When buying a used vehicle, there is a multitude of options to consider. Besides choosing a vehicle to suit the individual needs of the car owner, a decision has to be made on where to buy the vehicle. Some options may include new car dealers, private parties, used car lots, online brokers like Autotrader or auto auctions.
The best decision on where to buy a used car largely depends on the individual needs of the car buyer. To help the car buyer make an informed decision, this article looks at the advantages and disadvantages of buying a used vehicle from a new car dealer.
Used Car Prices and the New Car Dealer
As a general rule, new vehicle dealers used car prices are higher than other purchasing options. When a dealer sets a selling price on a vehicle, they generally use an appraisal based on retail value from sources like Kelley Blue Book or other appraisal sources. To help ensure a fair value price, look up the appraisal value. The price of the vehicle should be at or below the retail value.
However there can be exceptions to the general rule. Dealers have a lot of money tied up in their inventory and have to move it quickly. Dealers understand that a vehicle that sits on the lot to many days can actually end up costing them money. To get a better deal, ask the dealer if they have any aging inventory they want to move at a reduced price.
Advantages of Buying a Used Car From a New Car Dealer
The biggest disadvantage of buying from a new car dealer is the higher price tag. In part new car dealers have to cover their overhead and a lot of their profits come from used vehicle sales. There are some advantages to buying a used vehicle from a new auto dealer that may warrant paying a higher price. Some of the advantages may include
* warranties
* financing options
* reconditioning quality
* trade-ins
* paperwork
New car dealers may supply a written warranty with the vehicle sale. They usually have different financing options too meet the buyer’s needs. Most used cars go though a quality and safety reconditioning process. The buyer can trade-in a vehicle to offset the purchase price and new car dealers will take care of all the needed paperwork.
Pre-owned Certified Used Cars
Most factory dealerships also offer pre-owned manufacturer certified vehicles. Even though certified vehicles command a higher price, there are some advantages for pre-owned certified vehicles. Factory warranties, roadside assistance and special rate financing are some examples.
The bottom line to get a good deal on a used car from a new car dealer is to negotiate the price and financing rate. Once a used vehicle is found for purchase, don’t commit to the sale on the first visit. Make a note of the vehicle model, year, odometer reading and optional equipment.
Once the information is obtained, look up the information on Kelley Blue Book and get the retail value to ensure you’re paying a fair price. Search used vehicle sales website for similar models to use as a negotiation tool. Before finalizing the sale, ask the dealership to run a vehicle history report to ensure there are no underlying problems with the vehicle.
