One of the indirect consequences of the pandemic is that both used and new car prices have increased substantially over the past three years. Therefore, you will likely need to spend time scouring used car lots, the internet, and other sources of information in your quest to find a car that meets your needs and budget. Fortunately, with a little work, you should be able to find something that you can use for many years to come.

1- Consider Buying Used Instead of New

One of the key benefits of buying a used car as opposed to a new car is that it will likely cost less. However, even if this wasn’t true, new cars typically depreciate faster than used cars. In fact, a new car can lose up to a quarter of its value simply by driving it off the lot. It’s also worth noting that used cars tend to need less maintenance as those that have major defects typically find their way to a junkyard.

2- Don’t Forget the Loan Shopping

Ideally, you’ll pay for the car in 60 months or less to minimize the amount of interest paid on the loan. Furthermore, you are encouraged to apply for financing from both a local lender as well as from the dealer where you buy the car. Doing so will allow you to get the lowest possible interest rate, which can further constrain the overall cost of the car. Applying for financing ahead of time may also help you determine your budget.

3- Know What You Need

Perhaps the biggest mistake you can make is to not know what you need before you head to the dealership. For instance, if you’re buying a car to drive to work and back each day, you probably don’t need to buy a $60,000 truck. Instead, you could probably get by with a subcompact with 100,000 miles on it for a fraction of the cost.

4- Don’t Be Afraid to Negotiate

In the past, it was rarely in your best interest to pay the sticker price on a car. However, in recent years, dealers have had little choice but to advertise their lowest price. Of course, this doesn’t mean that there isn’t wiggle room on the value of your trade or that the dealer won’t waive documents or other fees so it’s in your best interest to negotiate the price.

5- Don’t Rule Out Private Sellers

Working with private sellers can be ideal because you’ll have access to a greater number of vehicles. Therefore, you’ll likely find something that fits your budget even if you only have a few hundred dollars to spend. If the vehicle that you find has a portion of its remaining warranty, you will likely be entitled to it.

Although car prices have gone up in recent years, it’s still possible to find something to fit your budget. In fact, you may be able to stick within your budget and still buy a quality car, truck, or SUV that comes with a warranty or some other guarantee to protect the investment made in the vehicle.