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USED CAR

What Everyone Ought to Know About Selling a Car

October 25, 2019 by admin 1 Comment


Supply photos from every angle when marketing your car.

Selling a car is a slam dunk, right? Once you put your car on the market, the buyers will line up from all over. After a few test drives and perhaps competition between buyers, you’ll close the deal and reap a handsome profit. Keep dreaming.

On the surface, selling a car privately sounds likes a terrific idea. But it often comes with all sorts of hassles, including shoppers without a desire to make an offer or the funds available to finalize the purchase. And then there is the matter of your time, which explains in part why many people prefer to sell to their dealer or make a trade, even when they know they could get a better deal through a private sale. If you insist on trying a private sale, we’ll examine what everyone ought to know about selling a car.

1. Get your car ready to show.

Sell your car “as is” and your offers will reflect its condition. It always pays to spend some time making it look market-ready.

Wash and detail your car, adding a fresh coat of wax to restore it to its former luster. You can handle small scrapes and scratches, and quite possibly remove a few dings. Clean out the interior and trunk, vacuuming or wiping down seats, carpets and other surfaces. The same attention you paid to the exterior should apply to the interior. Replace burnt-out bulbs and fuses, and ensure the audio and navigations systems are in working order.

Handle all maintenance due items, most importantly the motor oil and filter. Ensure that the battery, hoses, belts, brakes, suspension, and other components are in top order. Provide copies of your repair invoices. Offer a CARFAX vehicle history report to demonstrate to buyers that your car is in the best condition.


Prep your vehicle to make it more appealing to shoppers.

2. Survey the market.

So, how is the car market where you live? Specifically, what kind of demand do you see for your type of vehicle?

For example, if you live in a warm climate and own a convertible, demand should be strong. On the other hand, if you have a four-wheel-drive vehicle and live in Florida, chances are demand will be quite low. Review local ads, such as on Craigslist to gauge interest in your type of vehicle.

3. Know your price range.

There are online tools to help you determine the price for your vehicle. Typically, you’ll find two sets of prices — dealer and private party. Review both to understand the spread between the two. Private party prices are always higher than dealer prices.

The more details you supply about a car, the better. This means entering not just the make, model and model year of the vehicle, but its mileage, trim level, and special features or options. Features such as navigation and driver-assist technologies mean you can fetch more for your car.


First impressions are everything when marketing a car.

4. Market your car.

Now that you know prices, you need to determine your bottom number for selling your car. This isn’t a number you’ll display or share with shoppers — it is the price you’re willing to accept.

Pricing can be tricky, but the 5 to 10 percent added to your bottom price gives you some wiggle room when negotiating. Further, when you set your price, avoid a round number such as $10,000. Choose $9,995 instead as it sounds better to shoppers. You’ve noticed that retailers use a similar pricing strategy. The reason? Because it works!

As for advertising, newspapers are a thing of the past. Online services, such as Craigslist and eBay are popular places to market a vehicle. It is important to understand the terms of use for any online site, including whatever fees or commissions may be charged. Be thorough with your ad, offering complete details about the car along with numerous interior, exterior, under the hood and trunk or storage area shots. Review other ads for ideas on how to set yours.

5. Show your vehicle.

Now for the hard part: show your vehicle. But somewhere between running your ad and showing your vehicle, place at least one “for sale” sign inside the car. At a minimum, supply a contact number, but be forewarned: you’ll get your share of spam calls. Perhaps securing a temporary phone number would be the best approach here.

Strategically place your vehicle so people will see it. Unless, of course, you don’t want people knocking on your door at all hours if it is sitting on your front lawn.

When an individual inquires about the car, engage them in a conversation to determine what they’re looking for. If you’re not comfortable with this individual, go no further. Always meet in a public place and when it comes to test driving the vehicle ask for a valid driver’s license and ride with them. Explain the features and answer their questions. Never give your keys to a stranger as this may be the last time you see your car.


When all is said and done, you’re ready to conclude your deal.

6. Let’s make a deal.

Only negotiate with buyers who show genuine interest in the vehicle. Explain your terms upfront — cash or a certified check. Ask them if they have the means to close the deal TODAY. Not tomorrow or some other time, but today. Let them know that the first buyer who meets your price gets the car.

