Used Car Buying Tips
In this article we will be sharing some used car buying tips so that you will be able to avoid paying more than you should for your vehicle. Before starting the negotiation process, it is recommended that you should know the market value of the car that you want to buy. You can find it by using used car buying guides like Kelley Blue Book or NADA.
Let’s talk a little bit about the wholesale price. It is in fact the price that you can expect to get from a dealer at trade-in, but in most of the situations they will offer you less money as they’ll emphasize on what’s wrong with the car, thus lowering its value. As far as the loan price is concerned, it is the amount of money that a bank is willing to loan on that car that you bought it from the dealer, which is in fact known as the retail price. Most of the banks in the United States will loan you the retail price – 20% which will be your down payment.
If you are dealing with a private seller, ask him/her what they need in order to get out of the car. If you do not have the necessary amount of money, it is highly recommended that you ask the next questions, without mentioning anything about money. If you ran into a savvy seller, he/she will most likely ask how much you can offer and probably, you will not be getting a very good deal. Never offer a price for a car that you haven’t seen before.
When you are inspecting the car, never say how much you like it and always test all of the options available so that you know for sure what you get. To lower the asking price, try to point out all of the faults and flaws of the car. In addition, while test driving the car, emphasize on all the noises and noticeable problems that you detect and also make sure that you ask questions about anything that you are not certain of. When dealing with large amounts of money, there are no stupid comments or questions so feel free to ask anything related to the car.
Time has come to make an offer. Even though you want it very much, do not tell the seller this as he will most likely keep the price up as much as possible. Tell him that you have done some research regarding the average price of this model and offer a price that is 15% less than what he asks for the car. It would be advisable to make a cash offer as you will get more chances of obtaining a good deal. If he/she turns down your offer, prepare to make another one or wait until a counteroffer is proposed.
For a final used car buying tip, make sure that you verify how much money you will have to pay for the insurance after purchasing the car. Although you might get a great deal on the car itself, the insurance payments might ruin you so be prepared.
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