EDDIE V
buying a car and i need to know what are the procedures to buying a car owner to owner? (paying cash)
Answer
Finding out what's wrong with that used car before you buy
Everyone buying a used car should get an Experian AutoCheck Vehicle History Report, they get data from a substantial number of dealers and aftermarket repair shops, nearly 5,000 sources. A mechanic can put the car on a lift and instantly spot previous crash damage, hidden frame damage, corrosion, and fluid leaks. But your mechanic can't tell you if your car title has been branded as a flooded vehicle, salvaged, junked, rebuilt, stolen, or passed through a salvage auction. Most mechanics overlook airbags. You can only tell how many owners that car had or where it's been with a history report, not just by looking at the car. This is not the time to 2nd guess. Unfortunately there are no clear laws if you sign an "As Is" paper. Any used car can have a bad past, Mercedes, Lexus, Honda or Toyota. Some municipalities don't supply accident report info, that's why you still need to have a mechanic look at it. If the police never made a report, it won't show up in the AutoCheck Vehicle History Report.
People ask "What's the Blue Book value of my trade-in?" The Blue Book value of your car is the market value listed in the Kelley Blue Book. Many people spell it wrong as Kelly Blue Book or Kelly's Blue Book or Kellys Blue Book or even NADA Blue Book or KBB. KBB started from a family owned used car business that bought trade-ins from auto dealers and used their internally generated list of used car prices to inform dealers how much the car was worth. They became trusted industry insiders and appraisers of car values. This led to Kelley Blue Book, named after the social register, called a blue book. The rest is history. KBB supplies used car prices to most car pricing sites. Dealers laugh when you tell them you know the Kelley Blue Book Value of your trade in. I think blue book car prices show trade-in values lower than other sources, which falsely leads you to accept less for your car then it is worth. Use other sites in addition to Kelly Blue Book to price cars. Most car dealers use the yellow NADA book to price used cars.
Start Working On The Seller
Have your partner be negative, pointing out every little item that erodes away at the seller's asking price, and confidence. A great tactic with huge psychological impact is to rub your finger over every major scratch or dimple, and shake your head no in disappointment. The car dealers use this all the time, so learn from the best. You don't have to say a word, the seller reads it right off your face, and you've set him up for the low ball offer. Have your partner write down all damage.
Ask for the maintenance records. Bet he'll have nothing at all. This is why I tell you to save every record, and oil change receipt in a notebook. Just add each new one to the end, and you have a nice history record. Now buyers of your car years later can't say you did not take good care of your car. Ask if the car has been in a wreck, staring them right in the eyes waiting for their answer. If the answer is yes, inspect the area that was repaired, and point out every tiny little flaw in that repair.
Test Drive The Seller's Used Car
Take the seller with you and ask questions when noises pop up. Listen for noises, rattles, or grinding sounds. If you hear rattling in the quarter panels, the car may have been in a wreck. If the car is a manual transmission, see if the shifting is smooth. Ask the seller if the clutch has been replaced, clutches fail after 4-5 years. This sets up the seller for a low ball offer. Most people are unaware that manual transmission vehicles have lower market values than automatic. Check the heater and the A/C, drive it in the daylight when the sun is hottest, to see how the A/C performs. Listen for grinding noises when the A/C kicks in, the bearings in the compressor are worn.
If the car has a voltmeter, make sure the voltage stays at 13.6 volts when the A/C is on. Bring a portable volt meter with you. Not everyone has one, many people do. You can get them for $20. Measure the voltage across the battery terminals with the engine running, and the meter set to DC Voltage. The voltage should be at least 13.6 Volts with the engine running, and no more than 14.8 volts. If it's not, there is a problem with the charging circuit, most likely the alternator, which is a costly component, usually about $150 rebuilt. If the battery is not at least 13.6V with the engine on, the 12V battery will not remain charged, and will die soon.
Drive with the radio on and off. Test the speakers to see if they are cracked. Make sure the CD player works. Take the car on a highway, main streets, and side streets, see if the car loses alignment, or bears to the left or right. See how good the car brakes, drive sharply around some corners, and your companion is writing everything down. Make sure all the seat belts work, that electric seats work, look for missing or burned out bulbs inside and out. If the car has retractable headlights, make sure they pop up and turn on. Make sure the brake lights, reverse lights and directional lights work. Ask the seller when the brake pads were last replaced.
