fruitful. At this point, you're getting closer to haggling with the used car dealer or individual seller. You know from whom or where to buy, you know what that there are alternative sources out there where to buy the car of your choice, you know what precautions to take like arming yourself with a credit report and printout of the lowest price of a used car through the free internet websites.
You know how to look for theVIN and running it through AutoCheck®< to determine whether the car that you like has no issues. By now, you are more comfortable in looking for visible signs whether the car you're looking at has been flooded, has been involved in serious accidents, etc.
This used car guidewill now prepare you in haggling with the car dealer or a potential car seller.
First, negotiating with the dealer:
When negotiating with a dealer, don't talk about monthly payments. The salesman will try to focus on your monthly payment, on what you can afford. This is baloney. Don't let him steer the issue on that because if you let him, you'll make him squeeze the last dollar out of you. You need to focus on the total price of the car. Since you are already armed with the current market price of the car, you know where to start negotiating to obtain the best used car for you; that's why becoming familiar with this used car guide is a must.
Once you arrive at the price, deal with the auto financing. You already know your credit report so you know more or less how much APR you'll can be charged. The table below of Avg. APR according to your FICO score is accurate as of 4/13/08:
Used Car Loan Avg. Rates
As you can see, if your score is below 620, you will be charged an exorbitant rate. But if your score is 690 and above, the dealer can't mislead you with a higher rate. That's why it's very important for you, if you would like the dealer to finance your buy, to be up-to-date about your credit score. Go to this site to obtain a free credit report. If you're credit report is below 590, you'll get socked with a credit-card-like interest rate and the best thing to do is to look for sources of financing elsewhere, or wait till you improve credit score
. If you want to keep an eye on your credit, do so through Equifax. They can help you obtain a better loan and you can therefore save money. Get Equifax score now
If you don't like the offer, you can take the contract on the car and go to your bank or credit union and they can cut you a check. This used car guide advises you that it's important to have a maximum price in mind before you begin and not to exceed it. If the salesperson won't lower his offer, walk away. There's a bunch of dealers out there.
If you agree on a price with the salesman and also agree to finance your buy through the dealer, this used car guide urges caution. Dealerships make much of their profit selling loan packages, extended warranties and insurance, anti-theft devices, Low Jack, undercoating, fabric protection, etc. Dealers usually pad the prices of these products. Fabric protection that they will charge you $200 probably cost them $5.00 for a bottle of ScotchGuard. Go elsewhere to get those protection. It will be a lot cheaper.
How about extended auto warranty
? Manufacturers have increasingly better coverage. Extended warranties are nothing more than extended service contracts, which will cover the cost of certain repairs and problems after a car's factory warranty expires. Make sure to check the vehicle's original warranty and if there's any coverage left on it. Many warranties expire once you reach a certain mileage limitation or after a certain period of time has passed since purchase.
An example of this used car guide tip regarding extended warranty:
If a car with a 36 month / 36,000 warranty has 15,000 miles on it but was purchased 3 years ago, it could be out of coverage. You should calculate how many miles you will drive per year and how long you will drive the car. If you are intending to keep the car a long time and drive a lot of miles per year, an attractively priced warranty might be a great decision.
Car manufacturers are increasingly surpassing the outdated three-year or 36,000-mile warranty, especially higher-end automakers. Acura, BMW , Cadillac, Volvo, Saab, Mercedes , Lincoln, Lexus and Jaguar are sold with four-year or 50,000-mile warranties. Infiniti's
vehicles have four-year or 60,000-mile warranties. Hyundai and Kia offer five-year or 60,000-mile warranties on new vehicles, plus 10-year/100,000-mile powertrain warranties, which cover engine and transmission repairs. GM recently exceeded all other warranties currently being offered by announcing a five-year or 100,000-mile warranty. Use what you read in this used car guide to make you informed.
Most factory warranties are transferable to used-car buyers, but some warranties have restrictions, so be sure to check. If you paid to have your vehicle certified by the car manufacturer, then you have added warranty protection on your used vehicle.
Many major car manufacturers like Honda , Ford , Lincoln, Mercury,
and Volvo have sweetened the coverage on Certified Pre-Owned vehicles. Several luxury automakers offer an additional two-year warranty on their Certified Pre-Owned vehicles. Others offer an additional twelve-month/12,000-mile warranty after the new-car warranty expires. After determining how much coverage is leftover from the previous warranty, how long you plan on keeping the car and how much additional coverage you'll need, the next step is to negotiate your terms for an extended warranty. This used car guide urges you to consider outside coverage, especially those found online because you can find it cheaper there. SmartAutoWarranty.com
can even save you up to 60% when you buy their Extended Auto Warranty Direct!
Negotiating With An Individual Seller:
This used car guide provides you tips from the previous pages regarding preparation before you
negotiate pricing with a private seller, like paying for AutoCheck®
to ensure that the car is not a lemon and a host of other issues that can be serious, arming yourself with printouts of how much a car is worth from websites like Edmunds.com
and CarsDirect.com and a few others. Now you're ready to negotiate.
Like this used car guide had noted from the previous pages, sellers tend to think their car is worth more than it is. The printout will convince him otherwise and generally, they just want to get rid of the car that they don't need, that is just blocking their driveway. But before you finalize your negotiations, make sure of a few more things: that the owner has his auto title or pink slip and make sure that you pay him with a bank draft. If the car turns out to be stolen, you can cancel the bank draft. But you can't cancel cash.
Anyone who owns their car has the title so if they are still paying off a car loan, the bank holds the title. If the car is not yet paid off, you need to make arrangements to go with him to his lender to pay it off. The lender can even sign and notarize the title over to you on the spot.
If you are financing your own purchase, ask your lender for help: Many lenders are, like dealers, equipped to handle the paperwork. But if you have fair credit, there's an online lender that can help. It's quick and painless. . Read how it works above: (Negotiating with a Dealer). For other info about auto financing, be familiarized with the other pages and sections of this used car guide.
The seller will sign the back, indicate the mileage, and the amount they sold the car to you for. Be sure the seller has a valid driver license and that they are the owner of the car listed on the title. Verifying who they are and that they are the owner of the car is your legal right.
For more information, click here for more information from the DMV on how to transfer title of your newly-purchased vehicle.