Buying a Used Car Under $10,000: Should You Do It? (2024)

Quick Tips: Whether to Buy Used Cars Under $10K

• 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.

Buying a used car for less than $10,000 can get you behind the wheel of a reliable and good-looking ride without costing you a fortune. However, you must prepare for potential repairs that can empty your wallet even though you might not break the bank with upfront costs.

Keep reading for advantages and disadvantages to consider when you shop for a low-cost second automobile or if you have a tight budget for replacing your vehicle. We’ll outline some pros and cons to help you decide if buying a car under $10K is a good choice for you.

• Benefits of Buying a Car for $10,000
• Cons of Buying a Car Under $10,000
• Weigh Potential Repairs vs. Upfront Saving
• What To Look For and Avoid
• Balancing Point

Benefits of Buying a $10,000 Car

Spending less money is the primary objective for many car shoppers. Finding a used car for $10K or less can sometimes be a step toward that goal.

• Less Money Upfront — The obvious advantage of buying a car for $10K is that the price is about $15,000 less than today’s average used car listing price. The cost is within reach for many budget-conscious drivers needing transportation. And, for a teenager saving money for their first set of wheels, it’s an attractive target.

• Lower insurance premiums — Buying a car from a lower price range also keeps money in your pocket in other ways. In most cases, the insurance premium will be less for a car worth around $10,000 than those with higher selling prices. We suggest you maintain comprehensive coverage for the vehicle if you don’t have funds to pay for damage repairs out-of-pocket.

• Slower depreciation — A used car selling for $10,000 today endured rapid depreciation years before. Sure, the vehicle will lose some of its worth after you buy it and start logging miles. However, the depreciation rate will be slower. Slower depreciation brings the potential for a better resale value after you’ve gotten good use from the car and are ready to trade for another new-to-you vehicle.

RELATED: Buying a Car with Cash: Everything You Need to Know in 2024

Cons of Buying a Car Under $10,000

Buying a car for less than $10,000 also has downsides.

• Higher mileage — Roadworthy cars with $10K pricetags likely have high mileage, and each mile driven creates wear and tear on the moving parts. More use increases the potential for replacement or repairs. While a six-digit number displayed on the odometer is not a bad thing by itself, it can tell you if previous owners drove more or less than average. U.S. Department of Transportation figures indicate the average driver travels about 13,500 miles annually. So, a 10-year-old car with average mileage will show about 135,000 miles on the odometer.

• Unknown maintenance history — Well-maintained cars typically last longer. It can be challenging to determine that a $10,000 pre-owned vehicle had routine oil changes and other scheduled maintenance, even if you’re buying from a private seller who is the original owner. Proof of timely upkeep is impossible if the car has multiple previous owners. Remember that looks can be deceiving, and seeing a clean vehicle doesn’t necessarily mean the owner keeps the working parts under the hood in good condition.

• Repair expenses — Used cars priced under $10,000 are likely too old or have too many miles to have remaining warranty coverage. So, vehicles in this price range are typically sold as-is, and you’ll need to come up with the money to pay for the mechanical repairs after a breakdown.

• Lacking technology — Due to their age, used cars selling for $10,000 might not have much of the technology today’s new cars have. And older and cheaper cars probably lack many advanced driver assistance systems, like a head-up display, available in newer and more expensive models.

MORE: Hidden Costs of Buying a New Car

Weigh Potential Repairs vs. Upfront Savings

Most car shoppers look for affordability and reliability at any price point. Those two factors are arguably more important when buying a car under $10,000. It’s easy to be lured by the initial savings, but savvy shoppers also consider the potential for — or likelihood of — costly repairs in the future. Research the models that interest you and fit your price range, get an inspection, and be sure you’re financially ready for any repairs.

• Pre-purchase inspection — A pre-sale inspection may steer you away from a purchase that leaves you with an expensive repair bill after driving the car home. Qualified mechanics may uncover potential problems or existing defects with the vehicle before you hand over your hard-earned money. Paying a few hundred dollars for the service might save you much more and prevent some headaches or heartache.

• Budget for repairs — Face it. Every vehicle needs repair at some point, and a car under $10,000 might have a breakdown sooner rather than later. A new battery might cost $200, an alternator is $500 or more, and replacing a water pump can set you back $750. In addition to being prepared for unexpected repairs, responsible car owners must plan for routine maintenance costs to keep their vehicles in good working order. In other words, avoid spending your last dollar when buying a car because you need to have enough money to keep it operating.

• Consider trade-offs — Your decision to buy a car for less than $10,000 involves many factors. It’s easy for a lower asking price to lure you to a vehicle. However, you must weigh that benefit against its potential for ongoing costly repairs. Each situation is unique, but sometimes, spending a little more upfront for a well-maintained car is better for your long-term finances. On the other hand, choosing a vehicle with a lower asking price is a gamble that can pay off in the end — as long as you keep a rainy day fund to pay for breakdowns.

What to Look for and Avoid

Autotrader’s Jeff Glucker says the thought of not having a car payment is a pretty good one. But even if you have to borrow some of the money, “buying within a $10,000 limit makes a lot of sense, as long you look out for a few items,” he said.

Glucker, a senior video editor who started writing about cars about 15 years ago, emphasizes the importance of learning about a vehicle’s past maintenance. Potential buyers might find evidence of oil changes, brake work, and other services on a vehicle history report. But those clues are available only if the auto shop doing the work submits information to reporting companies like Carfax and AutoCheck.

While thorough inspections by professional mechanics are ideal, Glucker says a knowledgeable friend can be a good substitution. “They can find things you might miss,” he said, “and it can save you a lot of money down the road.”

If money is tight, choosing a mainstream car is better, so replacement parts are plentiful. “It can be tempting to get something fun and cool, ” Glucker said, “but if it’s also rare or was once expensive, parts could still be expensive, or they may have become incredibly hard to find.”

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Balancing Point

Choosing a dependable car that meets your transportation needs requires finding the balancing point between vehicle affordability and reliability. Follow these tips and responsibilities when looking for a car for less than $10,000. Be diligent in your shopping experience, get an in-depth vehicle inspection, and have money available for future repairs. Choosing a dependable car that satisfies your needs requires finding the balancing point between vehicle affordability and reliability.

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