Monday, December 15, 2008

How Car Dealerships Price their Used Cars

A franchise dealer has a pretty simple model for the way they price used cars. They just pick a percentage over what the car has been estimated to be worth on the wholesale market. That wholesale market value is determined by the cars age, the cars make and model as well as options, the mileage and overall condition of the car.

A dealer determines how much markup they will use on used car based on these factors. The first thing they take into consideration is the price they paid to get the car. They might have taken the car as a trade against buying a new car, which means they did not pay any cash for it, or they bought the car from a private seller, an auction or wholesaler. The second thing they must take into consideration is the cost that they have paid for repairs and reconditioning the car needed. They then finally have to tack on more to the price so that they can make money. This is a business they are running after all.

The markup that a dealer puts on will be influenced by all these factors. As you can see it is clearly more than just one thing that affects how much people have to pay for a used car. If you want to be an educated buyer of used cars your objective should be to find out the cars wholesale price and then how much the dealer has put into the car to get it ready. This will tell you how to plan your negotiations since a dealer is almost never going to go lower than those two things.

When shopping for used cars, everyone knows that you need to bargain. It is for this reason that most dealerships include a "negotiation pad" in what they use as their markups. Many people who come to the used car lots will not buy a car unless they feel they are getting a deal. If dealerships marked cars with the prices they actually wanted to sell them for then people would come in and try and haggle below that level. If they put it at say 1000 above, they can easily let people bargain them down that 1000 and still get a price they feel is fair. If people don't bother to bargain them down then they have made an extra 1000. This is why it is important to know how much the dealership has put into the car. Once you know that, you know how much you can try and bargain off and what is the absolute minimum they will go to.

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New vs. Leasing a Car

Friday, December 5, 2008

Volkswagen Commercial

Top 10 questions to Ask a Used Car Dealer before you Buy

You're looking for a new car and you've decided to buy used. Smart choice! With the price of gas and the state of the economy, shelling out all that extra cash for a brand new car when a used car can be just as fuel efficient and a much better deal is like tossing your cash into your car's fuel tank and literally burning that money away.

Craigslist, eBay, car classifieds, and used car search engines like iSeeCars.com make finding used cars for sale so much easier than ever before. But you have to be careful-there's bound to be a few lemons out there that will leave you with more than just a sour taste in your mouth. Making a major purchase like a car-even if, or perhaps especially if, it's a cheap used car-requires that you do all of your homework. Remain in control and no one will be able to pull the wool over your eyes!

Here are the top ten questions you should ask a used car seller before you sign on the dotted line:

1.) Can you tell me why you're selling this car? Used car dealerships might not know (but they may know why the last owner sold it to them), but all private sellers you might find through Craigslist, eBay, or car classifieds ought to answer. If possible, watch their facial expressions when they answer, too, in case they're not being entirely truthful. If they're moving or can no longer afford payments for the car, the car is more likely to be of higher quality. If it's because it's very old or has required many repairs, make sure you know if the price is fair and understand what you're getting into.

2.)What is the car's mileage? Car mileage plays a large part in determining the used car's value. And remember that used car odometers can be tampered with, which is why you should ask...

3.)Will you allow a test drive? Any used car dealership should have no problem letting you test drive their used cars for sale around town. Private sellers might be more reticent, but assure them you'll allow them to accompany you on the trip. Test drives are essential for noticing problems with the car as well as for making sure that the car is the right fit for you. You'll also be able to notice if the odometer appears to be "stuck" or has problems.
4.)Will you allow me to make my own inspection? If they're reputable, both used car dealers and private sellers should have no problem with you bringing the car to a trusted mechanic for a thorough inspection.

5.)Is there a warranty on the car? If you're buying from a used car dealership, go for the certified used cars. A lot of used car dealerships offer 112-point inspections and two-year/20,000 miles warranties on low- to average-mileage used cars. Some used cars for sale may come with existing factory warranties. When buying from a used car for sale by owner, unless there's an existing factory warranty, the car is typically sold as-is.

6.)Has this car ever been refurbished or been in an accident? If the used BMW car that's caught your eye was once in an accident, there might be more damage underneath that freshly-painted coat than meets the eye.

7.)What is the vehicle's history? Certified used cars and other used cars for sale at used car dealerships ought to come with vehicle history reports. (Oftentimes these are even available when you search for used cars online.) Used cars for sale by owner might have official vehicle history reports, but if they don't, you should be able to purchase them online at sites like Carfax or Autocheck using the VIN# of the car.

8.)Are you the original owner of this car? If you want quality, it's best to choose used cars for sale by the original owner-unless each owner of the car used it for a short period of time. This actually isn't a moot question for a used car dealer, either; it's possible that car was for sale just a few years ago as a brand-new car and never got off the lot.

9.)What are the car's special features? If CD player, navigation or GPS system, leather seats, or anything else that's "extra" is important to you, ask if they're available in the used car that you're considering-and if they're still in good, working condition.

10.)Do you have service or maintenance records for the car? If the owner has kept good records and has followed the manufacturer's suggestions for scheduled maintenance like changing oil every so many miles, that would be a good indication of how well the car was taken care of.

