5 Ways to Get a Deal on a Used Car

2. Shop around for the best interest rate. The interest rate on a 48-month used car loan currently starts at 6.88 percent, according to Bankrate. That’s much higher than a year ago. Rates could rise more depending on what the Federal Reserve does in 2023. “Rates are the biggest thorn in your side to getting a deal,” says Yoon. “Even if you did get a couple hundred dollars off what the dealer is asking, you’re losing that in interest.” Yoon suggests coming up with as large a down payment as possible. It’s also prudent to shop around for the best interest rate on a car loan. Sometimes banks or credit unions have introductory offers or better financing options than the dealer. ​

3. Shop for undesirables. Some models are a lot cheaper than others. It’s those you should be shopping for. “Up until recently, anything that had four wheels and moved on its own, people still wanted to buy it,” Brauer says. “Now the people who want to buy in this environment have cash or enough money to get what they want, not just anything.” If you’re in the market for a Porsche, Mercedes Benz S-Class, Maserati or other luxury car, you’ll still pay top dollar, Brauer says. But if you’re willing to purchase a more common make and model, like a Ford Mustang, Toyota RAV4 or Toyota Camry, you’ll have better luck finding a deal, he says. ​

4. Be flexible. It’s all about compromise when shopping for a used car. The more you’re willing to give up, the more you’ll save. You may have your heart set on a candy-apple red Mustang, but the beige one may be cheaper, just like a vehicle with higher mileage or no frills will have a lower sticker price. “It’s never going to be the right color or right mileage,” Yoon says. “You have to be willing to compromise in more areas than before. Maybe it means a mint-green car or giving up a feature or two.” ​

5. Location does matter. The internet makes it easy to search for cars across the country. Without getting off the couch, you can compare makes and models to find the best price, even if it’s 10 states away. Used car prices are based on demand and vary from one region to the next. An all-wheel-drive Camry may go for $26,000 in Utah, where snow is common, but in Southern California it may sell for $21,000. “It may be a pain to get a one-way flight and drive the car back, but if it’s going to save you $5,000, you do what you have to do,” Brauer says.