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Used Cars in Mesa Under $5000: Can You Find a Dependable Car at That Price?

Best Used Cars Under $5000 Mesa AZ - Red Mountain Funding

If you’re in Mesa, Arizona, or the East Valley, you might be wondering if you can find a used car under $5,000 that will get you to work and back every day and that can handle all of your errands with breaking down. You’re going to have to be patient and sift through a lot of ancient and/or troublesome vehicles in this price range, but you can find a dependable vehicle if you look hard enough.

In this article, we’re going to tell you what kind of car to look for if you have $5,000 or less to spend, including how to refine your search. Additionally, we’re also going to offer some food for thought on looking at newer, higher-end vehicles that lie a little outside of your current price range.

What Kind of Vehicle You Can Expect for $5,000

If you have $5,000 to spend on a vehicle, you’re likely looking at something with 100,000 to 150,000 miles on it. With $5,000, you shouldn’t have to settle for a car with 200,000 miles or more.

How old? Expect vehicles in this price range to be about 10 years old or older.

The type of vehicle? You’re probably looking at a sedan, coupe or possibly a compact SUV or truck. You can pretty much forget about a full-size SUV or pickup unless it has a ton of miles on it and was made in the ‘90s (or earlier).

Vehicles such as Toyota and Honda (and Lexus and Acura, for that matter) are going to be harder to find in this price range unless they are much older and have a lot of miles on them. Therefore, your best bet might be a domestic vehicle, such as one by Ford, Chrysler or Chevrolet. For foreign makes, Mazda, Nissan, Kia and Hyundai are typically more affordable than their competitors.

Where Can I Find a $5,000 or Less Vehicle?

In your price range, you can look to private sellers, major new-car dealerships that also sell used cars, and independent car lots that feature used vehicles exclusively. Keep in mind that while looking for cars at this low of a price, you’re not going to be able to haggle the price down by $1,000 or more.

Your wiggle room here, if the price of the car is already near true market value, is about $500, at most. The only exception would be if you’re talking to a private seller who’s not a very good negotiator.

Get the Vehicle Inspected and Do Your Own Research

With any vehicle you’re seriously considering, you should look up what kind of history it has, and you should have a professional inspect its current state.

Start by running a free vehicle history report by entering the VIN of the vehicle into either CARFAX or AutoCheck. The report will tell you if the car has been in a serious accident or if it’s had major problems in the past; some reports even show the car’s service records.

Now, don’t necessarily cross off every vehicle you see that has been in an accident. An accident may not be that bad if:

  • It was minor.
  • It happened years ago.
  • The vehicle has been driven many thousands of miles since then.

Yes, ideally you’re going to want something with a squeaky clean record. But, with this price range and the miles that these cars will have, you’re going to come across several that have had at least a minor accident. We’re just saying, if you really like a certain vehicle but it was in an accident years ago, don’t write it off until you dig deeper.

Also, yes, most cars in this price range are going to have little dings, chips and scrapes. It comes with their experience. But, so long as it doesn’t have major, unfixed body damage, what you should really be worrying about is how the vehicle runs. That brings us to our next point.

Get a Prepurchase Inspection

Before buying any used car, you should submit it for a prepurchase inspection. If you’re buying from a dealer, they should be able to do this on site or through a trusted partner nearby. Many mechanics around town offer this service, as well, which is especially helpful if you’re looking to buy from a private seller. If you already have a trusted mechanic for your current vehicle, you can try to see if they will inspect the vehicle you’re considering buying.

Keep in mind this service will likely run between $100 and $200, whether you have the dealer or an independent mechanic do it. The prepurchase inspection should be a 100-point (or more) check of the vehicle, with a detailed report to follow.

This service should not only unearth any problems under the hood, but also any damage to the body or interior of the vehicle. This includes problems that go undetected by the average consumer, such as flood damage, hidden rust and poor previous repair work.

Best Used Cars Under $5000

Just for reference in your search, we would like to point out some of the top vehicles of 2018 according to two authoritative sources.

Kelley Blue Book released a list earlier this year of the top 10 used vehicles that run about $5,000. In order, here are the 10 vehicles that made the list (along with their average price in Mesa, AZ in parentheses):

  1. 2003 Toyota Avalon ($4,266)
  2. 2003 Toyota Camry ($4,276)
  3. 2004 Honda Accord ($4,477)
  4. 2004 Toyota Corolla ($4,339)
  5. 2005 Honda Civic ($3,854)
  6. 2004 Subaru Forester ($4,084)
  7. 2004 Toyota Matrix ($5,015)
  8. 2003 Acura TL ($4,060)
  9. 2004 Subaru Outback ($4,023)
  10. 2006 Mazda M3 ($4,629)

15 Additional Used Vehicles Worth Mentioning

Also, U.S. News and World Report published a list in June of the 15 best used vehicles under $5,000, in no particular order. For reasons unexplained, all vehicles listed were from 2009. Here are the 15 vehicles that made the list (along with their average nationwide price in parentheses):

  • 2009 Chrysler PT Cruiser ($4,358)
  • 2009 Volkswagen Rabbit ($3,123)
  • 2009 Mitsubishi Galant ($4,373)
  • 2009 Scion xD ($4,459)
  • 2009 Pontiac Vibe ($4,548)
  • 2009 Toyota Yaris ($3,913)
  • 2009 Chevrolet Malibu ($4,786)
  • 2009 Mercury Milan ($4,698)
  • 2009 Hyundai Elantra ($3,325)
  • 2009 Saturn VUE ($4,641)
  • 2009 Scion tC ($4,405)
  • 2009 Scion xB ($4,874)
  • 2009 Saturn Aura ($3,455)
  • 2009 Ford Fusion ($4,637)
  • 2009 Honda Fit ($4,834)

We realize it may be hard to find one of these exact vehicles from either list. But, these lists should help steer your search, as far as make and models go. You may not be able to find a vehicle with the exact same year of production, but if you find the same make and model around the same year that is listed above, then you’re on the right track.

