I’ve all but got the green light to replace my hyundai elantra with a better vehicle for me. I do not want to buy a brand new, 40k+ truck, so I’ll go to the used market. I either want a mid size crew cab, or 1500 series double/crew. What do you look for when heading into the pre-ownes market?
If you find a used truck you like and the price is right, then take it to an independent mechanic for an inspection.
Any dealer that does not allow you to take a used vehicle to an independent mechanic should be avoided.
Toyotas are great options, but they can also be abused to the point they have issues.
Research the model year and recalls on the make and model of the vehicle, to look at the potential issues that you may be facing in the future.
The next thing is watch YouTube videos on how to negotiate the prices down and how to avoid unnecessary fees.
Be willing to walk away from any deal if the dealer does not make it right for you.
Shop at the ends of months, years, or quarters when salesman need to hit their quota.
Go to your bank or credit union and get a pre approval for a certain dollar amount and check out the interest rate your bank is going to give you.
Talk to your insurance provider about Gap insurance, because there is a good chance with the interest rates being so high that you will be upside down for a portion of the loan if you finance.
The issues right now in the used market are the interest rates, we lost a generation of cars during the pandemic, and people are holding onto their cars longer than they used too because of inflation.
There are some wild numbers if you finance used cars (7-10%+), so it would be wise to put a decent amount down on a used vehicle.
Depending on how much you are going to put down and how much you drive a lease may be a decent option or even buying new. (if you are paying cash, then you can disregard the information below)
The problem is the interest rates for used cars.
A 2024 Nissan Titan is 40k new and is offering 0% for 60 months.
A 2024 Toyota Tacoma for $366 a month with $2,000 due at signing. (36 Month / 12,000 miles a year)
www.truecar.com
I just did a search of the salt lake area and there is only 1 truck with a clean title on the market that is less than 10 years old and under $20k with less than 70k miles.
If you go up to $30k, then you have multiple options.
The problem is going to be the interest rates and what you can get.
A 30k used truck with an interest rate of 8% is going to be $610 a month over 60 months.
Paying 6,500 of interest over the course of the loan, most of which will be front loaded. Which means you will be upside down for a while in the loan, which is not a great place to be.
A new 40k Titan with an interest rate of 0% over 60 months is going to be $665 a month, with no interest over the course of the loan.
With Nissan having the last year of the Titan at least for a while, I would expect bigger savings in December if you can wait that long.
I would probably wait a little bit longer if you can if buying used, because the interest rates are way to high right now.
Like I said if you are paying cash, then you do not have to worry about the financial aspect of the interest rates.
I will say, even if you are paying cash get options for both or pretend that you are going to finance until the end of the transaction to get a better price for the truck out the door.