which is a better investment for a used car, buying a certified pre-owned or going to an auction?

Question

I have a large down payment , but not-so-good credit. Should I use that money for the down payment or go to an auction and take my chances.

Answer 1

Auctions are good options for people (1) who are good at auto repair (b) have money or time or spare car during car repair - just in case.

I don't suggest getting a car from a used car dealer either. There was a TV news (MSNBC) that reported used car dealers are the PROs when it comes to hiding problems. Even certified cars are not always trust worthy.

I would suggest going for private sales.

Sorry but you can't have wine on beer budget.

Answer 2

Well you need to read what 'certified pre-owned' means according to the person that 'certified' it. That is not a standardized definition like an annual interest rate and such.

Chances are the auction is a better deal. You can get a car that you had a chance to see and possibly have a mechanic (take one with you) inspect.

The cost is generally cheaper so you can buy the vehicle with the idea that it is GOING to cost you some dough to fix it up to your standards. The advantage there is that you will KNOW what has been fixed. You can also save on the down and simply buy a cheap beater that will get you around while you save up some more for a better car.

Lots of options that way....

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Answer 3

DON'T go and buy one at an auction unless you have a qualified mechanic with you. It will be the best price (assuming your talking about a wholesale auction), but a huge risk if you don't know what your looking for.

Certified Pre-Owned (cpo) are the safest buy with the best warranty and sometimes excellent financing. However, cpo's are the most expensive way to ge a used vehicle.

Assuming you want a 1-3 year old car, find one with remaining factory warranty, check the Carfax, and buy from a dealer that has done a multi-point inspection and will offer some type of guarantee. Having a mechanic look at the car before you sign the dotted line never hurts either. This type of vehicle will be your best value. Good Luck!

Answer 4

Cars are usually auctioned because they were repossessed or traded in and the dealer doesn't think they can sell. Auctions are risky, and cars sold at auction are sold as-is. If the engine drops on the ground on your way home from the auction, too bad. If you buy from a dealer, even a car that isn't "certified", you at least have some recourse if it falls apart the day after you buy it.

Sometimes, you might be able to find a real peach at an auction, but you have got to know what to look for.

Answer 5

Best off to go to a dealership and buy a car that will have a warranty, etc. Many dealerships offer second-chance financing that will help rebuild your credit (not buy-here pay-here places, they are a rip-off)

Auctions are a risky business. As a dealer myself, I send all of my "junk" to the auctions. "Junk" meaning that it's a vehicle that would need more repairs than what the vehicle's actually worth, something with a salvaged title, or something that I think would not sell or make a buyer at my dealership happy.

Auction purchases are usually "as-is, where is". A buyer for our sister store bought a vehicle recently at an auction in Deleware, made it approximately 10 miles towards home and the transmission quit, costing us about $2500.

Answer 6

You could get more car for the money at an auction. You may be able to save enough to pay for some of the repairs, if any, and be money ahead. Take someone with you that knows cars and have them take a look before you bid.

Just be careful and don't overbid, there'll be another car on the block right after the one that went for too much money. Don't get into a bidding war with someone either. good luck

Answer 7

Being a student, you probable do no longer qualify to finance. want good credit, an entire time interest & earnings of a minimum of $1500 consistent with month. qualified can recommend many stuff to many distinctive automobile a lot. it constantly potential a lots larger cost even nevertheless. id purchase from a private celebration and have the automobile regarded at & save 1000 or 2. basically significant to no longer purchase with any paint or physique artwork except you're saving lots particularly some thousand.