If you spend a lot of time driving, you’re probably aware that recent car prices are not cheap. In October 2023, the average price paid for a new vehicle in the U.S. was $47,936, according to Cox Automotive. That was up from less than $40,000 only three years ago. The average price for a used car in October 2023 was $26,533.
Advertisement: High Yield Savings Offers
See: Grant Cardone Doesn’t Think You Should Buy That New (or Used) Car — Here’s Why
Find: A 3-Year-Old Car Used To Be Affordable — Now the Same Price Gets You a Car More Than Twice as Old
For many Americans, those prices are simply way too steep — especially with interest rates much higher now than a couple of years ago. The average car loan interest rate last month was about 9%, MarketWatch reported, which can push your monthly car payment well into the hundreds of dollars.
For example, suppose you live in Georgia, which ranks around the middle of the pack in affordability. You buy a $48,000 car with a down payment of $9,600, or 20%. If you get a 9% interest rate over 60 months, your monthly payment would be about $917 with sales taxes included, according to the auto loan calculator on Calculator.net. Even a used car priced at half as much ($24,000) with a $4,800 down payment and the same terms costs $485 a month.
More Bang for Your Buck: These 20 Cars Will Last You Twice as Long as the Average Vehicle
Not everyone can afford to fork over that much every month for a car. On the other hand, if you were able to find a $10,000 car and put $2,000 down, your monthly payment would drop to about $234 with the same terms — much more feasible for many Americans.
The challenge is finding a car for $10,000 or less. The best strategy is to look online, where you have a much wider selection of cars to choose from. Even if you find a car that’s located hundreds of miles away, it might be worth the trip if you can find a decent vehicle for under $10,000.
If you do find such a vehicle, it probably has a lot of miles on it and might not have a ton of premium features. But if it gets you where you need to go reliably — and can last a few years with the proper maintenance and care — it can be a very wise investment.
You can find affordable used cars on traditional sites as well as from rental car companies that sell their used vehicles. Here are the seven of the best sites to find a car for less than $10,000. Depending on where you live, they might have thousands of used car options for that price.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 7 Best Sites To Find Cars for Less Than $10k