Secure A Debt-Free Vehicle

Rent is high.

Food is high.

Gas is high.

So are new and pre-owned prices on cars, trucks and SUVs parked in rows on dealership lots. Many GenZers are struggling in this unstable economy and not having a vehicle can be even more stressful.

Financing a vehicle at a dealership and having yet another bill to pay – a monthly car note – is a deal-breaker for most younger people.

Even when Gen Z buyers qualify for car loans through a bank approval, they are slammed with an average interest rate of 13 percent, the highest of any generation, according to a study by Lending Tree.

Faced with the prospect of paying thousands of extra dollars in interest over the course of a loan, many GenZers are choosing to wait out the market rather than walk into a dealership’s finance office.

If this is you, buckle down, save between $3,000 to $6,000 and take an alternate route to traditional car buying by hunting for an affordable cash car.

This is a perfect solution for teens and 20-somethings, especially those living at home or with roommates, who can set aside money each paycheck to save for a whip. It’s also a great way to avoid high interest rates and monthly loan payments.

Among the easiest and most effective ways to search for a reliable vehicle is through friends, family, and co-workers because of the intimate relationship the purchaser has with the seller. It is not unusual for someone close to share their vehicle issues and/or successes. Familiar sentiments range from “This car has been nothing but a lemon since I got it. . .” to “My car has not given me one bit of trouble.”

The latter comment should perk up your ears if a friend or relative mentions potentially selling a ride. So, step up and ask friends, relatives, co-workers, and neighbors, if they know someone who’s selling an older car. Buying from someone you know often means getting an honest history of the vehicle.

In addition, approach members at your house of worship and ask if they know of someone selling a good, reliable car. If you attend regularly, get permission to make an announcement in your religious organization’s newsletter. That submission can possibly reach hundreds, if not thousands, of congregants.

However, there are pros and cons to purchasing a vehicle from a familiar face. Advantages include having no extra fees tacked on, knowing the vehicle history and enjoying less price haggling. If a neighbor, friend, relative, or co-worker is aware you need a vehicle, oftentimes, they are more willing to negotiate and shave a little off the asking price. In case you didn’t know, many states charge sales tax based on the vehicle’s book value – not the low price your acquaintance charges.

The risks to purchasing from someone you know is the vehicle is sold “as is” with no warranty. There could also be a strain on the relationship if you purchase a vehicle and it suddenly breaks down or needs a major repair costing hundreds, even thousands, of dollars a few days or weeks later.

If you can’t land a car by following the tips above, search online marketplaces and private listings in the classifieds, including:

• Facebook Marketplace – Great for finding local private sellers. You can filter by price, mileage, and location. Message sellers quickly because good deals sell fast.
• Craigslist – Look under the “cars+trucks – by owner” section. Always verify the vehicle in person and watch out for common scam listings.
• OfferUp – This is a mobile-focused app for local buying and selling. Many private owners list older, reliable commuter cars here.
• Local Auctions – Public government or police auctions sell seized or surplus vehicles. Prices are often low, but cars are sold “as-is” without a warranty.

Paying attention to your surroundings when out and about is another way to spot a cash car for sale. Have you ever cruised down the street and saw a “For Sale” sign on a car parked in someone’s driveway or while driving pulled beside a car with the placard stuck on a window? Sometimes the asking price is listed as well. Private owners often avoid online fees this way.

Take a moment to jot down the number which is usually somewhere on the “For Sale” signage. It is a promising signal when the car is being driven. The driver must be confident it is safe to drive and likely won’t break down on the road.

Whether buying a cash car from someone you don’t know or purchasing a vehicle from a person you trust, don’t blindly pay insanely more for a vehicle than what it’s worth. Websites such as Kelley Blue Book and Edmunds, among others, list vehicle resale values.

Purchasing a car doesn’t have to be a nerve-wracking experience. If you are growing weary of public transportation, ride sharing, or asking co-workers for a lift home, with careful planning and research while keeping your eyes and ears open, GenZers can experience vehicle ownership without stressing over the cost.