Archive for August, 2008

Used car selling or buying practices

Tuesday, August 26th, 2008

Everyone is aware that the Internet is today the world’s biggest marketplace for buying and selling cars. This is far too huge compared with newspapers and other auto-trade magazines. The Internet is equally helpful to both buyers and sellers of used cars. If you are a buyer, you have plenty of model and price choices.If you are a seller, your marketplace of potential buyers is enormous.

It is everybody’s perception that a used car is always the cheapest option though this is not necessarily true. Always compare new car prices before you decide. With the aggressive dealer discounts, manufacturer rebates, and low interest rates now being offered on new cars, it may be possible a new car could be the better deal than a car that is a year or two old. Some times, leasing a new car could prove even more economical. Lease payments on a new car can easily be less than loan payments on a 3 year-old used car, and with no down payment. You should study the market thoroughly before taking a final decision to buy a used car. Please remember that used-car dealers thrust on you the cars they have on their lot and not the car you actually want. They can make it appear on their web site that they have thousands of “virtual” cars, including exactly the one you want – enough to mislead and corner you.

Buying a used car is a big gamble. You do not know exactly what you are buying because you do not know the antecedents of the car and what problems it has had. It could be flood damaged, salvaged or involved in accidents. Getting a CARFAX Vehicle History Report is how you find out about these dirty little secrets. These reports have become commonplace and it is essential you see them when buying or selling a used car.

Used Car Buying Practice

To buy a used car car involves taking a few precautionary steps to insure that you avoid buying the wrong car. The first step in buying a used car is to decide on a specific make, model, and year you want. Consider how you intend to use your vehicle. Will it be a car for the entire family or a strictly personal vehicle? Will it be driven by different family members or by yourself only? Will it need to regularly carry cargo and/or more than four people? Will it be used to commute to work? What will be the average distance to be covered daily? Will it ply on highways or only in city streets? Do you want your vehicle to reflect your social, professional and financial status? Narrowing your selections will make things less confusing and allow you to focus better on your search, pricing, and shopping efforts.

nullOnce you have your list of requirements, the next step is to identify the vehicles that match those requirements. One of the best sources to buy used cars is the Internet. There are literally thousands of cars being sold at any one time. You can comprehensively search by make and model, by price, and by area of the country. It is a great way to shop for a used car. You will find eBay provides inspection services and buyer protection services to make it as safe and risk-free as possible for the buyer of a used car. One of the best print publications for used car buyers is Consumer Reports magazine. Each year in April, CR publishes its Annual Auto Issue which contains not only ratings on new cars, but on used cars as well.

Price of used cars is more often unscientific and depends on the whims and avarice of the seller. The price of any used car is determined by what buyers are willing to pay and the price can be affected by the current state of the economy, the supply of used cars in dealer inventories, current prices of similar new cars, market trends etc. Please note that many of the ads for sale of used cars are issued by dealers. This means that the prices are higher than you might expect to pay for the same car being sold by the owner. Further, you pay sales tax when buying from a dealer while, in some states, there is no sales tax on private-party purchases.

The next question is where to find the car of your dream. There are a host of places you can visit to identify the car you want to buy – used car dealer lots, new car dealers with used car lots, local auto trade magazines, newspaper classified ads, consignment sales lots, online used car sales sites, online dealer web sites, Government car auctions, Police impound auctions, friends, neighbors, and work associates.

Used Car selling Practice

Everyone wanting to sell his used car obviously wants to sell it quickly, at the asking price and with least discomfort. Psychology is a powerful and important part of buying cars. Please remember what a potential buyer thinks and feels about your used car is just as important as the features and the price of the car. If a potential buyer sees your car is ill-kept and dirty, he will resent and in all likelihood, turn away – whatever may be the merits of your car. The potential buyer may assume you don’t change your oil, don’t perform regular maintenance, don’t make necessary repairs, and don’t take care when driving. To quicken your used car sale, thoroughly clean up your car – both inside and outside. Touch up paint scratches, repair windshield dings, pull out small dents and attend to all minor repairs. If you can not do all the work yourself, get them done in a workshop. Please remember that your effort will result in a faster, more profitable sale. It is common knowledge that buyers will pay more money for a clean car than for a dirty ill-maintained car. One of the best and fastest places to sell used cars online is eBay Motors. The site has thousands of people shopping for used cars every day.