You can expect negotiating to commence at once with potential buyers presenting their offer, which may be far lower than your asking price. If you feel that you’re being lowballed, say so. If their offer is within an acceptable range, counter with your own price. If both parties give a little, then a deal should be reached. The idea here is to provide a win for both — you’ll get at least your bottom dollar amount and the buyer saved money off the sticker price.

If the buyer insists on having his mechanic inspect the vehicle as a condition of the sale and you’re okay with that, be careful: the mechanic may discover a problem and the buyer may counter with a lower price, costing you money if you agree. If you’re not okay with the inspection, show copies of the repair records and the CARFAX report. Explain that the vehicle is being sold “as is” without room for further negotiation.

Accept cash or a certified check, ensuring the latter clears before signing and handing over the title to the buyer. Clean out the car (including DMV and insurance paperwork), remove the tags and hand the keys to the new owner. Cancel your ads.

7. Wrapping up.

The cash is good or the check has cleared and everything is done, right? No, not quite.

You may need to take care of certain Department of Motor Vehicle (DMV) business, depending on where you live. If you have the vehicle’s tags (license plates), return these to the DMV. Make sure the registration is canceled and all taxes and fees settled. Get a receipt and keep it for your records.

Lastly, contact your insurance company to ensure coverage is discontinued. This is also an ideal time to review your policy to ensure it meets your current needs.

Final Thoughts

What if you’re not able to find a buyer for your car or are tired of dealing with customers? If you already struck a deal for a new car with your dealer, they may be interested in purchasing it. If not, there are other car buying services that may be interested, allowing you to quickly put this experience behind you.


See Also — Used Cars: Where the Bargains Are

The second, third, and fourth photos are courtesy of Pixabay.

Filed Under: Ownership Experience Tagged With: car sell, car wash, CRAIGSLIST, DMV, NEGOTIATION, Pixabay, USED CAR

How to Resolve a Private Seller Lien

May 11, 2018 by admin 4 Comments

Remove the lien and take ownership of the vehicle.

2016 Ford Fiesta ST
2016 Ford Fiesta ST

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).

2016 Honda HR-V
2016 Honda HR-V

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.

2015 GMC Yukon XL
2015 GMC Yukon XL

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.

2015 Lexus RC F
2015 Lexus RC F

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

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Ownership Experience Tagged With: BANK, car deal, CAR LOAN, CARFAX, DEBT, KELLEY BLUE BOOK, lien, TITLE, transaction, USED CAR

How to Buy a Repo Vehicle

January 1, 2018 by admin 2 Comments

Should you consider a repo vehicle as your used vehicle?

The repo man just paid your neighbor a visit, hooking up his late model sport coupe to the tow truck and pulling away. Your neighbor tried to argue with the driver, but the driver ignored his pleas, shoving a document into his chest before driving off. Unless your neighbor resolves the problem his car will stay impounded until it is sold to a new buyer.

Tow Truck
(Public domain photo supplied by Jelson25.)

Repo Shopping

Your neighbor’s loss can become your gain, although you might not want to buy his vehicle back if you value his friendship. Instead, there are hundreds if not thousands of cars that enter the market each week, ranging from basic Kias to high-end BMWs.

There are a number of ways you can buy a repo including from a lender, a dealer or at auction. The downside is that you may not have the vehicle’s entire repair history to review, perhaps leaving you wondering if the owner let the car go because of unresolved maintenance issues or for some other problem. Also, cars that are repossessed generally are neglected as owners that can’t make loan payments usually won’t keep up with repairs.

Lender Repos

The company that financed the repossessed vehicle wants to sell it. And they want to stem their losses before they worsen.Clearly, lenders lose money when a car is repossessed. If the vehicle is new and in excellent condition, there may be several people interested in buying it. Lenders may accept bids for the car or set a fixed price and sell it to the first qualified buyer.

If you are interested in buying a repo vehicle, get your loan together first. Or, the lender may provide financing if your credit is very good. Perform due diligence by reviewing the car’s repair history and finding out from the lender why the car was repossessed.

