With the price of a new car getting higher and higher each year, many buyers choose to buy used cars instead. The price of a new car can easily equal a year’s pay for many people, so buying a used car makes sense. But there are risks associated with buying a pre-owned vehicle. What if is defective? What if it is a lemon law buyback? Once should always be a bit suspicious of a used vehicle. After all, if it is a great buy, then why did the original owner choose to part with it?
To resolve some of these issues, as well as to compete with volume dealers of used cars such as Carmax, the major auto manufacturers have introduced the concept of a “certified used car.” These cars are inspected for problems, repaired if necessary, and offered for sale with a warranty that is better than the one typically offered with sales of used cars. In exchange for this added peace of mind, the buyer pays a higher price than he or she otherwise might.
This program is good for dealers, who find the cars easier to sell, and for the manufacturers, who get a fee from the dealers in exchange for certifying the vehicles. The problem for the consumer is that there are cars being sold as certified used cars that may not really be certified. Worse, some of these cars have problems that are so severe that they possibly shouldn’t be sold at all.
Some states have rigid laws that prevent cars with certain types of damage, such as from fire, flood, or a severe accident, from being sold within that state under any circumstances. And yet there are reports of such vehicles having been transported to neighboring states, where their titles can be “laundered.” Some of these cars have then been sold as certified used cars.
There are several lawsuits pending in California over the sale of such cars, and the problem will continue to exist as long as there is no national standard regarding the sale of used cars. Does this mean that buyers should steer clear of certified used cars? Of course not. What it does mean is that buyers should exercise caution when they shop for a used vehicle, whether it is certified or not. And that is just plain common sense.
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Is it time for a new car? Depending on where youre located, it may be possible for you to save a substantial amount of time and money by researching and buying your new car online. Buying cars online is becoming just as normal as buying household items online. The internet is truly expanding to make it easier and cheaper for dealers to sell and buyers to buy.
Dealers love the concept; they get more visitors than the average walk in neighborhood dealership and dont necessarily have 8 car sales people sitting around reading the paper. Their overhead drops significantly while the sales and profits soar through the roof. Consumers are starting to get more comfortable with it because a high percentage of car shoppers hate the car dealership experience. But online they can get the answers many of us are afraid to ask when were sitting in front of a pushy car salesman.
In some countries such as the United Kingdom, an increasing number of people are choosing to cut out shady dealerships and buy their new auto on the internet. Now you have the luxury to shop online and take your time understanding what vehicle and what price you want. As long as you choose a reputable source, its possible to save a substantial chunk of money by purchasing your new car online.
Remember, when you buy online you cannot test out the car youre interested in..so only choose to buy online once youve driven the car (try it out at a dealership first). Even when buying online you should still do your homework and know the car you’re getting and the price it’s worth. Learn about the car you like before a dealer decides what they want you to buy, which is the car that makes them more commission, keep the ball in your court.
Use price guides such as Edmunds or Kelley Blue Book to find out the true value of the car youre buying. This will make sure youre not paying more then normal prices for your new or used car. A little homework will give you some confidence and most probably save you some cash.
Many online sites for car purchases work by local dealers offering you free price quotes (these can often be negotiated downwards). These sites are growing larger by the month and are being considered more and more by consumers in North America. Popular sites like Auto Trader which we took as a manual search from their catalogues at the store are now really building their online presence. Other sites like CarsDirect.com, CarMax.com and CarPrice.com are also starting to see sales rise.
Some sites will even offer a lowest price guarantee – so if you do find the car for less, theyll match the price. Additionally, some online car buying sites will even drive the car directly to your home. If you’re in the market for a new car and really don’t like the whole dealership experience, this just might be what you’re looking for.
Serious ease and convenience not to mention you can save thousands of dollars this way. But best of all, no hard sell.
Tags: Amount Of Time, Buying Cars, Car Dealership, Car Sales, Car Salesman, Car Shoppers, Confidence, Dealership Experience, Edmunds, Homework, Household Items, Kelley Blue Book, New Auto, New Car, New Cars, Profits, Reputable Source, Substantial Chunk, Time And Money, True ValueRelated posts
A passion for latest gadgetry and new cars is inbuilt in a lot of people, and buying a luxurious car is a dream comes true for the most. However, new car buying strategy requires some amount of planning and research. Before buying a car it is important to check out its reviews from a reliable source, which may be done online too. In fact a convenient way to purchase a car, other than doing it directly from the brand dealers and showrooms, is to buy it online. Here you can take a look at the invoice and also compare prices in a fast and easy manner.
