How Do You determine A fair Price for a Used Vehicle
When you enter a car lot looking for a specific vehicle you have seen advertised you know the asking price and may have a discount figure in mind as you done some homework.
When you enter a car lot to check dealers inventory without a specific vehicle in mind here are few scenarios you may encounter
1 ) no sticker prices on most or all vehicles
2 ) lease payments with no term or up front cost
3 ) bi - weekly finance payments listed with no other details
4 ) no miles year of vehicle or down payment listed, sticker simply says ask for details
5 ) Vehicle is locked
Buyers come to a dealership and within a minute or two out of the corner of the eye see a salesperson approch, to protect themselves from a pushy or overbearing salesman they act and say they are only looking, to an experienced salesperson that statement opens the door to a series of comeback questions
If you want to look around the dealers inventory on your own without a salesperson hanging on to your shirt tail, simply say, please let me look around on my own, if I see something of interest or have questions, you will be the first to know. your business card please, thank you.
Understanding the Sticker Price Used Cars
If you're shopping in a price range from $12,000 to $ 30,000 being fresh inventory its most likely marked up $3000. to $5000.
Old inventory is considered 90 days old and in many situations dealer will sticker vehicle at or close to cost which means there is very little room for negotiations and the $3000. to $5000. dont apply as you could be looking at a vehicle at cost or below.
I realize as a shopper this leaves you confused , if you ask the salesperson how long vehicle has been in inventory you most likely will get a vague answer as most consumers will not like a true answer to wonder why this vehicle has not been sold in 3 - 6 - or 9 months.
In most cases it's one of the following reasons
Vehicle don't show well
Vehicle don't perform well
Vehicle was overpriced to start with
Used car Mgr may have paid to much for vehicle and been waiting for a few months for a pigeon that never showed and is now faced with a negative factor that will show on the monthly balance sheet once it's sold and will work against overall profit and commissions for that month when it's sold.
I have worked with large volume dealerships where the dealer Principal or the General Mgr thought the used car manager was an ace showing huge profit month after month and then suddenly discover accumulated negative inventory well over $100,000.
How much of a discount can you expect of a sticker sale price
The days are gone when a used vehicle asking price was $10,000 - $15000 and buyer was able to negotiate huge discounts like 2 to $3000.
In todays market a $1000. discount in this price range is considered huge " why " because the Internet shopping era has arrived, all dealers have a website with full inventory listed along with sale prices that have to be very competive, thus allowing very little room for negotiations, in some cases the dealer will not budge and stay with asking price.
Buying a used car is a sequence of 7 steps
Follow them in exact order, when you fully understand the first step make notes and move unto the next step making notes as you go.
(4) Test Drive
(7) Business/finance office
Needs,,, The first paragraph at this link before you shop explains the definition of needs.
Locate,,, You have much choice, if affordable my first choice would be from a franchise dealer selling the make I am interested to purchase, 99% of franchise dealers you will find advertise their quality cars through autoTrader, from here we go downhill to where it becomes buyers beware " there are hundred of sites Craiglist and Kijiji the most noticeable, if you care to get my opinion on these type sites private vs dealer
History,,, for a detailed explanation why history is a must history reports
Test Drive,,, What to look for during a TESTDRIVE.
Mechanic,,, Many buyers skip this step having trust in seller " don't " mechanic
Business/Finance Office,,, Yes it's the final step - the deal is done - simply enter the business office - sign - get your paperwork " yer right " check this link http://www.usedcartips.org/ANYWARRANTY.html