CARFAX

5 Sure Signs of a Flood Car

August 10, 2018 by admin 4 Comments

How to avoid purchasing a flood car.

The last thing you want to happen when you purchase a used car is to find out after the fact that you bought one that was flooded. This can occur when a car has been through a major catastrophe, such as a hurricane, and has been sent to the salvage yard, then purchased and cleaned for resale.

A so-called “flood car” should indicate that damage on its title. That said, it is not too difficult for unscrupulous people to buy these cars, fix them and have a new title issued, often in states far away from the damage.

You can search for telltale signs of a flooded car and avoid buying a lemon car.

Troubling Signs of a Flood Car

flood car damage

1. Take a deep whiff…or two

Let your senses tell you if something is wrong with a car. Musty smells can be detected in the cabin, trunk or engine bay. There may also be an unmistakable perfume or cleaning solution smell. That smell alone should tell you that something is not right. Why else would a seller try to use a cleaning solution or perfume in a car he is trying to sell?

2. Run your hands across the carpeting

Flood-damaged cars usually have new carpeting. If the carpeting feels too new compared to the age of the car, your suspicions should be raised. If the carpet has not been replaced, run your hands over it to look for signs of staining and fading. A carpet that has been soaked just doesn’t feel right either — the pile can feel rough. Use the same testing methods for the upholstery too.

3. Carefully examine all nooks and crannies

Flip the rear seats over, move the front seats back and forth, and peel away the carpeting. Look closely at the bolts and seat runners — if these appear rusty, then the car has been water-damaged. Check the tire well, storage compartments and door pockets for signs of water. Staining and residual matter could be present — what the seller may have missed when detailing the car.

4. Check the electrical system

Damage to your car’s electrical system may be more difficult to see, but if all of the wires beneath the dashboard are new, then is it quite likely the car has been damaged. Replacing wires won’t mask worse problems such as salt water in the engine, in the transmission or in other components.

5. Explore the trunk or other storage areas

New carpeting in the trunk, a new jack for the spare tire or anything else that doesn’t match with the rest of the trunk should be a warning sign. Check the gasket around the trunk as well as the hood — it could be brittle or new if the current owner has replaced it. Wiring in the tail lamps might also be damaged. Look up and within the trunk lid for signs of rust, discoloration and foul odors.

Perform Due Diligence

You can track your vehicle’s history by obtaining a CARFAX vehicle history report or by visiting the National Insurance Crime Bureau and using its VinCheck service to find out whether a car has been declared an unrecovered stolen or salvage vehicle.

Most importantly, hire a trusted mechanic to inspect your car. He may turn up things you missed or didn’t think to inspect, as well as information not included in the vehicle history report. History reports are a tool, but they don’t tell you everything. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

See Also — How to Check for Flood-Damaged Cars

Disclaimer: This writer is a former contributor to the CARFAX website. He receives no remuneration for this article from CARFAX or any other company.

Photo Credit: Marc Averette

How to Resolve a Private Seller Lien

May 11, 2018 by admin 4 Comments

Remove the lien and take ownership of the vehicle.

When shopping for a used car, you stand to save money on your purchase when buying one from a private seller. Dealer markup can add hundreds to well over a thousand dollars to the price of a car, money you can save by negotiating directly with the vehicle’s owner.

If the owner is still making payments to a lender, then there is a lien on the car to remove before you can buy it. A lien essentially locks down the car’s title until the loan obligation no longer comes into play. The following are the steps to take to resolve the lien:

Step No. 1: Learn the Vehicle’s History

No used car deal should take place before confirming the vehicle’s repair history. That information is available through various sources, including Carfax.com, a company that compiles vehicle history reports specific to a car’s vehicle identification number (VIN).

A vehicle history report should show most of its repair history except the work that the owner performed on his own, work not reported by independent sources and anything else not reported by a repair shop. Importantly, if the car has been in an accident or damaged by a flood, then the history report should reveal that information. But they’re not perfect, so buyer beware. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

Step No. 2 — Confirm Vehicle Ownership

Simply because an individual claims to own a car does not make that person the rightful owner. You need to inspect the title and run the VIN through the National Insurance Crime Bureau VinCheck to verify ownership.

