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Thursday, September 6, 2007
If you are planning to sell your used car to a car dealer, you should be aware of the basic process in determining the worth of your car. This would ensure you would not be scammed and taken for granted by car dealer experts.
What is the Blue Book value?
The Blue Book value is a basic term used in the car buying business. It means the worth or cost of a vehicle. This vital book determines the price of what dealers are willing to pay for a used car.
* Where could you find the Blue Book value?
There are several resources responsible for determining the value of your car. The two most popular is the Kelley Blue Book and the N.A.D.A. Appraisal Guides.
The Kelley Blue Book, which invented the term Blue Book, is a principal source for determining the loan value on used cars. It has been providing information for 75 years.
The N.A.D.A. Appraisal Guides, which was established in 1933, is another helpful Blue Book that provides car buyers to review the car’s worth.
* How does the Blue Book determine the value of a used car?
The Blue Book calculates the value of your car based on the make, the model and year. The book also considers factors such as conditions of the used car, mileage and other options. The majority of the popular Blue Books are free for public use in their respective web sites. They provide user-friendly worksheets to help determine the appropriate value of a used car. Being aware of the Blue Book value of your car would help you search for a fair deal.
* How do you determine the amount you wish to spend on buying a used car?
If you’re planning to buy a used car, you should determine how much money you are willing to spend. Consider the additional expenses such as the tags when applying for a car loan, extra tax, and purchasing of the car title.
* How does the Blue Book determine the final values?
Many organizations and individuals make use of the Blue Book. Car auctions, private owners, rentals and fleets, franchised and independent dealers all use the Blue Book to determine the final value.
Used car values are determined by a respectable editorial process. Each process starts with an analysis of the collected data which include the current economic conditions, the historical trends, seasonality, location and industry developments. The final value reflects the most current representation of the changing car marketplace.
Be a wise used-car shopper and avoid bad deals and investments. Check with the Blue Book to find helpful guidelines in your used car purchase
Car Dealers
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Purchasing a Used Car from a Dealer
There are many challenges you will face when buying either a new or used car. It depends on the model that you want, how much is the budget, the size of your family and the options that go with it.
If you have an idea on the right used car to buy, then a little research on the value of the second hand car in the market to date will be able to help you when approaching a dealer.
This can be done by checking the internet or looking through the local newspaper before going to the various dealers in the area to make comparisons.
If the ideal car is not available on the lot, then if you tell the dealer about it these people can help by looking for that particular model or offer a similar car similar to your choice.
Since dealers often want to get rid of the used car quickly, it is also possible to get a good deal on what is available as long as it meets your requirements.
Most used cars have a maintenance record. The buyer must ask the dealer to see it and if it is not available, then you should contact the dealership or repair shop where most of the work was done.
The buyer has the right to see a copy of the dealer’s warranty. To be safe, you can also ask if a service contract is provided in buying the used car. This contract that is offered by the dealer may or may not provide coverage that is in the manufacturer’s warranty which may cost extra.
Since the warranty usually comes when buying a car and the service contract does not, it is best to ask if you need to avail of by answering some questions;
• What are the differences between the coverage of the warranty and the service contract?
• What repairs are covered?
• Is routine maintenance covered?
• Who will pay for labor and parts if brought to the shop?
• Who is authorized to perform the repairs and where?
• How long does the service contract last?
• What are the cancellation and refund policies?
Just looking at the second hand car will not give information if the used car is in good condition. It should be test driven under various road conditions such as the highway or in traffic.
Since most people are not that knowledgeable about cars, it is advisable to bring the car to a reliable mechanic for proper inspection.
Second hand Car Information
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Buy Used cars at Cheap Prices
Buying car is a huge investment. Whether a brand new or a second hand car, you still have to shell out a tidy sum to hopefully get the car that meets your specifications.
Second hand cars can be purchased by going to the local dealer, looking at the classified ads or checking out the various websites that allow a person to search and buy a car online.
There are two reasons why buying car that are second hand are cheaper. The first is that cars once purchased and driven off a lot immediately depreciate. Annually, these cars lose about 20% in value making it easy for you to buy a second hand car almost at half the original price.
Another reason is that it is hard buying car and pay the full payment up front. By acquiring the services of a financial institution such as a bank, a person can pay off the loan through monthly installments. Unfortunately, some people have failed to honor that commitment which leaves the financial institutions no choice but to have the car repossessed.
For the bank to avoid storing the many cars that have been repossessed and make up for the lost money, these cars are auctioned off immediately which make it easy for some lucky people to buy fairly new cars and prevent being taken advantage of by car dealers.
Before buying car, it is best to think about the kind of car you are willing to spend for and the options that come with it. By doing some research and checking out various dealers, you will be able to pick the right car and get the best deal.
You should also check the history of the used car. This can be checked by going online and typing in the vehicle identification number or VIN. This can help verify the accidents the car has been in, if the car was reported stolen and the previous owner of the vehicle. It can also check if the mileage was rolled back.
Most cars have a maintenance record. The buyer must ask the dealer to see it and if it is not available, then you should contact the dealership or repair shop where most of the work was done.
The car should also be test driven on the road at various conditions and checked by a trusted and reputable mechanic just to be safe that the car you will buy is road worthy.
Most important of all, you should ask about the warranty. If there are some things not covered by it, it is best to get a service contract to be safe.
FREE Car Loan Information
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