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Questions To Ask Prior To Buying A Used Car

 

As the second largest purchase most of us will make in our lifetimes, buying a vehicle is a big deal! However, if you’re in the market for a high-quality used vehicle, the experts at Active Auto Sales can help guide you to the best solution. We’ve helped countless used car shoppers find the best vehicle for their needs. In the process, here are a few of the top questions you should ask yourself before buying a used car.

Should I Purchase a Used Car Warranty?

In many instances, newer used vehicles will have some portion of the manufacturer's original warranty remaining. If it doesn't, the majority of used vehicles will offer the option for you to purchase an extended warranty. For an added peace of mind, you should strongly consider purchasing the extended warranty. This coverage will more than pay for itself in the event some component — like an air conditioning system or transmission — needs repair. 

Should I Use a Trade-in or Sell My Vehicle Outright?

One of the most common questions we’re asked is “Won't I get more money if I sell my vehicle outright?” While selling your vehicle privately may appear to yield you more money, this isn’t typically the case. When you trade your vehicle in at Active Auto, the trade-in value may be subtracted from the actual sales price, and you'll only pay sales tax on the difference. 

For instance, If you’re looking to purchase a used vehicle for $20,000 and do not have a trade, you’ll pay the effective sales tax rate on the entire $20,000. However, if you have a trade-in vehicle worth $10,000, you’ll only pay sales tax on the difference, which would be $10,000. When you add up the time savings, tax savings, and convenience of trading your vehicle in; it makes dollars and sense to trade instead of sell.  

Should I Buy Guaranteed Asset Protection (GAP) Insurance?

GAP Insurance is extra protection designed to cover the value of your vehicle in the event you’re in an accident and suffer a total loss. If this happens, GAP insurance will pay the difference between what you owe on your auto loan vs what the vehicle is worth. Let’s say hypothetically you owe $24,000 on a vehicle, get in an accident and total it, but the market value comes in at $19,000. Your insurance company would only pay the market value of $19,000 to the lien holder, which means you would be on the hook for approximately $5,000. If you have GAP insurance, you wouldn’t owe the lien holder anything because this coverage would cover the gap. 

Contact Active Auto Sales today for the best used cars, trucks, SUVs, and minivans. 

 

As the second largest purchase most of us will make in our lifetimes, buying a vehicle is a big deal! However, if you’re in the market for a high-quality used vehicle, the experts at Active Auto Sales can help guide you to the best solution. We’ve helped countless used car shoppers find the best vehicle for their needs. In the process, here are a few of the top questions you should ask yourself before buying a used car.

Should I Purchase a Used Car Warranty?

In many instances, newer used vehicles will have some portion of the manufacturer's original warranty remaining. If it doesn't, the majority of used vehicles will offer the option for you to purchase an extended warranty. For an added peace of mind, you should strongly consider purchasing the extended warranty. This coverage will more than pay for itself in the event some component — like an air conditioning system or transmission — needs repair. 

Should I Use a Trade-in or Sell My Vehicle Outright?

One of the most common questions we’re asked is “Won't I get more money if I sell my vehicle outright?” While selling your vehicle privately may appear to yield you more money, this isn’t typically the case. When you trade your vehicle in at Active Auto, the trade-in value may be subtracted from the actual sales price, and you'll only pay sales tax on the difference. 

For instance, If you’re looking to purchase a used vehicle for $20,000 and do not have a trade, you’ll pay the effective sales tax rate on the entire $20,000. However, if you have a trade-in vehicle worth $10,000, you’ll only pay sales tax on the difference, which would be $10,000. When you add up the time savings, tax savings, and convenience of trading your vehicle in; it makes dollars and sense to trade instead of sell.  

Should I Buy Guaranteed Asset Protection (GAP) Insurance?

GAP Insurance is extra protection designed to cover the value of your vehicle in the event you’re in an accident and suffer a total loss. If this happens, GAP insurance will pay the difference between what you owe on your auto loan vs what the vehicle is worth. Let’s say hypothetically you owe $24,000 on a vehicle, get in an accident and total it, but the market value comes in at $19,000. Your insurance company would only pay the market value of $19,000 to the lien holder, which means you would be on the hook for approximately $5,000. If you have GAP insurance, you wouldn’t owe the lien holder anything because this coverage would cover the gap. 

Contact Active Auto Sales today for the best used cars, trucks, SUVs, and minivans. 

Categories: Pre-Owned Inventory

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