If you want to buy used cars under 500 dollars, you need to be prepared to do a lot of research and searching. You probably won't find one the first day you are out looking for used cars because a used vehicle at this price range is rare, but not impossible to find. Most owners who are selling their used cars rarely ever advertise because they won't make a lot of money, so they try to keep their costs as low as possible. Thus, you need a little bit of luck as well when you're looking for extremely cheap used cars. Keep in mind that at this price, used cars will more than likely need repairs and replacement parts. You need to add these costs to your initial payment, so you can get a good idea of how much you're really paying for the used vehicle. Below, I will provide you with some great tips on how to buy used cars under 500 dollars.
Where to Find Used Cars Under 500 Dollars
Avoid dealerships when looking for used cars under 500 dollars because you will only be wasting your time. Although dealerships do cater to people looking for used cars, they won't have any at such a low price range. Usually the used cars that you find at a dealership are advertised with inflated prices. Car salesmen are notorious for scamming naive customers and you are better off just avoiding them. You are better off looking at auto repo auctions.
Auto Repo Auctions
Finding auto repo auctions are very easy nowadays due to the Internet. Simply Google the term and you will find a ton of results. Big sites, such as Autobidmaster, will allow you to filter results according to vehicle type, maker, model and year. If you live in a medium to large sized city, you shouldn't have trouble finding one.
Bank Repossession Vehicles
If you can't find an auto repo auction nearby, you can also try calling your local bank. Banks obtain used cars from owners who default on their loans. With the current economy in the tank, there are more and more used cars available at these banks. Often times, these cars go for less than 1000 dollars. You can find out if your local bank is having a sale by finding their numbers in the local yellow pages and calling them up. Keep in mind that there is no set schedule for car sales and often times they sell them through silent auctions. Do not give up. Persistence is the key. Continue to call every month or so until they tell you that they are going to have a sale.
Sheriff or Police Department Impound Sales
In addition to banks, law enforcement agencies also have sales for vehicles that have been seized following a crime. Every now and then, they also get new vehicles and need to find a way to get rid of their old ones. Although sales are not frequent, you can find used cars that are 90% cheaper than their original market value. It doesn't hurt to try and you never know if that one phone call to the police station could get you the car that you've always dreamed about.
Helpful Tip: Try to go to an auto auction in bad weather. Often times, there will be less bidders, which means less competition for you.
If you are determined and do your homework, you should be able to buy used cars under 500 dollars.