Used Cars!
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Anne asks, "Everything ok with your car now?"
Dana replies, "Yes, thank goodness. I was worried that my mechanic might try to rip me off, so I was relieved when he told me all I needed was $12 worth of blinker fluid."
Used cars
For the 1980 comedy film, see Used Cars A used car, also known as a pre-owned vehicle and second hand car, is a vehicle that has previously had one or more owners. Used cars are sold through a variety of outlets, which include franchise and independent dealers, rental car companies, leasing companies, and used car superstores. Some car retailers offer "no-haggle prices," and "certified" used cars, and extended service plans or warranties. Individuals can also sell and purchase used cars through resources, such as newspaper and online classifieds.Used car industry
With annual sales of nearly $370 billion, the used vehicle industry represents almost half of the U.S. auto retail market and is the largest retail segment of the economy. In 2005, about 44 million used cars were sold in the U.S., which is more than double that of the nearly 17 million new cars sold.The used vehicle market is substantially larger than other large retail sectors, such as the school and office products market ($206 billion in estimated annual sales) and the home improvement market ($291 billion in estimated annual sales).
Used vehicle retailer
The Federal Trade Commission recommends that consumers consider a car retailers reputation when deciding where to purchase a used car. Get recommendations from friends, relatives and co-workers, or contact your local consumer protection agency to obtain information about reputable car dealers or retailers.Consumers can also ask for a reputable automobile salesman. Successful salespersons will help find a suitable car for a customer for a good price. From a career standpoint, margins can be higher on used vehicles because they are somewhat less of a commodity, though facilities in new car dealers are typically the newest.
The Federal Trade Commission's Used Car Rule requires dealers to post a Buyers Guide in every used car they offer for sale.
The Buyers Guide must tell you
whether the vehicle is being sold "as is" or with a warranty;what percentage of the repair costs a dealer will pay under the warranty;
that spoken promises are difficult to enforce;
to get all promises in writing;
to keep the Buyers Guide for reference after the sale;
the major mechanical and electrical systems on the car, including some of the major problems you should look out for; and to ask to have the car inspected by an independent mechanic before you buy.
Used cars may be bought from many different outlets
Used vehicle history reports
An estimated 34-percent of consumers are buying vehicle history reports for used cars more frequently, partially in reaction to the number of vehicles that may have been damaged by flooding during hurricanes. Vehicle history reports also help consumers avoid various types of auto fraud, such as odometer fraud. About 30-percent of manufacturer franchise dealers provide vehicle history reports to customers at no additional cost. In addition, some car retailers, such as CarMax, offer vehicle history reports for their inventory at no charge to customers. Consumers can also purchase vehicle history reports online through companies like AutoCheck and Carfax.com.Used car Researching, selecting and purchasing used cars online
Consumers are increasingly researching, selecting and purchasing used vehicles online. Nearly a quarter of used-auto shoppers (22-percent) bought a vehicle found online, meaning that they selected the car online but then had to meet with the dealer or seller in person to finalize paperwork and pick up the car.Used cars Regulations
Used cars European Union
Used cars have a statutory warranty according to the system of laws of the European Union, the so-called "Liability for defects", which lasts for 12 months.Used Car Donation
Car donation is the practice of giving away no-longer-wanted automobiles to charity organizations. In the United States, charitable donations provide a tax benefit; as such, this type of giving has become very popular. For values less than $500, the value of the tax deduction comes from the donor's own estimate of the car's value, even if the charity receives less money from actually selling the car. Deductions for donations over this amount are limited to the sale amount of the vehicle (usually at auction). Some critics have claimed that this is essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread in the U.S.; in 2000, 733,000 taxpayers reduced their taxes by $654 million.Used Cheap Cars
Thousands of cars become government and bank property every day through various seizure and surplus laws. The constant influx of vehicles and the overwhelming expenses to store them, by law - means that the cars must be sold fast and cheap!This means amazing deals & guaranteed rock bottom prices for you! Bids starting as low as 90% off book value!
