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How to Research Used Cars
Online
Traditionally, prospective used car buyers have been forced
to drive from one dealership to the next in search of the
vehicle they want and can afford. Once there, a customer had
no definite way of knowing whether they were getting value
for their dollar or if the dealers were duping them.
With all the high-pressure sales tactics employed in the
car industry, you can easily become trapped due to your lack
of knowledge and bargaining power.
Many online websites provide the public with insider information on
the automobile industry. Among the reputable sites are Edmunds.com
, CarsDirect.com
and AutoTrader.com.
A visit to these websites involves some degree of
work, especially for used cars due to the unique criteria
each vehicle has in terms of equipment, condition, mileage,
engine, and model year.
These guides can easily provide you with both the trade-in
value (wholesale price) and market value (retail price) of
a used car so that an accurate offer can be confidently made
to the dealer. Often, online guides provide photographs and
much more information than one would find in a classified
ad.
Research thoroughly and widely to avoid making decisions
on impulse, and compare the information gathered online to
local dealer site information and local used car publications
for retail pricing.
Once you have located a vehicle that suits your needs and
budget, there are several guidelines that should be followed.
After test-driving the vehicle, it should have a thorough
inspection by a mechanic independent of the dealership, and
the model year should be checked out for any recalls or consumer
concerns. The vehicle identification number (VIN) should be
acquired and checked through online services such as "CarFax.com" to provide a description of prior ownership
(private, rental, salvaged, etc), specifications, problems,
and odometer readings. Answer all the important questions
with regards to a used vehicle before even considering making
an offer to the seller.
When the desired vehicle has been located, priced online,
researched for history, and inspected mechanically, an offer
should be made to the dealer. Typically, dealerships aim to
purchase trade-ins at $2,000 below wholesale price (low blue
book), so the future new owner of that vehicle can expect
at least that amount of money to bargain with towards the
final retail price. Simply offer five percent under the wholesale
price directly to the sales manager and stay relatively firm
from there. Do not deal with the salespeople.
If the vehicle is being sold privately, it is customary to
offer the seller fifteen percent under wholesale price and
negotiate from there. Remember that private sales generally
do not involve reconditioning by the owner, and the car is
sold "as is"; larger dealerships may offer a limited
warranty or spend some money to fix a used car up and absorb
the cost in overall sales volume.
Smaller dealers may not offer any upgrades, and must mark
prices up higher than the their bigger competitors. The quality
and reliability of information gathered online, combined with
these guidelines, will give you the knowledge and power to
bargain successfully in any used car negotiation.
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