
Finding cars under 5000 is not always easy. The cheapest automobiles usually start at $10,000. At this price, you will pay $303.85 a month if you get a car loan. This would be over the course of 3 years, which is a long period of time. However, if a car is under $5,000, your monthly payment would be less than $150. This is assuming you even want to get a car loan. If you can find a car that is less than $1,000, you could purchase it in cash with one month's paycheck. From then on, you would be completely free of debt. They money that would have gone to your car can be added onto your savings, giving you an extra $1,000 every year. Still, all these benefits mean nothing if you cannot locate providers offering these deals. Enter this guide, which will explain the basics behind finding cars under 5000.
Finding Cheap Car Listings
The best used cars under 5000 will not be found by casually perusing a dealership. The reason why is because when such cars come about, they get sold immediately. You would have to visit the dealership nearly every hour to catch such deals; something most people cannot do. However, even if you could, there would still be no guarantees. The perfect $4,000 car could get sold the minute before you arrive.
A smarter alternative would involve investigating used car ads, both online and offline. Online car ads come in two varieties. The most popular advertises cheap cars from used dealerships. From these networks, you get pricing information, reviews and a vehicle's inside history. You may even get a video walkthrough, depending on the network's sophistication.
The downside to such networks is obvious. Since they are highly trafficked, you might still miss out on a good deal. Unfortunately, you may not know it until you contact the seller. True, if you keep researching, numbers will eventually be on your side, though you still have to put the time in. If this is a problem, consider the second online alternative For Sale by Owner ads. These are scattered throughout the Internet and receive less thoroughfare than quoting sites. Whether you are researching free classifieds, or networks specifically geared to the FSBO community, you will have less competition to worry about, which gives you a serious advantage.
Independent sellers are more likely to negotiate if they feel you are the only one interested in their offer. Used car dealerships may not care as much, since they know there are 100 others willing to buy the same vehicle.
This philosophy can also be applied to offline ads, which can encompass FSBO listings or those from the dealerships themselves. Many of these ads are found in free periodicals, though dealerships may also conduct direct mail campaigns. With these ads, you are usually given a flyer advertising all of the cheap cars they have available. Some will take things a step further by offering quick and easy financing. Do not get overly excited at either approach. While such ads are good for research, they may not point you to the best deals. For this reason, you need to compare them against what is being offered in an FSBO listing.
The Most Popular Used Cars Under 5000
Now that you know where to find cheap cars, you might be wondering which brands are more likely to be under $5,000. Well, for the most part, used cars under 5000 tend to reflect cheaper brands in general, even when they are sold at full price. Examples include:
Toyota Camry
Kia
Honda Civic
Infiniti Q45
Dodge Neon
All of these brands hover around the $4,000 mark if they have some mileage on them. In terms of years, the cheapest cars will be late 90s models, though it is possible to find those made in 2002. Just be aware that if you get a more recent model, it is likely that the car might only have 5 years or less left on its lifespan.
To get cars under $1,000, you will have to look at age and mileage over its brand. Cars made in the early 90s might only be a few hundred bucks, but expect a short lifespan. There is also the possibility of getting a clunker, provided that you are willing to pay for the parts. Clunkers can cost as little as $50, but after all the repairs are done, you could end up paying $1,000 or more. Still, if you go this route, it is possible you could get a much newer vehicle.
Additional Tips
Buying used cars under 5000 does not end with finding the right ad. You must make sure the car is safe enough to drive. Therefore, in addition to getting a test drive, you need to have your vehicle inspected before getting a purchase. In a FSBO arrangement, an eager seller might be willing to pay for the inspection. A dealership would be less willing, as it is assumed their vehicles are already worthy. Do not listen to this hype. If necessary, use your own funds to get a mechanic to inspect the vehicle on their premises. Trustworthy dealerships will welcome such an inspection.