How To Buy A Used Car?

An important thing he mentions is "Don't get married to a particular vehicle". They're like buses: Another one comes along every half hour.

Think this must be the record for the highest number of questions asked in one call.

If you're broke you shouldn't even be focused on what kind of car you get, just focus on basic transportation. Everyone is too wrapped up into what kind of car they have when they should be worried about putting some money in the bank.

You've saved 30,000$ and the first thing you want to do is buy a truck that's going to depreciate every year?! Buy an 08-09 and walk out with the other 15,000 in your pocket!

Scotty Kilmer should make an appearance on these types of calls. Caller: I want to buy a used Mercedes. Dave: How much is it? Can you afford it? Scotty: That car is an endless money pit.

walk in like you know what's going on and you not here to waste time. never let you guard down, don't get friendly, act like you don't like the truck

VEE-HICKLE! Love you, Dave :)

"certified" pre-owned is just an excuse for the dealer to charge more

There is a perfect time of the year to buy a car. Try December. Sales are slow through the holidays and dealers are more willing to actually take a loss than having to carry that old inventory into the new year. The last week in December is perfect. Do not wait until after the first of the year. That is when dealers are looking at their busiest time, tax season.

Linear regression models are a great way to value a vehicle. Take a particular make, model, trim, year, etc to standardize and use miles as the x variable and cost as the y variable. What you do is research local dealerships for that car, see how many miles the car has and how much they’re selling it for, use that to create a regression model. Try to get at least 10 dat points. You’ll get a formula resembling y=mx+b, where x is the number of miles. If you find that car at a dealership, you can plug the number of miles into that formula and it will estimate how much the car is worth. Keep in mind that you need to pay attention to the R^2 value. If it is less than 0.7, the model might not be strong. However, if you only input data for the same make, model, trim, year, no previous wrecks, etc, then miles will likely explain 70-90% of the variation and give you a reliable estimate.

I'm a car salesman and if you listen to what most sites say about not telling the sales guy about paying cash or other things honestly your just going to cause yourself much MUCH more headaches. What Dave is saying is actually really good just be upfront and honest with them. Know what it's worth and give a price you want to pay and don't budge. Go to at least two dealerships and let them know that the dealership who gives you the price you want to pay first will earn your business. Older in stock vehicles have more wiggle room. Vehicles they took on trade probably have more wiggle room on them.

Never understood why people bother asking Dave how he's doing.

Certified pre-owned usually means an extended warranty on the vehicle raising the cost a couple grand.

I wish I would’ve found Dave back in April before getting a car loan. I guess making mistakes is what makes you look for help. Currently working on step 2.

Thank you so much Dave Ramsey! You've enlightened me when it comes to buying a used car compare to a brand new one. God bless you and wishing more success to your show!

I remember when I purchased my preowned 13 toyota tundra. I went to several different dealerships and every time I brought up the fact I was paying cash every salesmen and floor manager always told me cash is no longer king. It makes sense, loans make them way more money. Sometimes cashs only leverage is the fact that you are serious about buying the car outright without having to go through hoops and hurdles to get a loan with them.

Thank you for explaining this! I've never truly known what I'm doing but this is a step by step how to get a deal. Now I'm not afraid to buy a used car.

And don't buy extended warranty get a good mechanical inspection at a garage of your choice or have a mechanical Uncle or friend go with you when you buy the car. That extra $300-$200 will be your peace of mind

Thanks for watching everyone! Now go visit The Rachel Cruze YouTube Channel for life and money tips. youtube.com/user/RachelCruze?sub_confirmation=1

ALWAYS HAVE A MECHANIC CHECK IT FIRST. NOT THE DEALER'S MECHANIC.