HOW TO BUY A USED CAR

Autosource Unlimited, LLC

INTRODUCTION

This scaled down lesson incorporates learning goals, foundation data, examination addresses, an action, and wellsprings of extra data.

OBJECTIVES

Learners will:

• Examine the favorable circumstances and impediments of utilized vehicles.

• Depict places where utilized vehicles can be bought.

• List the progressions in the value transaction process.

USED CARS

Practically two out of each three autos sold are utilized autos. Numerous shoppers, particularly adolescents, can't stand to purchase another auto when the normal cost is roughly $18,000. The expense of protection is much higher for another auto, expanding the interest for utilized autos.

The supply of utilized autos has expanded because of the quantity of two and three-year-old lease autos accessible.

Advantages of Used Cars

There are genuine focal points to purchasing an utilized auto. The purchaser of an utilized auto keeps away from a portion of the devaluation costs, which can be up to 40% of its worth in the initial two years. Now and then, purchasers can bear the cost of more alternatives and extravagance things when they buy an utilized auto. Numerous shoppers feel that they can organize a superior manage less bother on the off chance that they purchase straightforwardly from the proprietor of the auto.

Disadvantages of Used Cars

Purchasing an utilized auto can have disservices also. One essential hindrance is that frequently the most upkeep extra time of the autos life is amid the initial two years. Some utilized autos have genuine concealed deformities with restricted or no guarantee scope. It is once in a while hard to figure out if the auto was kept up appropriately by its past proprietor. The utilized auto might not have all the alluring security or specialized components of another auto, and the choice of models, gear, and hues may be restricted.

Where To Buy A Used Car

Purchasing an utilized auto is a vital money related choice. By and large, the cost of an utilized auto is dictated by who is offering it. In this way, it is shrewd to assemble data before you purchase, for example, recognizing what you can manage, then painstakingly investigating money related plans as you arrange the best arrangement.

Dealerships

Purchasing an utilized auto is a vital money related choice. By and large, the cost of an utilized auto is dictated by who is offering it. In this way, it is shrewd to assemble data before you purchase, for example, recognizing what you can manage, then painstakingly investigating money related plans as you arrange the best arrangement.

Used Car Rule

The Federal Trade Commission's Used Car Rule obliges merchants to show noticeably and prominently a guarantee notification called a Buyer's Guide sticker on every single utilized auto (however not trucks).

The Buyer's Guide must state whether the vehicle has a guarantee or is being sold "as is ."

Superstores

Utilized Car Superstores are a late improvement. They more often than not have a huge supply of autos and purchasers have admittance to PC helped determination. Two and three-year-old models prevail and auto costs are settled and not debatable. To start the determination process, you utilize a work station to raise vehicles by make, model, and cost. The PC will print a photo of any auto and rundown its hardware, value, and part area. The vehicles convey vender guarantees which shift in quality from liberal to normal.

Superstore Disadvantages

Downsides of Superstores are that the sales representatives may be moderately ignorant, they can't give data about past auto proprietors, and the costs are typically not debatable and are by and large higher.

Independent Lots

Free Lots offer an assortment of autos, from astounding and costly to well-worn clunkers. Generally, auto parts have no administration offices, yet they may work with a nearby carport. On the off chance that they offer guarantees, the nearby repairman will perform guarantee repairs. Autonomous parcels frequently offer financing and there can be solid weight to fund the auto through them. Their fund rates are typically higher than at banks or credit unions.

Rental Agencies

Rental Agencies offer rental autos available to be purchased to the general population following a year or two of utilization. These late model autos frequently convey the equalization of the makers guarantee and administration records are for the most part accessible.

To purchase from a rental office, purchasers need to orchestrate their own financing and no exchange ins are acknowledged.

Reputation

So as to take in the notoriety of an utilized auto part or dealership, purchasers can telephone nearby customer assurance workplaces or the Better Business Bureau to ask about grievances against the business.

Private Sales

Private Sales are frequently great purchases, yet be careful when purchasing from a person. Whenever possible, purchasers ought to manage a vender they know and trust. Venders are frequently individuals who have not possessed the capacity to get the value they need for their auto as an exchange. There is little weight to purchase and repair records may be accessible. Be that as it may, these utilized vehicles are sold "as is " with no guarantee. Late model autos may at present have a makers guarantee that you can buy for an exchange charge. The deal may be hazardous on the grounds that stolen autos with fraud titles can be sold thus can autos going to be repossessed. Likewise, there can be hidden harm or significant repair issues.

BEFORE YOU NEGTIATE

Visit the dealership, superstore, auto parcel. on the other hand other source. At the point when purchasing from a private individual, adjust the accompanying strides to that kind of offer. Take a scratch pad and adding machine. Be arranged to invest energy.

Meet the salesman or merchant and record his or her name. Search for the models you are most intrigued by. On the off chance that asked the amount you might want to spend, say, "it relies on upon the auto." Do not be reluctant to say that you are searching for autos at different spots.

Information to Get

Discover maybe a couple models and assess them. On your scratch pad, recognize the auto, the year, the value, choices, trim line, mileage, and vehicle distinguishing proof number (VIN). Demand the name and telephone number of the past proprietor from the title. Request that see the title, then match the VIN with that on the auto and note the name and telephone number of the past proprietor.

Test Drive

Test drive maybe a couple vehicles. On the off chance that you are keen on a specific auto, inquire as to whether you can take the auto to your workman for an assessment. Additionally, inspect the autos guarantee. Check the execution, security and administration records for the auto.