"What kind of research did you do to determine what your car is worth?
Show me your research printouts, I have all mine right here, where's yours?"
I bet the seller has no research may be arrogant and indignant over your offer. They are unaware their asking price is off base, they get infuriated with your "low ball offer", and may refuse to deal with you. They probably need the money, the car is taking up space in their driveway, their wife complains every day as he lets offers slip through his fingers. His pride won't let him sell the car at your price. He'll say, "why don't you buy one of those other cars if they are cheaper? If my car is not worth it, why do you want it at all?" It's their last ditch futile effort to justify their price. He's trying to divert you from the fact that he cannot justify his selling price. Any seller using this strategy has just told you he has no valid research on the value of the car. A seller who knows the market value would say "Here's my printouts from the car pricing sites, my price is in line with accepted standards". Tell him "We like your car, but the research we have shows that it is not worth your asking price", point out all the defects, lack of maintenance records, etc. Tell him the printouts specify a car in good condition. Point out scratches, dings, rust, carpet stains, cracked dash, justification to offer even less than the car pricing printouts. Keep hammering him for his research and justification until you are the clear victor of that debate.
Finding out what's wrong with that used car before you buy
Everyone buying a used car should get an Experian AutoCheck Vehicle History Report, they get data from a substantial number of dealers and aftermarket repair shops, nearly 5,000 sources. A mechanic can put the car on a lift and instantly spot previous crash damage, hidden frame damage, corrosion, and fluid leaks. But your mechanic can't tell you if your car title has been branded as a flooded vehicle, salvaged, junked, rebuilt, stolen, or passed through a salvage auction. Most mechanics overlook airbags. You can only tell how many owners that car had or where it's been with a history report, not just by looking at the car. This is not the time to 2nd guess. Unfortunately there are no clear laws if you sign an "As Is" paper. Any used car can have a bad past, Mercedes, Lexus, Honda or Toyota. Some municipalities don't supply accident report info, that's why you still need to have a mechanic look at it. If the police never made a report, it won't show up in the AutoCheck Vehicle History Report.
People ask "What's the Blue Book value of my trade-in?" The Blue Book value of your car is the market value listed in the Kelley Blue Book. Many people spell it wrong as Kelly Blue Book or Kelly's Blue Book or Kellys Blue Book or even NADA Blue Book or KBB. KBB started from a family owned used car business that bought trade-ins from auto dealers and used their internally generated list of used car prices to inform dealers how much the car was worth. They became trusted industry insiders and appraisers of car values. This led to Kelley Blue Book, named after the social register, called a blue book. The rest is history. KBB supplies used car prices to most car pricing sites. Dealers laugh when you tell them you know the Kelley Blue Book Value of your trade in. I think blue book car prices show trade-in values lower than other sources, which falsely leads you to accept less for your car then it is worth. Use other sites in addition to Kelly Blue Book to price cars. Most car dealers use the yellow NADA book to price used cars.
Start Working On The Seller
Have your partner be negative, pointing out every little item that erodes away at the seller's asking price, and confidence. A great tactic with huge psychological impact is to rub your finger over every major scratch or dimple, and shake your head no in disappointment. The car dealers use this all the time, so learn from the best. You don't have to say a word, the seller reads it right off your face, and you've set him up for the low ball offer. Have your partner write down all damage.
Ask for the maintenance records. Bet he'll have nothing at all. This is why I tell you to save every record, and oil change receipt in a notebook. Just add each new one to the end, and you have a nice history record. Now buyers of your car years later can't say you did not take good care of your car. Ask if the car has been in a wreck, staring them right in the eyes waiting for their answer. If the answer is yes, inspect the area that was repaired, and point out every tiny little flaw in that repair.
Test Drive The Seller's Used Car
Take the seller with you and ask questions when noises pop up. Listen for noises, rattles, or grinding sounds. If you hear rattling in the quarter panels, the car may have been in a wreck. If the car is a manual transmission, see if the shifting is smooth. Ask the seller if the clutch has been replaced, clutches fail after 4-5 years. This sets up the seller for a low ball offer. Most people are unaware that manual transmission vehicles have lower market values than automatic. Check the heater and the A/C, drive it in the daylight when the sun is hottest, to see how the A/C performs. Listen for grinding noises when the A/C kicks in, the bearings in the compressor are worn.
