Shopping for a used car is like going on a treasure hunt. There are amazing deals out there, and with the emergence of the Internet as a car shopping tool, you have every chance of finding a good deal on a car that meets your needs and fits your budget.

There are plenty of incentives to buy used instead of new: It will save you money on car insurance,registration, taxes and depreciation, which is the loss in a car’s value due to wear and tear over time. It also makes sense because cars have never been more reliable. It’s not unusual for some vehicles to be trouble-free for well over 100,000 miles.

Before we go into detail, here’s an overview of the steps you’ll need to take to buy a used car:

1. Set your budget. Decide how much you can spend on a car and how you’re going to pay for it.
2. Choose the right car. Pick the right model based on your needs.
3. Check reliability and ownership costs. Choose a car that’s less likely to break down — and won’t break the bank.
4. Locate good used cars. Search online classifieds or do it the old-fashioned way, by walking the car lot.
5. Price the cars. Use pricing guides and find out what experts say the car you’ve chosen is worth.
6. Check the vehicle history report. Use the car’s vehicle identification number to see its history.
7. Contact the seller. Save time by calling the seller and asking questions before you take a look.
8. Go on a test drive. Decide if this is the right car for you and if it’s in good shape.
9. Negotiate the best price. Use the information you’ve gathered in your car search to agree to a fair price.
10. Close the deal. Whether you’re on the car lot or buying from a neighbor, you have to handle the payment and paperwork correctly.

Set your budget

There are really only two ways for you to buy a car: Pay cash or take out a loan. If you’re paying cash, budgeting is pretty simple. But don’t spend all your savings. Remember to set aside money for registration and insurance — and possible future repairs.

» COMPARE: Car insurance quotes

When buying a used car, plan to put 10% down and pay off your loan in three years.

Most people take out a car loan so they can protect their savings and buy a more expensive model. It’s smart to get preapproved for a car loan because it simplifies the buying process and puts you in a stronger position at the car dealership. You’ll see later how preapproval fits into the process.

Use an auto loan calculator to compute the best loan for you. Plan to put about 10% down and finance the car for three years. Ideally, the total of your monthly auto expenses shouldn’t be more than 20% of your monthly take home pay.

» COMPARE: Car loans for good, fair and bad credit

Choose the right car

Now the fun begins — picking your car. Take some time to think about how you plan to use this car. For example, if you have a family, you’ll want enough room for everyone plus ample cargo space. If safety is a top priority, check out the Insurance Institute for Highway Safety for crash tests.

Narrow the field by making a list of must-have features. Then, search for models with those features using tools such as Car Finder on Edmunds.com. As you move forward, build a list of three target car models to research in more detail.

Check reliability and ownership costs

Every used car is different. Some have been driven more miles and have more wear and tear. But, in general, you want to make sure you’re choosing models known for their dependability. Consumer Reports and J.D. Power collect maintenance reports from owners and rate all used cars.

Choose a car that holds its value and has low maintenance and insurance costs.

A closely related issue is the total cost of ownership. Some cars are cheap to buy, but will cost a lot in the long run because of insurance, maintenance, repairs and depreciation. Several automotive websites, such as Kelley Blue Book’s Five-Year Cost to Own or Consumer Reports’ Cost of Vehicle Ownership, show estimates of these expenses.

Locate good used cars

There are a lot of websites that list used cars, and each site seems to have its own character. Here are four good ones to check out:

• Craigslist. This site lists used cars for free. It’s best for low-end cars in your area, but be careful about scammers.
• AutoTrader. Here, sellers pay to list their cars. Paid sites are better at keeping out scammers and usually provide a list of mid- and high-end cars. AutoTrader allows you to easily filter by year, make, model, price range and features.
• AutoList. This site is an aggregator — it pulls together information from many different areas into one searchable site.
• Most used car lots have the cars in their inventory posted online. However, if you’re someone who likes to see and touch the cars you’re considering, there are countless used car lots across the country where you can do just that.

