Dealer That Buys Used Cars
The offer you receive will depend on several factors, but it will mostly rely on the price being paid for similar vehicles at auction. Other factors that could influence the offer include whether or not there are similar cars on the lot for sale already, the condition of your vehicle and whether your vehicle needs any maintenance or repairs to make it ready for sale.
dealer that buys used cars
On the other hand, maybe you already received a low-ball offer when trying to trade in your Subaru, for example, for a new Toyota. Take your car to the nearest Subaru dealer, which may be willing to pay more, knowing it has customers waiting for a used vehicle like yours.
Dealerships are in the business of making money and are, therefore, most interested in vehicles that need little in the way of reconditioning and can be resold quickly for a profit. Not unlike any other buyer, a dealer will make a lower offer on a vehicle with a dirty exterior and cluttered interior, evidence of mechanical problems, and a lack of documentation that proves the car has been properly maintained.
For one thing, he says, getting a loan from a lender outside the car dealership prompts buyers to think about a crucial question. "How much car can I afford? You want to do that before a salesperson has you falling in love with the limited model with the sunroof and leather seats. "
Van Alst says many people don't realize it, but the dealership is allowed to jack up the rate it offers you above what you actually qualify for. So with your credit score, "you might qualify for an interest rate of 6%," says Van Alst. But, he says, the dealership might not tell you that and offer you a 9% rate. If you take that bad deal, you could pay thousands of dollars more in interest. Van Alst says the dealership and its finance company, "they'll split that extra money."
So Reed says having that preapproval can be a valuable card to have in your hand in the car-buying game. It can help you negotiate a better rate. "The preapproval will act as a bargaining chip," he says. "If you're preapproved at 4.5%, the dealer says, 'Hey, you know, I can get you 3.5. Would you be interested?' And it's a good idea to take it, but make sure all of the terms, meaning the down payment and the length of the loan, remain the same."
So at the dealership, Reed and Van Alst both say, the first step is to start with the price of the vehicle you are buying. The salesperson at the dealership will often want to know if you're planning to trade in another car and whether you're also looking to get a loan through the dealership. Reed says don't answer those questions! That makes the game too complicated, and you're playing against pros. If you negotiate a really good purchase price on the car, they might jack up the interest rate to make extra money on you that way or lowball you on your trade-in. They can juggle all those factors in their head at once. You don't want to. Keep it simple. One thing at a time.
"Concerning the extended factory warranty, you can always buy it later," says Reed. "So if you're buying a new car, you can buy it in three years from now, just before it goes out of warranty." At that point, if you want the extended warranty, he says, you should call several dealerships and ask for the best price each can offer. That way, he says, you're not rolling the cost into your car loan and paying interest on a service you wouldn't even use for three years because you're still covered by the new car's warranty.
"We're actually living in a golden age of used cars," says Reed. "I mean, the reliability of used cars is remarkable these days." Reed says there is an endless river of cars coming off three-year leases that are in very good shape. And even cars that are older than that, he says, are definitely worth considering. "You know, people are buying good used cars at a hundred-thousand miles and driving them for another hundred-thousand miles," says Reed. "So I'm a big fan of buying a used car as a way to save money."
He acknowledges that which car you buy matters and that it's a good idea to read reviews and ratings about which brands and models are more or less likely to run into costly repair problems down the road. He says some European cars are famously expensive to maintain.
Even if you buy a slightly newer used car than the Raekers', the couple raises a great point. What else could you be spending that car payment money on? And if you can cut in half what you might otherwise spend, that's a lot of extra money for your retirement account, your kids' college fund or whatever else you'd rather be doing with that money.
The dealer may offer you a higher interest rate than you can get directly from a bank, credit union, or other lender. Shop around to find out who offers the best interest rate and use that information to negotiate the best rate for you.
Used cars are sold through a variety of outlets: franchise and independent dealers, rental car companies, leasing companies, and used car superstores. You can even buy a used car on the Internet. Ask friends, relatives, and co-workers for recommendations. You may want to call your local consumer protection agency, state Attorney General (AG), and the Better Business Bureau (BBB) to find out if any unresolved complaints are on file about a particular dealer.
When you buy a used vehicle, the dealer must certify, in writing, that it is "in condition and repair to render, under normal use, satisfactory and adequate service upon the public highway at the time of delivery." The dealer certification covers the entire vehicle except items that would be obvious to the customer before the sale, such as torn upholstery, missing hubcaps, etc. The vehicle also must have all safety equipment and emissions controls required by state and federal laws for the vehicle's model year.
A vehicle with this label has been repaired or constructed with a glider kit, but not one manufactured in two or more stages. A glider kit includes all components of a vehicle except the power train. It is generally used to rebuild heavy trucks or tractors that have been extensively damaged. Passenger cars built from custom kits are not considered reconstructed vehicles.
Vehicle price is not controlled by any government agency. Take time to choose a vehicle that meets your needs and budget. Before you buy a vehicle, compare prices by checking newspaper ads and visit a number of dealers and/or private sellers. Then take it for a test drive. If you are knowledgeable, examine the engine, transmission, drive axles, steering and suspension, brakes and electrical system. If you do not know what to look for, it may be wise to pay a professional automotive technician to examine the vehicle.
For a used vehicle purchased from a New York State registered dealer - the proof of ownership is the Certificate of Title (MV-999), or a transferable registration for 1972 and older models, signed over to the dealer, and the dealer's Certificate of Sale (MV-50) showing ownership transfer to you. The dealer must complete, and you must acknowledge by signing, the appropriate odometer and damage disclosure statements.
New York State's new and used car lemon laws provide legal remedies for consumers who buy or lease cars. If a car does not live up to the written warranty and cannot be repaired - or if it has not been repaired correctly after a reasonable number of attempts - the consumer could receive a refund or replacement car.
Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC's) Used Car Rule. In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. Banks and financial institutions are exempt from the Rule, as are businesses that sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the lessee, or a buyer found by the lessee.
The Used Car Rule applies in all states except Maine and Wisconsin. These two states are exempt because they have similar regulations that require dealers to post disclosures on used vehicles. The Rule applies in the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, and American Samoa.
You must post a Buyers Guide before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. You also must display a Buyers Guide on used vehicles for sale on your lot through consignment, power of attorney, or other agreement. At public auctions, dealers and the auction company must comply. The Rule does not apply at auctions that are closed to consumers.
Previously titled or not, any vehicle driven for purposes other than moving or test driving is considered a used vehicle, including light-duty vans, light-duty trucks, demonstrators, and program cars that meet the following specifications:
Dealers offering split cost warranties can require that buyers return to the dealer for warranty repairs. If your warranty includes this restriction, however, you should provide an estimate of the total repair cost before work is started. This will allow the buyer to decide whether to approve the repair or have the work done elsewhere.
Dealers who violate the Used Car Rule may be subject to penalties of up to $50,120 per violation in FTC enforcement actions. Many states have laws or regulations that are similar to the Used Car Rule. Some states incorporate the Used Car Rule by reference in their state laws. As a result, state and local law enforcement officials may have the authority to ensure that dealers post Buyers Guides and to fine them or sue them if they do not comply.
This information provides answers to some of the more frequently asked questions regarding the purchase of a used car. It specifically covers the purchase of used cars and light trucks from a licensed dealer.
As you consider purchasing a used vehicle, remember that you may ask to have the vehicle inspected by your own mechanic, at your expense. You may also consult with your lender, insurance agent and attorney to discuss the financing, insurance coverage and purchase terms. 041b061a72