If you just want to sell your car remember these important tips:
Pricing Your Car
The key to selling your car is pricing it wisely. A common problem among private-party sellers is overpricing. Avoid that mistake by doing some initial research:
• Determine your car's value.
• Provide an honest evaluation of your car's condition to get a true idea of its worth. Remember: A potential buyer will tend to be more critical of the car's condition.
• Search used-car listings for the pricing of similar models in your area.
• Research dealer pricing but don't expect to get the same amount in your sale. Dealer sales provide some benefits that private-party sales do not, such as return/exchange policies, limited warranties, etc.
• Factor in likely repair work. If your car is worth $10,000 but needs a new clutch, then don't expect to receive full value. Reduce the price in accordance with necessary repairs.
• When creating your ad, add "Or best offer" to your asking price. Including OBO could result in more leads, but it may also result in lower initial offers.
• Be realistic: Is your used car still a popular and viable model, or are you driving a relic of an earlier age? Price it accordingly.Remember Good aint Cheap and Cheap aint Good!
How to get a good deal on an automobile.
First we must define good deal. A good deal is a win win situation that carries no resentments from the seller or the buyer. If you look up the dealers cost on the internet,
go into your local dealership, find the car you would like to purchase and offer a fair profit to the dealer you have a win win situation. Remember all dealers pay the same for their new cars it’s federal law! In most cases a fair profit is between $100.00 and $1000.00 depending on the demand for a particular model. Simply going into your local dealer selecting a car and offering a fair profit to the dealer saves time and aggravation to both parties. On used cars check the availability of the make and model you want along with the average pricing check the cars history remembering one owner vehicles sell for more and that its ok to pay $2000.00 Nat”l average above reconditioned wholesale price of the car.
Extra items cannot be thrown in they cost money and have to be paid by someone, also extra costs should not be added to the negotiated price except for sales tax and license/motor vehicle fees.
After the negotiating is done you may want to consider your driving habits to determine your extended warranty wants /needs or possibly a maintenance plan to cover your oil changes and routine maintenance of the car you just bought. Do the math does it make sense?
How about an antitheft device like Lojack or if not equipped a remote start? These items are sometimes necessary and sometimes not. They are not required items but should be considered and should always be installed by the selling dealer because the likelihood of a warranty repair being rejected greatly diminishes as does the possible aggravation that comes with the claim denial. Does it cost a little more? Possibly but not necessarily.
Dealers do not determine the interest rates if you are financing but lenders will allow dealers to participate in the interest rate mark up by 75% of 1 to 2 points and it only sounds like a lot. Think of it this way on a 10000 loan the dealer gets from the bank for you at 7% and charges you 9% the dealer gets a whopping $430.65 HERE’S HOW IT WORKS $10,000 at 7% for 60 months is $198.01 per month at 9% its $207.58 a difference of 9.57 times 60 months is $574.2 the dealer expects to collect 75% of that from the bank that totals $430.20. Use this Knowledge to your advantage ask for a 1 point discount in the interest rate if you purchase an alarm or warranty or maintenance plan. Win Win its that simple.
Listen the dealer does a lot of work to get/secure a loan for you. the credit application, submitting the application, filling out the contacts explaining the contract in accordance with regulation Z perfecting the lien getting the contract to the bank and making sure all the I’s are dotted the t’s are crossed etc.
There are certain myths I would like to address at this point;
You do not have a 3 day right of rescission on an automobile purchase
You may not bring it back because you don’t like the deal
You may not exchange it for something else because you don’t like it
You cannot have your money back.
You must make sure you understand what you read and sign period.
On used cars………………each is different and there are many values out there on used cars. Facts that should be taken into account are; # of owners, condition of vehicle, vehicle history report wholesale value. It is not abnormal to pay $3000 to $4000 over wholesale value for a used car and every used car purchased should be with an extended warranty that reflects your driving habits and amount of financial risk you are willing to absorb. An example is a zero, $100.00 or$200.00 deductible then 1 year 2 year, 3 year or longer term. Is the warranty transferable? How much does it cost per year and whats not covered. Warranties do not cover wear and tear items.
Find a salesperson that you are comfortable dealing with and who takes time to explain things to you, goes over all the car features and a dealership close to home or work, do some research on the internet and then go buy a car and the good deal will follow. Remember good aint cheap and cheap aint good.
Its in the cardealers best interest to make and keep you happy so that you will tell your friends and associates service your new or used car and purchase your next car from the same dealership.
Remember pencils come with erasers and dealers welcome all feedback positive and negative from its customers.