VinCheck will confirm if a vehicle was reported as stolen, but unrecovered. It will also list whether it is a salvage vehicle, one that’s damaged or was seriously wrecked.

Step No. 3 — Inspect the Car With Care

Vehicle history reports can only reveal so much about a car. If you are handy, you can perform
the inspection yourself, otherwise, head to your mechanic and pay him to check the car.

Have the car placed on a lift and examine the vehicle’s suspension system, inspect the vehicle’s frame, review previous repair work and look for leaks from the engine, transmission and the coolant system. A mechanic can also pull up the check engine codes to look for potential problems.

No independent analysis will be foolproof, but your mechanic can offer his opinion on whether the car is worth your consideration and for the price you have in mind.

Step No. 4 — Negotiate Your Price

How much a private seller still owes his lender may have a bearing on your negotiation. However, if this individual owes more on the vehicle than what it is worth, you need not offer to pay that price.

Instead, your price for the car should be based on its current market value, its condition, mileage and vehicle’s trim level (content). Visit Kelley Blue Book to obtain its private party value. You can show your mechanic’s report to back up your offer.

Step No. 5 — Head to the Bank

Never give money to a private seller and have him handle the paperwork. Because there is a lien on the car, you should meet the seller at the bank and complete the deal in front of a representative.

Explain to the bank representative what transaction is taking place and have the seller ask for the loan’s payoff amount. Your funds plus whatever the seller still owes his lender will remove the lien, freeing the vehicle for a title transfer.

Let’s Make a Deal

Finalizing a deal for a vehicle with a lien on it is not always an easy process. That said, with persistence you may be able to conclude the deal and obtain a quality car for a below market price.

See Also — 8 Steps to Buying a Used Car

Used Car Shopping Caution: Odometer Fraud

October 13, 2017 by admin 2 Comments

Odometer fraud can cost you dearly.

Consumers looking to buy a used car understand the importance of checking it thoroughly, including the finish for rust and the key components such as the engine and transmission for damage. Brakes, lights, seats, air conditioning, steering and electronics should also be inspected, but there is one problem that is often missed: odometer fraud. Odometer fraud is what happens when the odometer reading is rolled back to mask a vehicle’s actual mileage. The problem affects tens of thousands of cars every month and costs consumers millions of dollars in lost value and unexpected repairs.

About Odometer Fraud

Changing the mileage on the odometer is illegal and can result in fines if the seller is caught. According to CARFAX and as reported by the Orlando Sentinel, a vehicle history report company, more than 190,000 cars are sold each year with their odometers tampered. The cost to consumers is at least $760 million in reduced vehicle value and unplanned car repairs. CARFAX estimates that there are more than one million vehicles on Americans roads with an odometer rollback.

CARFAX notes that older cars, typically those that are 14 to 15 years old, are most susceptible to fraud. These models often have at least 50,000 miles taken off of the odometer before they are readied for sale.

Signs of Fraud

Used car buyers may not be able to entirely eliminate the possibility of getting ripped off, but they can reduce their chances by launching a personal investigation first.

The first step is to visit the National Insurance Crime Bureau website to perform a vehicle identification number check (VINCheck). Enter your car’s unique 17-digit VIN (typically found on your dashboard) to determine whether it was stolen. If clear, you can continue to consider that vehicle.

The second step is to purchase a vehicle history report, offered by CARFAX, VINSmart and AutoCheck. You will pay a fee for these services, but the information provided may alert you to possible problems with that used car. Not all repair information is included, but it can point out potential problems that a visual inspection may not reveal including its use as a rental vehicle or a taxi, whether it was damaged in a flood, and its owner history. Your reports should also include an odometer reading. Compare that reading with your car’s current reading — it should align closely, otherwise tampering may have occurred.

(Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

The third step is to review the seller’s supplied maintenance records. If there are no records present, there is a good chance that something is amiss. If you still want the car, then take it to your mechanic for an inspection. He will visually examine the car and connect it to his computer to print out a report.

Civil Remedies

State odometer laws vary from state to state and may include recovery from damages under state law as well as under federal law. Under the Code of Federal Regulations (CFR), odometer tampering violations include “resetting or altering the odometer with intent to change mileage” and “making false odometer disclosure statement.

