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5 minutes to read
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In the market for a car these days? Surprisingly, since the Covid chaos last year, car buying has returned in many parts of the country, almost matching pre-pandemic levels. The glaring reality of all of this is the price you can expect to pay right now. Last summer alone, the average price of a new car in the United States was estimated to exceed $ 40,000 – contributed by a shortage of materials, from wooden components to silicon to chips and other computer parts.
Are you buying a used car? You can always expect to pay through the nose. The average price of a used car on the showroom floor or in an outdoor lot, according to Kelly Blue Book, is now nearly $ 25,000, a significant increase over the past two years and a unprecedented peak. So what is going on now? People avoid middlemen and go straight to the main source – private sellers. With private sellers, buyers can probably negotiate better deals and get very important feedback on the origin and history of cars. Salespeople these days are not interested in the steering wheel and transactions because they know their average customer base will likely opt for a used car over a new one.
Related: 3 Elements of a Successful Used Car Business
What you need to know if you are buying a used car from a private person
When buying from a private seller, it is important to know if the buyer is fully insured. You’re going to want to take a test drive before you buy. You’ll also want to see some documentation, like an emissions report, title, and bill of sale. During your test drive, ask the seller if they can take you to a reputable mechanic for a full inspection.
This is standard operating procedure for any car buyer, but it is beneficial here because you will know everything about the car inside and out, what wears out and what. will need to be replaced. You can use this new knowledge to bargain with the buyer on the cost of the car. At a used car dealership, there will likely be no haggling, and you will buy the used car primarily “as is” no matter what you might find wrong with it. But also keep in mind that unlike dealerships, there is no warranty when making a private purchase, so this is a big risk.
Related: The 3 Best Car Stocks To Buy Now
How To Streamline The Buying Process If You Are Going With A Dealer
First, arrive with a pre-approved loan already in hand, preferably from a traditional bank or credit union with an excellent reputation. This is a great idea because your dealership will know what you’re qualified for and might try to lower your pre-approved loan and get you a better deal on theirs. It’s also helpful because the dealer will know your credit score, which can help you make a deal on the loan. So, make sure that your credit score is high when you take the field. If not, your first order of business before you even buy a car is to increase your credit.
Second, show up with a price in mind. When a dealer first comes to you, you need to know what price bracket you want and refuse to be sucked in. Agree on a price range first, then talk about trade-ins, extras, and other things. There’s no point in coming to a dealership and starting asking what make, model, or extras you’re looking for. Unless money isn’t a concern, set a price first.
Finally, if you have a trade-in, by all means, research the current value of the car before you go. You don’t want the dealer to play down the number, and in many cases, they will. If you think you are getting ripped off on the value, first ask the dealer why he arrived at that value. The dealership may have certain reasons, such as wear and tear, that reduced the overall value of the vehicle.
By arming yourself with the proper documentation and knowledge, you will succeed in getting a good deal on a used car. – either through a private seller or a concessionaire.
Related: It’s The Worst Time To Buy A Car, But What If You Have To?
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