5 Tips to Save Money on Used Cars, SUV’s and Trucks

August 12, 2009 by Brad - Your Car Guy · 3 Comments

This is Part One of a Two Part Report on How to Save Money Buying a Preowned or Used Vehicle: ____________________________________

Cash for Clunkers has left a Void in the Used Car Market

The rush to buy new cars since the government announced the C.A.R.S has slowed down the used car market. This slow down is to the point now that it is a good time to get a good deal on a used vehicle.

Look! Are You Currently in the Market for a Preowned Vehicle?

The slow down in the used car market has created a supply and demand scenario. Demand for used cars is down and supply is up. When this happens used car prices go down. This temporary supply issue will evaporate once the C.A.R.S program comes to an end. If you are in the market to purchase a used vehicle now is the time to take action.

Why You Should Buy Now: Within 90 Days the Tables will Turn on the Market

When the government money runs out for the C.A.R.S program the pendulum will start to swing. Right now the buying emphasis is on new cars, crossovers, trucks and SUV’s. For some dealers this could lead to a shortage of new cars and create a “run” on used cars.

This could lead to steady to higher prices for new vehicles and as the supply of used cars dwindles the price of a used vehicle will rise. When this transpires the current “buyers” market will shift to a “sellers” market. End result prices on new and used vehicles will start to creep up.

“Survey Says”

In a recent poll conducted by CCI they found that the number one consumer concern when buying a used vehicle is the future reliability and safety of the vehicle purchased. Consumers at all cost want to avoid getting stuck with a lemon. When buying a used vehicle you have heard of the term “Cherry”. Every preowned shopper is looking for a “Cherry”. These 5 tips will help you find that “Cherry”

5 Tips to Save Money on a Used Car, Crossover, SUV or Truck Regardless of the Market

Tip #1. Only Buy From a National Franchised Dealer (NFD) vs an Independent Dealer

A National Franchised Dealer (NFD) would be like a Ford, Toyota ,GM, Chrysler, Honda, or Mercedes Benz dealer etc. There are a host of benefits to only buy from a National Franchised Dealer such as:

A NFD has Access to higher quality used cars that a franchised dealer gets on a new car trade-ins.
Only NFD are allowed and can leverage the privilege of buying from factory sponsored auctions.
Independents usually end-up with left over ’seconds” from auctions that quality NFD dealers pass on.
NFD have 10 times the service facility that an independent has that guarantees some sort of pre-inspection service before and after the sale.
Quality NFD put all their used vehicles through a rigorous certification examination and approval process before they are offered to the public for sale.
NFD have more finance sources than independents.
NFD’s will 8 out of 10 times provide more favorable purchasing terms than an independent.
NFD’s have more resources to offer choices of extended used car warranties than independents.
NFD’s will 9 out of 10 times give you more money for your trade-in.
The life expectancy of a NDF is 30 times longer than that of an independent.

In tomorrows Blog I will present part two of two: “The 5 Tips to Save Money on Used Cars, Crossovers, SUV’s and Trucks. Included in tomorrows post will be the “Biggest Mistake” consumers make when buying a used vehicle.