“Consumer recourse” includes $1,500 or treble damages, whichever is greater, in addition to attorney costs. An assessment may also be required to determine whether the vehicle’s value has been reduced, its financing, insurance, and tax costs inflated, and unexpected repairs made.

If you are caught committing odometer fraud in Ohio, the first offense is treated as a fourth-degree felony, punishable by 6 to 18 months in jail and a $5,000 fine. The Buckeye State operates a toll-free hotline to report odometer rollback fraud, representing one of the more aggressive consumer protection programs in the US.

Win the Battle

Due diligence on your part can avoid getting sucked into a scam. Recourse is certainly possible, but the hassles you’ll experience can be a time suck.

See Also — NICB Warns Consumers About Storm Fraud

Calculating Fair Trade-in Values

December 28, 2015 by admin 1 Comment

The deal on the new car has been sealed, but there may be one important matter left undone. And that is calculating the trade-in value, what ultimately might clinch the sale or have the buyer changing his mind and leaving your showroom in search of a better offer elsewhere. Once you lose the customer there may be no going back. Here’s how calculating fair trade-in values will turn your shoppers into buyers.

Determine Trade-in Value Early

Dodge Challenger It is important for salespeople to determine whether a trade-in will be involved early in the sale. If the customer says that she will trade in her car, then ask for the keys to have it evaluated by your shop. Make it known to the customer that the evaluation is free and that her keys will be returned to her as soon as the appraisal process has been completed. In the meantime, continue with the negotiation.

Obtain the Vehicle History Report

At the same time the shop is reviewing the car, they should obtain the vehicle history report for the car.

It will serve as evidence to the customer if your offer comes in lower than her expectations. For instance, if the car has been in an accident, its value has been diminished even if the repairs were successfully completed. As the dealer, you know that the same vehicle history reports are available to customers, including people who want to buy the car from your inventory. You could lose money if you do not take previous problems into consideration, a fact you must share with the customer at trade-in.

There is another point that dealers must consider when accepting a trade-in. If the car involved is part of a major recall, including one that was initiated due to injuries or deaths, you are the one who will be held liable if something goes wrong, not the customer. That also means if the car is traded in with open recalls, you may lose time acquiring parts to make the car ready for sale.

Establish a Fair Trade-in Value

Lexus ES350 Your appraisal team may be able to determine a value simply by examining the car. Of course, that is not enough as the value must be backed by hard data. A service such as NADAGuides.com should be consulted and it may also be the same service used by your savvier customers.

It is important that the information related to the car is precise, going beyond the make, model and year, and right down to the trim level, engine and transmission, mileage, and other details about the vehicle. Take note of the rough, average and clean trade-in prices as well as the retail price. Wherever possible, aim for the average trade-in price when presenting the appraisal to the customer. Adjust if necessary to account for low or high mileage and other factors. This will be your starting point for negotiation.

Present Your Offer

At some point in the car buying process, you will have the appraisal offer in hand to present to the customer. Your company’s policy may be to present the offer as part of overall negotiation, but the customer may want it handled separately.

Regardless of the policy, you will quickly learn if the amount offered has satisfied the customer. There is a very good chance that he’ll hold out for a higher amount. Be prepared to explain how that figure was determined, but don’t be surprised if the customer presents his own data offering different numbers. It is at this point when the business office will get involved.

Making it Fair

Audi A6 What one person considers a fair value may be perceived as inequitable by the other, usually the customer. If the difference is a few hundred dollars, you might be instructed to meet the customer part way. It is at this point you need to gauge the customer to determine whether a deal is possible or if the sale is about to collapse.

For the salesperson, he may feel caught in the middle between the car shopper and his business office. The process can become especially difficult if both sides come armed with data and are firm in their positions. Fortunately, your company likely has some steps in place to help close the deal.

One of these steps may be to offer the customer something for free, such as paint or door protection. The retail cost of the item may more than offset the price difference, but only cost your company very little to implement. Do what is necessary to help the customer understand that the trade-in value is fair.