A Loan Can Help You Get a Better Vehicle

Consider applying for a loan for a used vehicle, even if your credit score is less than appealing at the moment. Red Mountain Funding helps East Valley residents secure financing for a used vehicle, even when they’ve been turned down at another dealership. At Red Mountain Funding, we are our own financing institution, and we report to all three major credit agencies.

If you’re approved for a loan, you may be able to get a newer or higher-end vehicle, such as in the $8,000 to $10,000 range. Even if you stick around $5,000 and get a loan for a vehicle in this range, you now have the chance to make payments and build up your credit. This helps you get an even better vehicle when you go to look for your next car a few years down the road.

At Red Mountain Funding, we encourage you to apply for a loan to see if you can get financing for a vehicle around (or perhaps higher than) $5,000.

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Best Used Honda SUVs: What Models and Years Are Most Reliable?

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Best Used Honda SUVs: What Models and Years Are Most Reliable?

Used Honda CRV

The first year that Honda made its iconic SUV model – the “Honda CR-V” – was 1997, and it debuted a rounded style based more off the emerging styles of sedans, rather than the box-y look that many SUVs still had at the time. This new and unique look helped the Honda CRV to become an instant hit with car buyers. 22 generations later, the 2018 Honda CR-V shows that this model of vehicle is still just as popular.

With Honda CRV models still in high demand, you may want to consider used Honda CRVs, if you are on the search for a reliable, affordable and stylish used SUV in the greater Phoenix, AZ area.

Best Used Honda CRV Years

If you are set on getting a used Honda CR-V for yourself, the first thing you will want to consider is the year the vehicles were made. Different year models have different adjustments made to the base design, and some year models will have certain features and other year models may not.

Additionally, Honda – with its focus on quality and dependability – has made adjustments to safety and fixed known past problems, in certain years. So, if you want to avoid a known problem in older used vehicles, you may want to opt for a certain year-model.

2017 Used Honda CRV

2017 was the year than Honda made big changes to its popular CRV series of SUVs. Changes to the exterior were subtle, preserving the exterior style that made the SUV so popular, but the majority of the changes are to the cabin area. The newly redesigned cabin offers even more luxury with a new dash, even more leg room, and an increase in overall space and cargo room.

Used Honda CRV for Sale in Mesa Arizona

Source: edmunds.com

4th Generation Honda CRVs (2012 – 2016) The Most Sought After Used SUV Models

The 4th generation run of Honda CRVs began in 2012. While the size, interior, and engine of the 2012 – 2016 Honda SUVs were similar to past models, this generation boasted a quitter and smoother ride than previous generations. 2015 models also boast increased torque (184 lb-ft), and included all-wheel drive and front wheel drive. Look for the following:

  • Used 2012 Honda CRV LX
  • Used 2013 Honda CRV EX
  • Used 2016 Honda CRV EX-L

Top Years for Used Honda SUVs:

  • 2008 Used Honda CRVs – High MPGs
  • Used 2005 Honda CR-V – High Safety Scores, but limited off-road availability.
  • Used 1999 Honda CR-V – Higher Horsepower, Automatic Transmission, Spacious Interior.
  • Used 2000 Honda CR-V (SE) – Special Edition features leather interior and rides well at high speeds and highway travel.

You can find used Honda SUVs from as little as $3,000 to $11,000, and while you may pay a bit higher of a price tag with Honda CRVs – compared to other SUVs from other manufacturers – that extra cost is for the Honda reliability, durability, safety, and overall value.

Used Honda SUVs are in high demand recently, especially models in the years 2003 – 2008, as Honda was ahead of the curve with making proactive changes in those years; changes that many other manufacturers were hoping to stall for or put off for future years. This means that the used Honda SUvs, from 2003 to 2008 models, offer some features that wouldn’t be seen in other manufacturer’s SUVs until the 2006 – 2012 models.

If you can find great deals on used Honda SUVs, especially Honda CRVs (1997 – 2017), they are highly recommended.

Used Honda Element

Used Honda Element for Sale in Mesa, ArizonaAnother great used Honda SUV for families is the Honda Element. With a distinctive “boxy” look, the Element has an incredibly spacious interior, yet is considered compact in length –being 7 inches than a Honda Civic. This layout makes the Honda Element extremely easy to park and fit into tight spaces – a feature many urban Phoenix residents may appreciate.

If you are looking for an SUV for versatility, the Honda Element is the used car choice for you. The unique design of the Honda Element was created with sports and outdoor enthusiasts in mind. This used SUV can handle day-to-day urban trips, and retire to the hills on the weekends for camping trips and outdoor activities. Models 2005+ even feature waterproof interiors for surfing and watersports enthusiasts.

Best Used Honda Element Years

2003 – 2010 Honda Elements are all make great used SUVs for Arizona car buyers. We recommend looking out for several year-models when searching for Used Honda Elements in Arizona:

Used 2005 Honda Elements

With a price tag averaging $4,350 to $6,399, 2005 Honda Elements feature the first year with standard side airbags – making the 2005 model the choice for overall safety. This is also the model year that Honda made MP3, WMA playback, and XM Radio available.

2007 Honda Elements

2007 models of Honda Elements saw the most updates to the SUVs. New safety changes made it a top choice for safe used vehicles in Arizona, a newly redesigned instrument panel made it more sleek and stylish, the handling is more balanced than ever in the 2007 used Honda Elements models.

Used 2011 Honda Element for Sale in Mesa Arizona

Source: edmunds.com

2011 Honda Elements

The final year that the Honda Element was manufactured, 2011 used Honda Elements not only give you a chance to own the last models of this iconic SUV series, but the reliability of used 2011 Honda Elements ensured that the memory of the Honda Element would not fade quickly. This model can easily last you 10+ additional years under the proper care.

