Buying Tips Of The Month

In case you didn’t already know this, there has never been a better time to buy a used vehicle than right now—this newsletter serves as a reminder. With zero percent financing, cash back incentives, and easy approvals by dealership financing programs, the majority of people are buying new vehicles. Unfortunately, what most people do not consider is that a huge portion of the value of their new car will be lost to depreciation the minute they drive off the lot, and another significant portion will be lost in the first year of ownership.

A result of this new vehicle buying trend is that the number of great used vehicles coming up for sale is beginning to climb dramatically, as all too often people discover that their payments are too high and decide to sell. Unfortunately for these people, it is taking much longer to sell a used vehicle because the supply of nearly new used vehicles is currently much greater than the demand. Compounding this problem is the fact that right now North American economies are doing so well that many people can afford to drive new vehicles and trade them in after only a year or two of ownership.

The buyer has the advantage right now as most sellers, if they really need to sell, are taking much less for their vehicles than they would normally. It really is a buyer’s world out there, so take advantage of it while you can! Due to the large number of these slightly used vehicles coming up for sale, it is becoming very easy to find a used vehicle in excellent condition that is also very dependable and may still be covered by factory warranty.

By buying used you can get a slightly used, top of the line vehicle in great condition, still covered under factory warranty, while saving thousands of dollars on depreciation.

Here is a list of things to ask when calling about a used vehicle ad:

1. Has the vehicle ever been in an accident? Flood? Has it been damaged in any way?
   • Cosmetic fender benders are usually not a big deal, but you need to ask to see an accident report, find out who repaired the vehicle and if the repair is warrantied, and confirm the damage was only cosmetic. Do not buy a vehicle that has been in an accident or flood unless you have specialized restoration knowledge. The vehicle may seem fine now but can have major problems later on.
2. Are you the original owner?
   • It’s always nice to buy a vehicle from an original owner because then you know the complete history. If the seller says he/she is the original owner, ask to see paperwork to back up the claim. If the seller is not the original owner it is acceptable, but be sure to check the VIN# and get information about all previous owners. If information about all previous owners is not available, you may want to reconsider your interest in this vehicle as you have no idea who owned the vehicle or how it was maintained.
3. Confirm mileage, year, make, model, options, and details.
   • Unusually low mileage could mean the vehicle has been in storage or it could mean the odometer has been rolled back. Ask lots of questions to determine if the vehicle was properly stored. I will give more information later on how to detect odometer fraud.
4. 4. Why are you selling the vehicle?
   • Reasons like: “we need something bigger” or “the payment is too much” are acceptable. They also make you think about whether you will have the same problems. Reasons like “it is hard on fuel” or “it has had mechanical problems” will help you decide whether this vehicle is for you.
5. How long have you owned the vehicle?
   • If the seller has owned the vehicle for less than one year, it’s a good idea to find out why they are selling it.
6. How much did you pay for the vehicle when you bought it?
   • It's always nice to know you're getting a fair deal. It’s a hard question to ask, but the seller's answer can speak volumes about his/her character.
7. What is the current vehicle mileage?
8. Has the vehicle been modified in any way?
   • Aftermarket performance parts do not increase the value of a used vehicle and let you know that the vehicle has most likely been driven harder than one without performance parts. Aftermarket body parts look nice but do not add value, and they must have been installed and painted professionally or else they may cause problems later on.
9. Do you do a lot of city driving?
   • One kilometer of city driving is equivalent to the wear and tear of about 3.5 kilometers of highway driving on a vehicle's engine and about 7 kilometers on the braking, suspension, and steering systems, all very important items to consider.
10. Do you take the vehicle in for scheduled maintenance? If so, where? May I see the service/maintenance records?
    • Maintaining a vehicle properly can double its life span. Make sure you have proof of regular maintenance as a poorly maintained vehicle can end-up costing you a fortune. If the seller does not have all records and receipts from oil changes, etc., then you may want to reconsider your interest in the vehicle. At a minimum, have a thorough mechanical inspection performed.

*This newsletter is not intended to replace the advice of a qualified mechanic. Seek professional mechanical advice before making any purchase.

The Best Way to Offer your Vehicle for Sale

The fastest way to sell a used vehicle is to list it on a website, specifically a website that also publishes its ads. Websites are preferable since 70-80 percent of adult Canadians surf the Internet. Websites enable you to put a picture of your vehicle in your ad and a 300-to-unlimited word description. Two of the best Canadian websites that list used vehicles are www.AutoTrader.ca and www.CanadaSuperSeller.com. Both of these companies offer excellent web services and both offer printed magazines. The Auto Trader is more expensive but has a well-established user base. Canada Super Seller is relatively new but its popularity is gaining very quickly as it offers much lower rates and almost identical services to Auto Trader. As long as the fee for listing is under $50 per month, it’s a very reasonable price; it’s a small percentage of the vehicle transaction, especially compared to the 10-20 percent a dealership will charge. Make sure when you list with either of these websites that you have a good picture of your used vehicle. In your picture make sure your vehicle is clean and the light is good (mid-day). If you are taking the picture yourself, try to include as much of the car as possible. I recommend you take the picture slightly from above and to the left or right of the car so you include a side of the car, a bit of the top, and the front. Also make sure you describe your vehicle as completely as possible. If you are having difficulties writing your ad, do a vehicle search for a similar vehicle and use the text of another ad as a template for your own. Try not to abbreviate and make your text easy to read (do not use all caps). Avoid phrases such as “won’t last” or “very fast.” Leave the selling to the salesmen, a good vehicle picture and description will sell themselves. Do not put phrases like “must sell” as you will receive low offers. If you must sell, just list the vehicle at a lower price in the first place. Make sure that you include the year, make, model, mileage, options, price, and contact info as a minimum in your ad. Phrases that you should add are “original owner,” “factory warranty,” and “all records,” remembering that you should only add these phrases if they are true. Honesty and truthfulness are the most effective tools when selling a used vehicle. Buyers are not stupid and they will be able to tell if you are lying. It may ruin the sale for you if a buyer doesn’t trust you.

If you don’t want to spend anything, a slow but sometimes effective way to sell your used vehicle is to get a “for sale” sign or sticker, put it in your vehicle window, and park near a dealership where you know there will be people looking to purchase a vehicle. A busy parking lot or somewhere else that has a lot of traffic can also work. Another method is to print a one-page ad and hang it on bulletin boards or distribute it at work.

Newspaper classified ads are not recommended as they are expensive, run for a short duration, offer a limited word description, and seldom include a picture.

Ideally, if you don’t need your vehicle for daily use, you would list with a website, park your vehicle with a “for sale” sign in the window in front of a dealership or in another high-traffic area, and hang your one-page ads everywhere possible.

You will literally save yourself thousands of dollars buying and selling privately. Selling a used vehicle privately can be easy and this page offers step-by-step instructions on how to do it quickly. Most people take their used vehicles to a dealership and trade them in because they think selling privately is too much of a hassle, but it will undoubtedly be the easiest couple of thousand dollars you will ever save.