Web Sites to Check

On the Internet, you can obtain price information from Edmund's New and Used Car Prices and Reviews, at http://www.edmund.com and from the Kelley Blue Book http://www.kbb.com. Also the NADA Official Used Car Guide: http://www.discount-books.de/nada-blue-book/ gives information about the prices of used cars.

More Facts

These resources are available at your local public library. You can check if a used car has had a safety recall by calling the National Highway Traffic Safety Administration's Auto Safety Hotline at (800) 424-9393 or on the Internet at http://www.dot.gov/affairs/nhtsain.htm.

Before You Buy

At home, phone the previous owner. Ask for the mileage reading at the time of trade-in. It should be consistent with the present reading. Contact your financing sources, request price information about specific cars and confirm loan availability. Also, get an estimate of your insurance costs from at least two insurance sellers.

Review Information

Review your information and estimate the wholesale and retail price for the car you wish to purchase, based on the following information:

price information from a current used-car price guide or from financing sources

the cars condition, checked by you

prices of similar vehicles, from advertisements

reasonable seller markup to cover overhead and profit

Have Mechanic Check Car

Return to the seller and make arrangements to take the car to your mechanic. You may be asked to leave your car at the lot as security. Once you receive the mechanic's dollar estimate of needed repairs, either subtract that amount from your maximum offer or use it as a negotiating tool.

THE NEGOTIATING PROCESS

Negotiation is the process of discussing the price and terms of a used car, eventually arriving at an agreement between the buyer and seller. Any well-informed buyer can negotiate a fair deal using the following steps.

Make an offer. It should be 15% to 20% below the maximum amount you would pay for room to bargain. You may be asked about a trade-in or be urged to sign up for dealer financing. To both questions, say you are undecided. Your goal at this point is to get agreement on the car price.

Your first offer will likely be rejected. Your second offer should not split the difference between your first offer and the seller's counter offer. It should split the difference between your first offer and the maximum amount you will spend. You can use the cost estimates of repairs supplied by your mechanic to help negotiations.

More Facts

If You Can’t Negotiate

Making an offer at used car Superstore with no-haggle prices requires different strategy. If you cannot negotiate on price, consider other aspects of the sale, such as more attractive financing, a higher trade-in price, a longer or a more inclusive warranty.

Price Standoff

If you reach a price standoff, take another look at the car. Using the Buyers Inspection Checklist, you may notice problems you overlooked previously. At this point, do not agree to a deposit since you have no contract, only your offer. A deposit may give the seller the leisure to negotiate a higher price. Some buyers make several offers and counter-offers, negotiating for better warranty coverage or additional equipment. They may give up $50 to $l00, but they expect something in return. Be sure to write down any promises made by the salesperson.

Last Offer

Your last offer should be close to the maximum amount you would pay for the car. Be ready to justify your offer as reasonable and fair by showing how you arrived at it. Make it clear that this offer is final. If the dealership rejects it, be prepared to walk away. The salesperson may catch you in the parking lot or phone you the next day.

Low-balled

If the salesperson accepts an early offer but then says that the sales manager will not approve the deal, it is likely that you are being low-balled. That is, a low offer is initially accepted by the salesperson who knows it will be rejected so that a higher price can be reached in further negotiations. If that happens, leave, because low-balling is a form of dishonesty.

Your Deal

If the seller accepts your offer, you have a deal. The salesperson will then prepare a Buyer’s Order or Purchase Agreement to be signed by you. Insist on a readable document, not a first draft. A preprinted form or computer-generated form may automatically charge you for things you have already refused; so examine the contract before you sign.

Before You Sign• Check the purchase agreement for arithmetic

errors, mistaken prices, extra charges, omissions, and blank spaces.

• Be sure that the information on the purchase agreement is consistent with the information in your notes.

• Get all verbal promises in writing.

There is no three-day cooling off period for auto contracts so do not sign any automobile contract without understanding it. Your signature is legally binding.

SUMMARY OF TIPS• Check out the car's repair record, maintenance

costs, and safety and mileage ratings in consumer magazines or online. Look up the "blue book" value and be prepared to negotiate the price.

• Buying from a dealer? Look for the Buyers Guide. It's required by a federal regulation called the Used Car Rule.

• Make sure all oral promises are written into the Buyers Guide.

• You have the right to see a copy of the dealer’s warranty before you buy.

Summary of Tips

• Warranties are included in the price of the product; service contracts cost extra and are sold separately.

• Ask for the car's maintenance record from the owner, dealer, or repair shop.

• Test drive the car on hills, highways, and in stop-and-go traffic.

• Have the car inspected by a mechanic you hire.

• Check out the dealer with local consumer protection officials.

• If you buy a car "as is," you'll have to pay for anything that goes wrong after the sale.

• The Used Car Rule generally doesn't apply to private sales.

Summary of Tips

In Writing

Sellers of used cars have set a price that allows room for bargaining. However, buyers do not always think about having all verbal promises and guarantees in writing. Unless promises are in writing and signed by the seller, they are legally unenforceable. So if the seller will not put everything in writing, your best option is to shop for a better deal elsewhere.

DISCUSSION QUESTIONS

1. Discuss the advantages and disadvantages of used cars for teenagers as a "first car."

2. How does depreciation affect the price of a car?

3. How can you estimate the wholesale and retail prices of used cars?

4. What are the disadvantages of buying a used car from a private seller?

5. List the major steps in the negotiation process.

ACTIVITY

Shop for a used car using the Negotiation Process and Buyers Inspection Checklist included in this mini-lesson. Compare each used car source. Justify your choice of a used car and the used car source.

List the following used car sources:• Dealerships• Independent Used Car Lots• Rental Agencies• Private Sales

Activity

Then use advertisements to identify local businesses that could be included under each source. List the advantages and disadvantages of using each source.