Price the cars

Once you find several cars for sale in your area — but before you physically inspect them — look up that car model in a pricing guide such as Kelley Blue Book. You can use the guide to estimate the market value of the actual car you’re looking at by assessing its condition based on factors such as age, mileage and options. Once you have the price, if you want to make a deal, you’ll have the information you need to negotiate effectively.

When you look up a price, include the following information:

• Year, make and model. The model is sometimes called the “trim level.” For example, when looking up a 2015 Nissan Sentra, XE is one of several trim levels.
• Options. These are special features installed when the car was built, such as a navigation system.
• Mileage. Typical annual mileage on a car is about 12,000 miles. If a car has been driven more or less than this, the price is adjusted accordingly.
• Condition level. Read the descriptions of the condition levels carefully. The difference between “clean” and “outstanding,” for example, could easily be $1,500.

Estimate the market value of the car you’re looking at with online pricing guides.

Most pricing guides give you several different prices. If you’re buying the car from a dealer, look at the “Dealer Retail” price. If your next-door neighbor is the seller, you should look at the “Private Party” price. You might also notice that pricing guides tell you what the car is worth as a trade-in. Make sure to price your current car if you plan to trade it in at the dealership.

Check the vehicle history report

Before you drive across town to see the car you’re interested in, run a vehicle history report. Using the vehicle identification number (VIN), you can get a detailed report of the car’s history from Carfax or AutoCheck. It’s a quick way to know if you should seriously consider buying this car.

You’ll see if the car has a clean title or has been in any serious accidents.

In some cases, online classifieds will have links to free vehicle history reports. If not, it’s worth it to buy one.

Here is some of the important information you’ll learn:

• • Does this car have a clean title? If a car’s been in a serious accident, fire or flood, and was “totaled” by the insurance company (declared a total loss) it still might be driveable. However, the insurance company will issue a “salvage title” to alert future buyers. Steer clear of cars with a salvage title because it kills the resale value, and the car might still have hidden problems.
  • Serious accidents are reported to the insurance company and will probably be on the vehicle history report.
  • Shady car lots might spin the odometer back to increase its selling price. The vehicle history report can alert you to this scam.
  • It’s nice to think the car you’re interested in was driven to church by a little old lady for its entire life. If you order the report, you’ll know for sure each time it changed hands.
  • Some reports show if required maintenance was done on time and where the work was performed.

Contact the seller

A quick chat will answer lots of questions and save time. First, verify the information you read in the advertisement. Then, here are some basic questions to ask:

• Are you the first owner?
• Are the service records available?
• Do you have the title and is it clear? (A clear title shows there are no liens on the car.)
• How did you set the asking price?
• Is there any important information that wasn’t in the ad?
• Can I have the car inspected by a mechanic?

Test drive the car

Up to this point you haven’t actually driven the car you’ve chosen. Now, you’ll not only see if you like this model, you’ll also have to decide if this particular car is worth buying.

Select a route that has a little bit of everything: hills, rough pavement, curves and even a stretch of highway.

Unless you’re a mechanic, you can’t be expected to inspect a car thoroughly. However, you can give the car a pretty good initial inspection. If it looks good, then you can pop for a full inspection, which will cost you about $100.

Select a test drive route that has a little bit of everything: hills, rough pavement, curves and even a stretch of highway. Drive the car with the radio off — you can test that later. Pay attention to the following things:

• Visibility: Are there any blind spots?
• Acceleration and cornering: Does the car have enough power? How does the steering feel?
• Brakes: Are they responsive and predictable?
• Ergonomics: Can you easily reach all the gauges and controls?
• Mechanical condition: Listen for any unusual noises or vibrations that could indicate worn suspension parts or tires.

After the test drive, check the back-seat leg room and cargo capacity. Now it’s time to blast the sound system and see if your phone connects via Bluetooth.

