Auto prices across the globe are skyrocketing due to production issues. The supply of new cars is down, which is squeezing consumer demand and driving up prices.
These production issues have a rippling effect on the used car market. The lack of supply is pushing car shoppers to buy used cars.
As a result, the price of used cars increased more than 21% over the past year. The average used car now costs more than $25,000.
It is not easy to buy a used car under these market conditions. Read on to learn how to navigate used car dealerships. Explore how to buy used cars and other topics related to purchasing your next vehicle.
Where to Buy a Used Car?
There are a few different places to buy used cars. Of course, there are private transactions between owner and buyer.
A used car owner may list their vehicle for sale on an online marketplace. You can also find used cars in magazines and other local print sources. Social media is rapidly becoming a popular place to sell used cars.
Used car dealerships are the preferred source for purchasing a previously owned vehicle. You can find one by going online and searching for used car lots near me.
What Are the Pros and Cons of Buying Private?
The primary reason that people buy used cars privately is to get a deal. Car enthusiasts who know their way around an engine can land a good price.
They can talk the price down from a used car seller based on evident issues with the car. There is the potential to land a car for less than the fair market value.
There are many disadvantages to going this route. The average car buyer does not know their way around an engine.
This increases the likelihood of them being taken advantage of. They may purchase a car that has major issues under the hood.
The private seller does not have a reputation or brand to uphold. They can sell a lemon, and it will not affect their company’s success moving forward.
A private seller does not have any resources to offer the buyer. They do not have a trained auto technician to inspect the vehicle and repair any known issues. They also do not have any financing options for buyers that cannot buy it outright.
How to Buy From a Used Car Dealership?
Buying a used car from a dealership is very similar to purchasing a new car. The only real difference is that the vehicles are previously owned instead of brand new.
You are going to search the dealership’s inventory for a vehicle that you like. Once you locate your next car, you will sit down with a salesperson to make a deal.
There are also many efficiencies you can take advantage of when buying from a reputable dealer. For example, you can shop for a car online without driving from lot to lot.
Even the application process is possible online. You can apply for financing for a vehicle online so that everything is settled before your arrival. This makes the purchasing process as simple as a few signatures when you pick up the car.
What Are the Advantages of Buying From a Used Car Dealership?
Besides the efficiency of the purchasing process, there are many other advantages to buying at a dealership. Perhaps the number one reason that buyers choose a dealership is because of the vast inventory.
You can easily find a vehicle within your budgetary needs. At a new car dealership, there are few options less than $15,000 or $20,000. On the other hand, at a used car dealership, there is a wide range of vehicles available at any price.
Another advantage is that you get to use the dealership’s service technicians. Before selling a used car, the dealership runs the vehicle through its experienced service team. They make sure that everything is operating smoothly and safely.
They have used car parts on hand to make repairs: their mechanics service the tires, brakes, and other critical components on the vehicle.
Lastly, dealerships can offer buyers other potential perks like a warranty. Many pre-owned vehicles come with a limited warranty that you will not find on a private transaction.
How to Value a Used Car?
The best way to value a used car is to do some online research. There are many valuation tools out there to help create a range of prices for used cars.
Several different factors drive used car values. For example, mileage is one of the primary valuation inputs.
The number of miles on a used car has a major impact on its resale value. A car with fewer miles is naturally more desirable than one with a greater number.
The vehicle’s condition is another consideration when valuing a used car. Very few used cars are in excellent condition.
This means that the car does not have any scratches, dents, or interior wear. Also, the car runs perfectly from a mechanical standpoint.
A vast majority of used vehicles are in good or fair condition. They have normal wear and tear on the interior and exterior. Also, the vehicle does not require any major repairs.
Used car dealerships extensively evaluate a vehicle before pricing it out. They put the vehicle through a rigorous inspection by their auto technicians. This process is designed to flesh out any potential issues and determine if any repairs are necessary.
There are a few other considerations that the dealership makes in evaluating your car. For instance, any factory upgrades are potentially going to drive up value. Other factors such as color or model may impact the final resale value.
Are You Ready to Buy a Used Car?
Now, you are ready to purchase a used car. Do your research ahead of time and familiarize yourself with the process.
Finding a reputable used car dealership is advantageous in many ways. You can take advantage of the dealership’s service department and potential warranty coverage. If you want to buy a used car, contact us today to set up an appointment.