One of the biggest predicaments facing car sellers is to determine the asking price. If priced too low, you may needlessly lose money and even prospective buyers may suspect the condition of your car. Unfortunately, there are no standard formulae for fixing prices of used cars. Please remember that your asking price should reflect the mileage and condition of your car demand for that make/model in the market, reliability, car history and your locality. Cars that have done 100k or more are considered too old regardless of other conditions. Those with 15000 miles per year are considered good. There are essentially two ways you can sell your car, depending how quickly you want to dispose off your car and the price you expect. First, you can sell wholesale. This means you sell or trade to a dealer for a low wholesale price and the dealer resells at a higher retail price to make a profit.

If you have a relatively new, clean, low/average mileage vehicle, you can approach new car dealers who have used car lots. Otherwise, contact independent used car dealers, if you have them in your area. Wholesale auctions in your area are also a possibility, but be aware that there are fees involved. Next, you can sell directly to private buyers which will certainly fetch you a better price. You can expect to sell at or near the same price that dealers get for the same car, in the same condition.

Make potential buyers aware of your car by advertising using one of the following – local auto trade magazines, Newspaper classified ads, Consignment sales lots, Online used car sales sites, Supermarket or community bulletin boards, Tell friends, neighbors, and work associates. A little bit of price negotiations is inevitable when selling a used car. The buyer typically knows you set your price high and wants your selling price. He may have already done some pricing research.

Money saving tips for buying or selling a car

Friday, August 22nd, 2008

You can indeed save quite a bit of money if you do gather proper information before you actually buy a car. The first thing to do is to get a pre-approved loan for buying the car. This will help you to know beforehand how much exactly you can afford to borrow and finalize your budget amount for car purchase. When you subsequently meet the dealer you will have a variety of choices and will know the best loan option to pick. Take a better loan if the dealer can offer you one – otherwise, you can inform them that you have a better offer on the table.

Another bargaining tool is to work out the dealer’s true cost of the vehicle you choose. This is bound to be substantially lower than the invoice price. This will give you a big handle to effectively negotiate with the dealer. When you are armed with this information and also possess a number of loan quotes, you can confidently visit the dealer and negotiate the best possible deal. You will be far better informed than most others therefore better placed to save maximum money. Bear in mind that the dealer may include some hidden costs in the monthly payments and so probe into the vehicle’s price. By sticking to these simple steps you can save a lot of money on buying or selling your next car.

Buying or selling a car takes a little patience, a bit of research and some good luck. If you are in the market for a new car, visit some dealers and search for the car of your dreams. Also, most car companies offer internet sites for you to browse. You can flip through electronic brochures full of facts and figures, photos and prices in the comfort of your own home. Once you have short-listed two or three vehicles, analyze their actual cost as opposed to the dealer’s or manufacturer’s suggested retail price. In other words, try to find out the cost that the manufacturer charges the dealer.

Obtaining this information is certainly not difficult as you may imagine. In fact, some online sites offer free, comprehensive reports showing vehicle options, dealer invoice and suggested retail price information. Also, most automobile clubs also offer this information though some of them may charge a small fee. Ask for a breakdown of the various quotes to determine if a package of options is better than selecting them individually is cheaper. Some people say that the best time to make a deal on a new car is the last day of the month or year.

Sales people often have monthly quotas and incentives to achieve. They may be readily willing to offer additional concessions on price if they think they can make up their sales figures. After you negotiate the price for your new car, ask the dealer to offer a trade-in value. Do not be surprised you may suddenly find you are saving a lot of money when buying a new car and simultaneously disposing off your old one. Many of us may not be aware that we are drained by a salesperson during price negotiations while buying or selling a car. Most people surrender far too easily and consider negotiations as an unpleasant act. This only means you are enriching the car dealer and losing out a few thousand dollars. Please know that dealers do make very handsome profit per car.

Used car sale for profit

Tuesday, August 19th, 2008

Most people are fond of owning cars or changing cars every few years and with the high cost of new cars, millions of people are opting to purchase affordable used cars. Used car business is pregnant with possibilities of earning an excellent income. You can help fill this high demand for quality used cars at affordable prices. To start with, you must do some research and find out what the most popular best selling cars in your area are. By opting to stay in the lower price range with these popular vehicles, you will obviously be in a higher demand market since more people can afford low-priced vehicles than expensive cars. This strategy will make it much easer for you to sell quickly for a profit. Once you know the wholesale price, less repair costs and expenses, you can determine how much you can pay for a car. If you buy it at the right price, you will be able to sell it at a profit and amass money.

To successfully purchase used cars at bargain prices, you should do proper homework. You should check your local classified ads and see what the asking price is for the type of vehicle that you are in the market for. Make sure to get the high and low Blue Book and wholesale prices on the vehicle that you are interested in. It is advisable that you have the vehicle you plan purchasing thoroughly inspected by your own mechanic prior to the purchase.