If the car has a voltmeter, make sure the voltage stays at 13.6 volts when the A/C is on. Bring a portable volt meter with you. Not everyone has one, many people do. You can get them for $20. Measure the voltage across the battery terminals with the engine running, and the meter set to DC Voltage. The voltage should be at least 13.6 Volts with the engine running, and no more than 14.8 volts. If it's not, there is a problem with the charging circuit, most likely the alternator, which is a costly component, usually about $150 rebuilt. If the battery is not at least 13.6V with the engine on, the 12V battery will not remain charged, and will die soon.
Drive with the radio on and off. Test the speakers to see if they are cracked. Make sure the CD player works. Take the car on a highway, main streets, and side streets, see if the car loses alignment, or bears to the left or right. See how good the car brakes, drive sharply around some corners, and your companion is writing everything down. Make sure all the seat belts work, that electric seats work, look for missing or burned out bulbs inside and out. If the car has retractable headlights, make sure they pop up and turn on. Make sure the brake lights, reverse lights and directional lights work. Ask the seller when the brake pads were last replaced.
"What kind of research did you do to determine what your car is worth?
Show me your research printouts, I have all mine right here, where's yours?"
I bet the seller has no research may be arrogant and indignant over your offer. They are unaware their asking price is off base, they get infuriated with your "low ball offer", and may refuse to deal with you. They probably need the money, the car is taking up space in their driveway, their wife complains every day as he lets offers slip through his fingers. His pride won't let him sell the car at your price. He'll say, "why don't you buy one of those other cars if they are cheaper? If my car is not worth it, why do you want it at all?" It's their last ditch futile effort to justify their price. He's trying to divert you from the fact that he cannot justify his selling price. Any seller using this strategy has just told you he has no valid research on the value of the car. A seller who knows the market value would say "Here's my printouts from the car pricing sites, my price is in line with accepted standards". Tell him "We like your car, but the research we have shows that it is not worth your asking price", point out all the defects, lack of maintenance records, etc. Tell him the printouts specify a car in good condition. Point out scratches, dings, rust, carpet stains, cracked dash, justification to offer even less than the car pricing printouts. Keep hammering him for his research and justification until you are the clear victor of that debate.
New car!?!?!?
Crazy chic
ok I'm getting a new car but I don't kow if I should get a 2001 Impala with 126,000 miles on it and it needs few tires but it's only 5,000! or a 2002 with low miles new tires and it cost 8,000... I really think I should get the cheaper one cause people tell me it's a really good deal! what do you think???
Answer
Money talks. And when it comes to buying a used car, not only does it talk, but having your finances in order can help you talk so well, you can smoothly close a deal that serves your best interests. There are basic rules to follow when buying a used car, such as an inspection by a mechanic, comparison-shopping, and tracking down the car's maintenance record. Additionally, an important and often overlooked rule is to have your financing ducks in a row before you kick a single tire. Failing to do so might make you want to kick yourself.
Four invaluable ideas
1.Clean your credit. Before you shop for a car loan, examine your credit report. Any of the three credit bureaus (TransUnion, Equifax, Experian) can provide you with a report for a minimal cost. Make sure that there are no mistakes- a clean record will get you a stellar rate.
2.Start loan shopping early. Shop around for the best auto loan you can find. Look into local banks and credit unions, which tend to have the best rates. They may also cut you a nice deal, especially if you have an account with them. Don't be shy about investigating cyber space. Many lenders will bid via the Internet for your business.
3.Use pre-approval as leverage. Tell the seller that you've got a car loan in hand. You're a much more attractive customer if you have the power to close a deal with the stroke of a pen.
4.Remember where the dealer's bread is buttered. Many people tend to go with dealer financing if the salesman offers a lower sticker price, but buyer beware: A lower price tag means the dealer gets paid on the back end from the in-house financing deal.
