Buying a Used Car Isn’t Easy. Start With These 5 Steps.

livemint.com:

A used car was the way to get a cheaper vehicle until the pandemic sent prices for preowned cars through the roof. Prices have moderated recently, but the used-car market remains volatile. It’s still unclear when these trends will level off or reverse, said Jessica Stafford, senior vice president of consumer solutions at Cox Automotive in Atlanta.

In July 2023, the average listing price of a used vehicle was just over $27,000, according to analysis by Cox Automotive. Here’s what to know about buying a used car, from mileage to how to recognize a clunker. Step 1: Decide if a used car makes senseStep 2: Think about mileageStep 3: Evaluate the price of a used vehicleStep 4: Avoid models with known problemsStep 5: Go to a dealership first, rather than online Step 1: Decide if a used car makes sense A used car will almost always be cheaper than a new one.

How much cheaper will depend on the vehicle’s brand, make and model and condition. For models and makes that tend to hold their value, the price of a used vehicle may be very similar to that of a new one, said Tyson Jominy, vice president of data and analytics at J.D. Power, possibly making a new car a smarter buy.

For those on a budget, buying used may be the only option, since so few new models are available for under $25,000, Stafford said. “If your budget is $20,000 or under, you are probably looking at used and likely a higher mileage vehicle." Neil Gallagher, who runs his own construction company in Tampa, Fla., knows firsthand the quirks of the used market. He’s gotten offers for his 2002 Ford F150 pickup truck, a vehicle with more than 220,000 miles, for just a few thousand less than what he paid for it over a decade ago.