The decision to buy a used car and not a new one makes for a smarter financial decision. This is more so in the face of the fact that new cars shed approximately 15% of their purchase value, on average, immediately after you drive away from the showroom. That and the fact that used cars are much cheaper has made second-hand cars more or less the choice option for most people with the intent of owning a car.
Car dealers have subsequently made good business over the years and the trend seems set to continue into the future. One observation has to be made though; some of these dealers are rogue in nature – they prey off unsuspecting buyers and end up making a killing thanks to a scam or two they have perpetrated. As a potential buyer, how can you steer clear of being scammed by a car dealer? Read on for some helpful tips:
1When Buying a Used Car, Have the Vehicle You Want in Mind
This is perhaps the single most effective barrier against being scammed by a car dealer. You really have to know what type of vehicle you want to purchase before you arrive at any dealership. You just cannot afford to have the car dealer sell you a car that he/she feels is right for you – we are not talking about a loaf of bread here, this is a serious investment that requires equally serious money.
Establish the make, model and year of manufacture of the car that tickles your fancy and then proceed to look for options that match this description. In your search you should ideally be looking for a car that has the least mileage so as put off maintenance and repair bills for enough time to enjoy your new ride. Also, base your thinking on car models that have an established reputation for fine performance. Even if a new model from an established manufacturer seems tempting enough, it is prudent to avoid buying it until a later time when its reliability has been ascertained.
2What Price Should You Pay for the Car?
The golden rule in negotiating is that you should always know the price ceiling and therefore try to go below this amount by as much as you can when buying a used car. It is unfortunate that some car buyers will head to a dealership without the slightest clue of what they should pay to make a sensible purchase. It is such people that get scammed by car dealers.
There is an effective way to determine your price ceiling and it doesn’t take much time to compute – why the rush when you need to save money? Having settled on a certain car model, one that is quite popular perhaps, look for a classified ads page and look up what prices are being offered for the same model. Add up all the individual prices and get the average cost by dividing that figure by the number of cars. Next, log on to www.kbb.com - the Kelly Blue Book website - and check what a similar model costs. Add that figure to the one you had computed and get the average – to which you will deduct 15% to get the price target to inform your purchase decision.
3From Whom do You Buy a Used Car?
Market studies have indicated over time that the probability of getting scammed by a car dealer is very much higher than can be with a private seller. The logic behind this is straightforward; the car dealer is making the deal with the intent of making a profit while the private seller is just after making a fair return. While many people will tend to prefer car dealers over private sellers because the former seem to be more adept at issues of ownership transfer and so on, the smart money is certainly where savings can be made – these legal aspects are uniformly applied so you have little to worry about if the right procedures are followed.
4Ask to Peruse the Used Car's Records
This is one acid test that you can use to ascertain the quality of a prospective used car purchase. The car dealer, or private seller for that matter, should always be able to give you the vehicle’s maintenance records without hesitation. Failure to do so or being offered excuses to that effect should show you the green light to wrap up the negotiation and take your search elsewhere. Of all the means through which you can get scammed by a car dealer this is perhaps the most basic blunder you can make – failing to ask for documentation.
