ALT-1 What to look for when Buying a used Car
A new car that has factory incentives, and is equally equipped will for the most part have a standard price from one dealership to the next. A used vehicle price can be completely different from dealership to dealership, and can range several thousands of dollars high or low depending on a few factors.
1. The Condition Of The Vehicle:
Car dealerships base the price of a vehicle on the current condition, and miles or how much they spent on repairs. Vehicles with dings, dents, filth, faded paint, and broken or torn interiors are valued less then a cream puff. Sometimes a dealership will invest money to get the vehicle looking and running in tip-top shape. However, it's your job as an informed consumer to verify the work was preformed properly. You can either ask to see records of repairs or ask to have a trusted garage do a quick diagnosis. Verification of previous vehicle damage can be determined by running a quick CarFaxreport, which you can obtain at carfax.com.
2. Wholesale Price:
A dealership will rarely sell a vehicle below the total cost it has invested. Besides repairs, upgrades and detailing, the starting point to determine how much a dealership has invested is to know the average wholesale cost of the car. This is what a dealer would pay at an auction, or offer a new car buyer for their trade in. You can find several online reference sources for wholesale prices at, kbb.com, nada.com, and galves.com.
3. Demand For The Make And Model:
The best time to buy a convertible is in the winter and the best time to buy a 4x4 is in the summer months. When demand rises so do prices. Sometimes a particular area may have a high demand for certain vehicles and other areas don't. You may have to shop out of your hometown to get a better priced vehicle.
If your looking for a great deal on a used car the best way to find it is to shop the Internet. Almost every new and used car dealership has a website with photos, details, and prices for their inventory. Dealerships know that Internet shoppers are savvy and price oriented, so they typically list their best prices online.
If you use some of the online websites to verify the average wholesale price of a vehicle, and you see that a dealership price is very close to wholesale, than you know the dealership has set a competitive price. This is not to say you can't squeeze a few extra hundred if your financing the vehicle, and need a little more price discount, to be at a certain monthly payment.
With a better understanding of what a fair price is and the factors that determine value your now ready to negotiate. Try to make your offer a win-win for you the buyer and the dealership. With the right knowledge, and online tools, buying your next car should be a great experience.