Used Honda SUVs for Sale in Phoenix, Arizona

As a financing company, Red Mountain Funding offers zero down and low down payment financing for affordable used cars in Arizona. Our office in Mesa, Arizona can finance your purchase from another Mesa, AZ car dealership.

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Take Over Car Payments: Assumable Car Loans for Bad Credit and No Credit

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Take Over Car Payments: Assumable Car Loans for Bad Credit and No Credit

Are you looking for a way to purchase a vehicle with either no credit or bad credit? There a few options available to purchase a car without perfect credit. Red Mountain Funding specializes in a variety of lending options for those who may not qualify for a traditional auto loan. One of those options that may not be well known is assuming the car loan of another individual.

This process may seem difficult without the proper guidance. Many traditional lenders will not allow you to take over car payments. That is where Red Mountain Funding can help you. We work to connect people with assumable auto loans and help with the necessary paperwork to protect both you and the current owner of the vehicle.

What Does Taking Over a Car Loan Mean?

You may have heard about this type of transaction and wondered exactly what it is. When a person finances a car and is unable to continue making payments or driving the vehicle for several reasons including loss of income or even military service that takes them overseas, they may not be able to sell the vehicle for what they owe on the loan. In these cases, they will look for someone who is willing to assume the payments until the loan is paid off. Once the loan is paid off, the person who assumed the loan will then be given the title to the vehicle by the original owner.

Where to Find Assumable Auto Loans

You may find several local listings to take over car payments on Craigslist. Before you make an agreement with an individual, you should contact Red Mountain Funding to help you with the paperwork involved. They will meet with you and the current loan holder to work out the details and ensure that both parties are protected in the deal. It is important to use a third party in these arrangements for your protection.

Written Agreements

It is important to get all the details of the arrangement in writing including the loan term, payment amount, how payments will be made, and how insurance will be handled. Remember, a financed car needs insurance coverage that meets the requirements of the original lender until it is fully paid off. Most lenders require a vehicle to have full coverage until the final payment is made.

Insurance Coverage

One of the most important things to agree on when assuming the auto loan is who will hold the insurance coverage on the car. When making this agreement, you should make sure to read the terms of the original loan. Some loans require the primary borrower to hold insurance on the vehicle while most state laws require the driver to be insured. This can cause an issue if you don’t have a written agreement regarding insurance. In some cases, the owner of the vehicle can add you as a driver on their policy or you may have to have insurance on the vehicle with them on your policy. Red Mountain Funding can help you understand the insurance regulations and make the right agreement for you.

No Down Payment

One of the biggest benefits of assuming a car loan is that you do not need a down payment. Most traditional and bad credit car dealerships will require a percentage of the purchase price as a down payment. If you are unable to make a down payment on a vehicle, you may want to look into assuming an existing loan. This type of vehicle purchase allows you to take over car payments with no money down.

Affordable Payments

One of the most difficult parts of financing a vehicle is getting a payment you can afford. If you c

hoose to take over car payments, you will be getting the interest rate of the current owner of the vehicle. This may make the payments more affordable with your current budget. Affordable car payments are one of the biggest benefits of this type of transaction. When searching for assumable auto loans, Red Mountain Funding can connect you with individuals who are looking for someone to take over their car loan in your price range.

Can’t Afford Car Payments, What Are My Options?

How To Complete Auto Title Transfers In Arizona - Red Mountain Funding

If you have found yourself in a situation where you can no longer afford your car payment, you may have wondered what you can do. You have three choices when faced with this problem.

The first choice is to have your vehicle voluntarily repossessed. This option can have a negative impact on your credit, making it more difficult to finance another car later down the road.

The second option is to try to sell your vehicle for what you owe on it. With the fact that cars lose value the moment you drive it off the dealership’s lot, this may be impossible in most cases. Most car owners are upside down on their loans and would need to sell the vehicle for thousands more than it is worth.

The third and easiest option is to have someone take over your existing loan. Often, there are people who are unable to get financing for a traditional loan or don’t have a down payment to purchase a vehicle. If you are looking to have someone take over your existing loan, contacting Red Mountain Funding should be your first step. We will help you find an individual willing to assume your car loan and take over the payments.

Red Mountain Funding is a family owned lending company that specializes in helping people get into the vehicle they need. We specialize in financing people with no credit or bad credit as well as helping individuals assume existing car loans with no down payment. We strive to help every person without the stress of traditional dealerships. Contact us today to find out how we can help you get the vehicle you need.

Been Turned Down by Car Dealership? Car Dealerships that Work with Bad Credit and No Credit

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Been Turned Down by Car Dealership? Car Dealerships that work with Bad Credit and No Credit

If you are looking to buy a used vehicle with less than perfect credit, you may have found that traditional local car dealerships are unable to finance your purchase. While purchasing a vehicle is stressful even with the best credit, having negative marks on your credit can make it seem impossible. Luckily, there are other options to financing your used car purchase while still getting you a reliable vehicle for your family. You can try to ask a family member to loan you the money or you can search for bad credit car dealerships.

Finding Bad Credit Car Financing

Been Turned Down by Car Dealership? Car Dealerships that work with Bad Credit and No CreditWhen looking for auto financing with bad credit, it is important to decide how you would like to finance the vehicle. If you have found a used car that you really want at a particular dealership, you may choose to find a company such as Red Mountain Funding. We have working relationships with many dealerships in the Mesa, Arizona area.

If you haven’t found a vehicle you want, you should start by entering car dealerships for bad credit near me into a google search. Red Mountain Funding is one of the only car dealerships to help you get the car you want even when you have been turned down by other dealerships.

What are Bad Credit Dealerships?

