Trying to find and buy used cars under 500 dollars is no easy task. And even if you manage to find a used car for sale in that price range, it may require extensive repairs and replacements. However, you will never know for sure if you don't go out there and at least try your best in finding the cheapest used car. In my experience, I have been able to find extremely cheap used vehicles after careful research and extensive searching. Keep in mind that I didn't know anything about buying used cars when I first started out. However, after buying and selling many used cars over the years, I've learned from my mistakes and taught myself to look out for certain things to streamline the whole process. Below, are some helpful tips on how to find and buy used cars under $500.
Finding Cheap Used Cars
Understand that cars within this price range are very difficult to find. Will it be easy to find a used car under $500 at a dealership? No. You will most likely have to go to several before you find any that are marked at that price. Thus, looking for extremely cheap cars at dealerships will be a big waste of time. So where should you start looking? Most of these vehicles are sold by individual owners. Therefore, the best places to look for cars under 500 dollars are individual sellers (Craigslist), auction sites (eBay), auto repossession auctions and the automobile section of your local newspaper.Tips on Finding Cheap Used Cars
Your success rate will depend a lot on timing. Since there is a high demand for cars at all times, it is very difficult to find ones at 500 dollars. Usually the vehicles that are priced this low are snatched up by hungry consumers. Keep in mind that owners will not profit much by selling their cars under $500. Therefore, they rarely ever spend any extra money on ads. Those people who are able to find a car for sale at five hundred dollars, do so through sheer luck. While doing your research on the Internet and looking through the newspapers, it is also a good idea to keep your ears and eyes opened at all times. You never know when you'll find that hidden gem of a car that you've been dreaming of.Why would anyone sell their car for less than $500? Most likely, there is something wrong with the vehicle itself and the owner cannot afford to fix the car. This is to be expected for cars within this price range. Therefore, it helps a lot to know what kind of damage needs to be fixed before you purchase the car. If you don't know a lot about cars, it is a good idea to bring a friend who does, so that you won't make the mistake of buying a car and having to pay a whole lot more to fix it up. Another reason why people want to sell their car at such a cheap price is because they plan to buy another vehicle and have no use for a second one.
When buying a used car, it is also a good idea to add the cost of repairs to the car's initial selling price. Unfortunately, this means that you might not be able to afford to purchase a used car under 500 dollars. Simply getting new tires ($100) and new breaks ($100) will cost you an extra 200 dollars. This will bump up the price of the car to 700 dollars. You need to ask yourself: can you afford a $700 vehicle?
Estimating the cost of repairs on a car takes quite a bit of knowledge. If you do not know anything about cars, it is best to bring along a mechanic friend who you trust. An honest seller, will tell you what is wrong with the vehicle and what you need to get fixed. This will save you a lot of trouble in the long run. However, most sellers will not be 100% upfront about things. If you don't have a knowledgeable friend, you can pay a mechanic a small fee and he/she will be able to tell you whether or not the car is fully functional. If you can do the repairs yourself, you will be able to significantly lower the cost.
Negotiating a Cheap Price
When it comes to cars under 500 dollars, there isn't much room to negotiate the price. Often times, buyers will argue that "the car needs repairs, so I am only willing to spend X dollars" This negotiation tactic might not work as well, than let's say, if you were purchasing a more costly used car. Therefore, if you are willing to bargain, be prepared for a flat out no. If the owner refuses to negotiate, you have two options. You can look for other used cars priced at 500 dollars and buy one. Or, you can save up more money until you are able to afford a used car for $1000. Keep in mind that the higher the price you are willing to pay, the more options you will have.If you follow the tips outlined in this article, you should be ready to buy used cars under 500 dollars.