2008 Automakers Report

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Should You Buy A Used Car??

(Source: Billings Farsworth )

There is just something about that new car smell that Americans love. Likewise, there is something about driving tat brand new car off of the lot for the first time and showing it to your friends and family. But have you considered buying a used car instead? Used cars provide great value for their owners, and can help you keep costs down while still enjoying a new car.

Used cars also enable you to get better features and more options than you might have been able to afford if you were buying the car new. Used cars are a great option if you're looking for a new car that just might be a little out of your budget range. Next time you are considering buying a car, consider a used car instead and see how much you'll save by looking for used cars in your area.

Used cars are a great choice for many different reasons. As long as you've done the correct research on the car you want to buy, you'll be able to afford more cars than if you were to buy one new. We all know that a new car loses twenty percent of its value the moment it drives off of the car lot, so doesn't it make sense to buy a gently used car instead. You can find great deals from people who are upgrading to newer cars and have babied their car they want to sell. A used car might just be in as good of shape as a new one, and you'll get it for half the price! See your local dealership for used cars that are right for you.

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How Dealerships Price Cars

Leasing vs. Buying a New Car

(Source: Radu Mamut)

Car transport is the most popular way of getting around in villages, cities, and small towns. When it comes to owning a car, many people grapple with whether, it is better to lease or to buy a car. People that do not have a great deal money or those that would rather use the money for something else can lease a car. This is because leasing a new car does not require the person to have a large amount money as some leasing companies only expect a little amount of money for the lease, while others do not expect any money at all. People that lease new cars, will be required to pay small amounts of money every month as well. All this is good enough, but at the end of the lease, the leaser will be left with no car. On the other hand, buying a car is more costly initially, as one will have to pay a tidy sum of money every month for it. The best part of it is after the payments, the car will wholly belong to the buyer and they can either keep it or sell it to buy a new one.

Leasing also helps those looking to experience an expensive car, but do not have the money to buy one. Thus, one can drive in a flashy car, without necessarily owning the car; this is possible via leasing. Monotony is a problem people that have driven the same car for years often face. This problem can be dealt with, if a person chooses to lease as they can change their car after several years. One more reason, as to why leasing a car can be the better option, is that the owner will not be subjected to trade-in hassles, when their leasing period is over, they will walk way peacefully. One important thing to note is that leasing cars is not for people that love to keep their cars for extended periods, it is for drivers whose mileage is high, or for the kind of people that do not like making decisions on new cars on a regular basis. People that are not into building equity, have stable incomes and do not like selling and trading in used cars can go for leasing.

During periods of low interest rates, it is financially sensible to buy a car rather than lease one, as one will not pay much for it. The problem of mileage penalty will not keep car owners awake, as they will not be subjected to it. Buying a car is more flexible than leasing one, because the owner can do whatever they want with it, they could sell it at their convenience and so on. People that would rather drive a car they own for years to spread the cost out, those that like customizing cars or those that expect lifestyle changes any time soon can buy the car. No one can say for sure whether leasing a car is better than buying a car and vice versa. The decision one will make will depend on their lifestyles as well as their priorities in finances and cars.

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

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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.

How to buy a Car