Satisfying the Customer

Your deal will close if the customer is satisfied. If not, you risk having the trade-in taken off the table. And in many cases, the trade will cancel the deal as it usually serves as the bulk of the down payment.

Ultimately, the business manager will either approve or nix the trade-in value. If the car being traded in is something your lot can turn around and sell for a significant profit, then more than likely your manager will bend to the customer’s wishes.

8 Reasons to Avoid a Particular Used Car

August 12, 2015 by admin 4 Comments

You are in the market for a car and a used one at that. Shop around carefully and you just may find a deal that suits you. Then again, if you are not careful when evaluating your options, you could be taken for the kind of a ride you do not want: notably, getting stuck with a problem-plagued vehicle. When considering a particular vehicle, avoid those that miss the mark due to any of the following eight reasons.

1. A problematic vehicle history. What do you know about the vehicle’s history? Have you obtained a vehicle history report, such as one from CARFAX? (Disclaimer: this correspondent is a former contributor to CARFAX). A CARFAX or similar comprehensive report should spell out the owner’s name, the service work reported, accident information and other details. Certainly, such a report will not tell you everything about the car, but a report that lists a glaring problem such as being hit on the side in an accident is a car that should be avoided. In other words, you may be dealing with a car with a bent frame. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

2. Coolant system trouble. A well-maintained car will have clean coolant. A car that has been neglected will show signs of debris in the fluid, something that the average buyer might miss. Ask your mechanic to check the car to determine if the fluid has been changed regularly.

3. Engine oil or transmission fluid discoloration. New oil is amber in color, while older oil can be black, but still effective. However, most people are not able to determine if the oil is actually bad, something a skilled technician such as your mechanic can substantiate. As for the transmission fluid, if it smells burnt or looks dark brown, you may soon be faced with an expensive transmission repair if you go ahead and buy the car without taking it to your mechanic for inspection.

4. Most performance models. The more power a vehicle has under the hood, the more likely the owner pushed the car to its limits. Although there is absolutely nothing wrong with a performance model per se, such vehicles are typically prone to wearing out faster. For example, suspension parts may take a beating, the engine and transmission may have shorter lifespans, and other parts related to vehicle performance may wear out faster.

5. Visible signs of wear and tear. Foggy headlights, worn tires, cracked rims, faded paint and ripped seats are signs that a car has been through it all. Likely, the visible wear and tear issues demonstrate that the owner has not kept up with overall maintenance, suggesting that this particular used car will offer a greater share of reliability woes.

6. Accident damage. We looked at this concern in the first point, but there are additional details that should be mentioned. First, if the car was in an accident, how severe was that accident? Second, was the car in more than one accident? Third, are there signs of corrosion present? Fourth, is the paint texture uneven or are the various panels poorly fitted? If you are still not sure about the car’s condition, then take the vehicle to a mechanic for an inspection.

Lexus RC 7. The current owner is a smoker. You might be a smoker yourself or have nothing against people who smoke. But, if you are in the market for a car, smoke is one odor you may find impossible to remove from a vehicle. Moreover, ashes may burn holes in the seats or in the carpeting. Furthermore, smoke will permeate the fabric, settle inside the dashboard and simply pollute the cabin.

8. The model has a reputation for problems. Most cars built in the new millennium are far more reliable than those that preceded them. Yet, there are certain models that have performed poorly in crash tests, have gone through multiple recalls, or simply are outclassed in their segment. If you buy a particular model with a reputation for problems, your repair costs may come in much higher than a similar vehicle with a superior track record.

Used Car Considerations

Most car shoppers do not possess the expertise to buy a used vehicle without having someone else with them to also scrutinize the car. For a pricier used car, it is always a sound policy to pay your mechanic to give the car a good looking over. If the owner refuses to allow a mechanic review, then you should move on to the next car.

Photos copyright Auto Trends Magazine.

How to Avoid an Unsafe Rental Car

August 5, 2015 by admin 2 Comments

Millions upon millions of cars are recalled every month, a staggering number that should give consumers reason for concern. What some may not realize is that recalls are not always handled in a timely fashion, especially with rental cars.

