Buying a used car?  Dave Ramsey says you should ask these 6 questions

Buying a used car? Dave Ramsey says you should ask these 6 questions

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It is important to have the correct information before purchasing a vehicle.

the main points

  • Buying a used car can save you money compared to buying a new one.
  • It is important to be confident in purchasing a used car and to understand the costs involved.

If you need a car, whether because you’re moving from a city to a suburb or because your last car gave it to you, you might consider buying a used model rather than a new one. Doing so could mean spending much less.

But buying a used car can also mean that you end up with a car that is not in good condition, or that does not serve you well. The costs of owning it may be higher than expected. So before buying a used car, financial guru Dave Ramsey highly recommends asking these important questions.

1. Why is this car being sold?

If you are buying a car directly from its owner, and not from a dealer, feel free to ask why the car was unloading. The reason may be that the owner can no longer afford his auto loan payments. Or maybe they have twins and need to upgrade a smaller car to a minibus. Answers like this shouldn’t really raise a red flag. But if the seller is pessimistic, there may be a problem with the car that they don’t want you to know about.

2. How old is the car?

Ramsey says that most new cars lose 60% of their value after five years. This is an important number to consider when looking to buy a used car. If the price of a car seems high for its age, feel free to negotiate that number down – or just walk away.

3. How many miles has the car covered?

Some cars can run 200,000 miles before they start having problems. Others may not do the same. Either way, it’s important to consider the mileage on the car before buying it. A car with 90,000 miles is likely to last longer than a car that’s been driven 190,000 miles.

4. Is there a warranty?

If you’re buying a used car from a dealer, it may come with a limited warranty. This is something you would probably like to have. Even if you’re buying a used car directly from its owner, if it’s new enough, it’s probably still under warranty, so it’s worth asking.

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5. Has the car had any accidents?

A car that has had a few minor accidents (think poorly timed parking exit) may be working perfectly and safe to drive. But be careful when buying a car that has had a major accident. You never know what lasting damage this might entail. If the vehicle you are looking at has been in a major accident, have a trusted mechanic inspect it before making your purchase.

6. What will my insurance costs look like?

You may assume that your car insurance will be cheap if you are buying a used car. But this may not end up being the case. It’s a good idea to contact auto insurance companies and get quotes so you know what you’re dealing with. The last thing you want is to miscalculate your insurance costs and end up with expenses that you cannot afford.

Buying a used car can be a great way to get a car. Just be sure to ask the right questions before going ahead with your purchase.

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