Used Car Buying Tips and Advice
Used car buying can undoubtedly be difficult for many car shoppers. Where should you buy your used car? How do you know you’re getting a good deal? These are important questions for any driver searching for a quality used car, and that’s why we would like to give you a few pointers that will hopefully make the car buying process a bit easier.
There Are Different Categories of Used Cars That Tell You What Shape The Car is In
There are a few basic things you have to know when buying a used car, and one of them is the difference between private party, suggested retail, and certified pre-owned prices. All that is meant by the private party price is what you’d pay if you bought the used car off of eBay or in the newspaper. On the other hand, the suggested retail price is the price that an average dealership is typically charging for the used car. Finally (usually the most expensive of the 3 options), there is the certified pre-owned price. This is a price for a used car that has been inspected by a dealership, and usually given a generous warranty. Being mindful of not only the price differences in these types of used cars but also the risks and benefits associated with each can help you make a more informed choice.
Another guide to used car buying that one might come across is NADA Guides. NADA Guides comes equipped with terms like “rough trade-in,” “average trade-in,” “clean trade-in,” and “clean retail.” These categories closely relate to the ones above and can help you determine how much room a dealer might have to negotiate on the price of a vehicle you’re considering. In short, many times a dealer doesn’t pay a lot for a used vehicle that has been traded in, and they then have it fixed up in their service center so that they can sell it for a higher price. This can give you lots of room for negotiation.
If you’re considering purchasing a new or used car and want to be better prepared for the negotiation process, check out these tips from Honest Car Dealer on how car dealers make money.
March 13, 2012 by Jamie Rettig