1. Know a little about pricing before you buy a used car. Franchise dealers that sell used cars add a certain percentage on the original value of the used car in the market. Markup is also added to the price of the used car at dealerships, which will make the price higher.
2. Determine the many factors that affect the used car prices. Used car pricings are affected by installed optional equipments or the location where you are buying the used car. There are areas that have a high market demand for a certain car. If that is the case, you may get a better deal if you travel outside of the zone to shop around for your car.
3. Find the used car's true market value at NADA. National Automobile Dealer's Association releases a copy of used car price guides every year. You may also check their web site to check the current prices of the used cars you are looking for.
4. Cheaper used cars may be found at government auctions. Government auctions happen every year and you may want to check out a checklist of the auction program. It may also offer you guidelines on finding quality used cars at lower prices. You may visit Federal Citizen Information to find out the guidelines in buying used cars from government auctions.
5. Check out the Internet. There are a lot of web sites that provide pricing guides on used cars and also guidelines in finding the right used car for you. You may compare prices; check out the features of the used car and the location where you can buy cheaper prices.
6. Determine if you have a fair deal with the price that is offered to you. Factors that affect used car prices include the age, market demand, overall condition, mileage, interior and exterior blemishes or if the car was maintained well.
7. Beware of trade tricks. Many dealers strategize on the behavior of consumers when buying used cars. Dealers know that buyers will not purchase a used car unless they feel that they are offered a price lower than the original price. Dealers tend to make the price higher than the actual amount and make the buyer believe that they are offering a discount. What the buyer does not know is that the discounted price is actually the original price of the car.
Car prices had been steadily declining over the past one or two years, despite the increase in the cost of steel and other raw materials. This is due to the sluggish demand for new cars, forcing the manufacturers to operate at very thin profit margins. Subsequently, the prices of used cars had seen a drastic fall. In the United Kingdom, a survey in June 2008 revealed that the price of cars that were between 1 and 3 years old had dropped by about 12% over a period of one year. The survey further showed that the prices of such used cars could dip by another 25% during the full year 2008.
In a car auction in Britain, a 2-year old Rolls Royce Phantom in perfect condition was auctioned for 135,000 British pounds, against its original price of 265,000 British pounds. The same fate awaited many used cars like a Range Rover, a Bentley Continental, and other models of Audi and BMW. The steep rise in oil and gas prices also contributed to people shunning away from gas guzzlers. In November 2008, the sales of new cars in luxury class slipped 39% from a year ago sales. Consequently, the prices of used cars also dipped in a corresponding manner, with people offering much less for them.
Even though this had impacted the used car market seriously, there is also a small silver lining in this price fall. The dipping prices had created a unique opportunity for huge bargains in the purchase of used cars. Most of the luxury models and a fair portion of the standard models are available at highly discounted prices. If you wish to buy a car that you had always wanted but felt you would not be able to afford, this is the time for it. You would be able to force the price down in at least one of the many used car auctions to purchase your dream car.
However, the opportunity to buy used cars at highly attractive prices could be utilized only if you wish to hold on to the car for a considerable period of time. If you wish to make quick money by buying it now and selling it a few months later, then you should just forget about it as a wrong notion. Even if you get the lowest possible price for the used car now, the amount that you get after a few months would definitely be lesser by about 2.5% to 10%. The used cars prices are declining and are going to continue to fall for some more time to come. This is not the time for fast buy and sell deals.
One of the reasons for the drop in used cars prices is the increasing default rate on many car loans. The financial institutions and other lenders are saddled with too many cars. They are prepared to dispose of these cars at whatever price they could get, instead of keeping them as dead stock. Hence, car auction by lenders is a place where you would be able to pick up used cars at bargain prices. Take advantage of the fall in used cars prices, if you wish to buy a good car and keep it for a few years.
Both Jc Schwartz & Dianne Logan 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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