5 Unexpected Places To Buy Used Cars for Cheap

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The average cost of a used car is $26,510, according to Kelley Blue Book. While this is significantly less than what you can expect to pay for a new vehicle, it’s still not exactly cheap. And with the cost of living so high in many areas throughout the country, it’s simply not affordable for many people.

That’s why it might be necessary to think outside the box about your options. The good news is that there are quite a few unusual or unexpected places where you can buy a used car for a fraction of the average price. By shopping at these places, you could save hundreds or thousands of dollars, something that could help your budget tremendously.

Here are some options for where you can purchase an affordable used car that you might have overlooked.

Mechanic Shop

You typically go to the auto mechanic to get repairs or general maintenance done on your vehicle, but did you know that you can also purchase used cars there? “Sometimes, people leave their vehicles abandoned so [mechanic] shops place a lien on them and try to sell them to recoup their losses,” said Mark Beneke, owner of Westland Auto, Inc.

Your options can vary widely based on where you live and what the mechanic shop currently has in store. Even so, if you’re in the market for a pre-owned vehicle, it’s worth checking out your local mechanic.

Either swing by the shop or give them a call to see what they’ve got in stock. If they don’t have anything right now, it doesn’t hurt to leave your name and number when expressing interest. That way, they can keep you in mind in case something comes in.

Tow Company

Tow companies are another unusual place to check out when looking for a used vehicle, according to Beneke. This is because tow companies often end up with abandoned vehicles and place liens on them. They’ll then auction off these unclaimed vehicles to try to recover some of their losses.

Keep an eye out for any upcoming towing company auctions. You might be surprised at the selection of used vehicles that are still in reasonably good condition — and highly affordable.

Car Rental Agency

Car rental agencies offer more than just a wide selection of vehicles to rent for your next road trip or big move. You can also often find used vehicles for sale at these places — sometimes at great deals.

“Consider buying a used car from a rental car agency. People don’t do this because they don’t know it’s an option,” said Scott Lieberman, founder of Touchdown Money. “Yes, the car has had lots of drivers, but often these vehicles come with warranties and the rental car agency has been incentivized to properly maintain the car because that’s in its best interests.”

Check out companies like Enterprise or Hertz to see what’s on offer. Depending on the agency, you could have hundreds or even thousands of options, all at different price points.

Neighbors

You’ve probably driven by a car on the roadside with a “For sale” sign and hastily drawn phone number written on the windshield. While these options might be best left alone — after all, you never know who the previous owners were or the vehicle’s true condition — you might want to consider buying a vehicle from someone you do know, like a neighbor.

“It is not without just cause that many take extra care, and are too cautious, when it comes to where to buy a used car,” said Peter Dubois, general manager at Find by Plate. “The truth is, even with used cars, everyone wants a fun and seamless driving experience, and it is up to the health of the car to determine this. Buying a car from neighbors is one of the best ways to know whether or not the car had been properly cared for.”

Government or Public Auctions 

When it comes to finding a used vehicle at a great deal, tow company auctions aren’t your only option. You might also come across something you like that meets your needs — and price point — by checking out government or public auctions.

“Service vehicles and abandoned evidence vehicles are resold [at these auctions] and can go for a great deal,” said Beneke. “Service vehicles are kept up through a very thorough maintenance protocol and typically come in great condition.”

Tips To Save Money on a Used Vehicle

Besides shopping in some of these lesser-known places, here are a few other great ways to cut costs when purchasing a used vehicle:

• Do your due diligence. “Researching the vehicle thoroughly will save you tons of money in the long run,” said Beneke. “Find the market value from KBB, Black Book, or Edmunds, and then do a quick local search for similar vehicles to make sure it aligns with what you are seeing.”
• Negotiate. If at all possible, negotiate with the seller before agreeing to anything. If a nearby dealership or company is selling a similar vehicle for a lower price, you might be able to use that information to get a better deal.
• Get the history report. Before purchasing it, take the vehicle for a test drive and get a professional inspection done by a third-party. This will uncover any hidden issues and potentially get you a better deal.
• Get auto insurance. “Car insurance is the best way to mitigate the financial risks associated with buying a used car,” said Dubois.
• Arrange your financing in advance. Paying in cash or getting prearranged financing can give you better leverage when negotiating and purchasing a vehicle. “Most people don’t want to deal with a hassle,” said Beneke. “By coming to the table with these options, you are guaranteeing a quick and smooth transaction that they will look at favorably.”
• Buy at the right time. If your timing is flexible, time your used car shopping to when you’re likely to get the best discounts — such as in the winter or at the end of the month.

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