15 Secrets to Buying a Used Car

Photo by scottjwaldron

5. Keep Cash in Your Wallet

If at all possible, opt to pay for your used car in cash rather than payments. Sometimes this won’t be an option, but if you do have a few thousand dollars set aside, you’ll be in a much better position long-term since you’ll be saving on months or years of loan interest.

Whether you’re paying in cash or making a payment plan, though, it’s important to have a solid budget in mind before you set foot on the lot. It’s easy for an enthusiastic seller to convince you that you need to pay more than you’d planned, and it can be all too easy to just pull out your checkbook to make up the difference. Don’t cave into pressure: Set aside exactly as much money as you’re willing and able to pay, and don’t go over. If that means walking away from a purchase, fine: You’ll find another car in your price range if you just keep looking.