Repo Dealers

Some car dealers specialize in buying repossessed cars from banks and auctions, making repairs and detailing them for resale. You will want to avoid any car that was salvaged, meaning that the vehicle was declared a total loss by the insurance company.

However, there are different kinds of damages that can give a car a “salvage title” including flood damage, hail damage and theft recovery notes Ronald Montoya writing for Edmunds.com. If you are handy with a car and you don’t mind the risk, then find out as much about the car’s history before moving forward.

Auction Houses

Many repo vehicles end up at public auction and are made available for sale to the highest bidder. However, these are also the cars that lenders and dealers may let pass by, meaning you need to be extra cautious before placing a bid.

First, check the vehicle identification number (VIN) to ensure that you have a match. If the car has been rebuilt, the VIN may not match. Move on if it doesn’t.

Second, look carefully at the car. Inspect the car inside and out, and crawl underneath to look for signs of water damage, frame repair and rust. Pull the dipsticks to verify that all fluids are clear. If something looks or smells odd there could be a larger problem lurking within.

Third, know the vehicles worth. If it is being sold “as is” then you know that there are problems present. Compare the auction house value with the Kelley Blue Book value. Set your top price and never get pulled into offering more for a car than what you’re willing to pay for it.

Your desire to find a repo vehicle bargain should never trump common sense. If you’re not particularly handy with car, this entire process should be left to those that are. Even weekend warriors know that a repo can require much TLC, with their time heavily invested in remaking a loser into a winner.


See Also — Used Car Shopping Caution: Odometer Fraud

Filed Under: Special Tagged With: CONSUMER ADVICE, KELLEY BLUE BOOK, repo car, repo man, TIPS, USED CAR

Used Cars: Where the Bargains Are

September 20, 2017 by admin 3 Comments

Bargains on used cars are available if you know where to look.

2015 Dodge Charger SE.
2015 Dodge Charger SE.

The average price of a new car is approximately $35,000 according to Kelley Blue Book, a price point that’s well beyond the reach of many car shoppers. One way to avoid that high cost is to settle for a lower-priced model, but that may mean making sacrifices on vehicle size, quality, and comfort. Another way to avoid the high cost of a new car is to buy used, particularly cars that are two to three years old, bargains that can be found by weighing the following several important considerations.

Consideration No. 1 — Initial Depreciation

The major drawback of buying any new car is that first-year depreciation can lop 20 to 30 percent off of its vehicle’s value. That means a $36,000 new car may be worth just $25,200 after the first year, a loss that the original owner must take.

That loss should be viewed as an opportunity for used car buyers. While most owners will hold on to their cars for a few years, cars that are leased are typically returned after just two or three years. Leased cars are sometimes resold at auction, but they’re also available for sale through new car dealers to help bolster inventories.

2017 Toyota Tacoma TRD Pro.
2017 Toyota Tacoma TRD Pro.

Consideration No. 2 — Larger or Less Popular

Depreciation for more popular models comes in lower than the industry average. That means if you are looking for a bargain, you should turn your eyes elsewhere.

Elsewhere includes models that consume more fuel such as big SUVs or ones that are simply not that popular including vehicles from discontinued brands or models.

Suzuki quit selling its vehicles in the United States in 2012. The company was never a big player on the market, but it did offer several smaller models such as the SX4 that were good on gas.

You can check the market value of any used car for free by visiting Kelley Blue Book. Suzuki may no longer sell its cars in America, but it still is available to service your vehicle and to handle warranty concerns.

2015 Chevrolet Colorado.
2015 Chevrolet Colorado.

Consideration No. 3 — Wear and Tear

If you find a used car that is still under the manufacturer’s new car warranty, then you have a bonus in your hands. However, you must ensure that the warranty transfers to you and at no cost.

Other warranties that may still be in effect include rust and powertrain, the latter sometimes good for up to 100,000 miles. If you are shopping for a used hybrid vehicle, the typical warranty is for eight years or 100,000 miles on your hybrid battery system.

One model, the Hyundai Sonata Hybrid, offers a lifetime warranty, but it is not transferable to a new owner. Regardless of warranty considerations, there is a mileage point where buying a used vehicle makes sense. That point is before major repairs or expensive maintenance takes place.