Buyers sometimes paying as little as $100 to $500 for Seized Cars, Trucks and SUV's. Buy direct from the sources and save considerably! Bids on new and used repossessed vehicles.
Used car lemon laws
Think your Car is a Lemon? Your State may agree, but maybe not to your liking. See how your State defines what a Lemon is and if your Car and its Repair History qualify.Nearly all State Lemon Law Statutes are similar to the Federal Magnuson-Moss Warranty Act which makes breach of warranty a violation of federal law. All States have enacted their own Warranty Acts and many States have enacted specific Statutes that pertain to Automobile Warranties. If your car is not considered a "lemon" in your State, you do have other recourses.
Used car financing
With prices averaging more than $20,000 for a new vehicle and $9,500 for a four-year-old vehicle, most consumers need financing or leasing to acquire a vehicle. In some cases, buyers use "direct lending:" they obtain a loan directly from a finance company, bank or credit union. In direct lending, a buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a period of time. Once a buyer and a vehicle dealership enter into a contract and the buyer agrees to a vehicle price, the buyer uses the loan proceeds from the direct lender to pay the dealership for the vehicle. Consumers also may arrange for a vehicle loan over the Internet.The most common type of vehicle financing, however, is "dealership financing." In this arrangement, a buyer and a dealership enter into a contract where the buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a period of time. The dealership may retain the contract, but usually sells it to an assignee (such as a bank, finance company or credit union), which services the account and collects the payments.
For the vehicle buyer, dealership financing offers:
1. Convenience - Dealers offer buyers vehicles and financing in one place.
2. Multiple financing relationships - The dealership's relationships with a variety of banks and finance companies mean they can offer buyers a range of financing options.
3. Special programs - From time to time, dealerships may offer manufacturer-sponsored, low-rate programs to buyers.
Used car loans
For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper. Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.It's simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.
"The intuitive logic has been that a used car buy is a better buy," said Edmunds CEO Jeremy Anwyl. "But consumers need to check reality. It's very contradictory."
Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.
Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5 percent, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.
For example, a $30,000 car with an annual percentage rate of 2.9 percent would cost $662.70 a month over four years. By comparison, a used car with an APR of 7 percent would cost $718.38, a total of $2,673 more over the same period.
Automakers like Ford Motor Co. are banking on the phenomenon to drive consumers back to new car showrooms.
"There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new," said Ken Czubay, Ford's sales and marketing vice president, when the company announced its February sales fell 48 percent from a year earlier. "This also portends, we believe, a favorable future for the new business."
Even with the best of terms, however, the monthly payments for a new car are out of some people's reach. That's why leasing became so popular. But many auto finance companies have stopped offering that option because it became unprofitable, and where it is available it may still be out of reach to many consumers.
That's the case with Tom Kostora and his wife, Melanie. They've leased trucks for more than 10 years, but were shopping for a used car this month after turning in their fifth Ford F-150 pickup.
"I want lower payments with my mortgage and tuition for my son's private preschool," the Ford plant worker said while browsing at Law Auto Sales in Wayne, Mich. "My job could be gone."
Zero-percent financing also can be hard to get without excellent credit, and it's unclear whether the Treasury Department's cash infusions to GMAC and Chrysler Financial have loosened lending. So despite great new car deals, consumer might be relegated to buying used.
"Banks may not finance a $30,000 car, but they may finance something less, say a $10,000 to $15,000 vehicle," said Zach Anderson, used car manager at Bob Maxey Ford in Detroit. "People are looking to buy less. They have the fear they won't get financing for a new car if they don't have perfect credit."
The make and model of the car also makes a big difference. Used cars from model lines that don't retain as much of their value — like big SUVs from U.S. brands — may be more appealing to people seeking cheap wheels than value-gripping choices like late-model fuel-sippers from Asian brands.