Unfixed Recalled Cars and Car Rentals

Although rental car companies may eventually comply with the recalls, that doesn’t mean the affected models have been repaired. Furthermore, there are no laws stipulating that unfixed recalled cars cannot be rented. Here’s what you can do to ensure that your next car is safety compliant.

1. Ask the rental car company. When planning to rent a car, contact the rental car company’s customer service department. Ask the company what their procedures are regarding recall repairs. You may learn that the cars are repaired as soon as possible. You may also learn that cars under recall are still available for renting. Decide whether you are willing to assume the risk of renting a car that may not be suitable to drive.

2. Check the VIN. If you are wondering whether a specific car has been recalled, you can learn whether this is so almost immediately. Locate the VIN (vehicle identification number), typically found in the dashboard on the driver’s side. Visit Safercar.gov and plug in that 17-digit alphanumeric code. You will quickly learn if the car is subject to recalls and what recalls remain open. If a major recall is open and you don’t want to drive the car, notify the rental company of your discovery. Ask for a car that has had its recalls completed.

Raechel and Jacqueline Houck Safe Rental Car Act of 2015.

Possible Legislation: Safe Rental Car Act

In 2013, legislation was introduced in Congress, dubbed the Raechel and Jacqueline Houck Safe Rental Car Act. The act was named for two sisters who rented a 2004 Chrysler PT Cruiser from Enterprise Rent-a-Car in San Francisco in 2004.

That particular vehicle was under recall, as Daimler Chrysler found that the power steering hose could leak, causing a fire. Raechel Houck was driving the car on Highway 101 near Bradley, California, when she lost steering ability due to power steering fluid leak. The car crossed a grass median and slammed into an 18-wheeler, bursting into flames. The sisters were incinerated.

As a result of the Houck accident and the battle the parents had with Enterprise, legislators are pushing to require rental car companies to complete all recalls before the vehicles are available in the rental fleet. After initial resistance, the rental car industry is now backing the legislation.

Rental Industry Supports Legislation

Indeed, the American Rental Car Association (ACRA) agrees that all rental cars should be safe to drive. Said Sharon Faulkner, executive director of ACRA, “the end result is a proposal that will provide our customers additional assurance that the vehicles they rent are safe, and provides our industry with a uniform federal standard across the country and that addresses our original operational concerns.”

The Houck bill was finally referred to the committee on May 1, 2015, but its prognosis is not particularly good. The GovTrack.us website gives HR 2198 only an 18 percent chance of being enacted.

Besides not being able to rent open recall cars to customers, the legislation would also forbid rental companies from turning around and selling these vehicles to the public until the repairs have been completed or at least with notice that the repairs are open.

Used Car Shopping

If you are in the market for a used car, you need to do your homework to ensure that all recalls have been complied with. Again, that means making a visit to SaferCar.gov. It should also include obtaining the vehicle’s history report (CARFAX, for example) and following through with an inspection by your mechanic. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

See Also:

Car Recalls and Your Insurance Rates

8 Reasons to Avoid a Particular Used Car

How to Lease a Demo Car

July 15, 2015 by admin 3 Comments

Buick LaCrosse — Make sure that the demo model you want is free of scratches.

Savvy car shoppers know that if you want to save big bucks on a newer car, then buying a certified pre-owned (CPO) vehicle is a wise strategy. Certainly, the first year of car ownership brings with it the most significant drop in depreciation. Suddenly, that new car bought for $33,000 new, may be worth less than $25,000.

You may not have to wait a model year to enjoy the perks of a used vehicle and the depreciation cost absorbed by someone else. Indeed, cars with just a few thousand miles on the odometer are routinely sold by new car dealers, vehicles that served as demo models for a few months and are now ready for sale.

Buying a demo (demonstration) car is easy, but can you lease one? Yes, you can. In fact, just as most any new or late-model vehicle can be leased, so can a demo car. But before you sign on the dotted line you must perform due diligence. So, then do the following:

Inspect With Care

Just as you would do with any used vehicle, examine the demo car very carefully. Likely, it is as shiny and appealing as any new car on the lot, but it could possess a few flaws that might be revealed through careful inspection. Keep this in mind: scores, if not hundreds of potential buyers may have tested the vehicle.

