Used Cars for Under $5,000 Near Me (2024)

FAQs

Is $5,000 dollars enough for a used car? ›

When you're shopping with a $5,000 budget for your next vehicle, it could land you a decent used car if you temper your expectations. Five thousand dollars is a bit low for a used car these days, and the average going rate for a used car is around $30,000.

If you have never had one or have never been shopping for one, this might be a foreign concept to you. A $5,000 car is a 7-year-old Nissan Sentra or Mazda 6 with 100K miles on it. That car will probably run for another 50-150,000 miles over 5-15 more years while needing a few minor repairs and a major repair.

A wary buyer should use as a general rule of thumb that most cars are driven 12,000-15,000 miles per year. If a vehicle is 10 years of age, it should have between 120,000 miles and 150,000 miles on the odometer.

Generally, buying a car outright is the cheapest way of owning a new car, as you'll only be paying the cost of the vehicle, without interest. But if you do not have the money upfront, or you do not want to pay a lump sum straight away, leasing is an alternative.

Today, many shoppers negotiate for a used car by requesting a car dealer quote online or texting the car's owner. Get the numbers: Look up the car's current market value. Make the right opening offer: Keep your offer low, but realistic. Make a counteroffer: Sweeten the deal, but not too much.

By using the 10% rule of thumb, you can quickly determine how much of your monthly income can be spent on car costs without jeopardizing any of your other financial goals. For most folks, buying a used car within the $10,000 – $25,000 range is a great way to proceed.

For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can't afford a car worth more than $10000, and it's risky to purchase a vehicle costing less than $5000 as it cannot be relied upon. Auto loan payments will not be unmanageable for you anymore.

How much money do you need for a good car? ›

The 20/4/10 rule is a general guide to car buying. It advises that you put 20% down on a 4-year auto loan and spend 10% of your salary on transportation costs. So, if you're interested in a $20,000 car, you would put 20% down, or $4,000.

Upfront savings are appealing when shopping for affordable and reliable transportation. Long-term expenses for potential ongoing repairs can outweigh any initial savings from a low purchase price. Buying a car under $10,000 can be a good option if you keep enough money for breakdowns and maintenance.