Comments on: Frugal Guide for Buying a Used Car

By: Simon Ize

Simon Ize — Tue, 19 Aug 2014 11:28:59 +0000

Yes Henry you are right .

It is beneficial to buy a pre-owned car because there are number of benefits like money saving , already installed accessories , lower depreciation , well settled engine and many more thing . If you buy a used car than always take care about legal formalities and paper work .

By: Henery Walker

Henery Walker — Fri, 20 Dec 2013 05:16:29 +0000

Such beautiful tips to make a good deal . The person who is willing to buy a car but does not have a lot of so much bucks will find all these tips helpful.

By: Derek Chamberlain

Derek Chamberlain — Fri, 27 Sep 2013 18:41:57 +0000

Henry,

Yes – even if you can afford a new one, it is WAY more economically feasible to buy a used vehicle!

By: Henry Lee

Henry Lee — Fri, 27 Sep 2013 17:23:35 +0000

It is good option for those who are not able to buy a new one. Before buying an old car, make sure that it is in good condition and doesn’t need any repairs or any parts.

By: Derek Chamberlain

Derek Chamberlain — Mon, 24 Jun 2013 20:15:56 +0000

Rookie,

As far as CarFax goes, I’ve never actually purchased one, but several of my friends swear by it. It seems like a good service to recommend based on their experiences. As you say, it probably only catches the major stuff.

Good idea on the trade-in value. I know some places jack the trade-in value up and charge you a higher price for another car to remain neutral as you mention.

Is 10% markup pretty standard for your business? If so, then in the range of used cars I’m suggesting that is ~$500 – $800 going to the dealer!

By: The Rookie

The Rookie — Thu, 20 Jun 2013 03:35:57 +0000

I have a couple things to note for you. First of great post with a lot of detail. So one of the businesses that I have majority stakes in just so happens to be a car dealership. I haven’t talked about it on my blog though I may someday. Anyways, a quick note, “Carfax is alright” but don’t put that much weight into it. Obviously they will catch major stuff but there is a huge amount that slips right through them. Ok, heres something you can put at the top of your list. Once you decide on a safe car and the type you want it helps to know what the lowest price you can get the car from the dealer is. You can know this by finding out what the dealer got the car for. (ok at least close to anyways.) They will typically get the car for trade in value give or take. Makes sense right? If they bought it at a dealer auction that is typically the wholesale price and typically they get the car from people trading in their car for trade in value.

Its obvious now that you think about it but many people don’t catch this. Now you figure they have 10 percent added for repairs and that is pretty close. Pay cash get a better deal. Use financing correctly and you can also work the system, say take a higher interest rate for a lower price but have cash to pay it out two months later. Dealers hate it when you do that 🙂 .. So lets be a little fair to the dealers though, they are in business to make a profit so I do believe it works both ways.

One more thing on trade ins you might say but I got a ton for my trade in. Well they jacked up the price of the car you bought to make up the difference. Works the other way too, if you use kbb or nada you will be in the ballpark with the trade in value. So your offer should start in that range.

New cars are an entirely different game.