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Shopping for a vehicle -
Most people have an idea of the type of vehicle they want. Narrowing the possibilities
starts with deciding what you can afford. You can get an idea of what
you will pay for a specific vehicle by using price guides, checking the
Internet or looking through advertisements. Keep in mind that the advertised
price of a vehicle and the actual selling price of that vehicle may be
two different things. With all of the makes, models, colors and option
packages available finding the vehicle you want can be mind boggling.
Generally speaking, the more specific you are the longer it will take
you to find choices and the more choices you have the more you can compare,
which is a good thing.
Places
to buy-
Buying
from an individual-
The first question to ask yourself is, “Why is the individual selling
the vehicle?” Almost any dealer would buy this vehicle for a reasonable
wholesale price if it were a nice vehicle. That means that the individual
might not be willing to sell for a reasonable price or it might not be
a nice vehicle. You have to make sure that neither is the case. Also,
make sure that you are comfortable with not having an established business
to return to if a problem arises.
Buying
services-
Buying
services are usually an unnecessary expense. They have no incentive to
find a car at the best price because they work for a fee and usually have
relationships with certain dealers that will also pay them a fee for bringing
them a customer. Many will offer to buy a vehicle directly at an auction
for you. This is not a good idea. It is particularly important to be selective
at an auction because many vehicles are there to be "dumped".
Also, auctioneers can run up the price of a vehicle even if they don’t
have a real bidder. Again, anyone working for a fee is not concerned with
finding a nice car or paying a fair price for it. Just because a vehicle
comes from an auction does not mean it is a good deal.
Buying from a dealer-
Buying
from a dealer will give you the biggest selection and a place to return
if there is a problem. New car dealerships have the nicest facilities
but this doesn’t mean that they have the nicest vehicles and certainly
doesn’t mean they will give you the best deal. Actually, they usually
have to hold out for higher profits on their vehicles
because of higher overhead. The important thing to find is a dealer that
takes pride in the vehicles it puts on its lot and one that cares about
its reputation. This means that the dealer is making an effort to sell
clean vehicles and intends to take care of its customers. Look at the
vehicles on the lot to see if they are clean and ask others about their
experiences at various dealerships.
One-price
dealerships might save you some hassle but Automotive News reports that
these dealerships usually will make an 18% greater profit than a dealership
that is willing to negotiate. However, they are still a good source for
comparison.
Not
all cars are created equal -
Once
you have found a vehicle that fits the profile you desire based on year,
make, model, price etc. the next step is to evaluate the vehicle, first
for condition and then for value. This is the most important thing to
remember, the condition of the vehicle is relative to the price for that
particular vehicle. Many consumers get so caught up with “getting
a deal” that they neglect to adequately evaluate what it is they
are buying.
Obviously, a vehicle that is in excellent condition is worth a lot more
than the same vehicle in rough condition. This is why you cannot compare
similar makes and models just by price.
Have
the vehicle evaluated-
The
best action you can take is to have the prospective vehicle looked at
by a mechanic. By doing this you know exactly what you’re buying
and therefore what you should pay. A mechanic should tell you: 1) If the
vehicle is in proper working condition, which indicates a lot about how
it has been maintained and 2) If the vehicle has had any paint work. Vehicles
that are more than a few years old will probably have some issues. It
is up to you and your mechanic to evaluate these issues in this pre-purchase
inspection. Cosmetic blemishes, minor mechanical problems such as power
motors or wear items such as tires or belts should not be a reason to
turn the car down. However, they should be considered in your appraisal
and should be a factor in determining the final sales price. Any vehicle
that needs extensive repairs should not be purchased. A neglected vehicle
will continue to have problems for the rest of its days. Paint work is
another issue. A single painted body panel probably means a scratch or
a small dent has been repaired and as long as it was repaired properly
shouldn't be a problem. A vehicle that has more than a few panels painted
has probably had some extensive damage and should be carefully evaluated
or eliminated from consideration. Again, a good mechanic should be able
to evaluate any issue for you.
Buying
a vehicle that has some factory warranty left will allow some assurance.
Also, extended warranties should be available through the dealer. An extended
warranty is similar to buying insurance. To many people it is worth the
piece of mind.
At
TMC we have confidence in the vehicles we sell. We will pay the cost to
have any of our vehicles checked out by a mechanic of your choice. Most
of our vehicles are still under factory warranty and extended warranties
are available.
Determining
the value of a vehicle
-
There is a lot of information out there: Consumer Reports, Blue Book,
Black Book, the N.A.D.A. Book and the Internet. Any of these sources will
give you a ballpark idea of what a vehicle is worth. First it is important
to appraise the correct vehicle. Missing an option package alone might
be a two thousand dollar swing. Almost as important is to categorize the
vehicle correctly. What is rough? What is clean? This is a very subjective
matter. Considerations are mileage, tires, interior and exterior condition
as well as how well the vehicle has been maintained. Desirability is also
a factor. Don’t expect a bargain if the vehicle that you are trying
to buy is highly desirable. There is no one source that will absolutely
tell you what a used vehicle is worth. Using different sources and shopping
are the only ways to get an accurate idea. Also, it is important to know
that a dealer is not in the business to lose money as some hype might
suggest. The dealer is entitled to a profit. It is your job to make sure
that the price is fair.
Negotiating-
There
is a lot of advice out on how to negotiate. The bottom line is just to
figure out what a fair price is for the vehicle that you are considering
and pay that amount. How much the dealer might be making (or losing as
some may want you to believe) is irrelevant. A fair price is a fair price.
Other
things to consider could be reputation of vehicle, buying vs. leasing,
insurance, depreciation and to trade or not to trade.
Below
are some links to help you with some other questions you may have in buying
a vehicle.
Buying
versus Leasing
About
Depreciation
To
Trade or Not To Trade
Using
Price Guides
The
Wholesale Market
About
Dealer Hype
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Inventory