Sell A Used Car
1. Know the Market. Is your car going to be easy to sell? Will you have multiple offers? Is it a hot commodity? Or will you have to drop your price and search out additional ways to sell it? Your first step is to check other online car ads. Most sites, such as Edmunds.com Used Vehicle Locator and AutoTrader.com, allow you to search with specific criteria. For example, you can select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price.2. Price Your Car Competitively. Use Edmunds.com's "Appraise a Car" feature to set the True Market Value® price. This figure is adjusted for a number of factors including mileage, condition, options and the region in which the car is being sold. When you are done configuring the car, you can print out a "For Sale" sign to put in your car window. Be sure to leave a little wiggle room when setting your asking price by asking more than what you want to sell the car for.
3. Give Your Car Curb Appeal. Wash, wax and detail the car. Inspect it to make sure it is mechanically sound and free from dents, dings and scrapes. Shovel out all the junk from the inside of the car. Wipe the brake dust off the front wheels and clean the tires with a product such as Armor All. Thoroughly clean the windows (inside and out) and all the mirrored surfaces. Wipe down the dashboard and empty the ashtrays. Put your maintenance records in a neat folder ready to show interested parties. Have your mechanic check out your car and issue a report about its condition — this could motivate a buyer because you have to overcome one more objection they can present.
4. Create Ads that Sell. When creating your "For Sale" signs or putting an ad in the paper, you have an opportunity to communicate how eager you are to sell the car. "OBO" ("or best offer") indicates that you are willing to entertain offers below the stated price. "Asking price" communicates the feeling that you will negotiate. It means you are asking a certain price, but might accept a lower price. "Firm" is less common, but it can be used to rebuff attempts to negotiate. It indicates that you aren't in a hurry to sell the car — you are most interested in getting your price. Think about what you are telling people by the way you phrase your ad. Little words convey a lot.
5. Advertise Your Car. Traditionally, people advertised in newspaper classified ads but now online ads, such as the ones offered by Edmunds.com, are becoming more popular. However, you should also consider other ways of advertising such as posting a "For Sale" sign in the car window and telling all your friends your car is for sale. Creativity is required when it comes to advertising. Think of unusual places to put ads (skywriting is probably too expensive), and you will get results.
6. Showing Your Car. Bear in mind that when you sell your car, people will also be evaluating you. So, you should make a good impression, make buyers feel comfortable and answer their questions openly. Potential buyers will want to test-drive the car. Ride along with them so you can answer questions. Also, they may not know the area, so you might have to guide them along the test-drive route. Some buyers will want to take the car to a mechanic to have it inspected. If you have a report from your mechanic, this might put their doubts to rest. But, if they still want to take the car to their mechanic, this is a reasonable request.
7. Negotiate Your Best Price. If a person test-drives your car and likes it, you can expect them to make an offer. If their offer is well below your asking price, you will want to either hold firm with your asking price or make a lower counteroffer. Consider your answer carefully. Speak slowly and clearly to avoid misunderstandings. Keep the negotiations impersonal by focusing on reaching a win-win price. Give the negotiation process some thought ahead of time so you won't be caught unprepared when the time comes.
8. Handling Complications. In some cases, you might reach an agreement with a buyer that is contingent on performing repair work. This can lead to misunderstandings down the line, so avoid this, if you can. The best thing to do is have your car in good running order and know in detail about any repairs necessary. Remember, a used car — particularly an old one — isn't expected to be perfect. But it still might be useful.
9. Finalize the Deal. The laws governing the sale of motor vehicles vary from state to state. Check with the governing agency in your state, most of which is now available on the Web. When selling your car, it's important to limit your liability. If someone drives away in the car you just sold, and they get in an accident, you don't want to be held responsible. Once you have the money from the sale (it's customary to request a cashier's check or cash) sign the title over to the buyer or provide them with a bill of sale. Finally, remember to contact your insurance agent to cancel your policy on the vehicle you have sold (or transfer the coverage to your new car).
10. After the Sale. Occasionally, there are unexpected bumps in the sale process that arise. These will be handled easily if you are dealing with a reasonable person. So, as you are contacted by prospective buyers, use your intuition to evaluate them. If they seem difficult, pushy or even shady, wait for another buyer. With the right person, selling a used car should be simple and easy.
