By June 29, 2007 1 Comments Read More →

Used car insurance

Reader question:

I’m getting a used car because I’m sick of paying so much for car insurance, and I’d like to have it paid off quickly. How do I make sure I get the best deal?


Great question, Amber.

  • Negotiate. It’s a lot easier to do this with an older car than with a brand new one, because in the cases of most used cars it’s pretty obvious that they’re overpriced, and the salesperson can’t really deny that. If you’re buying from a dealership, the salesperson will probably try to fix you up with a bunch of features and other things to make up for a lower price, but if buying from an individual you can probably get away with just discussing the problems with the car and its age.
  • Do your research. You can’t negotiate a price if you don’t know anything about it. Know the market price and what that includes, as well as prices offered at other lots. Know how much the car has depreciated. The dealership may have a policy that precludes haggling, but always try to negotiate regardless.
  • Start negotiations with an amount that’s about 25% below the price that you really want. You may get lucky and get an even lower price than expected, but if not, it will still take time for them to work you up even to your preferred price.
  • One thing at a time. Don’t let them talk to you about a monthly payment until you’ve already settled on the price. Same thing with discussing trade-ins. All that will do is allow you to get distracted from the subject at hand.
  • Get a mechanic. Also make it clear that, if this mechanic finds anything wrong and you still want to get the car, you expect the price to be lower as a result.

Buying a car is a stressful experience, especially when it’s a used car, because you don’t know its previous history and, even when they look and sound good at first, used cars might start having problems just a couple of months down the line. Since these cars don’t tend to come with warranties, it’s extremely important to do your homework and know what you’re getting into from the start. If you have any suspicions about the car, request its history report.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Rick

    I’ve been a long time reader of your blog and thought I should really take the time to comment on your good work. Great work Austin!