Used cars that have under 50,000 miles on the odometer and have been well maintained, should go another 50,000 miles before more expensive maintenance and repairs become a factor. Still, tires are generally replaced by 50,000 miles and brakes, oil, air filters, batteries, and fluids will have been serviced or replaced. Costlier repairs such as water pumps, hoses, belts, mufflers, suspension system parts and electronic sensors can happen at any time.

Major work such as engine repair, transmission replacement or body work can usually be avoided if a car has been properly maintained. Ask the owner for car maintenance records and obtain a vehicle history report.

2015 Infiniti QX70.
2015 Infiniti QX70.

Consideration No. 4 — Consider the Seller Pool

You can find a bargain on a used car by careful shopping. Know that if you choose to buy from a dealer, you will pay the customary mark up to cover the dealer’s expenses and profits. However, you may also receive a limited warranty, something that a private seller may not be able to offer.

New car dealers stock their inventories with newer used cars to supplement their new car inventories. Used car dealers may feature newer cars to much older models. Either way, you will face the dealer’s mark up.

You can also consider a car from a rental car company. Enterprise, Hertz, and Budget are among the companies that sell off their fleets to private buyers, cars that typically have 12,000 to 50,000 miles on the odometer. You will find, however, that there is little room to negotiate on price. What you will receive is a vehicle that has been well maintained. Thus, your bargain may not be on price, but on care.

The best bargains on used cars are typically through private party sellers. These individuals are simply seeking to sell a car they no longer want or need and will price their cars accordingly. You can verify what any vehicle should fetch by checking its private party value through Kelley Blue Book or NADAGuides.com.

2016 Ford Mustang GT Convertible.
2016 Ford Mustang GT Convertible.

Used Cars: The Art of Negotiation

Your best deal on any used car can be had by negotiating the vehicle’s price. With the information you have on hand about its value, you have a good starting point for your negotiation.

Present your best offer, await the seller’s counter offer, then find a middle ground that will satisfy both parties.


See Also — 8 Steps to Buying a Used Car

Photos copyrights Auto Trends Magazine. All rights reserved.

Filed Under: Car Tips Tagged With: CHEVROLET COLORADO, Dodge Charger, Ford Mustang GT Convertible, INFINITI QX70, KBB, KELLEY BLUE BOOK, NADAGUIDES.COM, SUZUKI, Toyota Tacoma TRD Pro, USED CAR

How to Maximize the Resale Value for Your Used Car

August 30, 2017 by admin 1 Comment

Used car marketing and how to get more for your vehicle.

You own a car and want to sell it, but what you have decided not to do is to trade it in for a new one. That’s a good move because what a used car dealer will give you in a trade is often less than what you might get through a private party sale. Still, setting a price for your used wheels can be a bit of a challenge, therefore consider the following points as get your ride ready for marketing.

Understand Your Local Market Conditions

Toyota Tacoma X-RunnerWhere you live will have a bearing on how fast your used car will sell and for how much. If you own a convertible, you should be able to fetch top dollar in southern California, but not so in Wisconsin. If you live in Florida and own a 4×4, you will find demand weak nearly everywhere across the Sunshine State.

Know your local market and target your vehicle to people that may want to buy it. For instance, if you own a compact used car that is in decent shape, it may appeal to a college student or to a family in need of a second car. A minivan or crossover can make for a great family vehicle while a classic sport coupe may appeal to collectors.

Find Out What Your Vehicle Is Worth

2014 Chevrolet Silverado High CountryYou have determined that there is a market for your used car. That is good! What you need to figure out next is what your car will fetch in your market. You can discover that price online by checking out the pricing guides offered by Kelley Blue Book or Edmunds.com, plugging in your information including the make, model, model year, options, mileage, condition of the vehicle and where you live.

Note that you may find multiple prices listed. One price will be your car’s trade-in price, the other its private party value. If you have accurately pinpointed the car’s condition, your price will come in somewhere between the two. Of course, the higher the asking price, the more room for negotiation — provided that you don’t set the price too high and scare off potential buyers

Survey Your Local Market

BMW 435iWe already discussed selling certain types of vehicles in markets that might not be a perfect fit. You can’t do anything about where you live, but you can survey the market to find out what is selling in your area.