Look for nicks or scratches that may have been touched up. Look closely at the seats, the dashboard, and the carpeting for signs of wear and tear or discoloration. Lift the hood and verify that the oil, transmission fluid and coolant is clean, the connections are secure and that the battery is in top condition. Examine the trunk for signs of water intrusion by lifting the floor cover. Having your own mechanic examine the vehicle can be a wise decision too.

Obtain a Vehicle Report

The dealer’s maintenance records may be detailed, but you should also be supplied with a vehicle history report even if the car was only used for two or three months. This report should be automatically supplied by the car dealer and at no cost to you.

Most dealers will supply a CARFAX report outlining information about the vehicle’s title, ownership and mileage history. It should also include service information and if there was an accident that was reported, that detail will be included. A minor fender bender may not be much, but anything greater could be a deal breaker.

Warranty and Related Information

What sort of warranty coverage is the dealer offering with the demo model? It should come with the balance of the new car warranty as well as powertrain and rust protection. For manufacturers offering new car maintenance for the first two or three years of ownership, the demo vehicle should assume same. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

If you’re interested in purchasing an extended warranty, your demo vehicle should be eligible for a plan. You can purchase a plan through the dealer our buy one independently. Shop around and compare offers and prices.

Find a Demo

New car dealers may have demos in use, but that doesn’t mean that one is available for sale. Here, you will want to call several local dealers and ask if they have demos available. Those cars may be included in the dealer’s online inventory too.

Take your time shopping for a demo and you may come up with a like-new car at a bargain price. Once you find a car that meets your criteria, then discuss your leasing options with the dealer. You should bargain the best price for the car and ensure that the warranties run as long as the lease.

See Also — Where Can I Find My Car Paint Code?

How to Sell Your Car to a Private Party

May 5, 2014 by admin 1 Comment

Buy a new car and the dealer may urge you to trade in your old car. Unless you have plans to keep it or give it to someone else, the dealer’s offer may be a tempting one. Then again, if you choose a private party sale you stand to make hundreds of dollars more in a sale to a new owner than you would receive as a trade in. The following instructions can help you get the most money for your old car.

1. Establish a selling price.

Honda Accord You own a 2008 Honda Civic coupe with 75,000 miles on the odometer. That’s a quality vehicle with relatively low miles, an EX model in very good condition.

Head to Kelley Blue Book (KBB.com) to find out what your car would fetch in a private sale. As of May 2014 KBB says $12,072, far above the $9,800 that the dealer offered as a trade. You can set your price to align with KBB’s estimate or choose a slightly lower amount to market it aggressively. Also determine your bottom offer. For instance, if you’d accept $11,000 for it, keep this price in mind when negotiating.

2. Get your car ready to sell.

Your car looks good, but it should look in tip-top shape before selling it. You’ll get more for it if it looks and runs great.

Washing and waxing the car is just the start. You need to have it detailed just as the professionals do. You could have someone else do it and pay the $100 to $150 cost, a smart option if you have a scratch that goes down to the metal. The professionals have the equipment to make scratches disappear and can handle small dents too.

Whether detailing the car yourself or using a professional auto detailer, your car should have its mats cleaned with a stiff scrub brush, the paint polished and waxed, a protectant applied to the trim, the air vents cleaned out with cotton swabs, and the glass and tires cleaned.

3. Show buyers your receipts.

If you want to smooth the car sale then purchase a vehicle history report and include it with the maintenance receipts and repair record. CARFAX, AutoCheck, and VinAudit are the companies that provide this service for a fee. History reports demonstrate to the buyer that they’re getting a “clean” vehicle, one that hasn’t been damaged in a flood or stolen.

If you do not have receipts, you can offer details when the maintenance was done. Write up a list of items repaired or replaced within the past year. These should include the oil, oil filter, air filter, wiper blades, and fluid top offs. Even further back you can tell potential buyers when other work was done including tire replacement, brake pads, shoes, muffler, battery and other components. Receipts are best, but when you don’t have them an explanation may suffice.

4. Spread the word.

You can cast a narrow or wide net to sell your car. If you prefer to deal with just a few people, place a notice at work outlining your sale. Tell friends, family and neighbors too.