If a traditional auto loan and a personal loan from family are out of the question it is time to start searching for a guaranteed credit approval car dealership in your area. A bad credit car dealership focuses on financing used vehicles for people who have had issues in the past that have resulted in bad credit. Most of these dealerships operate as buy here pay here car dealerships. This means that you will make all your car payments directly to the dealership rather than a bank or financing company.

Benefits of Bad Credit Dealerships

If you have a steady income and are fully employed, Red Mountain Funding will make the financing process easy. You be asked to bring in proof of income and employment. This information will be used to calculate how much you can afford to pay monthly on a vehicle. Once they have determined your ideal payment amount, they will review their inventory for vehicles that meet your family’s needs. Often you will have an approval immediately and leave with your car the same day.

Types of Bad Credit Car Dealerships

You may be thinking “there are several car dealerships near me with no credit check, how do I choose?” While the choice may seem difficult, you should start by researching the terms of the loans each dealership offers, the approval process, and the inventory the dealership has on hand. You don’t want to compromise quality for ease of financing.

Determine if you are looking for financing at bad credit car dealerships with a buy here, pay here option or an alternative financing company that will give you a guaranteed approval loan to be used at a dealership of your choice.

Been Turned Down by Car Dealership? Car Dealerships that work with Bad Credit and No CreditHaving bad credit should never stop you from getting a reliable vehicle for yourself or your family. Everyone has made mistakes or fallen on hard times in the past and we are here to help you get back on level ground. Having a great quality used car with payments you can afford and financing you can achieve will help you to rebuild your credit for future purchases. We strive to make the financing process as painless as possible regardless of your credit history. Contact Red Mountain Funding Inc. today to find out how we can help you get behind the wheel of a safe and reliable vehicle.

Red Mountain Funding is a family owned and operated finance company that would love to help you get financed for the reliable vehicle that your family needs. We specialize in providing people with less than perfect credit with the auto financing they need. We have working relationships with several dealerships in the area to get you the car you want with no credit check necessary.

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Best Used SUVs: Most Reliable, Best Rated, and Best Value

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Best Used SUV Cars: Most Reliable, Best Rated, and Best Value

Sport Utility Vehicles (SUVs) first appeared in the 1970s and 80s. They were created for people who do not want trucks but need a car with power and utility. The traditional SUV has four-wheel drive and a high roof and is raised higher than average above the ground to handle rugged terrain. It also has an oversized trunk ideal for carrying large items that would otherwise need to be hauled in a truck.

In recent years, the definition for what people consider an SUV has expanded to include smaller vehicles called compact SUVs. Additionally, some recent SUV models do not have four-wheel drive to reduce the weight of the vehicles and make them more fuel efficient.

Whether you are a family of seven or an athlete with tons of equipment, SUVs are a great option for many people. Used models can provide people with tough, powerful vehicles that can take on almost any conditions. If you are in the market for a used SUV, it is important to know what is the best SUV for the money. Used SUVs such as the GMC Acadia, Acura MDX, and Honda CR-V are dependable and powerful models for people seeking a less expensive option.

Used GMC Acadia

Best Used SUV Cars: Most Reliable, Best Rated, and Best ValueThe GMC Acadia has been a reliable full size SUV model since it first came on the market in 2007. Both the 2011 and 2014 GMC Acadias earned 5-star safety ratings from the National Highway Traffic Safety Administration (NHTSA). The Insurance Institute for Highway Safety (IIHS) designated 2011, 2012, and 2013 models as “Top Safety Picks.” The Acadia comfortably and safely seats eight people, while still having room for cargo. It has a 3.6-liter V-6 engine that gives the vehicle 288 horsepower. It is available with front or full-wheel drive and has a six-speed automatic transmission.

In 2010, the transmission was changed to have a better response time and they were designed with features such as Bluetooth, traffic updates, and heated seats. Starting in 2013, GMC Acadia’s were made with updated exterior and interior elements, a revised rear liftgate, smartphone compatibility, and easier controls for audio, temperature, and navigation. Due to the quality of earlier models, the GMC Acadia is one of the best SUVs to buy used.

Used Acura MDX

Best Used SUV Cars: Most Reliable, Best Rated, and Best ValueThe Acura MDX has three rows of seats and can comfortably carry seven passengers. The second generation MDX models, between 2007 and 2013, have a 3.7-liter V-6 engine that provides 300 horsepower. They have four-wheel drive through Acura’s Super Handling All-Wheel Drive system and torque-vectoring technology, making them easier to navigate on curvy roads. Second generation models can tow up to 5,000 pounds and have large amounts of space to easily fit cargo, even while the vehicle is carrying the maximum seven passengers.

The 2011 and 2012 models received a 5-star safety rating from the NHTSA and the 2012 and 2013 models were awarded “Top Safety Pick” titles by the IIHS. With safety features such as a reversing camera, blind-spot warning technology, adaptive cruise control and luxury seating, the second-generation Acura MDX vehicles are extremely safe and comfortable options for used SUVs.

Used Honda CR-V

Best Used SUV Cars: Most Reliable, Best Rated, and Best ValueThe Honda CR-V has always had a reputation for reliability and safety. The 2012, 2013, and 2014 CR-V’s all earned awards for their safety. The CR-V has a reversing camera and a driver’s side mirror designed specifically to provide a better view of the blind spot on the driver’s side. It comfortably carries five people, while still offering 37.2 cubic feet of space for any cargo. The cargo space expands to 70.9 with the rear seat folded down. The engine is a 185-horsepower, 2.4-liter 4-cylinder model. The CR-V can also tow up to 1,500 pounds.

The Honda CR-V is comfortable, quiet, and known for great steering and handling. Used models still provide all of the features and impressive elements, while being low-cost.

Used Lexus RX

Similar to the Honda CR-V, the Lexus RX has a record of dependability, even becoming the first SUV to earn the title of most dependable vehicle in the United States by J.D. Power and Associates. It can carry five people and has a powerful engine with 6-speed automatic transmission and front or all-wheel drive. There is also a hybrid model that has better power and fuel economy. It can tow up to 3,500 pounds and provides 40 cubic feet of storage behind the rear seats.