Visit popular online vehicle selling sites such as eBay Motors and Craigslist to learn what is being marketed. Attempt to find your make/model vehicle or one similar to it in the listings. Find out how it is being priced and whether bids are being received. Look at the competition and then set your price accordingly.

To move your vehicle fast, set the price below its market value. You will attract more shoppers and may be able to negotiate a higher price if several buyers step forth.

Explore Your Marketing Options

Pontiac GTOConsider pricing your used car for an unusual amount to attract buyer attention. For instance, if your car’s value is $7,500, you may want to run an ad retailing it for $7,496.04. The odd pricing, especially if featured in the title of your ad, will draw more attention to your listing.

Your listing should be complete, offering as much details about the used car as possible. Plan to upload at least 10 photos of your car including pictures of its exterior with close up shots of the wheels, fascia and rear deck. Inside, show the seats, the carpeting, the dashboard and other special features including the navigation system. Lift the hood to show how clean the engine bay is. Highlight the vehicle’s strong points in your listing and don’t forget to include your contact information.

Smart Selling Considerations

BMW M6Know that buyers will want to scrutinize your used car carefully before making an offer. Make those appointments during the day or in the early evening before the sun goes down.

Allow the buyer to take your used car to a mechanic if requested, but use your judgment if you fear that your vehicle might get stolen. You can always accompany the buyer and be present when he speaks with the mechanic too.

Prepare to negotiate in earnest with a bottom selling price in mind. You won’t reveal that number to the buyer, but it is something to keep in mind as your negotiate. Once you settle on a price, accept cash for your vehicle, sign over the title, remove the plates and notify DMV and your insurance company that you sold the car.


See Also — 8 Reasons to Avoid a Particular Used Car

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Ownership Experience Tagged With: CRAIGSLIST, EBAY MOTORS, Edmunds.com, KELLEY BLUE BOOK, MARKETING, SELL CAR, USED CAR

8 Steps to Buying a Used Car

August 18, 2017 by admin 4 Comments

How to drive a deal on your next used car.

Buying a used car has its advantages as the steepest depreciation costs for new cars come during the first few years of ownership. Used cars come priced to reflect steep depreciation, are generally cheaper to insure then new cars, and often come with the original warranties.

Take the following eight steps to help you find a used car that you want and can afford.

Step No. 1 — Identify Your Style

Nissan Versa Note used car
Nissan Versa Note

Choose a used vehicle based on your needs. Quite easily you can find a “great deal” on a model that you may not want, including a gas-guzzling SUV such as a Ford Expedition. Then again, that low-cost subcompact Nissan Versa Note may be too small of a car to suit your needs. Understand your reason for wanting a certain type of vehicle.

If you have a family, a sedan or a crossover might be the logical place to begin your search. Narrow your list to a certain vehicle size, such as a midsize sedan, and attempt to restrict your search further to a specific make/model vehicle. Visit sites such as Consumer Reports, Motor Trend, and Edmunds to read product reviews and to obtain pricing information.

Step No. 2 — Establish a Budget

Your desire may be for a luxury sedan, but your wallet may tell you that you can afford a mainstream family sedan, such as the Ford Fusion, Kia Optima or Toyota Camry only. Determine what you can afford and make your plans accordingly.

Learn what the prevailing prices are for a particular vehicle by visiting Kelley Blue Book (KBB). Compare KBB’s dealer and private party sale prices with Internet car ads found on Craigslist and eBay. Know that used car pricing will vary depending on several factors, including mileage, trim level, vehicle condition, and location.

Ford Fusion Hybrid used car
Ford Fusion Hybrid

Step No. 3 — Arrange Your Cash or Apply for Credit

Unless you have enough cash on hand to purchase a used car, you will rely on credit to finance your transaction. A used car dealer may offer to finance your loan, but you can typically find better rates by shopping around.

The logical first place to look is where you currently do your banking. Banks and credit unions provide financing, with some financial institutions offering loans on vehicles up to 10 years old. Get quotes from at least three lenders and know that both your credit score and repayment ability will be big factors in determining your creditworthiness.