To reach more people, write up an ad and place it online, such as on Craigslist. Offer additional details about the car including the make, model, model year, trim level and anything else of interest. Take as many as a dozen photos of the car’s interior and exterior, focusing on all sides of the vehicle. Inside, concentrate on showing the seats, dashboard, storage compartments and other features. Provide a contact email address; only share your phone number with people that have expressed strong interest in your car.

5. Make appointments and schedule the test drives.

Only spend time with people that are sincerely interested in buying your vehicle. One downfall of a private sale is the time required to promote the vehicle, make appointments, and allow for test drives.

Speaking of test drives, never allow anyone to take your car out without you riding along. It could be the last time you see your car. Riding along allows you to explain the various features of the car and answer some questions. You can also show people how the climate control, audio and navigation systems work, how to adjust the power seats and explain the other features.

6. Entertain offers.

Serious shoppers will make an offer for the vehicle as soon as they decide they want your car. Expect that they’ve already done their research and know the value of your car. If their information is correct, then you should receive an offer that is competitive. Generally, however, it will come in on the low side.

You can counter any offer without disclosing the lowest amount that you will accept. The process may take some back and forth negotiating, but it should result in a deal that is acceptable to both parties.

An all-cash deal is easiest to close. If you are okay with a check, only accept a cashier’s check. Or, go to this person’s bank and have them write a check for cash to the bank and hand you the money.

Private Party: Sell Smart

The last matter to tend to when selling a car is transferring the title and tags to a new party. This procedure varies from state to state, therefore a visit to the Department of Motor Vehicles with the buyer can complete this process quickly.

See Also — Tips for Teens Buying a First Car

(Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

Polk, Owner of Carfax, Acquired by IHS

June 11, 2013 by admin 2 Comments

Business information service IHS announced this week that it has agreed to acquire R.L. Polk & Co., an automotive analytics company, for $1.4 billion. The Polk acquisition, which includes its vehicle history service CARFAX, will be completed at an unspecified time.

Polk and CARFAX

The CARFAX side of Polk’s business may be what is best known to consumers. With CARFAX, car buyers can obtain a used vehicle’s history report, information that may warn shoppers of potential problems.

IHS Polk Besides registration and title information, CARFAX reports include odometer readings, total loss accident history, frame and structural damage, service and repair information, accident indicators, vehicle usage, lemon history and recall information. CARFAX reports are not bulletproof, but are recognized as good tools for used car shoppers as they consider any purchase. Single reports are available for a one-time fee or customers may obtain up to five reports within 60 days. In addition, unlimited reports may be obtained within 30 days for a flat $54.99 fee.

Polk Data and Reports

The Polk side of the house is responsible for assembling vast quantities of automotive data including tracking the average age of vehicles owned by Americans. Other studies conducted look at such auto trends as brand loyalty, commercial vehicle purchases and global forecasting.

Polk also publishes “Polk View” which offers detailed subject-related articles and reports such as, “What Comes After SUVs?” In that October 2012 report, Polk senior consultant market analysis, planning & forecasting Gunnar Gaedke, outlined the segment’s growth beginning in the mid-1990s through today. Gaedke noted that the segment has yet to peak, expecting SUV demand to rise from the 9 million units sold annually worldwide in 2012 to 14 million units by 2016.

However, new body styles such SUV coupes will change that dynamic and all-wheel drive may not always be part of the mix. Such coupes are expected to keep demand for SUVs growing strong, thus Polk has forecast that, “the end of the SUV boom is not yet in sight.” It is such reports from Polk that IHS will acquire, raising this company’s own influence in the automotive sphere.

IHS Buying Spree

IHS has been on a buying spree in recent years, snapping up from five to seven businesses annually reports the Wall Street Journal. Company Chief Executive Scott Key explained to the Journal that IHS would likely “take a pause” as it absorbs Polk. IHS, based in Douglas County, Colo., also owns Jane’s Information Group, Screen Digest, CERA and Global Insight. Its IHS CERA division, for instance, analyzes energy markets including industry trends, geopolitics and strategy. Polk’s headquarters are located in suburban Detroit. Additional offices are located in New Jersey, California and Virginia. Polk also has a presence in Canada, Australia, Europe and Asia.

