FAQs
Frequently Asked Questions
Questions and Answers about Cheap Cars
1. Why are some cheap used cars really cheap?
Cheap cars that are really cheap because they 1) are old and have high mileage, 2) have hidden problems, 3) have been wrecked, 4) owner is desperate to sell, or 5) it’s a scam.
2. What are the risks in buying a cheap used car?
Since most used cars are sold “as-is” you risk buying a car with problems if you don’t have it inspected by a qualified mechanic BEFORE you buy. You also risk paying too much if you haven’t done your research on used-car values.
3. Is is possible to find a good cheap car for under $1000?
Absolutely, but you’ll probably spend a lot of time and test driving before you find a good one for that price.
4. Why are brand new cars so cheap right now?
The car industry has gone through two of the worst years in American history and is trying to recover by offering some of the best incentives now that we’ve ever seen before.
5. Does that mean this is a good time to buy a new car?
Yes, absolutely. We’re just in the beginning of a pullout in the economy and in the car business. Deals will be good for a while longer, but as we pull out of the recession and cars sales begin to improve, incentives will get smaller and will slowly go away.
6. What is the best car deal going on right now?
That’s hard to say because nearly all car manufacturers are offering special deals now. In general, the American car manufacturers are making good deals, especially on leftover last year’s models. And because of Toyota’s recent quality problems, they are offering great incentives now that they have fixed their problems. And Toyota’s competitors are also offering good deals, trying to snag some of their customers. See Best Car Deals for more details.
7. Can I get a good deal on a lease right now?
Yes, most car manufacturers are now offering special lease deals on at least some models. These are genuinely good deals because the deals are based on discounted prices, low money factor, and high residual value.
8. Why are lease payments so much less than loan payments?
Lease payments are less because you are not financing the entire value of the vehicle, but only the part that you “use up” during the three or four years you lease. See LeaseGuide.com for more details.
9. Are car auctions a good place to find cheap cars?
Yes, maybe. Some auctions are only open to dealers. Others are public. If you think you might want to buy at an auction, attend a few to see how they work first. Then don’t let your emotions get the best of you when bidding. Also remember that you can see the cars you bid on, but you can’t drive them. This means you take a risk when you buy at auctions.
10. Where can I find the cheapest cars?
There’s no easy answer for that question. You can find cheap cars from individuals who are eager to sell, small used-car lots that have low overhead, government and police surplus vehicle sales, repossessed car auctions, or salvaged car lots.