So you are in the market to purchase a car and you have decided that a used car is right for you, follow these easy tips to ensure that you get the best deal.
Often times used car consumers end up paying just as much for a used car as they would have for a new car of the same kind. How does this happen? Simple, that consumer has not done there homework and the car salesman could smell blood in the water better than Jaws.
Tip #1 The Price is Negotiable – So Don’t be Scared to Low Ball!
Have you noticed that at most used car dealers the prices aren’t listed in the window! The reason is first and foremost that the price is negotiable. This is why it is imperative to do your homework and know what you should be paying before visiting the dealer. Often times the price they are trying to sell it for is too high!
Tip #2 Internet Prices are usually cheaper than the Stated Price at the Dealer.
This point is closely kin to the previous point. The best place to start your search for a car is on the Internet. I prefer using cargurus.com and autotrader.com. I have also used autotempest.com as well. When using these sites its best to locate a few cars of the year, make, model, and mileage you are looking for. After you have located the car on the Internet be sure to print out the information listed and take it with you to the dealer. It is not uncommon for the Internet price to be much cheaper, sometimes thousands of dollars cheaper.
Tip#3 Consult your Banker or Credit Union
Banks and Credit Unions that finance cars have a guideline as to the max amount they will finance for a particular vehicle. Even if you do not plan on using that particular bank or credit union, consult with them first. The only information that is needed for them to determine the max value of how much they will finance is the car’s Vehicle Identification Number, or VIN. This method will save you time and possibly thousands of dollars.
Tip #4 Avoid In House Financing if Possible
Typically, when you apply for an in house loan on an automobile, your application is shopped with multiple banks. This can lead to a dramatic short term dip in your credit score due to multiple inquiries. Another reason to avoid in house financing is that there is no guarantee that the the finance manager will provide you with the lowest offer that they were quoted as they are working for the dealer and not you!
Always consult with your bank or credit union concerning an auto loan before ever using in house financing.
Tip #5 Use kbb.com
I am not the biggest fan of Kelly Blue Book’s pricing algorithm for market sales because it overstates the value of the vehicle in my opinion. I always suggest using KBB.com for the trade-in value. I make it a point to start my offer for a used vehicle at the KBB.com trade-in value price.
What do you think about these tips? Share, your comments below!
Aaron G. Adams is an Editor and Credit Attorney at AdamsCredit.com