When shopping for a used car, it can be difficult to gauge whether a used cars price is reasonable. However, consumers are fortunate in the fact that it is not impossible. With a little research, some detailed notes and an eye for detail, buyers will be able to get an accurate value determination on a used cars price.
Kelley Blue Book, found online at kbb.com, is a very popular website for anyone interested in buying or selling an automobile. By entering the model, make, year, overall condition, styling and additional features into the appropriate form, Kelley Blue Book provides an instant look at a used cars price. While the site also offers values on new automobiles, many consumers are more concerned with used cars price and how to know if they are getting a fair deal.
Whether shopping online, from a private owner or at a dealership, consumers need to be aware of used cars price and how to handle negotiations. In addition to using Kelley Blue Book, many consumers request permission to take the automobile to a mechanic in order to get a complete inspection. This is a terrific way to know exactly what, if anything, is wrong with the vehicle. By learning the overall condition of the vehicle, consumers will gain a better understanding as to the used cars value.
When purchasing a used car, or any automobile, many individuals seek a bank loan to fund their new purchase. During the application process, consumers must provide information about the automobile that they wish to purchase, along with the used cars price. If the bank determines that the car is overpriced, they will likely deny the loan for this reason. Therefore, a local lending institution may be a useful resource in determining the accuracy of a used cars price.
As a final thought to a used cars price, there is almost always room for negotiation. During the process, the buyer may point out any problems that require repair and deduct a reasonable cost of repair from the asking price. The seller may, or may not, accept the terms. In order to close a successful transaction, there must be some flexibility from both parties. A used cars price is generally a starting point at which the seller is willing to begin negotiations. Always ask for more than you want and offer less than you are actually willing to pay. The art of validating a used cars price and getting the deal of a lifetime all starts with your ability to negotiate.
Even with the wealth of data at their fingertips, too many people are uninformed shoppers. They walk onto a car lot or shop for online car loans with nothing more than a vague idea of what they want. Without knowing the price range of the vehicles they are looking at, they might as well wear a sign that says, "Rip me off!"
It's easy to find out how much a car is worth. Not only does that help you with the dealer but with the information you can get online, car loans are easier and cheaper to get. Most shoppers use one of three sources: Kelley Blue Book, Edmunds, and Fighting Chance.
Kelley Blue Book-The Old Reliable
Almost everyone has heard of the "blue book value". Kelley has been providing information on car prices since the 1918 publication of Blue Book of Motor Car Values. It has been the standard reference that every car buyer used for decades.
While Kelley is still a solid reference and certainly better than going in blind, it doesn't show actual dealer costs. Lots often get secret rebates from manufacturers. They talk to you about invoice price, which is what you find in Kelley, but often they paid less.
Edmunds-Dealer Price not Invoice Price
Nearly a half-century after Kelley, Edmunds was founded with the goal of becoming "America's most influential and authoritative source of automotive information".
In addition to invoice information, Edmunds lists factory to consumer rebates that you can use to figure out what a car will actually cost you. More importantly, they lists factory to dealer rebates that most shoppers and even most car salesmen don't know about.
If a dealer claims the invoice price is $20,000 but you know there is a factory to dealer incentive of $2,000 then the price the dealer paid was $18,000. You can use that information when negotiating.
Fighting Chance-A Little Money Goes a Long Way
This service was started in the early 1990s in an effort to tell shoppers how car dealers do business today, not how they did it fifty years ago.
Fighting Chance offers not only invoice information like Kelley and rebate information like Edmunds, but much more. They give information on how much consumers are actually paying for a make and model, a more important figure than invoices. They have informational articles on negotiating techniques like the "fax attack".
What is the downside? Unlike the other two services, this one is not free. Some people hesitate at the idea of paying for information but a $40 report could save you hundreds or thousands off the purchase price of your next car.
Any of these services are good sources of information that will give you power when negotiating the purchase and looking for online car loans. Don't be an uninformed shopper. Take a few minutes to educate yourself and save hundreds on your next car.
Both Cristi & Christine Harrell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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