Used Car Buying Tips

Used Cars - Know the Value

Before you make any offer on a used car, you should know the market value of the car you're considering.

There are a number of websites that offer pricing information to help you determine the value of the car. To find one, you simply input the make, model, year, features and condition of the car to find its value. When calculating the value, make sure you factor in features that may positively affect the price, such as air conditioning, leather, sunroof, single/double CD player/changer, power windows, power seats, navigation system, custom paint, wide tires, etc. Then factor in those conditions that may negatively affect the price such as high mileage, flaws in the paint (dull or chipped), rust, cracked or pitted glass, torn or stained upholstery or carpeting, worn suspension, poor alignment, etc.

Know the Value of Your Trade In

If you plan to trade in your existing car, always do your homework before going into the dealership. Remember, you are selling your car so you need to know what it is worth. You wouldn’t put your house up for sale without knowing how much it is worth, so why go to a dealership without knowing the value of your trade in?

In addition, if you are trading in, make sure your vehicle is washed, waxed and vacuumed. Remove all personal items from the interior and glove box. Leave the owner’s manual, warranty contracts and maintenance records in the glove box. Have a mechanic give it a quick tune up, but don’t make any major repairs. Make it as presentable as possible.

At the dealership, the used car manager will assess the condition, age, and mileage. And remember, dealers will always try to give you less than what your car deserves. So, be smart and be prepared.

Keep in mind that when buying privately you want to know the “retail value”, but when you are trading in to a dealership you want to determine the “wholesale” value.

Understanding Used Car Pricing

There are no actual standards for used car prices. However, consumers do have online sources that can provide honest and reliable pricing. You should be aware that used car pricing is not an exact science, so prices you get from one source may not agree with others. They can each make a different judgment about what the car is worth.

Some trustworthy guides to used car values are:

• NADA (National Automobile Dealers Association)
• Kelley Blue Book
• Edmunds

There are three types of pricing for used cars:

Dealer Retail Price

This is what you would expect to pay if buying from a used car dealer. Dealer prices will always be higher because they need to add in the cost of doing business and making a profit.

Private Party Price

This is what you would anticipate paying if you buy from an individual. Many individual sellers want to sell their car for the same price as a dealer would charge, but buyers oppose, as they should.

Dealer Trade-in Price

This is what you would expect to receive from a dealer if you were trading in your car for another car. This is the wholesale price.