Used Car Sales
Why Buy Used?
When it comes to buying a car, one of the best things you can do is choose something that is used. Despite the clichés about the "used car salesman" trying to cheat you, the reality is that used car deals are easier to find -- and you're likely to save money as well. Here's why used car sales make sense:
When you buy a new car, it likely loses between 15% and 30% of its value as soon as you drive it off the lot. With used car sales, chances are that the major depreciation has already happened. That means that your car will maintain its value a little bit longer.
If you are concerned about reliability, consider a lease return. You still get the benefit of avoiding major depreciation, but many of these cars are still in good shape.
Cost & Maintenance
Used car deals are often better from a strictly financial standpoint because used cars generally cost less. You can save thousands of dollars if you see the right used car salesman and get a deal.
Not only can you save money by finding used car sales, but you also save when it comes to other costs. Insurance costs are lower since part of the formula is the car's value. Choose a used car that is common, and you can save on parts and service as well.
Better Bang for Your Buck
Don't get too hung up with buying new. Find a used car salesman that you trust, and shop around for the best used car deals. With all your lower costs, for dollar will stretch farther with used car sales.
Lease or Buy: How to Pick
Though leasing a used car is not an option that used car salesman will often advertise, an increasing number of dealers may be willing to offer this option if you ask about it. You may have heard that leasing a used car could save you money on your monthly payment—and this often is true—but there are also other financial considerations to keep in mind as you decide if you should buy or lease your next used car.
Advantages of Leasing a Used Car
- Those who don't have a lot of money for a down payment often are pleasantly surprised to find that leasing a car sometimes doesn't require them to put any money down.
- You can trade up to a newer model of used car at the end of every lease term instead of being stuck with the same car for a 60 or 72-month loan. A typical lease term for a used car is 36 months.
- Your monthly payment is the difference between the car's current value and what the expected value will be at the end of the lease term—which the used car salesman can share with you. This often results in lower monthly payments.
Advantages of Buying a Used Car
- Most used car sales events feature vehicles that are still in good shape. Once a car is purchased and the payment period is over, the buyer owns the car and can do whatever she pleases with it—including continuing to drive the car without needing to make more payments.
- You can drive as much as you please. When leasing a car, you may not drive your car more than a specified limit without running the risk of incurring a hefty overage fee for each mile you drive over the allowable limit.
- The best used car deals allow buyers to find cars that have monthly payments that are not much more expensive than lease payments. A good used car salesman can help you compare the potential monthly costs associated with both options.
Which Option Is Best for You?
If you don't have a lot of money for a down payment, but your credit is good, then leasing a car might be the best option. Of course, you should also keep in mind that the terms of the lease often specify that you need to return the vehicle in an unaltered condition, so you can't make changes to the car.
If you are searching for the most economical option, talk to a used car salesman about buying a vehicle instead of leasing it. Though the monthly payment associated with even the best used car sales will likely be somewhat higher than a lease payment, for many the ability to own the car outright after a few years is well worth the initial extra monthly cost.
Buyer Beware: 3 Most Common Uses Car Sales Tricks
Used car salesman have two goals. They have to get you onto their car lot and they have to make sure you don’t leave unless it’s in one of their vehicles. How they get from point A to point B tends to involve a lot of showmanship, negotiation, and more than a few clever used car sales tactics. For prospective buyers, it’s important to be aware of these tricks so that you are able to get a legitimate used car deal. Here are three of the most common used car tricks and how to avoid them.
Used car salesman have a target price in mind for every vehicle on their lot, and they have a lot of creative ways to make the buyer pay that specific amount. If you want a low monthly payment, the dealer will make it happen, but not without extending the term of the loan so you end up paying more over time. If you have a trade-in, they’ll offer you more than it's worth but then tack on the difference to the price of the car you’re interested in. The key is to keep each part of the transaction separate. Shop around for the best trade-in value and find a lender that can give you the best possible rate. No matter what the used car salesman says, bundling these processes together isn't always in your best interest.
If a salvaged vehicle is transferred across state lines there is possibility that the new state won’t recognize the company who salvaged it, which can cause important information about a vehicle’s history to be lost. Used car salesman who take advantage of this loophole are essentially washing the title to keep major accidents or flood damage from affecting the value of the vehicle. Always do your own history check on CarFax or Autocheck®, which will still have an electronic record of all maintenance and repairs.
Bait and Switch
With the bait and switch, a used car salesman will advertise a used car deal that seems too good to be true, but then you show up to the lot to find that the car has already been sold. Oddly enough, they still have a full selection of more expensive vehicles for you to buy. This is the oldest used car sales trick in the book, and it’s only purpose is to get you onto the lot. Always call the dealership to see if the vehicle is in stock, and don’t hesitate to ask them to send you a signed document guaranteeing its availability. This might actually save the both of you some time.
Getting a Good Deal on a Used Car? Check here
Have you been looking to purchase a used car and seen a used car deal that seem unbelievable? We've compiled a list of issues to look out for when speaking to your local used car salesman.
1. Make Sure to Negotiate on the Price
Like with any used product, you shouldn't just accept the asking price from your used car salesman. More often than not, you'll be able to negotiate on the price of a used car. Stand your ground and make sure you get the best used car deal.
2. Make Sure to Inspect the Car
One of the most common questions around used car sales is the impact of mileage on the price. A car with a high amount of mileage is often seen as worth less than a car with low mileage. However, if a car has a high mileage count this could mean that the car is more reliable than the alternative vehicle. Why is the seller looking to get sell a car with low mileage? Perhaps there is an issue with the car that is not immediately obvious to the naked eye. Ask the used car salesman about the repair history of the car and make sure to probe until you get an answer.
3. Shop Around to Get the Best Used Car Deal
Our third piece of advice would be to make sure you talk to multiple used car salesmen, in order to get the best deal on the model of car you've set your eyes on. One of the most common reasons for not getting the best price when making used car sales is not comparing the market. Most likely, you'll be able to find the same model at several local used car lots. Compare the price between the different lots and use this to negotiate the best used car deal.
With these tips in mind, you should have no problem making sure you get the best used car deal from your local used car salesman.