Starting out to buy car online, should be preceded by lots of research not only on the best car to suit your needs, but also on its price. It is also necessary to take a look at the incentives that are offered with most cars, which may give one an added reason to buy a particular model. Dealers are often willing to sell their cars at a price lower than the sticker price, so rope in all the research on rebates and incentives at this point. The next step in the new car buying strategy is extremely important as it involves deciding on the make, the model, trim level, options and colour. This may include giving the car a detailed check and also taking a test drive. It is worthwhile to note that the more flexible one can get on these basics, a wider range and variety opens itself. In case one finds the car of their dreams it would be a wise step to take multiple quotations from a number of dealers.
Negotiating for the lowest price possible becomes the next stage in ones new car buying strategy. Many online salespersons are willing to discuss the price of cars online, which helps save a lot of time and energy. If one feels good about the price decided on, its time to take a look at the big picture. Many buyers focus on the cost of the car and ignore the related expenses. Besides the cost, one will have to pay sales tax and other various fees, which vary from place to place, and the easiest way to do this is to ask the salesperson to send an invoice before one goes to the dealership. The new car buying strategy remains incomplete without insuring the car, so insurance may from ones final stride in this direction. On carwholesaleprices.com one can get new car prices and reviews before set out for buying a new car.
Tags: Best Car, Big Picture, Dreams, Gadgetry, Incentives, Invoice, Level Options, Luxurious Car, New Car, New Cars, Passion, People, Quotations, Rebates, Rope, Sales Tax, Salespersons, Showrooms, Sticker Price, Test DriveRelated posts
Replacing a vehicle can be a long, tedious process. With so many possibilities available to you, it can often seem overwhelming to pick one that will stay with you for years and years.
For every dealership you visit, youll receive many offers. Some will be a better deal than others. During the whole search you should always remember that price isnt the only thing to consider. You want to know the entire history of the vehicle youre thinking about buying. Its a good idea to make sure you do plenty of research.
Your first step should be to narrow down your search to the top 5 cars you would like to drive. Once you have done that task, gather as much information as you can regarding each vehicle.
Learn about the warranties for every car. Learn what is covered in the warranties. Take in to consideration the price of the car once you drive it away. Its a good idea to obtain your information from the manufacturers instead of the dealers.
If you listen to the dealerships for information, youll probably end up dealing with misinformation. You wont know until its too late. Some dealers are just interested in their bottom line, and might bend the truth in order to make a sale.
Next you should narrow your choices to the top 2 cars on your list, by using all the information you have obtained. Now that you have 2 cars to choose from, you can go deeper in your search.
Log onto the internet and google your car. Look for reviews and stories about the cars you are considering. Look for anything that might alter your decision. After you compare all of this, THEN you should take cost into consideration..
If the price looks good on your first choice, you should end your car search right there and consider it a successful mission. Now all you have to do is go and buy your ideal car, and take it on a cruise to familiarize yourself with it.
Tags: Bottom Line, Buy Car, Car Reviews, Car Search, Choices, Cruise, First Choice, Google, Ideal, Misinformation, New Car, Possibilities, Search Log, Successful Mission, Top Cars, Truth, WarrantiesRelated posts
I had what I thought was an interesting question sent in to me the other day and that is the topic of this article. The question asked was essentially; out of all of the car buying tips, the car deal negotiating tips, and out of all the dos and dont dos when you are car shopping and ultimately buying, what is the single most important area to have under control as the buyer.
I had to preface my answer by saying that in order to get your best deal when buying a car, there are many pieces to the car buying puzzle. They are all individually important because when you put all the buying processes together they make up your deal. And all of these car buying puzzle pieces are what dealerships are all about. They each represent an opportunity to sell you something and therefore make a profit on that sale.
Having said that, this is a great question and you would probably get many different answers. But, since you asked and I have pondered Ill give you my thoughts.
I would have to say financing. You must take the time to do such things as:
Get and understand your credit report.
Shop around for your financing options and ultimately get yourself pre-approved so you will know the amount, the interest rate you qualify for, and the length of your loan.
If you dont get your financing questions answered and in order, you can literally cost yourself thousands of dollars. So, while all of the other aspects of buying a car are indeed important, such as the price of the new car, what you get for your trade, and all of the research that goes into these areas; you can literally give it all back and much more in the dealers finance department.