Newspaper Classified Ads are an excellent place to find cars at well below retail prices. Many of these people will be happy to sell their used cars for a few hundred dollars more than what was offered by the dealer and you will thus end up with an excellent catch. Online Auctions can be yet another place to source quality used cars and the advantage is you can shop sitting in the comfort of your own home. Look for auctions with no reserve as such auctions do not impose any minimum price. Public Car Auctions are open to the general public and there is no need for a dealer’s license.

Public auctions can be an excellent place to purchase cars at wholesale prices. Estate and Bankruptcy Auctions can be a very good place to purchase vehicles at wholesale prices. These auctions are usually advertised in newspaper classified section or handled by Probate Estate Auctioneers. Look for Government Auctions as they are an excellent source for bargain vehicles. Rental Car Companies often sell their fleet of cars by auction and they can undoubtedly be a great source of used cars. Dealer Auctions can be one of the best sources to cars at below wholesale prices. But most of these auctions you can attend only if you have a dealer’s license. These auctions include lease cars, trade-ins, rentals, and fleet vehicles.

Avoid buying used cars that need major mechanical repairs or body tinkering work. Look for good, dependable cars that require only some minor repairs. By doing a few hours of repair work and spending some small amounts, you can make your car worth hundreds or even thousands of dollars more. When your car is ready to sell, you can place and ad in your local newspaper’s classified section or you can place your ad on the internet and reach a wider audience.

It is important to know that most states insist you have a Dealer’s License when you buy and sell vehicles for profit. Check with your states Department of Motor Vehicles or Department of Public Safety for more information on how to obtain a Dealer’s License. It is important to consult with your attorney, insurance agent, accountant, and other government officials to determine what permits, licenses, records, insurance policies, etc., are required for you to trade in used cars.

Market analysts say used car dealers by far outnumber new car dealers. Most used cars now sell at a higher profit margin than new cars, and since the profit margin on the new car is so narrow, new car dealers earn additionally on service and financing. Once the new car dealers were considered sophisticated and the used car dealers were treated trivially, but the situation has vastly changed. The internet has become the major shopping area for used cars. There are some large-scale used car dealers who have 600 to 800 used cars for sale at any given time.

The used car business has become a huge business in the country, and a leading consumer industry. Since the car business is very similar across different states of the country, those who learn the business are able to use their expertise and shift to other states with ease. You do not require any special qualification to get into used car business. Almost any person with a passion for cars and selling capabilities can enter and thrive in this business. Some people who want to be car dealers imagine that the business is all about trading in cars, but experienced used car dealers spend most of their time interacting with people.

Many independent used car dealers never retire, even after accumulating money. They become so fond of the business that they opt to indefinitely continue with it. Another advantage of being a car dealer is the possibility it developing into a long term family business. Some used car CD businesses are now operated by their 4th and even 5th generation of family members. Most aspiring used car dealers begin by first working for another dealership. This allows them to learn the techniques and nuances of the used car business.

In some states you need a parking lot that is properly zoned and a sales office. Many states insist on a criminal background check and if you committed certain offences, you may be debarred from becoming a car dealer. You need approval for your building from labor and industry. Once everything is approved, you will get you a temporary license. You will thereafter need dealer plates which allow you to transport your cars or trucks. There may be other requirements including insurance and a bond, but your ADA (Automobile Dealers Association) can lead you through the whole process. While there is a lot of paperwork, your ADA can help lead you through it and an IADA membership more than pays for itself with the IADA Coupon Book and National IADA membership benefits which both save you money.

If you are serious and want to proceed further, you may contact Northwood University that has a college degree program for auto-remarketing. An internet search will provide you with more information. To answer your question whether it is worth becoming a used car dealer, please know there are 58,000,000 used cars sold in the U.S. every year.

Buying cars from buyers

Thursday, August 7th, 2008

Used cars that are put for sale by the owner is a great way to look as it can save you money on your purchase. Millions of people opt for sale by owner every year. No one knows how the car will perform much better than its owner. These sales by owner are usually less expensive than going to a dealer. If it is an owner they doesn’t want any commission all they need is a fair price for their car. Buying used cars from an owner could be a much more pleasant experience than working with a car dealer. Now as the price of both gas and energy is skyrocketing, it makes very sensible to look for the best deals around you, including your next car. There are a lot of places where you could find these cars for sale by the owner, in print and online. The auto trader and a truck trader are familiar publications for finding cars for sale by owner, and also newspaper ads are a great place to find these ads.