CARFAX has been a strong point for Polk, but it isn’t without its critics. Automotive dealers have cried foul, alleging that its vehicle history service is anticompetitive and violates antitrust laws (see Automotive News). A $50 million lawsuit filed in U.S. District Court for the Southern District of New York is still pending and may ultimately have some bearing on the sale’s progress.

Used Rental Vehicle Buying Tips

March 16, 2013 by Jenny Sampson 2 Comments

The days of finding a cheap used car are over. Tighter inventories, high prices for new cars and consumers keeping their own cars longer has made it difficult for people to find an affordable, used car.

Between the brand new and well used, there is a segment of cars that are one, two or three years old: rental vehicles. These cars are bought by companies such as Avis, Enterprise and Hertz, rented out to their customers and then sold to consumers after a few years. Such cars typically come well equipped, but they also may come with the undeserved stigma that says you are buying an unreliable vehicle.

Well, the stigma of unreliability is an incorrect one as the fleet owners or rental car companies provide top notch service for their cars. Moreover, when such vehicles are readied to be sold, you get a car that has been thoroughly inspected, properly maintained and often features a new set of all-season radial tires.

The Market

You certainly are not getting a new car when you buy a rental vehicle. Some models are from the most recent model year, but many go back a few years.

Rental vehicle mileage can vary with most vehicles having at least 25,000 to 30,000 miles on the odometer. Occasionally you will find a vehicle with up to 45,000 miles driven, while others may have as few as 10,000 miles on the odometer. Mileage depends largely on fleet popularity and the rental companys needs. Sometimes the vehicle offered is a trade in from a customer sale.

Model Availability

If you have your heart set on buying a particular uncommon model, then the rental vehicle market may disappoint you. The rental companies typically offer the most popular models to consumers including the Fords, Chevys, Toyotas and Dodges that are also the best sellers.

That does not mean you cannot find the occasional Mercedes-Benz, Infiniti or even a Jaguar. It is just that rental companies are looking to put these cars in renters hands, not have them sitting on lots unrented.

Rental vehicles also typically feature top or near top trim level models only. No stripped down models here! It isn’t uncommon to get car with a navigation center and top safety features, popular amenities that are part of the price.

Test the Car

Fleet retailers want you to be happy with your purchase. Typically, you will be able to find the vehicles CARFAX report, with that information posted online. Read the report to familiarize yourself with the vehicles maintenance and repair history.

You should also be able to test drive your rental vehicle. Some companies will allow you to drive the car for a full day before making your decision. This can be beneficial for the consumer that wants a particular vehicle, but is not certain whether it is right for them. If given this opportunity, then get the keys, fill up the gas tank and head out on a journey of a few hundred miles. When done, you should know whether that vehicle is right for you or not.

Negotiation and Financing

There are two things about most rental vehicles that consumers should know about: haggling does not take place many companies offer a no haggle or a take it or leave it price. Typically, that price comes in lower than its book value, with thinner profit margins for retailers.

Financing is another matter you should handle before buying a rental vehicle. Visit your credit union or bank to obtain a loan first. Then, head to your rental vehicle company to make a deal. Some companies will take your trade in too keep this in mind as you shop for a vehicle.

Keep in mind that the new vehicle warranty may still apply to your car. If it off its manufacturers warranty, learn if the rental company has included one in-house, typically for at least 90 days and 4,000 miles whichever comes first.

Rental Vehicle Considerations

There are a few things to keep in mind before buying a used rental vehicle. First, ensure that all safety recalls for that model have been performed. That information is readily available at SaferCar.gov. Second, have cosmetic repairs fixed before buying the car. Typically, these touch ups are handled at no cost to you. Lastly, only buy the vehicle that you want. That means understanding what equipment is included such as the premium audio system, backup camera or the lane departure warning system that you want.

References

Money Talk News: 6 Tips for Buying a Rental Car http://www.moneytalksnews.com/2012/05/17/6-tips-for-buying-a-rental-car/

Autobytel: Tips for Buying a Used Rental Car http://www.autobytel.com/car-buying-tips/used-car-buying-tips/tips-for-buying-a-used-rental-car-101736/