See: Federal Trade Commission: Understanding Vehicle Financing

Step No. 4 — Know Your Market

Porsche Cayman S used car
Porsche Cayman S

Choose an uncommon model such as a hard to find coupe or gas-sipping compact and you will find the pickings slim and your cost may come in higher than anticipated. Select a popular model such as the Hyundai Sonata and your choices may prove greater and the prices fairer.

Some vehicles do not fare well outside of certain markets. Convertibles such as the Chrysler 200 are popular in Sunbelt states while four-wheel-drive SUVs are most desired in areas where winter weather and tough terrain prevail. Then again if you want a pickup truck and live in New York City you may find a seller eager to unload a vehicle with few takers.

Step No. 5 —Search For a Car

Consider both private party sellers and used car dealers when shopping for a car. Generally, you will pay less when buying privately, but with a used car dealer you may get a warranty on top of the balance of the manufacturer’s warranty.

Buying from a dealer may be the best option for you if you want a certified used car. Such models must meet rigorous guidelines instituted and backed by the manufacturer. Typically, cars no older than two or three years old qualify, but some manufacturers back cars up to five or six years old.

You can also check the fleet inventories of major car rental companies such as Hertz, Budget, and Enterprise. Although such vehicles are often driven hard, they’re also usually very well maintained. You may find a bargain and still get a warranty with it.

See: MSN Autos: Survival Guide to Buying a Used Car

Dodge Charger SE used car
Dodge Charger SE

Step No. 6 — Test and Inspect

Once you find a car that is of interest to you, take it for a test drive. Keep the audio system off and listen for how the engine turns over, the transmission engages and how the brakes react when you come to a hard stop. Have the owner show you how various technological features work, including the audio and navigation systems, climate control, sunroof and other electronic amenities.

Inspect the car carefully, looking for signs of wear and tear or concealed damage. New carpeting may hide rust while hazed over headlamps in a newer model could signal water damage. Ask the owner for repair records and invest in a vehicle history report. (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 possible, take the car to your mechanic to have it evaluated. He will tell you what problems are present, if any.

See: Accuweather: Thousands of Water-Damaged Cars May Hit the Market in Wake of Texas Flooding

Step No. 7 — Make An Offer

GMC Yukon XL used car
GMC Yukon XL

Your earlier research can pay off when it comes to making an offer for a vehicle. KBB research may give you a price very close to what any vehicle is worth, enabling you to negotiate from a position of strength.

Know that if the owner has priced the car according to the information she uncovered herself, you may have little room to negotiate. Still, offer a reasonable price and wait for a counteroffer. Find a common ground where you both can declare victory and you’ll have a deal.

See: ABC News: Haggling 101: How to Set the Opening Offer for a Used Car

Step No. 8 — Complete the Deal

The last step for sealing your used car deal is to make your payment. If you have a pre-arranged loan, your dealer will handle the paperwork including the contract. For a private party deal, your lender may issue you a check for the amount due. Cash deals are best handled by signing a contract and obtaining a receipt.

Have the title signed over to you by the owner. Take your car to the department of motor vehicles to have it registered and a new title issued. If there is a lien on your car — that is, you took out a loan — the lienholder’s name will appear on the title retained by the lender. Register your car, pay the required fees and taxes, and obtain new tags. Contact your insurance company to insure your vehicle.

(See Also — How to Resolve a Private Seller Lien)

Accomplish Each Step Carefully

Never rush into a car purchase, whether buying used or new. Likely, you will keep your car for a long time, therefore complete each step carefully to get the model that is right for you.


See Also — How to Resolve a Private Seller Lien

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Ownership Experience Tagged With: BUDGET, cash, consumer tips, CREDIT, FINANCING, inspection, rental car, USED CAR

Right Now: Lease a Used Car

April 25, 2016 by admin 4 Comments

Leasing deals on new cars can extend to used cars too.

Soaring new car prices mean sticker shock is a common occurrence for car shoppers. One way to lessen the blow is to lease a vehicle. Indeed, Experian Automotive found that 28.9 percent of all new vehicle models were leased in the fourth quarter of 2015. That’s up nearly 10 points in just over five years.

