What Should You Pay at Most For a Used Car?

Let's say you've got your mind set on a used car thatThis is the point where the car's price comes down to
looks good to you.about one third of its value when it was still a new car.
Now how do you determine what the right price is forSo when buying a used car, first figure out what the
this car?price of the car was when it was still in the showroom.
Before you reach for your wallet, make sure you learnThen, assuming the car is at least five years old, the
how to put a good price on a used car. Don't let it beprice that the owners asks for it should not exceed
completely in the hands of the owner. He's the one30% of what was paid for it originally.
selling it and he wants to get as much as possible forWhen cars are around ten years old, it is realistic to
it!expect that it costs about 15% to 20% of its original
If you consider that a new car will cost betweenvalue.
$10,000 and $30,000, you can imagine that an old, usedAny car considerably older than ten years has more
car must be lots and lots cheaper than that.than likely seen enough wear and tear that it really is
As soon as a new car is driven outside, it immediatelynot worth much more than $1500 to $2000 at the
loses about half of its value. If the new owner of thevery most.
car were to sell it a few days later, he would realize aAny car whose age is approaching two decades
50% loss of the amount he payed for the car when itshould not even be considered as a valid option.
was new.When it comes to the age of a car, the sweet spot is
This is one of the reasons why people will hang on tofive to ten years. If you stick to that guideline, you're
their new cars for at least a few years.more likely to buy a car that's in decent shape for a
Once the car is a few years old, most people will havedecent price.
saved up some money and they will be ready toYou'll have good price/value that way!
move on to a new car.