The Lexus RX has standard safety equipment with 10 airbags and Automatic Collision Notification. It is also equipped with features such as adaptive headlights, rain-sensing wipers, a reversing camera, dynamic radar cruise control, and available pre-collision safety technologies. Along with extraordinary safety, the Lexus RX offers comfort and a high-quality interior. In 2016, the exterior became more striking than many other SUVs, guaranteeing that people will admire your vehicle on the road. A used Lexus RV is a fantastic option for someone in the market for a safe, reliable, and comfortable used SUV.

Used Subaru Forester

The Subaru Forester, specifically a model between 2009 and 2013, is widely known as one of the best-used SUVs to buy. The first-generation of Subaru Foresters had accommodating features such as power accessories, Bluetooth, a sun roof, reclining rear seats, air-conditioning, and cruise control. Upper Limited and Touring trims had rearview cameras, leather interiors, automatic climate control, and an upgraded audio system, among other things. Second-generation models were very similar except with a roomier interior, a stiffer body structure, revised chassis, and more standard features. The later second-generation Foresters also had improved performance on the road and were known to be especially fun to drive.

The third- and fourth-generation models of the Forester were even roomier and more fuel efficient. They also had the appearance of a more traditional, heavy-duty SUV. No matter what generation, a used Subaru Forester will cost you less and provide you and your family with comfort, cargo room, and safety on the road.

Used Subaru Outback

Another great used Subaru SUV option is the Subaru Outback. Starting with the 2010 model, Subaru Outbacks have been named an IIHS “Top Safety Pick” every year. It has a 170-horsepower, 2.5-liter 4-cylinder engine. The Outback 2.5i has all-wheel drive and either a six-speed manual transmission or a continuously variable transmission. Certain regions in the United States have the 4-cylinder engine combined with the continuously variable transmission rated as a Partial Zero Emissions Vehicle.

It is a safe SUV, designed with 8.7 inches of ground clearance, a reversing camera, and a wiper dde-icer grid. The Subaru Outback can tow up to 2,700 pounds and has 34.3 cubic feet of space with the seats up. When the rear seats are folded down, it offers up to 71.3 cubic feet of cargo storage. A used Subaru Outback is one of the best-used SUVs under $15,000 available today.

Used Toyota Highlander

The second generation Toyota Highlander, a model made between the years 2008 and 2013, is an ideal vehicle for people looking for a lot of passenger and cargo space. It can hold seven people and Consumer Reports rates it as extremely reliable. For second-generation years excluding 2012, the IIHS rated the Toyota Highlanders in its “Top Safety Picks.” With the third- and second-row seats folded down, they offer 94.5 cubic feet of space.

Second generation Toyota Highlanders can tow 5,000 pounds and include safety elements such as a knee airbag in the driver’s seat, a wiper de-icer grid, and a reversing camera. The seemingly endless advantages of the Toyota Highlander make it an ideal used SUV for anyone in the market for a great, inexpensive vehicle.

Used GMC Yukon

Best Used SUV Cars: Most Reliable, Best Rated, and Best ValueThe initial models of the full size GMC Yukon came with three options for the engine and two for the transmission. After a couple of years, the six-speed transmission became uniform across all GMC Yukons. The SLE included 17-inch alloy wheels, stability control, power accessories, keyless entry, and many more features. The SLT had 18-inch alloy wheels, remote vehicle start, leather seats, tri-zone automatic climate control, and much more.

Starting in 2009, GMC Yukons included more space and features. They also had improved fuel efficiency, safety, and power. First-, second-, and third-generation used GMC Yukons are fantastic used SUVs for people seeking reliable and powerful large SUVs.

Used SUVs Near Mesa, Arizona

If you are searching for financing for used SUVs near Mesa, Arizona, contact Red Mountain Funding.  Our priority is to help families and individuals to have access to financing for great used cars. At Red Mountain Funding, we will do all we can to outfit you and your family with financing for a fantastic vehicle.

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Car Lease Buyout Options: Know the Pros and Cons

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Car Lease Buyout Options Know Pros and Cons - Red Mountain Funding

It can take years to find your perfect car. Once you have found it, you’ll never want to let go. If you leased your dream car and have decided that you want to buy it, it is important to know whether you are making the right choice and how to correctly go through the process.

Lease-End Buyout

There are two types of lease buyouts:

  • Lease-end buyouts
  • Early lease buyouts

A lease-end buyout is the more common of the two. With this option, you will pay the residual value at the end of your lease. A vehicle’s residual value is what the car is expected to be worth at the end of the lease. This car lease payoff is negotiable before you sign the contract; you agree on it before the lease begins.

There are two variables to consider in determining whether a lease-end buyout is a good deal. It is imperative to compare the residual value to the true market value. The true market value is the amount that the car is worth on the market today and the price that a vehicle in similar condition is being sold for.

If the price for the buyout is less than the true market value, it is a financially profitable choice. However, you should also consider:

  • If you’re happy with the car’s overall performance.
  • Has needed many repairs throughout the duration of the lease?
  • If there is another car on the market at a similar price that you would prefer.
  • Can you finance the buyout at a good interest rate?

Are all of these factors are favorable? Then it is a smart deal to do a lease-end buyout. You will also need to pay lease payoff sales tax, but it will be worth it. It can be safer to do a lease-end buyout than to buy a new car, because you already know the car and its history.

Early Lease Buyout

Car Lease Payoff Market Value Vs Residual Value Chart - Red Mountain Funding AZThe second option for a lease buyout is to do a car lease payoff before the lease ends. Not all dealerships offer early lease buyouts, and some have certain additional stipulations. So be sure to check your contract before deciding to pursue this option.

