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Saving on your car purchase as prices continue to rise

According to Carfax, the median list price for a used car jumped 40 percent over the past year.
Published: Mar. 16, 2022 at 10:15 AM EDT
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InvestigateTV - Buying a car right now isn’t cheap. According to Carfax, the median list price for a used car jumped 40 percent over the past year.

More than 1.9 million used cars were sold in November, according to iseecars.com. 

Supply-chain issues have inflated the cost of both new and used cars. In general, though, our partners at the financial website Nerdwallet still say buying a used car can save you a ton of money over your driving lifetime.

According to J.D. Power, a well-maintained car can last 200,000 miles without major issues. This means you can get roughly 13 years of service out of your car, if you drive it 15,000 miles a year.     

Paying cash for a car is ultimately the best move, but we all know that’s not always possible. Having as much money as you can for a down payment is helpful  and if you need to borrow, try to limit the term of your loan to a maximum of five years.

Experts say you don’t want to pay way more than the car is worth because of interest from a loan payment.