By Evan Vitale
When you are seeking out a pre-owned or second hand vehicle for the very first time in your life, you’ll need to determine if its “value” is what’s being advertised by the dealer or owner of if that will inevitably be the final purchase price once your deal closes. You must do your due diligence on all of the brand information and details specific to that edition of the vehicle in order to negotiate your best price.
Understanding a Car’s Actual Worth
When you’re researching vehicle value, it is not likely to be easy to obtain an exact amount for that particular vehicle, however, you should have the ability to develop an approximate figure for the car’s value, which needs to be quite near to the actual worth of the used vehicle. If you wish to obtain a deal when purchasing a second hand vehicle and do it economically, then you need to get into a dealership showroom to gain understanding and knowledge concerning the value and price of both new and used vehicles. Also, you need to know just how much you or other people ought to be having to pay for that vehicle based on market forces within your local market.
The best way to determine the marketplace cost of a vehicle is by looking at multiple sources: auto auctions, price compare websites, branded vehicle showrooms, used car lots, consumer review websites, etc. Also look at review sites for that dealer to be able to tell if they are an ethical dealership.
If you are speaking directly with a sales rep, you have to look at the market cost of the car plus assess their commission that will be added on in order to get the true competitive cost. Sometimes a sales rep can be competitive and other times may not be depending on how well they have done on sales in that month at that dealership.
Have a Budget
Always have a budget figure in your mind when considering a vehicle purchase. Don’t let a charming sales rep convince you buy something outside of your means or put you into too much debt which forces you into greater sacrifices for your normal daily expenses. Sticking to a budget will help you to focus on your negotiation for the car rather than the stress of paying for it later, losing cash in the deal or having to listen to a push sales pitch for something you didn’t really want and got stuck with anyway.
Low Cost Does not Always Equal Bad Quality
Of course you’ll be looking for deals when you go out car shopping for a pre-owned vehicle. But, purchasing an inexpensive vehicle does not mean you will finish up purchasing a bit of junk that’s useless. Also, it will not imply that your motor is going to be low quality either.
What you want to look at is that by purchasing “cheap” is that you are purchasing a vehicle at a lower value than what it is really valued and available on the current market – mostly likely a good price might be demand driven.
Maybe the dealership has a whole bunch of white cars in inventory and orange cars are the hot color of the season. Maybe the dealership is attempting to sell you the orange car you really liked and you say no because there is a wait for delivery from Texas and will be outside of your budget. The dealer knows he has an additional fleet of white cars coming in for trade-in from a leasing company and will have a hard time unloading them because he will have so many. He offers to sell you a white car on the lot now at lower cost and lower commission this week because he knows it is more in your budget and you will close the deal quickly.
You opt for the white car because it is priced lower. Despite the fact that you are getting it at a steal, does not mean it is a “cheap” car, it’s just that you compromised on color to find a reliable vehicle without compromising the technology.
Prior to going to purchase a vehicle, complete your due diligence and homework – performing research and analysis of the selected vehicle and comparable cars in the same range. This will help you to be in a position to haggle for your vehicle without dealer manipulation.
Before you go to the Dealership Make Choices
Be educated. Be certain that you’ve got the best picture in your mind of what you would like to attain before visiting a dealership, an idea of your budget, and limit the time you anticipate you’ll spend there. Don’t finish up purchasing a thing that you don’t need due to an impulsive mindset.
Don’t Be Desperate
If you look desperate, you’ll more than likely get taken and the sales rep will use your haste to take more out of pocket from you. Keep a cool head, prep by reading forums and websites, buy the best pre-owned vehicle that is best for you.
Going to multiple showrooms and dealers also lets you practice your negotiating skills before you go through final settlement meetings. When purchasing pre-owned, make sure to check all mileage logs, accident records, indications of previous repairs. When purchasing a pre-owned vehicle on a budget, you won’t be spending small amounts of money, so purchase quality over price without overpaying.