Determining the price of an early lease buyout can be more complicated than trying a lease-end buyout. The dealer calculates the price based on:

  • The lease-end residual value on your contract
  • The amount left to pay on your lease
  • Any depreciation to the car if its value has dropped beneath the current market value

One of the reasons that many people pursue an early lease buyout is because they are worried about lease penalties. Lease penalties could include:

  • Going over the allowed mileage
  • Not maintaining the car properly
  • Damage to the car

An early lease buyout is usually not recommended because of the added fees that come with the depreciation of the car.

Determining the Market Value

For both lease-end and early lease buyouts, determining the market value of the vehicle is a vital part of making the final decision. The current retail price will indicate whether you should buy your lease out or purchase a different car.

Determining market value is a fairly simple process because of the extensive information available online. Great resources include sites such as:

  • Cars.com
  • NADAguides.com
  • Edmunds.com
  • AutoSite
  • Autopedia
  • Kelly Blue Book
  • CarPrice.com

The price of the vehicle will vary from site to site, so make sure to visit as many sites as possible to get a more thorough idea of the value.

If the car that you leased is extremely popular on the market, your residual cost will likely be lower than the retail price to buy a different one. In this case, buying out your lease makes more sense than purchasing a different car, because few dealerships are going to offer a similar deal for buying a vehicle outright.

The reality for most people, however, is that the lease payoff quote will be higher than the retail price. Many banks and financing companies inflate the residual price for a leased vehicle, so they are able to offer lower monthly payments for people who leased their cars.

The price of used cars has also been down recently, which often makes buying a different car the more affordable option. Used cars in Mesa, as well as other Arizona used car trade-ins, are no exception to this trend.

Negotiating with the Lender

Paying off a leased vehicle can be a negotiation, so it is important to maintain a powerful position in the interaction. Don’t call the leasing company and ask about buying the lease; let the lender contact you. 

Once the leasing company has called you, try not to appear overly enthusiastic or eager. First, tell them that you are going to turn in the car after the lease. After waiting a moment, follow it up by explaining that you think the residual value is too high to justify the buyout. Some larger companies do not allow any negotiation, so this tactic will be more effective with smaller companies.

Help and Guidance for Car Lease Payoffs

If you are considering buying out your lease, Red Mountain Funding can help you. We are a family company that has been helping lower-income families and individuals in Arizona with loans for over 20 years. Contact Red Mountain Funding for advice and assistance in buying out your lease.

Read Used Car Purchasing Tips

Ethical Car Sales: Understanding ‘Straw Purchases’ in Auto Buying

Ethical Car Sales 'Straw Purchases' in Auto Buying - Red Mountain Funding

A straw purchase is when goods or services are purchased for someone other than the person making the purchase. Not all straw purchases are bad.

Legal Straw Purchases

Parents make straw purchases every day when they purchase clothes for their children, buy groceries for an elderly neighbor who can’t get to the store, or pay a friend’s electric bill so their lights stay on.

Sometimes a straw purchase is not an act of kindness. It can also be an act of fraud.

Illegal Straw Purchases

Purchasing a gun for someone and lying about who will be using the gun is illegal, as is buying alcohol, cigarettes or other tobacco products for someone who is under the legal drinking or smoking age in Arizona.

Car Loan Straw Purchases

It’s common to wonder: Is a straw purchase on a vehicle illegal? Straw purchases come up frequently with auto loans, especially if the person needing the car has poor credit or no credit.

A common straw purchase scenario is the use of a co-borrower. The co-borrower’s credit is used to get approval for the loan. A co-borrower is different from a co-signer in that the co-borrower is a joint owner of the vehicle.

Co-signers don’t hold an ownership interest in the car but are held responsible for making payments if the primary borrower fails to pay. This type of straw purchase is legal.

Borrower Straw Purchase Scams

What is not legal is for a borrower to purchase a car solely in their own name without revealing the identity of the person who will be using the car. In fact, if the car is used for illegal purposes, the original purchaser on the Arizona auto title may be held criminally liable. If you’ve done this, an Arizona auto title service may be able to help you fix it.

Another type of borrower scam is for a purchaser to use someone else’s information on the loan application to qualify for the loan.

Dealer Straw Purchase Scams

Unfortunately, there are car dealers out there who will try to use a straw purchase to scam buyers with poor credit. There are several possible scenarios for this scam. All of them start with the dealer telling the buyer that they can’t possibly qualify for a loan by themselves because of their credit situation. The dealer then tell the buyer to find a co-signer for the loan.

The dealer already knows that the buyer won’t get approved for a car loan, even with a strong co-signer. Despite this, the dealer continues to convince the buyer to get a co-signer by telling them that it will help reestablish good credit.

Option One

The dealer tells the buyer that if both parties are on the loan, the interest rate and the payments will be very high. Then the dealer explains that if only the signer with the strong credit history is on the loan, the payments and interest rate will be low.

Option Two

The deal falls through because the dealer can’t convince the primary buyer to stay off the loan. A few days later, the dealer calls to tell you that you must bring the vehicle back and they will charge you for its use. Sometimes a dealer threatens to keep the car you brought to trade in.

The buyer, now desperate, asks what they can do to keep the car. The dealer says, “If the co-signer wants to buy a car, the co-signer can buy it in their own name.”

Option Three

This one is underhanded. The dealer sells the car to only the co-signer without the primary buyer or co-signer realizing what’s happening. This is accomplished with a second set of paperwork. The seller rushes the paperwork and things get very confusing. Excuses are made about needing extra paperwork to get the loan approved.

Later, after the purchase is complete, the dealer may destroy the proper paperwork. This intentionally leaves the paperwork with only the co-signer as the buyer. It can take over a month for everything to come to light, and this usually happens when the person who thought they were co-signing gets the first bill and the primary buyer isn’t anywhere on it. It can be very difficult to undo this.

