that a brand new vehicle may lose a portion of its value the minute you take ownership of it, you are not alone. The actual amount of value lost will depend on the make and model of the vehicle, but it is not uncommon for a new car to lose ten percent of its value the minute you drive it off the lot. This is a loss of thousands of dollars for most makes and models. The car will continue to depreciate in value over time. This means that buying a used car may yield a more affordable sales price. However, new cars do have their benefits. For example, a new car may be under a manufacturer’s warranty and require fewer repairs than older models. Those who are most interested in getting a good price on a quality vehicle may buy a late model used car.

Financing Options

The financing options available for vehicles will vary based on its status as new or used. Further, financing options also vary based on the age of a used car. With older used cars, the rate may be higher and the term length may be shorter. The financing options combined with the sales price should be considered together. These two factors will affect the monthly payment you pay for your vehicle.

Fuel Efficiency

While electric vehicles are available in several models, most car buyers are still buying gas-powered vehicles or hybrid vehicles. The fuel efficiency rating of these vehicles should be reviewed and compared carefully. This information can easily be researched online. Keep in mind, however, that how you operate the vehicle will also affect its fuel efficiency rating. For example, more aggressive driving, driving on hills or in stop and go traffic may decrease your fuel efficiency. If you do decide to buy an electric vehicle, remember that the cost of energy for the car will be reflected in your home utility bill. This is still a cost of ownership, and the cost should be considered and evaluated.

Repairs and Maintenance

All vehicles will need repairs and maintenance. Even brand new vehicles will require regular service such as oil changes and tire rotations. Repairs on newer vehicles may largely by covered by a manufacturer’s warranty, which can decrease the repair cost for an owner. As a car ages, more of its components will show signs of wear and tear. Generally, the older the vehicle is, the higher the maintenance costs may be. However, used vehicles that have been well-maintained by a previous owner may require less maintenance.

Car Insurance

The cost of car insurance is a major expense not to be overlooked. For most car owners, this is a cost that ranks second only to their car payment. Car insurance rates are determined by many factors. Some may be out of your control, such as your age and gender. Other factors are related to the vehicle itself, such as the type of engine it has, the replacement value of the car, the safety equipment in the car and more. You may benefit from shopping for car insurance rates on several different models before you make your purchase. This can help you to identify which vehicle is most affordable to insure. Then, enter your ZIP into a a rate comparison website to shop for rates on your new vehicle after you purchase it.

Tying It All Together

There are a lot of factors to consider when reviewing several different makes and models. So how can you tie all of these components together? You may find it helpful to make a “top 5” list for each category. Next to each line item in your list, enter the costs associated with ownership for that vehicle. Then you can easily compare all of your “top 5” lists to determine which vehicle may be most affordable for you to buy and own overall.

After you have made the decision about which vehicle to buy comes the task of owning your vehicle in the most affordable way. One way to make sure your vehicle continues to be affordable for you is to enter your ZIP code into a car insurance comparison website now as well as regularly each year. This can help you to identify possible savings in this cost.