Leasing lowers the average monthly payment, one of the most important concerns for new car shoppers. Instead of paying $493 on average for a new car, lessees pay $411 per month for theirs. That’s $82 per month or $984 per year saved, or nearly $3,000 across the average 36-month lease term.

2014 Buick LaCrosse.
2014 Buick LaCrosse.

Used Car Leasing

Used car shoppers are also looking at ways to reduce their costs. Although representing a relatively small segment of the market, used car leasing is available. Leasing a used car provides the usual advantages of leasing — low monthly payments and an easy way to return the car and walk away.

An emerging trend in the industry is leases on certified preowned vehicles (CPOs). CPOs are popular with consumers as these models have passed dealer inspection, are backed by the manufacturer, and include the balance of the warranty, and sometimes include some type of an extended warranty. CPOs cost consumers more, but that’s a trade-off many are willing to accept.

2014 Toyota 4Runner.
2014 Toyota 4Runner.
This year, returning leases will increase by 20 percent over last year and will continue to rise for at least the next two years. That presents a problem for dealers as bloated inventories are harder to move. To combat the trend, some manufacturers, including Toyota and BMW as well as Ally Financial, are pushing used and certified leasing in anticipation of an increase in lease returns reports Automotive News.

Toyota’s arrangement covers Toyota, Scion, and Lexus brand vehicles. CPO Toyota and Scion used car leasing will be limited to vehicles no older than three model years and 65,000 miles. Lexus CPO leave vehicles will extend out to four years, but be limited to 60,000 miles.

New v. Used Sales

Of course, any CPO used vehicle program could do something no manufacturer wants — siphon new vehicle sales. Likewise, dealers are being instructed to avoid being as aggressive in pushing used vehicle leasing as they are in selling new. Extra incentives and higher profit margins on new cars also help.

Industry experts are looking favorably on used car leasing, seeing it as a win for customers and dealers alike.

“Certified lease programs are not only inevitable as a result of all the leases coming back into the market, but they can be beneficial as well,” said Scot Hall, Executive Vice President of Swapalease.com. “Drivers today want more flexibility in their lease programs, and a certified lease structure adds more opportunity for an expedited turnaround of inventory beyond just three years of age on a vehicle.”

2014 BMW 535d.
2014 BMW 535d.

Consumer Leasing Considerations

Consumers should always keep in mind a few things about any used car. For one, services problems are about twice as high on a three-year old car than on a one-year old model explains Consumer Reports. Also, the anticipated value of a used vehicle at the end of the lease term will impact your rate.

You might do better pursuing vehicles that hold value, including luxury vehicles, sports cars, and SUVs. That’s why Lexus and BMW are aggressively pushing CPO leases, but they’re not the only ones.

As with any used vehicle, obtain a history report. It also doesn’t hurt to have it inspected by a mechanic who can place the vehicle on a lift and give you his assessment. Use that feedback to negotiate your price — the lower the final cost, the lower your monthly lease payments.

See Also — How to Lease a Demo Car


Photos copyright Auto Trends Magazine.

Filed Under: Automotive News Tagged With: AUTOMOTIVE NEWS, CONSUMER REPORTS, CPO, EXPERIAN AUTOMOTIVE, LEASE VEHICLE, NEW CAR, SWAPALEASE.COM, USED CAR

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 ChallengerIt 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 ES350Your 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 A6What 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.


See Also — Dealers: Use Open Recalls to Drive Sales

Filed Under: Dealers Tagged With: CAR DEALER, CAR NEGOTIATION, CARFAX, TRADE-IN VALUE, USED CAR, VEHICLE HISTORY REPORT

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.

Volkswagen Beetle1. 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.

Jaguar4. 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 RC7. 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.


See Also — NHTSA Recall Action Targets Rental Car Companies and Used Car Dealers

Photos copyright Auto Trends Magazine.

Filed Under: Car Tips Tagged With: CARFAX, COOLANT, ENGINE, MECHANIC, TRANSMISSION, USED CAR, VEHICLE HISTORY

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 AccordYou 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).

Filed Under: Special Tagged With: AUTOCHECK, CARFAX, DMV, KELLEY BLUE BOOK, USED CAR, VINCHECK

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