If I get all my financing lined up ahead of time, why would I even bother with the dealers finance department?
A Good question; and there are a couple of aspects to the answer. First, once you know what you qualify for (a bird in hand), you can then give the dealers finance manager the opportunity to do even better for you. Secondly, even if you have no intention of using the dealer financing option, youll still have to have a seat in the finance office just to sign all the paperwork. Which means the finance person will do their best to sell you their financing package. So being prepared is the best answer.
If you have your financing in hand and know all your numbers ahead of time, youll be able to fend off the monthly payment approach by the car dealers sales person. Buying a car based on monthly payments is good for the dealer; bad for you.
Also, your financing homework becomes even more important if your credit is less than grade A. Be mindful that just the difference in just a couple of percentage points on your interest rate can represent over a thousand dollars to you during the life of your loan. And if your credit score leaves a little to be desired by potential lenders, you will probably see a wider range of qualifying quotes that you get back. So it is even more important that you get your car financing house in order before you head out to the dealership.
Certainly, financing is but one piece of the car buying puzzle. But, its a big piece. And you can rest assured its a big piece (for potential profit) for the dealer. Many people dont realize that this is yet another area at the dealership that you can and should try to negotiate on the road to getting your best car deal.
If you have done your research and homework to give yourself the best possible chance on the front end of the car buying process (new car & trade-in), dont give it all back on the back end of the deal (financing & insurance F&I) by not knowing what your financing numbers and options are.
Tags: Bird In Hand, Buying A Car, Buying Car, Car Buying Tips, Car Deal, Car Shopping, Control, Credit Report, Dos, Finance Department, Finance Manager, Financing Options, Good Question, Interest Rate, Negotiating Tips, New Car, Opportunity, Preface, Puzzle Pieces, Thousands Of DollarsRelated posts
The Pros And Cons Of Buying A Used Car From An Auto Auction
Are you in the market for a new used car? If you are, have you ever thought about attending an auto auction? Each year, a relatively large number of individuals walk away with a quality used car from an auto auction and now you may want to think about doing the same.
Although it is nice to know that many have had success with auto auctions in the past, you may be wondering whether attending an auto auction is worth your time. To determine whether or not one is, you may want to think about examining the pros and cons of buying a used car from an auto auction. A few auto auction pros and cons are briefly touched on below.
Perhaps, the biggest pro or plus side to buying a used car from an auto auction is the price. Auto auctions are well-known for their more than affordable prices. Depending on the auto auction that you attend, as well as the car that you choose to buy, you could walk away with a quality used car for as little as a thousands dollars! In all honesty, you never know what treasures or quality used cars you will find until you attend an auto auction. That is why it is advised that you at least attend a local auto auction, even if it is just to see what one is like.
Another one of the many pros or plus sides to buying a used car from an auto auction is the choices that you have. In terms of the used cars that you have to choose from, it is not uncommon for an auto auction to include as many as fifty used cars or more. Many of these used cars include different years, as well as different car makes and models. In keeping with the choices that you have, you also have a choice when it comes to choosing a used car auction to attend. If you live in or around a large city, such as Chicago, you may have more auto auctions to choose from. You could choose to attend an auto auction that gives you the opportunity to inspect each vehicle or you can choose one that does not have any admission fees.
Although there are a number of pros or plus sides to buying a used car from an auto auction, there are also a number of downsides as well. The good news, however, is that those downsides may not even apply to you. One of the downsides or cons to buying a used car from an auto auction is that not all auto auctions have an inspection session. An inspection session is when you are able closely examine or inspect all of the cars that will be auctioned off. You should never buy a used car without thoroughly examining it first. This downside to buying a used car from an auto auction may not even be an issue, as long as you choose to attend a used car auction that allows you to inspect all of their vehicles first and they are out there.
Another con or downside to buying a used car from an auto auction is the fact that you arent really given any guarantees. Perhaps, that is why it is so important that you are able to inspect a used car before bidding on it at an auto auction. When you pay for and receive your used car, it is then yours and you are responsible for it, including all updates and repairs that may need to be made. It is difficult, if not virtually impossible, to find an auto auction house or company that offers warranties on their used vehicles. Of course, buying a used car is a risk anyways, as most used car dealerships, as well as owners outright selling their vehicles do not offer warranties either.
