3 Sneaky Hidden Costs of Buying a Used Vehicle

Buying a used vehicle is a great way to lower the initial purchase price of your car and reduce or even eliminate your monthly payments. At the same time, though, there are costs associated with used cars that don't come into play with brand-new vehicles. Here are three costs you should keep in mind when buying a used vehicle.

Exterior Repairs

One of the downsides of older vehicles is that they often have dents, scratches and other damage to exterior parts. If you want your car to look good and remain in good condition for years to come, you'll need to have any such damage repaired soon after buying it. A good body shop can quickly take care of common light body damage, or you can even handle some repairs yourself, but it may represent a fairly substantial expense. When looking for a used car, try to find one that has minimal exterior damage, as doing so will keep the price of repairs at a reasonable level.

More Frequent Maintenance

Because a used car will already have a considerable amount of mileage and wear on it, it will, by its very nature, need more frequent maintenance than a new one. As parts wear out on a used vehicle, you'll need to have them replaced. If you plan on buying a used car, having an excellent automotive repair shop is invaluable. A trusted mechanic can help you keep your car well-maintained, and can provide countless services and auto repairs to keep your car running as long as possible.

Potentially Higher Interest Rates

Although the lower initial price of a used vehicle can help to bring down your monthly car payment, you will very likely end up paying higher interest rates on your car loan. The reason for this is that used cars aren't eligible for manufacturer or dealership financing offers that can make financing a vehicle inexpensive or even free for much of the term of a loan. To get an idea of just how high your interest rate will be, it's a good idea to talk to a credit union to get an estimate of how much you can borrow and what level of interest will be charged on the loan.

There are just a few of the costs you should keep in mind when deciding to purchase a used car. Even with these expenses, a used car can be a great deal, especially for the buyer who is working with a limited budget. Just be sure that you understand all peripheral expenses associated with buying a used car, and you'll be able to find the vehicle that is right for your budget.

To help ensure you are getting a reliable used car, we recommend downloading this free used car buying checklist before you make a used vehicle purchase.