The moral of this dollar-saving story is to get your financing established before you start comparing used cars. Not only will it add to your negotiating power, it will allow you to focus on what's under the hood instead of what's in your wallet.
If you are buying a used car, you absolutely must get an AutoCheck Vehicle History Report on the Vehicle Identification Number (VIN) AND have a mechanic inspect the car on a lift.
Used Car Pricing Does Not Use Invoice Price
We often get asked if "Invoice Price" and "MSRP" apply to used cars, or if you should try to calculate an offer for used cars based on invoice price. No, the Invoice Price and MSRP only apply to new cars, not used cars. For used cars, there is no invoice price because car dealers acquire used cars from people at a "trade in" price, then mark it up on the lot. The best way to determine used car prices is to check how your car has sold on eBay the last few weeks, and bring printouts with you to the dealer to support your offers on used cars.
Finding out what's wrong with that used car before you buy
Everyone buying a used car should get an Experian AutoCheck Vehicle History Report, they get data from a substantial number of dealers and aftermarket repair shops, nearly 5,000 sources. A mechanic can put the car on a lift and instantly spot previous crash damage, hidden frame damage, corrosion, and fluid leaks. But your mechanic can't tell you if your car title has been branded as a flooded vehicle, salvaged, junked, rebuilt, stolen, or passed through a salvage auction. Most mechanics overlook airbags. You can only tell how many owners that car had or where it's been with a history report, not just by looking at the car. This is not the time to 2nd guess. Unfortunately there are no clear laws if you sign an "As Is" paper. Any used car can have a bad past, Mercedes, Lexus, Honda or Toyota. Some municipalities don't supply accident report info, that's why you still need to have a mechanic look at it. If the police never made a report, it won't show up in the AutoCheck Vehicle History Report.
Save money financing your used car
You can save money when you buy a used car by using Capital One Auto Finance instead of paying a higher rate from the dealer. The process is simple, apply online, approval takes minutes and they mail you a check to take to the dealer. If you got railroaded into a high APR car loan from a dealer, you can refinance after 3 months with Capital One Auto Finance. Lower your current car payments with their Auto Refinancing Loans. A few of my friends have used them. They have a low APR, it's fast, easy and awesome.
How do I finance if a buy a used car from a private person?
A lot of people ask me how to finance a used car when you buy it from a private person. Use the Capital One Auto Finance person-to-person loan for used cars. Apply online, approval takes minutes, they mail you a Blank Check® so you can buy any used car from a private party without paperwork hassles.
Get An Extended Warranty for your used Car
Get an extended warranty for your used car. The best car warranty site we have researched so far who are known to pay claims is Warranty Direct. Read our chapter on Extended Warranty Scams & Tips, or you'll be out several hundred dollars. If you buy a 3 or 4 year old used car, that's when the manufacturer's warranty expires and all hell breaks loose. Unless you have an extended warranty, you are exposed to potentially large losses.
Don't fall into the gap!
If you owe more on your car than it is worth, if you lease, or if you put down less than 20%, you should get Gap Coverage from Gapinsurancequotes.com. Most people refer to it commonly as "gap insurance". Don't even bother buying it from dealers, they charge $500-$700 when you can get it online directly from Gapinsurancequotes.com for less than 1/2 the car dealers. If you owe $20,000 on your car, but it's only worth $16,000, you're upside down. You total the car, or it's stolen, your insurance company gives you $16,000. You must still come up with $4000 to pay off the bank, plus your $500 deductible! Gap coverage protects you against this. The better ones cover up to $500 of your deductible.
Money talks. And when it comes to buying a used car, not only does it talk, but having your finances in order can help you talk so well, you can smoothly close a deal that serves your best interests. There are basic rules to follow when buying a used car, such as an inspection by a mechanic, comparison-shopping, and tracking down the car's maintenance record. Additionally, an important and often overlooked rule is to have your financing ducks in a row before you kick a single tire. Failing to do so might make you want to kick yourself.
Four invaluable ideas
1.Clean your credit. Before you shop for a car loan, examine your credit report. Any of the three credit bureaus (TransUnion, Equifax, Experian) can provide you with a report for a minimal cost. Make sure that there are no mistakes- a clean record will get you a stellar rate.
