Why are Private Party Cars sometimes less expensive than Dealer cars?
A good Used Car Dealer will pay what they need to in order to acquire
the right vehicles. No two used cars are alike and in order to get the
better cars, dealers pay more while negotiating for them. Since they
then run the car through their shop to determine quality and safety
assurances this also adds costs which affect the price.
With a consumer you may be able to save some money as opposed to a
dealer if the person really needs to sell their car which should make them
more motivated. A dealer doesn't have to worry about the next payment
due like a private party seller and they will sometimes hold out for a
higher price if the car is rare or of superior quality.
Negotiating with a Private Party: Deal--or No Deal?
Example: Let's say you're interested in buying a used car with a
private party sticker price of 2,50,000. If the seller sees that you're a
serious buyer, then he may drop the price down to 2,40,000. Let's then
assume you offered him ,2,25,000 in cash. He's more than likely to take
the deal.
Buyers might also run across steadfast sellers that won't budge from
their asking price. In these situations, it's usually best to let some
time pass before revisiting with a counter-offer. Consider paying their
price only if you're fixated with the vehicle.
Example: Let's say you're interested in the same buying a used car with
a private party sticker price of 2,50,000. You make him a reasonable
offer and the seller sees you're highly interested in buying. HE might
use that as a bargaining chip in his own favor, and tell you that he has
another offer on the vehicle that beats your offer.
The key is to start low and find a middle ground. If you lay all your
cards out on the table too early, you'll get taken for a ride - and not
a pleasant one - in your new car! Once you've wrangled yourself a final
price, make sure your seller completes all necessary paperwork in a
timely fashion.
Negotiating with the Dealer
Needless to say, auto dealers have been around the negotiating block
quite a few times. You may have a different experience in dealing with a
dealer than you would if you were to deal with a private party, but
both have the same goal: selling you the car and making themselves the
biggest profit.
When you make the dealer an offer, let them know that you are a serious
buyer and you are ready to buy if the offer is appropriate. You should
adhere to the following guidelines:
- Make an opening offer that is low, but in the ballpark.
- Only enter into negotiations with a salesperson you feel comfortable
negotiating with.
- Be prepared to spend an hour or more negotiating.
- Don't be distracted by the salesperson or manager with attempts to
- focus on anything but the price until you have set and agreed to that.
- Expect a closer to try to improve the deal before you reach a final
price.
- Decide ahead of time how high you will go for that specific vehicle,
and walk out when you reach this price.
- Leave the dealership if you get tired or hungry -- don't be hurried
into a decision.
How to visibly inspect used vehicles
For starters, walk around the vehicle looking closely at the lines of
the vehicle. Check to ensure spacing between body panels is the same and
that the paint matches evenly. These are tell-tale signs of an
accident. Next, open all the doors, hood, and trunk. Look on the inside of the
door panels, inside the trunk, and down inside the engine compartment
for paint lines, replaced parts, or overspray from painting. These are
also signs of an accident.
While in the driver's seat, start and stop the engine more than once
with the ignition key. Listen for any rough starting, rough idling,
vibrations, other unusual noises or run-on after the engine is turned off.
Anything out of the ordinary should be documented. If you live in an
area that has varying climates during the day, ensure you try this during
the most extreme time frame of the day. Once a list of symptoms is
compiled, give it to your trusted mechanic.
Slowly move the car and apply the brakes, listen for noise. You can
also visually inspect the brakes and rotors to see if repairs may be
needed. Inspect the tires to ensure tread depth and no visible signs of wear
and tear or dry rot.
Lastly, drive the car at slow and fast speeds, ensuring you make turns
to the left and right as you listen for abnormal noises.
If the radio is on, turn it off... If the person showing you the car
turns it on to show you that, again, turn it off and check that
separately when you are not testing the reliability of the vehicle.
Once you've assessed the pros and cons of the vehicle and see if it's
worth investing your time and effort into. If repair costs outweigh the
bargain price being offered, don't invest.
What mileage is considered OK for a used car?
Assuming the vehicle has been serviced well at the required intervals,
a car can usually run well into the 100's of thousand on kilometers.
The more miles on the vehicle, the less it will be worth, but that
doesn't mean it is a bad car.
Typically a good rule of thumb is 12,000-15,000 kilometers per year
driven is normal. Be careful that you compare this to the in service date,
or date when purchased. Many cars now are released well ahead of the
calendar year change, however have the new year as the age. You very
well could buy a current year model that was released in the previous
year.
Anything under 12k per year usually adds to the value of the vehicle
and over 15k detracts. If your buying a high mileage car make sure you
get the car inspected by a mechanic or it comes with a warranty. Lastly,
don't fall for the myth that they are all "highway" miles, while city
driving is harder than highway driving on a car, you have no way of
knowing how the previous owner drove that car on the highway.
How old is too old?
If you buy a used vehicle, be cautious of the fact that certain gears
and mechanisms may not run like new. This may cause added expenses down
the road; but isn't it better to know what to expect now rather than
being caught off-guard later? You can refurbish the insides, you can
repaint the outsides; but know that you're still dealing with "used goods."
A general rule of thumb is to consider cars and trucks no more than ten
to twelve years old. No matter what the bargain price now, you'll
inevitably have to fork over more money in the future on repairs. Most used
car shoppers look for vehicles between three and five years old,
because they'll have a vehicle with only minor wear-and-tear, enough to
enjoy a few trouble-free years. Also, the price has been significantly
reduced, enough so that they'd consider buying a used version of that
vehicle rather than a brand new model.
Should you buy a used vehicle in "as-is" condition?
If Should you buy a used vehicle in "as-is" condition?
you have inspected the car thoroughly and are sure it is up to par
it is ok to buy an as-is car as long as you are getting a price that
takes the risk into consideration. In other words, you pay for what you
get.
It is ok to assume some moderate risk if the price is attractive, but
remember what you parents told you "If it sounds to good to be true, it
very well may be".
Just do your homework and don't buy on impulse.
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