When Shopping for a Vehicle: What to Expect at a Used Car Dealership
Posted Thursday, Apr 20, 2023
It isn’t uncommon for people to be skeptical about buying used cars. After all, there are far too many horror stories about certain dealerships. However, it’s important to have your expectations straight before heading to used car dealerships. This guide will uncover all that you can expect when going through the car-buying process.
Soaring Sales of Used Cars In the US
The sales of used light vehicles in the US totaled around 43.1 million units in 2021. They're only expected to grow, given the many benefits of purchasing used vehicles. Furthermore, there are over 26,000 used car dealerships across the US. If that doesn’t certify their popularity, nothing will.
What Can You Expect At a Used Car Dealership?
According to some reports, the average price of a used car is almost $28,000.
The process of buying a used car can vary with the type of dealership you visit. However, there are a few constants you will always experience.
The Four-Square Assessment Technique
It doesn’t matter what car you want to purchase. The first concern most used car dealerships have is what fits in your budget.
The primary approach here is to undergo a credit check and a four-square assessment. The latter literally means what it says. A salesperson from the dealership will draw four squares. Inside each square, they add the following:
• Sales price
• Trade-in amount
• Monthly payment
• Interest rate
Out of the four options, you must choose the one that fits your budget best. In most cases, the sales team already knows that the buyer will focus on the monthly payment. And so they play around with the other three options to maximize their own profits. It's important to understand that they will not always direct you toward what you need but toward what fits your budget best.
The Paperwork
Whichever vehicle you purchase, you will likely use it for a long time. And so, it's important that you feel comfortable behind the wheel. This means you must utilize the opportunity of asking as many questions from the dealership as possible.
Once you find the right car, used car dealerships bring forward their finance and insurance manager. The manager presents the contract and other paperwork for the purchase. This paperwork can include but is not limited to the following:
• Title registration
• Loan documents for financing (if needed)
• Documentation for warranty, etc.
Price Negotiation
You may be able to negotiate the price of certain optional add-on products and the financing terms. Whether you drive your new car immediately or need to return later, the delivery time is your last opportunity to inspect the vehicle for damage. This may also be your last chance to ensure everything is in working order. The vehicle is yours if everything is in order.
Additional Costs
People conveniently ignore the additional costs that may come with a used vehicle. Before visiting a dealership, make sure to take these costs into account. Some of them include the following:
• Documentation fees
• Registration fees
• Sales tax, etc.
Get an accurate price estimate before you consider buying something. Used car dealerships also let you see what additional costs you may incur at the time of purchase. Make sure to go through the breakdown carefully.
Test Drive
It is critical to get behind the wheel. Once you've decided on a vehicle, take it for a test drive. It will help you experience the vehicle, the drive, and also features like the interior.
Aside from the comfort, getting behind the wheel can help you identify potential problems too. For example, you can listen carefully while driving to ensure that there are no unusual noises and that components such as the air conditioning are working properly
Let a Trusted Mechanic Check Your Car
Once you've completed the initial inspection, bring in a reputable, professional mechanic to avoid any unpleasant surprises later on. The cost of bringing in a mechanic will be much less than the cost of paying for errors later on.
Mechanics usually examine the car in detail. They check the engine and run standard tests. These tests can reveal problems that would otherwise be difficult to detect. You can proceed with the purchase once the mechanic gives you the green light.
Don’t Commit to the Sale Before You Do This
Whether you buy a car brand new or from a used car dealership, keep the following in mind before finalizing a purchase.
Mileage
Are you planning to use the car long-term? Then you must take the mileage into consideration. Find out how many miles you can add to it and what the current mileage is.
Aesthetic
Inspecting a car is more than just taking a good look at it. Check carefully for any marks or bumps. If you notice any scratches, make sure to bring them up to the dealer.
Tax and Insurance Costs
Your used car may be affordable. However, you must look into the tax and insurance too. Remember that you will have to switch your car tax and insurance before driving away with the vehicle.
Documentation
The logbook is a very critical component of a vehicle’s documentation. It has all the guidance you need about buying it. The idea is to avoid purchasing any vehicle that doesn’t have a logbook.
Noises
Is your car making any abnormal noises? Not all used car dealerships are reliable when it comes to purchasing a flawless vehicle. You must take note of any noises you may hear while test-driving a vehicle. It could be a sign that there's something wrong with it.
Warranties May Not Be Enough
While most dealerships provide warranties, they may not be enough to cover electrical work. During your inspection, make sure to check the following:
• Entertainment system
• Windows
• Interior lights, etc.
Conclusion
Buying a used vehicle does not always have to be a hassle. Reliable used car dealerships will make you aware of all that you need to know. However, that doesn't mean you shouldn't look out for the stated factors. The bottom line is you must do your homework beforehand, no matter how renowned the dealership may be.