If you live in or around the Chicago area, you may want to examine North Shore Auto Auction. Their online website can be found at www.publicautoauctionnst.com. With regularly scheduled auto auctions, as well as information on those auctions, including the used cars that will be auctioned, North Shore Auto Auctions is known for being one of the best auto auctions in the Chicago area.
Tags: Admission, Auction Auto, Auto Auction, Auto Auctions, Auto Price, Buying A Used Car, Car Auction, Car Makes And Models, Car Models, Choices, Choose One, Honesty, Local Auto, Makes And Models, New Car, Opportunity, Price Auto, Pros And Cons, Quality Cars, Quality Used CarsRelated posts
So your ready to take the plunge and buy a new car? Here’s a little guide to help get you through the process.
Know your credit score. The higher your credit score is, the lower your monthly car payment will be. You can obtain a free credit report by writing a credit bureau, or just do a search online , there are plenty of websites offering a free credit report.
Get an auto insurance quote. After you have narrowed down your choice of your new car’s make and model, get a free insurance quote. You should make sure your insurance payment fits into your budget. It’s a wise decision to get quotes from multiple insurance carriers , to nail down the best possible rate. Also, if you have enough money saved up, you can pay the policy in full, to get a discount, instead of making monthly payments.
Now its time to visit the dealer. Car salesman are fast talkers, make sure your in the right frame of mind to deal with them. They make a living off commissions, so they try very hard to make a sale. While you can admire their eagerness , they can be annoying. Just ask politely for the facts. What are the standard options, warranty info, gas mileage, and anything else you want to know about the car.
Haggling. Trying to haggle over a new car’s price is like an art form. While sales people would love to make a sale, and haggle with you, they have to answer to a higher power. Usually they are tough to budge on getting a great deal. It also depends how the dealership is doing at the time, if its a slow month or quarter, they may bend a bit more.
However, this is one method I tried , and it did work for me once.
I just told them I would pay x-amount, nothing more, and to give me a call if they can meet my price. About five days later, they did call me back.
Tags: Art Form, Auto Insurance Quote, Car Payment, Car Salesman, Credit Bureau, Credit Score, Dealer Car, Eagerness, Enough Money, Frame Of Mind, Free Credit Report, Free Insurance Quote, Gas Mileage, Insurance Carriers, Insurance Payment, Mileage, New Car, Plunge, Tips For Buying A Car, Wise DecisionRelated posts
Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.
Lets take a look at some tips, pros, and cons when it comes to making this decision.
First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, youll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars wont have all of those superfluous dealer add-ons stuck on the window either that will just never do.
In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades youd like to have on the used car that you couldnt otherwise afford going with the new.
Yet, with all of this, buying a used car isnt for everyone. Finding a used vehicle that fits ones entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.
Not so many years ago, reliability was a major concern when purchasing a used car and rightfully so. Today however, reliability problems are a fraction of what they used to be. Todays vehicles, when properly maintained will easily go for 100,000 miles and its not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.
Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.
As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty youll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that arent covered by any manufacturers warranty anyway; items such as brakes, tires, alignment, batteries, etc.
Of course nobody can guarantee that you wont encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.
When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle youll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car youre looking at. Be sure to crunch the numbers for both sides.
With used cars, insurance can save you some money as well because youll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.
And finally, (the latest) safety features could be a concern if youre looking at used car (particularly if youre going back a few model years).
All in all, if the touch, feel, and smell of a new car, isnt a top priority for you, I think youll find that a well thought out used car purchase you can get more car and features and still be within your budget.
Tags: Automotive Market, Better Chance, Buying A Second Hand Car, Buying A Used Car, Car Buying, Cars, Depreciation, Exercise, Fraction, Initial Price, New Car, Perspective, Price Tag, Pros And Cons, Purchasing A Used Car, Reliability Problems, Risk Factor, Second Hand Car, Standpoint, Todays VehiclesRelated posts
A person who cannot afford to buy a new car can always move ahead and buy a used car. Buying a car no doubts requires a lot of money but that does not mean that only rich can buy it. Always remember the success of buying a used car is to do your research before you buy it. You will have to prepare yourself for all the stress if you are looking for a perfect deal. Make sure that you are with the best used car dealer who will ensure you the best deal. You need to go through the following information before buying a used car.
1) Always decide the budget you can afford to buy the car. Since you are buying the used car always include price of the Car, repairs and maintenance cost of the car, Car insurance and so on.