How to Avoid ‘Straw Purchases’ in Auto Buying

Obtain a copy of your credit report and scores before you attempt to get a loan. Bring a copy with you to the dealership so you will know if someone tries to tell you something that doesn’t match what you know is true.

When the dealer tells you that you’ve been approved, ask to see the approval letter. The letter from the lender will have both names of the people responsible for the loan.

Another option is to get pre-approved for a loan. Go to a bank or finance company ahead of time to get pre-approved. This allows you to go to the dealership with your financing already in place. Red Mountain Funding lets you apply online.

Don’t sign more than one contract. The dealer may make an error and ask you to sign another contract. If so, rip up the first contract personally before you sign the second one.

Have the co-signer with you at the dealership. Don’t sign anything unless you are both there.

There should be only one contract, even though there are two people signing. The contract will have two signature lines, one for the primary buyer and one for the co-signer. Make sure the right signature is on the right line.

Take your time! Buying a car is a lengthy process. Do not go to the dealership if you have an appointment coming up, and do not let the dealership rush you. If anyone tries to rush you, be suspicious and don’t hesitate to get up and walk away.

Skip the Hassle

One option is to simply skip the hassle of the dealership. For more than 20 years, Red Mountain Funding has been Arizona’s trusted, family-owned-and-operated auto loan provider. Contact us to find out how we can help you find financing that fits your budget.

What Is Covered Under Arizona’s Car ‘Lemon Law?’

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What Is Covered Under Arizona's Car Lemon Law - Red Mountain Funding

How Arizona’s Car Lemon Law Helps Car Buyers

When it comes to safe car buying, Arizona residents should familiarize themselves with the state’s “lemon laws.” These laws pertain to car sales in the state, involving both used and new vehicles. Lemon is a popular name for a car that seems to be perfectly fine at the time of sale, but has hidden problems or temporarily fixed parts that lead to setbacks after a few days or weeks.

Some unethical businesspeople and private sellers may attempt to dupe unwary car buyers into purchasing unfit vehicles. Lemon laws protect buyers in these situations.

What Do Lemon Laws Cover?

Under Arizona lemon laws, only new vehicles qualify for full protection. Car buyers who purchase vehicles that “do not conform to express warranties” can return those vehicles to the place of purchase within the first two years of ownership, the extent of the manufacturer’s warranty, or 24,000 miles of travel, whichever comes first.

The seller will need to perform the necessary repairs to ensure the vehicle conforms to the express warranties.

It’s important to note that title changes do not affect these time limits. For example, if a person purchases a new car at full price and then transfers the title to someone else, the new title owner can still file a complaint under Arizona’s car lemon laws if the vehicle does not meet the express warranties.

Dealer and Manufacturer Obligations

Arizona’s lemon law requires dealers to make a “reasonable number of attempts” to get a lemon car working properly. The law dictates “reasonable” as:

  • Up to four shop visits, or
  • A combined total of 30 days in the shop.

If the dealer cannot bring the car up to an acceptable condition in this time, the buyer may receive a replacement vehicle or a refund of the purchase price, less any fees for time the driver successfully used the vehicle.

If the dealer cannot successfully repair the vehicle, then liability for the vehicle will fall on the manufacturer. The manufacturer must then repurchase the vehicle or provide a replacement to the buyer.

If the manufacturer replaces the vehicle with a new one, it must be the same make and model in the same condition as the original vehicle the buyer purchased. If the replacement vehicle is of a lesser value, the manufacturer must refund the difference to the consumer.

The buyer must provide prior direct written notice of the defect before requesting repairs. It’s also a good idea for the buyer to retain copies of all paperwork and notices in case of any legal disputes down the road.

A car manufacturer or dealer may claim that the customer:

  • Did not provide notice within a reasonable time,
  • Did not operate the vehicle properly, or
  • Otherwise contributed to the vehicle’s state of disrepair.

Used Vehicle Coverage

Under Arizona’s lemon law, used car buyers have far less protection. The logic behind this is that any used car is bound to have issues. Furthermore, some of these issues may not arise until the vehicle is in the hands of a new, different driver.

Arizona law provides protection for 15 days or 500 miles of travel for used cars, whichever comes first. If the car breaks down in this time, the buyer may need to pay up to $25 of the first two necessary repairs. If the dealer cannot repair the vehicle sufficiently within two visits, the buyer is entitled to a refund of the purchase price.

Tips on Avoiding Lemons

Arizona lemon laws may provide some protection to car buyers, but it’s important to remember that these laws are open to interpretation, and vehicle repairs can be time consuming. It’s better to avoid the hassle of fixing or replacing a lemon altogether, if possible.

If you plan on buying a new car, make sure you understand the express warranties included in the purchase. If you would rather purchase a used car, make sure to visit an Arizona trusted used car dealer.

Red Mountain Funding provides financing for auto loans to Arizona car buyers. For more than 20 years, we have been helping Arizona residents purchase vehicles with confidence and flexibility. We want to help individuals with low income or bad credit to get the vehicle financing they need to get on the road. We have an easy and straightforward loan approval process, and our philosophy is to be honest and transparent in all of our dealings.

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How to Complete Auto Title Transfers in Arizona

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How To Complete Auto Title Transfers In Arizona - Red Mountain Funding

Completing Auto Title Transfers in Arizona

Many Arizona residents will eventually need to complete a vehicle title transfer as either a buyer or seller. It’s important to have some idea of how this process works and your requirements on either side of the table before beginning the transfer process. When it comes to an Arizona auto title transfer, how to start depends on whether you’re buying or selling.

Tips for Buyers

If you are buying a vehicle in Arizona, you must complete a title transfer at an Arizona Motor Vehicle Division title office. When purchasing a vehicle from a dealer, the dealer typically handles the title paperwork and filing for a small fee. If you finance the vehicle, the financer will hold the vehicle title until you pay off the full amount of the purchase price.