Certified used cars
The Internet manager of a Southern California Volkswagen dealership recently received an e-mail from a young woman shopping for a pre-owned Beetle. Her e-mail ended by saying, "VW Certified would be preferred."The young woman, like many smart shoppers, has realized that certified used cars present an attractive alternative to buying a higher priced new car. For less money, a buyer can afford "more car" — and one that feels brand-new, even if the odometer is showing 20,000 or 30,000 miles.
More importantly, the certification process has removed one of the major drawbacks to buying a used car: uncertainty about the mechanical condition of the vehicle. If you are buying a certified used car, it has already been thoroughly inspected by a mechanic. Anything that was wrong, or about to go wrong, has been repaired.
"When it's a certified car, the manufacturer has gone out of its way to sell used cars that meet high standards," said Steve Skinner, Internet manager for Capistrano Volkswagen, in San Juan Capistrano, Calif. "We are definitely giving the customer a chance to get a quality car at a lower price."
Certified used car programs began appearing in the mid-1990s as more vehicles were returned by customers leasing their vehicles. These cars were in good mechanical condition, usually with fewer than 40,000 miles on the odometer. The best of these vehicles were put on sale at the dealership where the car was returned; the rest were sent to auction where they were acquired and then sold at used car lots.
Gradually, dealerships realized they needed a way to move these perfectly good vehicles that were building up on their lots. They needed a way to draw attention to the cream puffs and set them in a special category. The term certified used cars was a way to draw attention to the primo vehicles they were offering.
As the popularity of these programs increased, other manufacturers started their own certified used car programs. Now, nearly all brands offer such a program.
Here's how a typical certified used car program works. When a vehicle is returned from a lease, or traded in on the purchase of a new car, the dealership evaluates its condition and considers it for the certified used car program. Taking VW as an example, the car has certain requirements to meet right off the top: The car must be five model years old or newer with fewer than 75,000 miles on the odometer, and it has to have been operated by the previous owner for at least 12 months.
If the car falls within those guidelines, then mechanics check it over carefully. "We look at a car and say, 'How much money will it take to put this in the certified line?'" Skinner said. "If the cost is too high, we don't sell it from our lot."
Volkswagen then does a 112-point inspection of all major systems. If any problems are found, they are repaired, with the goal of bringing the vehicle as close to "as new" condition as possible. The car is then sold with a limited 2-year/24,000-mile warranty that covers, among other things, the powertrain, electrical system and air conditioning. Finally, 24-hour roadside assistance is provided for two years to ensure added peace-of-mind.
Many other manufacturers have similar inspections with comparable warranties. Honda completes a 150-point inspection and offers a limited factory warranty of seven years or 100,000 miles on the powertrain and 12 months or 12,000 miles on non-powertrain components, plus any unused new-car warranty coverage. To find out more about what your favorite automaker offers, check its Web site. It is usually linked, by zip code, to local dealers. On the dealer Web sites, it's often possible to search the certified used car inventory.
However, the words certified used car can mean different things to different dealers. Be sure to familiarize yourself with what has been inspected during the certification process and what is covered by the warranty. In some cases, the term certified has very little value, other than being an advertising buzz word.
Key questions to ask when shopping are: Who is certifying this used car? Does the manufacturer guarantee it, or is it certified only by that particular dealership? Obviously, if a manufacturer stands behind a guarantee, it is that much more valuable. For one thing, the warranty will be honored at other service departments, an important factor if a person is traveling or if they move to another state.
Edmunds.com once included a certified used car in its long-term fleet: a 1999 VW Passat GLS that was purchased from Capistrano VW. Our experiences with the car are listed in more detail in our long-term reviews of the car. Our Passat performed well with one exception. It began overheating on the freeway. We babied it into the dealership where the problem was easily remedied. However, the editor who interacted with the service personnel wasn't aware that the car was under a certified used warranty. When the vehicle identification number (VIN) was punched into the computer, the warranty went undetected. Later, the editor alerted the dealership staff to the warranty, and the repair was done under warranty. Therefore, when having repairs done, it's important to always tell the service advisor the car has been certified.