2.Start loan shopping early. Shop around for the best auto loan you can find. Look into local banks and credit unions, which tend to have the best rates. They may also cut you a nice deal, especially if you have an account with them. Don't be shy about investigating cyber space. Many lenders will bid via the Internet for your business.
3.Use pre-approval as leverage. Tell the seller that you've got a car loan in hand. You're a much more attractive customer if you have the power to close a deal with the stroke of a pen.
4.Remember where the dealer's bread is buttered. Many people tend to go with dealer financing if the salesman offers a lower sticker price, but buyer beware: A lower price tag means the dealer gets paid on the back end from the in-house financing deal.
The moral of this dollar-saving story is to get your financing established before you start comparing used cars. Not only will it add to your negotiating power, it will allow you to focus on what's under the hood instead of what's in your wallet.
If you are buying a used car, you absolutely must get an AutoCheck Vehicle History Report on the Vehicle Identification Number (VIN) AND have a mechanic inspect the car on a lift.
Used Car Pricing Does Not Use Invoice Price
We often get asked if "Invoice Price" and "MSRP" apply to used cars, or if you should try to calculate an offer for used cars based on invoice price. No, the Invoice Price and MSRP only apply to new cars, not used cars. For used cars, there is no invoice price because car dealers acquire used cars from people at a "trade in" price, then mark it up on the lot. The best way to determine used car prices is to check how your car has sold on eBay the last few weeks, and bring printouts with you to the dealer to support your offers on used cars.
Finding out what's wrong with that used car before you buy
Everyone buying a used car should get an Experian AutoCheck Vehicle History Report, they get data from a substantial number of dealers and aftermarket repair shops, nearly 5,000 sources. A mechanic can put the car on a lift and instantly spot previous crash damage, hidden frame damage, corrosion, and fluid leaks. But your mechanic can't tell you if your car title has been branded as a flooded vehicle, salvaged, junked, rebuilt, stolen, or passed through a salvage auction. Most mechanics overlook airbags. You can only tell how many owners that car had or where it's been with a history report, not just by looking at the car. This is not the time to 2nd guess. Unfortunately there are no clear laws if you sign an "As Is" paper. Any used car can have a bad past, Mercedes, Lexus, Honda or Toyota. Some municipalities don't supply accident report info, that's why you still need to have a mechanic look at it. If the police never made a report, it won't show up in the AutoCheck Vehicle History Report.
Save money financing your used car
You can save money when you buy a used car by using Capital One Auto Finance instead of paying a higher rate from the dealer. The process is simple, apply online, approval takes minutes and they mail you a check to take to the dealer. If you got railroaded into a high APR car loan from a dealer, you can refinance after 3 months with Capital One Auto Finance. Lower your current car payments with their Auto Refinancing Loans. A few of my friends have used them. They have a low APR, it's fast, easy and awesome.
How do I finance if a buy a used car from a private person?
A lot of people ask me how to finance a used car when you buy it from a private person. Use the Capital One Auto Finance person-to-person loan for used cars. Apply online, approval takes minutes, they mail you a Blank Check® so you can buy any used car from a private party without paperwork hassles.
Get An Extended Warranty for your used Car
Get an extended warranty for your used car. The best car warranty site we have researched so far who are known to pay claims is Warranty Direct. Read our chapter on Extended Warranty Scams & Tips, or you'll be out several hundred dollars. If you buy a 3 or 4 year old used car, that's when the manufacturer's warranty expires and all hell breaks loose. Unless you have an extended warranty, you are exposed to potentially large losses.
Don't fall into the gap!
If you owe more on your car than it is worth, if you lease, or if you put down less than 20%, you should get Gap Coverage from Gapinsurancequotes.com. Most people refer to it commonly as "gap insurance". Don't even bother buying it from dealers, they charge $500-$700 when you can get it online directly from Gapinsurancequotes.com for less than 1/2 the car dealers. If you owe $20,000 on your car, but it's only worth $16,000, you're upside down. You total the car, or it's stolen, your insurance company gives you $16,000. You must still come up with $4000 to pay off the bank, plus your $500 deductible! Gap coverage protects you against this. The better ones cover up to $500 of your deductible.
Powered by Yahoo! Answers
No comments:
Post a Comment