When you buy a vehicle, the title transfer process entails several fees you will need to pay at the time of transfer. These fees aren’t terribly expensive:

  • The title transfer fee is $4.
  • The registration fee is $8
  • The air quality research fee is only $1.50.

These are the fee amounts as of early 2018. The only fee that will be more expensive is the vehicle license tax, which varies based on the vehicle’s value.

Buying from Private Sellers

Many Arizona citizens decide to sell their old vehicles, and it’s vital for buyers to be wary of these transactions. While most private sellers act in good faith, some private sellers may attempt to sell a compromised vehicle, or a vehicle with a lien attached to it.

The best way to handle a private sale and title transfer is for the buyer and the seller to visit an Arizona Motor Vehicle Division title office together in person. The seller must provide the vehicle title signed and notarized.

The buyer must complete an Arizona Title and Registration Application and pay the necessary fees and vehicle license tax. If there is a lien recorded on the vehicle title, the seller must provide a lien release form.

Once the paperwork is in order and the necessary fees paid, the Arizona auto title services clerk will process the title transfer and assign the vehicle title to the new owner.

Advice for Private Sellers

Anyone who sells an owned vehicle to someone else should be careful to limit future liability and ensure all paperwork is in order. First, sign the title and have it notarized. If necessary, secure a notarized lien release for each lien on the vehicle title.

After completing the sale and title transfer, remove your license plate from the vehicle. You do not give your license plate to the buyer with the vehicle, as license plate registration pertains to a vehicle’s owner, not the vehicle. You can then submit your license plate to the Arizona Motor Vehicle Department for a plate refund or plate credit.

Finally, after selling the vehicle, you should mark the vehicle as sold within 10 days of the sale. You can do this on the Arizona Motor Vehicle Department website, or on the back of your vehicle registration. The “sold” notice will help ensure you are not accountable for any crashes or tickets that occur with the vehicle after the sale.

Potential Issues with Auto Title Transfers

A number of possible issues may arise during a vehicle title transfer, typically when multiple sellers are involved or the vehicle’s ownership is in question. For example, if a seller is acting on behalf of the vehicle’s owner, the seller must provide proof of property rights for the owner’s property. This could be in the form of a court order or proof of power of attorney for the vehicle owner.

In the case of multiple owners on a vehicle title, every owner must sign the title, and each signature requires notarization. It’s also important to remember that you cannot complete a title transfer without actually having the vehicle title. If the seller does not have the title, he or she must secure a duplicate title to transfer to the buyer.

It’s also crucial for buyers to ensure the lien status of a vehicle. If a buyer purchases a vehicle with a lien on it, the buyer is responsible for paying the lien.

Finally, anyone who moves to Arizona must have his or her out-of-state vehicle title transferred to an Arizona title immediately after establishing residency. An out-of-state title owner must appear in person at an Arizona Motor Vehicle Division title office and complete an emissions inspection before applying for an Arizona title.

 

Red Mountain Funding makes the process getting pre-approved for financing easy and hassle-free.
 

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Is There a Best Time of Year to Purchase a Used Car?

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Is There A Best Time Of Year To Purchase A Used Car - Red Mountain

Car Buying in 2018

Buying a car can be exciting or stressful, depending on how you look at it. Prices fluctuate widely during the year, and most people (understandably) want to buy when they think they will get the best deal.

When are the best car deals? If you believe what you hear on the radio or see on TV, it could be virtually any time of year, as dealerships claim to clear inventory or offer incentives monthly. However, there are some tried-and-true times when it’s most beneficial to purchase a vehicle and take advantage of factory incentives and offers. Here’s what you need to know.

The Best Time of Year to Purchase a Used Car?

There are a few simple reasons why purchasing a vehicle in the last quarter of a year is the best time. First, the new models are rolling out into dealerships. This means that dealers must move their old inventory to make room for the new models on their lots.

Factory incentives tend to roll out around September and continue through December. Generally, the longer you wait, the better these incentives will be. On the flip side, this does thin out your inventory options a bit. If you’re looking for a specific make, model or color, you might be disappointed when you go to purchase in December but find the vehicle you’ve wanted is no longer available.

If you’re willing to be flexible, however, you can find some nice deals. Combine year-end savings events with other rebates and you’ll maximize your savings.

Buy During the Holidays

The car business is typically slower during the holiday season. As people spend their extra money on gifts, they rarely think about getting in on some of the savings for themselves.

During Thanksgiving and continuing through Christmas, rebates and incentives are typically higher than they are during the rest of the year. Combine this with the fact dealers are typically stocking their lots with new inventory, and you could take advantage of some nice deals. Depending on your degree of flexibility, you could score some solid savings.

Buy in 2018

Buying in the new year, on the other hand, also has distinct advantages. Buyers often shy away from making big purchases like cars due to a single word: depreciation. Most of us know that cars are depreciating assets, but what some don’t know is that you can use depreciation to your advantage.

Consider this: The average value of a used car is currently around $15,000, when it was over $18,000 just a year ago. Why is this?

The answer is simple: Car sales have been increasing in recent years. We had to reach a tipping point eventually, so now we have more used cars than we do interested buyers.

As a result, used cars are becoming less expensive. New regulations and technology are driving the trend: More people are turning to leasing and new buys to take advantage of autonomous capabilities and rear-view cameras. Those who are willing to buy used cars stand to take advantage of some serious savings.

Auto Loans in 2018

Since there is an oversupply of used cars, dealers are looking to get them off their hands to make room for new inventory. This means consumers will be able to get relatively gently-used cars for much less. Buying a car in the last weeks of 2017 or early into 2018 can lead to significant savings.

Obtaining financing will also be easier as financiers like Red Mountain Funding will work with individuals with fair, below-average and even poor credit. Anyone can take advantage of the savings and get into a reliable used car. If you’re in the market for a new-to-you vehicle, now is the time to buy.

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