The certified used car programs that are proliferating have opened up a new market for shoppers who want to save money, but who want to drive a near-new car, with a solid warranty. To find out the specific benefits of each program see our Certified Used Vehicle Programs story.
Used car warranty
"I think you have to automatically assume a 100 percent markup," says Phil Reed, consumer advice editor at Edmunds.com.Don't let anyone pressure you into signing on for an extended warranty before you're ready and you're sure you need one.
An extended warranty is actually an extended service contract, which covers the cost of certain repairs and problems after a car's factory warranty expires.
Check under the warranty hood
Before you consider an extended warranty, take a close look at your car's original warranty. How much coverage is left? One year? Two years? A thousand miles? Ten thousand miles?Many auto manufacturers now offer warranties above and beyond the once standard three-year or 36,000 miles protection.
New cars from Acura, BMW, Cadillac, Volvo, Saab, Mercedes, Lincoln, Lexus and Jaguar are sold with four-year or 50,000-mile warranties. Cars from Infiniti have four-year or 60,000-mile warranties.
Kia and Hyundai offer five-year or 60,000-mile warranties on new vehicles, plus 10-year/100,000 miles powertrain warranties, which cover engine and transmission repairs.
Many but not all factory warranties get transferred to used-car buyers at the time of purchase. So be sure to check.
"Most transfer in some form. Not all transfer 100 percent," Reed says.
Did you pay a little extra and buy a used vehicle that's been certified by the auto manufacturer? If so, you picked up some additional warranty protection on your used car, truck or SUV.
In the past few years, several major manufacturers including Honda, Lincoln, Ford, Mercury, Volkswagen, Volvo and Audi have pumped up the warranty protections on certified vehicles.
Most luxury brands offer two years of additional warranty to certified used-car buyers. Other programs tack on an additional warranty, say, 12 months/12,000 miles, after the new-car warranty expires.
Once you determine just how much warranty is left on your used vehicle, you'll need to think about how long you plan on keeping the car.
Do you really need it?
Let's say you plan to sell the car in four years and you have one year left on the car's original warranty.Do you shell out money for an extended service contract for those three years? Or do you stash the money in a savings account, opting to pay for any future repairs when and if they're needed?
"If you just save that money the odds are that you'll come out ahead," says John Nielsen, director of AAA's Approved Auto Repair Network.
But if you really hate surprise expenses and if the cost of replacing an electrical part or air conditioner or transmission would bust your monthly budget, an extended service contract might be right for you.
"There are a lot of people who don't like to deal with unexpected expenses," Reed says. "And they want to make sure everything fits in the monthly budget."
Another thing to consider is your car's reliability. On the one hand, cars are more reliable than ever. So car owners can expect fewer repairs. On the other hand, repair costs while infrequent could be quite high, thanks to the complex electronics and computer circuitry under the hood.
Try looking at an extended service contract as a bet. The customer is betting something big is going to go wrong with the car during the contract period. The company offering the contract is betting it won't.
The company often wins. For most people, the average repair claims against a $1,000 extended service contract come to about $150, according to Edmunds.com.
Manufacturer vs. aftermarket
There are two key types of extended warranties -- those backed by the car's manufacturer and those offered by independent companies, also known as aftermarket warranties.An extended service contract backed by an auto manufacturer encompasses a wide range of repairs and services. The repairs can be done at any authorized dealership and tend to be approved without a hitch.
An extended warranty from an independent company could cost half as much as an extended service contract from a manufacturer. But the quality of this kind of contract varies widely from company to company. So shop carefully.
Not sure what to look for on an extended service contract? These tips from Bankrate.com can help.
Before selling you a service contract, some companies ask that the car be inspected by a mechanic. And some extended service contracts require used car owners to wait 30 days or 1,000 miles before filing repair claims.
And keep in mind the higher the mileage on your car, the tougher it will be to find a good extended service contract. Most extended warranties end when the odometer on a car reads 100,000 miles. Someone with a high-mileage used car might want to pass on a service contract altogether.
If you think you can get the money you invested in a service contract back when you sell the car -- think again.
