If you think you have to spend a lot of money to get a good truck, think again. Yes, it’s true you’re going to have to go “used” to get a really good deal on a truck, but that’s not such a bad thing. Think about it for a second. If you can get a good, reliable truck and have no monthly loan payments, what could be better than that?
But one of the secrets to finding a cheap truck is knowing where to look…
It’s true that the auto industry is in a slump and lots of previously financed cars and trucks have been repossessed, but that’s actually good news for those who want a good reliable truck at reasonable cost. That’s because repossessed cars and trucks are usually sold at auction. And if you know what to do right with an auction, you can get yourself a very good deal (make that “steal”) and have yourself a good reliable truck for nothing more than a few thousand dollars; no payments, no headaches beyond regular maintenance and insurance.
Typically, auctions are comprised of three different types of vehicles. They are: cars and trucks that have been repossessed, cars and trucks auctioned off by police departments (such as those that have been seized in drug raids as property that has been bought by illegal means, or cars that have simply needed replacement in the police fleet itself), and cars and trucks auctioned off by the government.
In all of these cases, you can find very good and reliable used trucks for a very reasonable price, typically just a few thousand dollars.
But there are some caveats!
Although auctions are required by law in most cases to list any damage or problems trucks have right on the vehicles themselves, it’s still up to you to determine whether or not these vehicles are reliable and what you should be willing to pay for them. For example, if you can get a good and sturdy truck for, say, $3000 that’s going to also require another $1000 of repair to make it truly roadworthy and reliable, that might be much more worth your while than paying $6000 for a comparable truck that’s in perfect condition. It’s up to you as to what kind of hassle you’re willing to put up with and what types of repairs you are willing to make.
Another caveat is that you going to have to have the cash up front to buy any cars you win a bid on. No financing here.
A final caveat in regard to auctions is that you are going to have to be willing to work fast. Most auctioneers go very, very fast, so get to the auction well ahead of time and spend some time thoroughly examining the trucks you think you might want to bid on. Once you determine that you want to bid on a certain truck, make sure you take down its number (most cars and trucks in an auction are assigned a specific number) along with any problems listed or that you’ve found. Then, assign yourself a top bid price for each truck you’re willing to bid on. Again, remember that you’re going to have to have the cash in hand to pay for the truck you buy right then, no financing and no waiting.
If auctions scare you, or if you want financing, there’s never been a better time to bargain with a car dealer.
Because of the recent downturn in the economy and thus the car and truck market, dealers are desperate to make a deal with you when it comes to purchasing a truck. Therefore, if you’re amenable, go on over to your local dealer and price out that truck you’ve had your eye on. Be willing to bargain hard and do some research so that you know what that truck is actually worth on the most basic level. You’ve got the upper hand here, so remember that you don’t have to pay the inflated prices that would normally happen in the average car and truck market.
Again, if you’ve got cash and can pay for your car in cash, you got a significant advantage in bargaining versus having to finance; at this time, too, it’s going to be quite difficult to get financing for your truck unless you have got absolutely perfect credit.
One advantage to buying your truck at a dealer versus an auction is that you do get a warranty with your vehicle, but the downside to that is you’re also going to pay quite a bit more, probably at least twice as much or better, versus a truck you can get at an auction. It’s up to you (and your financial situation) to decide whether you want to negotiate a dealer purchase of a truck or a truck at an auction for what is probably significantly less, although without warranty.
Either way, though, remember that you’ve got the upper hand here. So
dust off those negotiating skills and reflexes, and get ready to buy yourself a “new” truck for significantly less than you’re used to.