It is a common mistake for dealers to offer higher quality used cars at lower prices than you might find for sale on Craigslist or other peer-to-peer sites. However, the truth is that there is no data to support this assumption. In fact, dealers have to make a profit on every used car they sell, while private sellers often just try to sell an older car quickly and may be more willing to negotiate. In addition, some states do not levy sales tax on private vehicle transactions. It is true that some used car dealers only want to make money, even if it deliberately means selling a lemon.
Our goal is to be transparent in all aspects of the car’s buying or selling process. Whether you have questions about the value of a car, the value of a private party or other factors of the value of the car, our team will be happy to help you. “As for the extended factory warranty, you can always buy it later,” says Reed.
These are the two most obvious questions that always haunt the buyer. When buying a used car, it is always a good idea to get pre-approval for financing before entering the dealer. Thanks to prior approval, you can compare any offer from the dealer’s financing department to that of your bank, so you can leave knowing you have the best deal, no matter which option you choose. As with some of these other steps, the same principle applies when financing a new car. If you have a trusted mechanic who has time to join you to see the vehicle you want to buy, that would be ideal.
Once you show your hand and reveal that you don’t need financing, the dealer is immediately encouraged to be firm in the price to make up for that loss. The same principle is valid if you have already obtained pre-approved external financing. When determining what to look out for when buying a used car, keep in mind that the average residual value is an important measure. Low-value vehicles may seem like a lot to used car buyers, but cheap used cars often start to get into trouble just as they reach full depreciation and run out of warranty.
Request a VIN check and request to bring the car for an independent inspection. Serious accidents are reported to the insurance company and are likely to be in the vehicle’s history report. If a car has had a serious accident, fire or flood and is “total” by the insurance company, it may still be manageable. However, the insurance company will issue a “rescue title” to warn future buyers.
On the other side of the spectrum are extra reliable vehicles such as the Toyota Land Cruiser. If you are looking for a new set of wheels, you can save a lot of money by buying, because the original owner or tenant has already paid most of the depreciation. Used Car Dealership However, if you don’t know how to buy a used car, you can leave money at the dealer’s checkout that should be in your bank account or, worse, drive home with a lemon. Examine before signing and follow these tips for buying a used car.