Can you still buy a car on a budget?

Dear Chuck,

We need to purchase a car on a tight budget. We’d like to buy a dependable used one, but we hear that parts are going up due to tariffs. I know you like to purchase used, but is that still our best option?

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Buying a Car on a Budget

Dear Buying a Car on a Budget,

A car purchase has become a major life decision and can lead to a cascade of financial problems if the car is unreliable or it puts stress on your budget. Like you, many are concerned about used (and new) car prices and how to afford the best options.

The key is finding balanced information that doesn’t exaggerate the potential impact of tariffs. Deals are out there if you have the discipline to exercise patience, do your homework, and stay within your budget.

A personal experience

Even with the best of plans, it does not always go well. I recently did the research for one of our sons who needed a pickup for his work. Despite all of my best efforts at finding the perfect used model for him and his wife, it has consistently given them mechanical problems. Sometimes buying new is the best option, so don’t rule it out, depending on your budget.

Car market in 2025

CarEdge.com reports that the average price of a used car this month is $25,128. The spring car buying season, combined with market uncertainty, may push prices higher for a while. Tariffs, supply chain disruptions, inventory, and interest rates are all factors. If new car prices go up, expect used ones to do the same. As for now, it’s a used car seller’s market.

Value in timing

I do a lot of research before making a purchase, comparing sales at dealerships, Cargurus.com, and Facebook Marketplace. Timing, as reported by U.S. News, is important:

• Buy before you need it so you can look without pressure.
• Buy at the end of the month. Dealers may negotiate in order to reach quota.
• Buy on a Monday when salespeople have the time to answer questions.
• Buy on three-day weekends when deals are offered.
• Buy when there are incentives, rebates, or financing deals in general.
• Buy during these months:
  • October: when the auto industry’s new year kicks off.
  • November: for Black Friday and end-of-the-year sales incentives.
  • December: for monthly, quarterly, and year-end incentives, plus the need to move leftover, outgoing models before year-end.
  • New Year’s Eve and Day: for special end-of-year promos.
  • May: deals for Memorial Day begin before the actual holiday.

Sometimes, the best time to buy a used vehicle is after big sales events. Wait a few days for trade-ins to move onto the dealers’ used car lots. Those who sell privately may wait until after they have purchased a new one. Be careful buying after a flood or natural disaster. I search for one-owner or certified pre-owned cars that have maintenance records and low mileage. I always use CarFax to check the history and never buy a car that has been to auction or has a rebuilt title. A rebuilt title means it was declared totaled by an insurance company at some point in its history.

Value not vanity

Buy cars for value, not vanity. Mark Zuckerberg (Meta), Larry Page (Google), and Jeff Bezos (Amazon) drove unassuming cars for years: Honda Fit, Toyota Prius, and Honda Accord. Warren Buffett drives a 2017 Cadillac sedan. The wealthy realize that most cars depreciate in value and prefer to put their money in appreciating assets. Understated vehicles don’t attract attention. Reliability, good gas mileage, and one that does not attract a lot of attention are preferred. Plus, insurance can be less expensive.

A study from Experian Automotive showed that 61% of households earning more than $250,000 annually don’t own luxury brand cars. They choose to drive mainstream brands or modestly priced luxury vehicles that coincide with their values and needs.

Value in prayer

Ask God to provide. He knows exactly what you need and when you need it. One friend of mine was in need of a vehicle, and during his time of waiting on the Lord, he was invited to a charity golf tournament. For the first time in his life, he hit a hole-in-one while playing golf that day. The prize was a brand new car. He knew in his heart that the Lord provided in the most unexpected way!

Be patient while keeping a lookout. Let others know you are in the market. They may know someone who wants to replace a vehicle. 

If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him. But let him ask in faith, with no doubting … (James 1:5–6a ESV).

Articles to check out for more information:

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