Monday, December 1, 2008

How to buy a Car

Denver Volkswagen Dealerships

There are a few big names when it comes to Volkswagen Dealerships in the Denver Metro Area. We are looking at Osborn Automotive, Emich Volkswagen, McDonald Volkswagen & Tynan's.

The first on the list, Osborn Automotive is located on W. Colfax in Lakewood. The appearance of the VW dealership is very appealing, the building is nice and the car lot is very clean. When you walk into Osborn Automotive, someone welcomes you and asks if they can get you something to drink. When it comes to customer service of Denver dealerships, Osborn ranks in the top. The salesmen were eager to help you find your next car...not too pushy but maybe a little too in your face. They were really trying to push Volkswagen's new Jetta TDI which is a diesel jetta that is suppose to be getting 50 mpg! They actually sold me on the idea with the new jetta having a mechanism that filters the exhaust so it is a really "green car."

When I was looking at the selection I was impressed with all of the cars they had in their lot. Their selection of New & Used cars was greater than the majority of previous dealerships I have been to. The pricing on used cars was average to slightly high.

Now I didn't buy a car from them but I acted like I wanted to trade in my 04' Explorer and I was surprised with the trade in price they offered me. I figured it would be way lower than what I felt my car was worth and actually it was just a little less.

I made a few phone calls to their service center and acted like I needed to get my car fixed. I asked them what they charge per hour for service and it was a little bit higher than average. They told me that they would have my car done faster because they specialize in vw auto repair and know those cars inside and out. I also asked when I could get my car serviced and they said the next day. I don't know if they are slow or if they just allow a lot of cars to be worked on at once.

Denver Volkswagen Repair

If you have a Denver Volkswagen and you need it serviced, there's only one place to go! No matter what the problem, big or small, Autoworks Colorado can fix any type of Volkswagen. They have been fixing volkswagen's in Denver for over 25 years, in fact they have been doing it longer than anyone else in the Denver metro area.

Autoworks Colorado has certified Volkswagen mechanics who pride themselves in servicing vw customers. They only fix Denver Volkswagen's so they certainly know what they are doing. If your vw isn't working correctly, or running smoothly you need to take it to the best Denver vw repair shop in Denver - Autoworks Colorado!

Kia Amanti

There are a few Denver KIA Dealerships in the Denver Metro Area and most offer the sleek KIA Amanti. KIA improved the Amanti by giving it a more luxury vehicle look and feel in the 08' model. KIA calls it "Luxurious, stylish and full of excitement. The Amanti is the ultimate premium midsize sedan for those seeking more imspiration behind the wheel." I think you would agree if you ever see a KIA Amanti rolling down the street.

The 08' Amanti has a remarkably spacious interior that lets you travel in total comfort, theres no cramping into this car! Whie you enjoy such hig-end amenitites like soft leather headed front seats and dual-zone automoative temperature control, as well an infinity sound system.

The KIA Amanti also has a whopping 264-horsepower V6 engine that delivers an exceptionally powerful engine designed for fuel efficiency. Along with a powerful engine, KIA designed the Amanti with great accessories. If you get an Amanti fully loaded, it should be able to fulfill your every need. The rearview mirror has an automatic dimmer, you can get a LCD monitor that is easy to read outside temperatures-calendar-trip computer-clock etc, many of the controls are on the steering wheel so your eyes don't have to leave the road. The Amanti also comes with power everything: locks, doors, headed outside mirrors, sunroof,& windows.

The KIA Amanti also comes with the standard 100,000 miles/10-yr warranty that assures your vehicles protection longer than anyone else. Have I mensioned this car is SAFE?! Denver KIA Dealers offer the safest vehicles on the street. KIA Amanti has over 10 airbags and passed all safety tests with flying colors. For more on Amanti Safety click here

If you're looking for a flashy car that is easy on the check book a KIA Amanti is a good choice. Visit your local Denver KIA dealers and pick one out today. Osborn Automotive has Denver's largest selection of new and used cars. Osborn Automotive is a great choice for purchasing the KIA Amanti.

More About KIA Amanti Back to Denver Dealers

Denver Kia Dealership

Submitted by Tim Thompson

There are a few Denver KIA dealerships in the area and after visiting Peak KIA in Littleton and being disappointed, I was pleasantly surprised when I visited Osborn KIA dealership in Lakewood.

Their dealership was very clean which is normal but I was happy with the help the salesmen provided me. It was more than the pushy salesman that we frequently get when "looking for a car." When I was approached, it wasn't how can I help you, it was "if you have any questions or need any assistance with any of our vehicles please let us know." I was told that they recently have hired a new GM of the KIA dealership and look to improve on their presence of Denver KIA Dealers. I left the KIA dealership in Lakewood with more knowledge about the KIA cars I was interested in and comfortable with the relationship I had made with the salesman. If I ever buy a KIA it will be from the Osborn KIA Dealership.

2007 Chevrolet (Chevy) Tahoe LTZ