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The Market For A Car

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You’re in the market for a car, but just not any vehicle. Specifically, you’re hemmed in by budget restrictions and can spend no more than $5,000, perhaps much less. The reality of the used car market is that even clunkers can cost a few thousand dollars and that’s exactly the type of vehicle you want to avoid. However, with some careful research on your part, much patience, as well as satisfactory negotiation skills, you can find a used car for under $5,000. Here’s how to do it.

Manage Your Expectations

You might have a certain make and model in mind when choosing a reliable, low-cost used car, but your expectations should align with market realities. And those realities will be confirmed when you shop for a car, study the ads, and research the car valuation sites.

First, you should know that car values fluctuate. Indeed, in times when gas prices are high, values of economical cars rise and those for large sedans, SUVs and pickup trucks drop. Conversely, the opposite happens when fuel prices are low.

Second, the more particular you are about a brand, especially premium or luxury brands, the more costly a vehicle will be. You may have your eyes set on a BMW, but even a 3 Series approaching 20 years old will cost you. The reliability of an older vehicle becomes an issue; acquiring parts for some foreign models can be pricey.

Technology is a State of Mind

Very few cars that are less than 10 years old can be had for $5,000 or less. Some compact models or high-mileage

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