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BUYING
TIPS
Here are
some helpful
tips on
purchasing
used
vehicles for
resell.
1. Stick
to Newer
Cars
Unless you
really love
old cars,
the best way
to get your
money's
worth is to
get a car
with only
two or three
years on it
and with
mileage as
low as
possible
(not over
about 40,000
miles). That
way, there
is most
likely a
great deal
of life left
in the old
car. Make
sure you use
higher
mileage
number to
barter down
the price.
2. Check
the Records
Ask to see
the owner's
maintenance
records and
consider
running the
car through
a service
like CARFAX
(www.CARFAX.com),
which
provides
vehicle
history
information
on used
cars.
3. Don't
Be a Guinea
Pig
Never buy a
car from the
first year
after the
introduction
of a new
model. It is
bound to
have some
kinks to it
that will
make it less
dependable
and cost you
money. Also,
try to avoid
any vehicle
that has
been
customized
by a third
party. The
work has
been done by
who knows
whom and it
could lower
the price if
you have to
sell.
4. Buy
from the
Owner
Other than a
warranty,
the main
thing you're
getting out
of buying
from a
dealer is a
car that's
been
detailed--and
that detail
job is
probably
costing you
a couple of
grand. If
you do
decide to go
to a dealer,
make him/her
pay for the
privilege by
giving you
as good a
warranty as
you can
squeeze out
of
him/her--at
a minimum,
six months
on the drive
train
(engine,
transmission,
and axles),
so that you
pay for
parts and
they pay for
labor.
5. Don't
Overpay
To figure
out what a
car is
worth: buy
the local
magazine for
selling used
vehicles and
find four or
five
examples as
close as
possible to
the model
and year
you're
considering.
Add the
prices
together and
divide by
the number
of examples,
getting a
rough
average.
Then go to
the Kelley
Blue Book (www.kbb.com)
or another
service that
lists
used-car
prices. Add
that price
to the
average and
divide by
two. Then,
right off
the top,
deduct 15
percent--and
there's your
target
price. If
you can get
the car for
less, good
for you.
6. Hang
in There
Here is
where most
of us mess
up. The
critical
thing you
must do to
get the most
out of your
purchase is
to drive
that car
into the
ground. Stay
with it to
the bitter
end,
repairing
whatever
must be
repaired.
Each year
you don't
break down
and buy that
next car
brings great
dividends in
the form of,
say, cash
invested in
the market,
or land, or
paid-down
credit
cards. Once
you've
chosen it,
learn to
love the car
and never
let it go. |
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SELLING
TIPS
There are
always
variations
to the rules
about
pricing, so
you should
follow your
intuition
when setting
a price. And
be sure to
leave a
little room
in your
asking
price. Your
beginning
price should
be higher
than the
price for
which you
really want
to sell the
car. In
other words,
if you want
to actually
get $12,000
for the car,
you might
start at
about
$12,500.
That way, if
you get
$12,500 --
great! But
if you have
to go lower,
you won't
take a
terrible
loss.
You may have
noticed how
creative
used car
dealers get
in assigning
a price.
Their prices
usually seem
to end in
the number
995, as in:
$12,995. Are
we not
supposed to
notice that
the car
basically
costs
$13,000?
There is a
lot of
psychology
in setting
prices. A
product that
doesn't sell
well at
$21.00 might
jump off the
shelf at
$19.95.
On the other
hand, if you
are a
private
party, you
don't want
to look like
a dealer.
Therefore,
you might
want to take
a simple
approach and
set your
price at a
round figure
such as
$12,750 or
$12,500.
On the other
hand, if you
are a
private
party, you
don't want
to look like
a dealer.
Therefore,
you might
want to take
a simple
approach and
set your
price at a
round figure
such as
$12,750 or
$12,500.
Defining
Your
Vehicle’s
Condition
Once you
have an idea
of the
general
price range
for your
kind of
vehicle, you
can zero in
on a price
by honestly
evaluating
your
vehicle.
Make a list
of the
optional
equipment
ordered on
your
vehicle,
such as
automatic
transmission,
air
conditioning
and any
accessories
you’ve
added, such
as running
boards on a
truck or a
sunroof.
Desirable
extras add
value to
your
vehicle. (Go
to Options:
Vehicles
Made to
Order to see
how much
particular
upgrades add
to your
car’s resale
value.)
Honestly
evaluate
your
vehicle’s
condition.
Is it in
poor, fair,
good or
excellent
condition?
Obviously,
the better
the vehicle
condition,
the faster
it will sell
and for the
highest
price.
Kelley Blue
Book
provides the
following
definitions
of
conditions
that are
generally
used in the
industry:
Excellent
The vehicle
looks great,
is in
excellent
mechanical
condition
and needs no
reconditioning.
See full
definition
Good
The vehicle
is free of
any major
defects. The
paint, body
and interior
have only
minor
blemishes,
and there
are no major
mechanical
problems. It
will need
some
reconditioning
to be sold
at retail.
The majority
of recent
consumer-owned
cars fall
into this
category.
See full
definition
Fair
The vehicle
has some
mechanical
or cosmetic
defects but
is still in
safe running
condition.
The interior
or exterior
needs work
by a
professional
in order to
be sold.
See full
definition
Poor
The vehicle
has severe
mechanical
and/or
cosmetic
defects and
may be in
questionable
running
condition.
Problems
cannot be
readily
fixed, and
the title
may not be
clean.
See full
definition
In addition
to the
vehicle’s
condition,
other
mitigating
factors may
affect the
price of
your
vehicle.
The time of
year you
sell your
vehicle has
an impact.
Used-car
sales are
seasonal
depending on
where you
live. In the
northern and
western
parts of the
United
States,
fewer used
vehicles are
sold in the
winter
months of
December
through
March than
during
spring or
summer. In
fall and
spring, used
vehicles are
at their
highest
levels at
dealerships.
You might do
well if you
try to sell
your vehicle
during the
off-season
when you
have less
competition.
Of course,
the
trade-off in
the north is
that there
may be fewer
buyers in
winter, and
used cars
show more
poorly in
the cold and
slush of
winter.
On occasion,
you will
notice a
glut of a
particular
kind of
vehicle. For
instance, a
few years
ago when
Ford and
Honda were
in a
December
race for the
title of
best-selling
car in
America for
the Taurus
and Accord,
respectively,
some very
attractive
lease deals
were
offered. A
couple years
later when
those
vehicles
went off
lease, there
was a glut,
which
depressed
prices. You
will easily
recognize
such a glut
if you drive
around town
and check
out the lots
of new- and
used-car
dealerships,
or by
perusing
newspaper
advertisements |
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