Many extended warranty contracts cancel once you sell the car. Other contracts may be transferred over to the new car owner, but often for a fee.
Finding the best deal
To get a good deal on an extended service contract, you'll have to shop around.Call three auto dealers and you're likely to get three very different prices for the same extended warranty contract.
"Consumers should really shop hard," Nielsen says. "There's a wide swing in prices."
Prices vary on aftermarket warranties as well. A good source for an aftermarket warranty is your local credit union.
With an aftermarket warranty, you may have to pay for the repair upfront and then wait to be reimbursed by the company, which could take weeks. Be sure to ask about the reimbursement process before signing on for an aftermarket warranty.
Some dealers may try to sell you a dealer warranty instead of a manufacturer's warranty. Often with a dealer warranty, all the repairs and services on the car have to be done at a single dealership, theirs. So if you have car problems while traveling out of town, you may be out of luck. It's best to steer clear of dealer warranties.
Be leery of unsolicited extended warranty offers that arrive by mail or e-mail. Only do business with a company you know and trust. You'll want to be especially cautious when choosing a warranty from a company over the Web.
"Be careful who you do business with," Nielsen says. "If they go out of business tomorrow, they've got your money and you've got nothing."
Used Car Buyers
Find out how to check car history using the VIN number to check for previous accidents or rolled back mileage and what to look for when buying a used car. Check our illustrated guide How to check a used car prior purchase. Have no clue about cars? - no problem, there are many easy-to-understand illustrations and Illustrated Auto Glossary.Check illustrated advice how to check an engine, transmission, car body for previous accidents, etc. This information will help you to negotiate with the salesperson - they take anyone who knows what he or she is looking for more seriously. You can print the used car buyer's checklist and take it with you when looking for a car. Worried about unexpected repairs? Check if an extended warranty is right for you. Find a link to your local Department of Motor Vehicle (DMV) website.
Used car inspection
Imagine, you are shopping for a used car. You enter the dealership and see that nice-looking car. You love it from a first sight. Meanwhile, the salesperson hanging around and telling you that regular story that, the car was lady driven and the engine works like a clock, and this is only "Today special" - "We need to clean inventory!", and you are so lucky because they are selling it very cheap - "We even lose money on this deal!" and that you have to give a deposit right now or else you will regret about it for the rest of your life! - Sounds familiar so far?You decided - "deal!" - shaking hands, you're happy, salesperson is happy. Finally, you got your new wheels.
Few weeks later you notice blue smoke when you're starting the car in the morning. Few months later you discover that there is no oil left in the engine and finally got your car towed to the garage. "The engine is gone - has to be rebuilt" they diagnose.
In fact it's quite common scenario.
This article will give you an idea an may help you to avoid such a troubles buying a used car.
However, it's always good idea to have the vehicle inspected by a specialist prior purchase. This is what I'd recommend to any used car buyer.
Selling used cars
First, you need to understand that the Dealer's "impression" of your car is going to have a significant influence on the price you get for it. You see, most Dealers do not have the time to put your vehicle through an extensive mechanical check while you are waiting. Instead, they want to get back and close the deal with you.So, they'll look it over as carefully as they can do fairly quickly, and of course, they'll drive it as well. Their primary objective is to make sure that the vehicle does not have any "major" problems.
The Numbers Game:
They'll then come up with a number based on similar vehicles sold recently at Dealer Auctions and cut that a bit to cover themselves in case they find a somehat significant problem later (or several minor ones). And unfortunately, many will offer you a lower price simply to see how informed you are and to test what they can get away with.The purpose of this article is not, however, to deal with various Dealer tactics and what you should do in preparation for them (see the articles referenced at the bottom of this page for this). What I'm focusing on here are the ways to "impress" the Dealer with your product so that you are maximizing their trust in your vehicle and increasing its value to them.
Think Like A "Seller":
To get the most for your trade-in, right off the bat you need to change your mindset. You need to think in terms of being a "seller". The Dealership is selling a car to you. And in return, you are selling a car to them.Okay? You're not just a car buyer. You are "selling" your car as well.