2) Decide the Car you would like to buy. The best option would be to go for a mid-sized car as these cars are available at great bargains.
3) Used cars may be covered by a manufacturer’s warranty or a separately purchased service contract. However note that they may not be transferable. Always make sure to go through the warranty or service contract before you buy any used cars.
4) You can also take a test drive of the car and check its efficiency and comfort. It would be more preferable if you take a test drive on different types of roads. Have a drive for at least 10 to 15 miles to ensure the smoothness of the car.
5) Find out how old is the car you are going to buy. Try to buy a car which is two or three years older. Buying a two or three years older car would probably be a great deal as this will give you an opportunity to drive the latest model. It would be asking for trouble if you decide to go for a much older car.
6) If you are not 100% satisfied by the car avoid buying it. Don’t just buy a car since it is cheap as this might turn into a big expense in the long term.
7) It would be advisable to get the car inspected by the mechanic you hire. If you neglect it, you will have to pay everything for the maintenance once you buy the car. A mechanic can put the car on the lift and can immediately identify any previous damages, corrosions and so on.
If you are buying a 4 to 5 year old car it would be advisable to get the warranty period extended. Else you will have to bear the brunt of heavy losses.
9) Every dealer has a price in mind below which they will not sell you the car. The dealer is ready to reduce the price of the car till this price point and yet manages a decent profit. However if they find a particular buyer inexperienced they take advantage of such buyers and gladly make a very good profit. Hence it is very important to educate yourself thoroughly before going to a car dealer.
Tags: Bargains, Budget, Buy Cars, Buying A Used Car, Car Car, Car Dealer, Car Insurance, Car Maintenance, Car Mechanic, Car Repairs, Efficiency, Maintenance Cost, New Car, No Doubts, Service Contract, Sized Car, Smoothness, Stress, Test Drive, WarrantyRelated posts
1. Money: Make sure you know what is your budget. Never exceed the amount you can afford. For instance if your income is 50,000$ USD, you shouldnt spend more than 25,000$ on the car because the car will may become a finical problem to you.
2. Personal need: Ask yourself what is the purpose of the car. Decide whether you want a 4 door sedan or a 6 people van. Look into what class and what kind car you want. If the purpose of the car is just purposely transportation, then dont look into luxurious cars such as Benz or BMW. Or whether the car is for family purpose or personal love of car then you can decide whether you want a SUV or Sports Car.
3. Difference Brand: Once you decide what type of car you want. Look at different brands that has similar cars. For instance, if you are looking into the Lexus IS, also look into the Nissan G35, BMW 3 series, Acura TL, Cadillac CTS. You get the point. The reason why is because the price range from the same class can range from 30,000 to 45,000 which is a lot of money. Therefore, you should go test drive and find out exactly which car you want.
4. Buying it New or Used. After you decide what car you want. Start researching online on how much does the new car and the used car cost. Make you sure researching on many dealerships as well. You can save up to 1,000$ USD. Personally, I would like to buy a new car over a used car, but if theres a good deal on used car, then you should reconsider and decide yourself.
5. Finance. Try to reduce the finance rate as low as possible to benefit you more. Try to look for the best plan for you and communicate with the dealer.
6. Communication with the Seller. Now this is the tricky part. Dealers usually jacked up the price of the individual car because they can make more money if they make sales. Therefore, to prevent spending extra money, you should do your homework by reaching how much your car is really worth and make offers to the dealers instead of them making offer to you.
7. Mileage. There no doubt that the price of gas will continue to go up. Therefore, it might be a good idea to consider how much you are willing to spend on gas. You want to find a good car with good mileage.
8. Insurance Cost. Different car also have different insurance rate even when they are in the same class. The insurance cost should definitely be a factor to consider when you are comparing with other cars.
9. Maintenance Cost. Maintenance Cost for cars also varies for different car. For instance Benz will charge over 100$ just for an oil change while Toyota may charge 25$.
10. Warranty. This should be the last thing you look at when you buy a car. Look at what the warranty covers and compare with it other car companies
Tags: Acura, Acura Tl, Benz, Bmw, Bmw 3 Series, Budget, Cadillac, Cadillac Cts, Extra Money, Finance Rate, Homework, Kind Car, Lexus, Luxurious Cars, New Car, Nissan, Nissan G35, Personal Need, Sports Car, Tips For Buying A Car