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Top Tips for Buying and Saving on a Used Car

Car dealerships are in trouble – or at least the news media is portraying the idea that the auto industry as a whole is struggling. Anyone that has been to a car dealership in the last several months is likely to portray a different picture.

Our mini-van was t-boned a few weeks back by a car that was only going about 5 mph. The damage that was caused made me re-think our family driving choices. I am looking for a tank (or something resembling one) to replace our wrecked mini-van. I’ve been visiting used car lots up and down the county trying to find that gem that will be perfect for our family (and even better for our budget).

I have discovered a few things about used cars that might surprise you and several that might not.

Used Car Surprises

1. Most people are VERY proud of their used cars. There was one dealership that actually told me I would come out better buying brand new (with all the sales and credits they had going on at the time) than I would be buying the same car as a used 2007 or 2008. That seems a bit outrageous for an industry notorious for values dropping as soon as you drive off the lot.

2. Trading in will hit you HARD and it’s not even from dealership to dealership. The minivan that we have was not totaled (although it was significantly damaged). We were planning on trading it in but are still hoping to sell it. One dealership has offered $300 in trade in value and another has offered $1000. I intend to ask for around 10% more than the Kelly Blue Book value.

3. The internet has opened up a whole new world of research ability. I can see what the dealers see – the magic Kelly Blue Book value. I can also use the VIN number (in the front driver’s side corner) to see the history of the vehicle. Now there are no more secrets.

4. Cash is still king. The minute I say “we will be paying cash” the sales people change their tune. One dropped the price of the vehicle about $2000 over the phone – before we even visited the lot. Cash shows a serious buyer and serious buyers are money in the pocket for the sales people.

5. Not all sales personnel earn a percentage of the profit as commission. Some are even on salary. It can help your negotiations to know how the person you are working with gets paid. You may also want to forego working with a sales person and ask for a manager. The higher up you go the easier it is to negotiate.

Knowing something about the used car industry is a good step towards getting the right used car at the right price. Having the tools to negotiate will also come in handy.

Tools for Negotiating a Used Car Deal

1. Be willing to walk away. Excitement about the product will tell the salesperson that you may be afraid to lose the product. When you walk away then it shows that you can live without it and the negotiations can get easier for you.

2. Be prepared. Do your research before going to the car lot. You should do some preliminary calling to see what products are available at different locations. Use the internet to research general information about the products and then go in with your notes in hand. Knowledge is power when it comes to negotiations.

3. Be flexible. There may be times when the price you want and the price that they offer is close. Look at the starting point of the dealer’s price and see how willing they have been at coming down from that.

4. Be aware. Make more than one inquiry about a vehicle – by phone, by email AND in person. See what offers you get from the different places and proceed accordingly.

Finding a used car may not be difficult but BUYING a used car can be tough. Be sure that you have plenty of time to find a used car and then negotiate the deal that works best for you.

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