I've always been surprised by how dirty people's trade-ins are. And not just dirty outside, but extremely messy and cluttered inside as well and with trunks loaded with items from years gone by, including empty oil containers and various car parts.
I think many people feel it's best to bring in something that's dirty and messy so they can say they weren't planning to make a car purchase. I believe they think they are conveying the message that since they weren't planning on buying today, that they better be getting a great deal. On numerous occasions, I've even seen this strategy passed around as advice on the internet.
Well, it's not a very good approach and it's not very good advice. First of all, Dealers are quite clever and are fully aware of this tactic. Remember, they sell cars every day and have seen it all over and over again.
Secondly, and more important, a dirty, smelly, neglected looking car makes the Dealer think it's very likely the owners didn't take very good care of it or have in maintained regularly. This isn't good for the price they'll likely offer.
Instead, you want the vehicle you're trading-in to get the same positive response from the Dealer that the Dealer's car had on you. Now perhaps this isn't always possible because you may be trading in a real clunker. Well, all the more reason to put it in its best light.
Surprise, Surprise ... Wash The Darn Car!:
You may even want to have it detailed. You want the vehicle to be washed and waxed. You should shampoo the carpet and floor mats. And you defintely want to use odor neutralizers or ionizers. This is especially true for a smoker's car.We all know how important "first impression" is. A shiny and clean car immediately strikes the Dealer as a nice surprise and he'll begin to entertain the idea that you actually cared about the car ... a strong indication that you likely maintained the car properly as well.
Empty Your Trunk And Glove Compartment:
Again, neatness sends just the right message. Get everything out of the trunk and vacuum it. If there are any stains, shampoo it.The glove compartment should be neat and tidy (also the center console compartment if you have one ... okay, you can keep some neatly placed CDs there). All you want in the glove box is a neat pile (or a sealed plastic baggie is even better) including the Owner's Manual, your registration and any other vehicle related documents.
If you've had work done on the car, include those maintenance records as well. If you have any small care products, such as touch-up paint or leather cleaner or conditioner (another good sign for a Dealer), they should be kept here as well.
Gain More Than You Spend:
After the Dealer has assured himself that your car doesn't have any major problems and seems to be in decent shape, he'll look for signs to indicate if you're the type of person that has been having it properly maintained. He'll look for small things such as uneven wear on the tires (neglecting a possible balancing or alignment job) or oil that is dirty and overdue for a change.So, put on new wiper blades, top off fluids, change the oil and air filter if needed, check the tires and even have a tune-up done. The Dealer is going to notice these things. This will increase your credibility as being someone who takes care of their car and, by now, the respect factor from the Dealer is definitely on the rise.
You're doing great so far. Now it's time to top it off.
Point Out Something Wrong:
Yup. Tell the Dealer about a minor problem. It might be a few scratches on the side of the car. It might be a burnt out interior light bulb. It might be a loose screw holding the fender ... or slightly corroded battery cables... or whatever. Find something minor and point it out.Again, this is building up your credibility and the Dealer is thinking, "Geez, if this is all he's worried about, I bet this car is in good condition".
However, if you do have some sort of major problem, disclose it upfront. The Dealer's going to find it anyway. And because there's been so many other positives about the trade-in, and you've already won lots of credibility and respect points, it's less likely the Dealer will kill you for it price-wise, and will simply deduct his cost of the repair (less than what you'd pay).
Planning Ahead:
All of the above are steps you can take right now to increase your vehicle's value. However, there's an easier overall approach ... take good care of your vehicle from the moment you purchase it and keep all of the records.Realize that one day you are going to trade it in or sell it and simply follow its recommended maintenance schedule. I don't think anything impresses a Dealer more when an owner has done all the above, and then puts the icing on the cake by saying, "Oh, I've got all the manitenance records since I owned it in the glove compartment".
By doing these things, you'll be far ahead of the typical trade-in customer. By adopting the mindset of a "seller" and preparing your vehicle to look and drive its best, you'll be adding to its value. The closer a vehicle is to being "lot ready", the more value it has to the Dealer.
