Posted Wednesday, Nov 22, 2023
Demand in the used car market is growing, and for good reason. With new car prices having gone through the roof, savvy customers are turning to the used car market mainly because used car dealerships offer a huge inventory of pre-owned vehicles that have been inspected and certified.
Contrary to popular belief, the options you find at the used car dealership aren't always decades old. There are plenty of newer options, which means you can find pre-owned vehicles that are just a couple of years old and will still have a valid manufacturer's warranty. In case you were wondering, here are a few of the types of dealerships and vehicles that you can typically find.
Apart from the traditional used car dealerships that you can visit, there are two other types of dealerships that you need to be aware of whenever you're searching for a used vehicle.
As the name implies, Buy-Here and Pay-Here dealerships offer in-house financing options and act as the lenders themselves whenever a customer is looking for an auto loan. BHPH used car dealerships save customers from having to go to traditional banks credit unions, or other third-party lenders when trying to get auto financing.
Buy Here Pay Here (BHPH) dealerships serve a distinct market segment—customers who prefer not to make an upfront payment and seek flexible auto financing solutions, even if their credit history is less than ideal or they have no credit history at all.
However, it should be noted that customers should expect to pay higher interest rates when opting for BHPH dealerships, mainly because the dealership takes their cut for providing the customer with auto financing in-house, along with the fact that the customer probably has poor credit, which makes it impossible for them to find auto loans from the traditional lenders such as banks or credit unions.
These are independent used car dealerships that maintain a physical location as well as a digital presence. The added advantage of using these services is that the customer can choose from all makes and models that are in their inventory and compare prices so that they can get the best prices. While used car dealerships usually have cars that are a few years old, it is not unheard of to find newer versions of all makes and models when shopping around at a used car dealership.
Regardless of the type of vehicle you choose, you are likely to pay a lot less for a vehicle at a used car dealership as compared to those that deal exclusively in new cars or vehicles from a particular manufacturer.
These dealerships also provide you with more variety in all makes and models simply because these online platforms cater to several branches of the same used car dealership. In short, going to an online car dealership will help you choose and compare used vehicles that are spread across several locations of the same used auto dealership.
Since these online listings are also accompanied by pictures and other key details of a vehicle you can make a more informed decision when comparing from all the makes and models. In short, you can choose and compare multiple vehicles online before making the physical trip to the used car dealership to help save time since you know exactly what you'll be purchasing.
Now, that we're clear on the types of used car dealerships out there, let's focus on the options when it comes to the used vehicles that you can purchase at the used car dealership.
If you want to lower your monthly payments, leasing a car is recommended. Lease payments are based on the difference between the actual vehicle lease payment and the vehicle's expected value at the end of the lease term, usually after three years.
Leasing is a good way to get your hands on a pre-owned vehicle that does not have many miles on the odometer and will still be under the manufacturer's warranty. This is also a great option for those who do not have the funds to pay for a car up-front. In short, you will be buying a car that is not very old at a much lower price tag as compared to a brand-new car from the dealership.
For those of you who are unaware, a beater is an old car that has a higher mileage. These vehicles are not to be confused with lemons, which you should certainly avoid at all costs. On the other hand, it is possible to find a quality beater for under $4,000 at a used car dealership.
Beaters are a smart choice for those folks who do not have the budget to invest in a new vehicle and don't have the credit score to get a high-value auto loan approved. While beaters get a bad rap, it is still possible to find a reliable ride that still has a lot of life left.
You can also find older models of reputable brands, including all makes and models that might have been out of reach brand new, but make good bargains in the used car marketplace. In short, even a beater can get you a good deal online at the best price.
Making the trip to the used car dealership can be intimidating, especially when considering you are going to be up against an experienced sales staff who will use various methods to get you to make a purchase.
The good news is, whenever you walk into a reputable used car dealership, you can rest assured that you will get access to top-shelf vehicles that have been thoroughly inspected and come along with a history report that contains useful information such as the names of the previous owners, and details on any major or minor repairs, along with other information.
For more information, you can always visit The Internet Car Lot for the best-used car deals and financing options in town.