Inspect the car

If you liked driving the car, and it seems to be in good condition, you should still take it to a mechanic. Private party sellers are pretty relaxed about this. Some dealers might give you pushback, claiming they’ve already inspected it. Go ahead and insist if you have any doubt about the car’s condition.

On independent used car lots, you often see a sign in the window saying that the vehicle is “certified,” which can mean almost anything — and usually means nothing  — about the condition or reliability of the car.

But on new car lots, “certified” means the car’s in a certified preowned (CPO) program, which have become very popular and make used car shopping a whole lot easier. CPO cars are thoroughly inspected and include an extended factory warranty. You really don’t need to take a CPO car to your own mechanic.

Negotiate the best price

Here’s the part that everyone dreads: negotiation. But it doesn’t have to be stressful, particularly if you’ve done your research and have a good idea what the car you want is worth. Compare the seller’s asking price to the average market price you determined on the pricing guides. Chances are, the seller is asking more than the market average.

Let’s say the seller is asking $12,000 and your research has told you the car is worth only $10,500. Start by pointing out any concerns you have about the car’s condition. For example, you can say, “I like the way the car drives. But it really needs a new set of tires. And besides that, the book value is only $10,500. So I’d be willing to buy it for $10,000.”

Compare the seller’s asking price to the average market price you determined on the pricing guides.

Now, it’s up to the seller to either accept your offer or make a counteroffer. If his counteroffer still seems too high, you can either stick to your guns or invoke the time-honored phrase, “I’ll meet you halfway,” and split the difference. You can go back and forth until you agree.

When you bargain with a car salesperson at a car lot or dealership, keep in mind that you’re dealing with a pro who knows all the tricks.

Here are a few tips to use on the car lot:

• • Don’t be a monthly payment buyer. If you have a preapproved loan, you’re a cash buyer as far as the dealer is concerned and you should negotiate on the price of the car, not the size of the monthly payment. This allows you to dodge a common trap set for buyers by salesmen: convincing a buyer to focus on the monthly payment rather than the overall cost of the car.
  • Start low, but in the ballpark. Lowball the seller and they won’t treat you as a serious buyer. Instead, make an offer that is on the low side, but still enticing. Then, improve your offer slowly, perhaps in increments of $250.
  • Don’t be trapped in the sales office. Don’t let a salesman leave you alone while he “goes to talk with his boss.” Instead, roam around the showroom or go get a cup of coffee. Uncontrollable buyers keep salespeople off balance, which can help you in negotiations.
  • Negotiate slowly and repeat the numbers you hear. It’s easy to get confused, so go slow or even write down the numbers thrown at you. Make sure you know if you’re talking about the “out-the-door” price, which includes all taxes and fees, or just the sale price of the car.
  • Ask about fees before saying yes to a deal. Some dealers include bogus fees to take back profit they lose in negotiating. Ask for a breakdown of additional fees before you agree to any deal.
  • Always be ready to walk. If you aren’t making progress toward a deal, or you don’t like the way you’re being treated, just walk out. No goodbyes are necessary.

Close the deal

Before taking ownership of the car, you should add it to your insurance policy. Then, you only need to pay for the car — usually with cash or a cashier’s check. Make sure you get a title and have the seller sign it correctly. When in doubt, check the state’s registry website for more information. Most states allow about 10 days to register the car in your name.

» MORE: Find the best cheap car insurance

If you’re buying from a private party, and there is still a loan on the car, call the lender to find out how to close the deal. If the lender is a bank, offer to meet the seller in a branch office and sign papers there.

In a dealership, be ready for the finance manager to pitch you additional products and services.

If you’re at a dealer, even if you have a preapproved loan to pay for the car, the dealership’s finance manager will probably offer to beat the terms of the loan. It doesn’t hurt to see if he or she can get a better interest rate. Just make sure all the other terms of the loan are the same.

Before the contract is drawn up, the finance manager will also likely pitch you additional products and services. Buying an extended warranty at the right price can provide peace of mind. But check first to see how much warranty still remains on the car. Many manufacturers now include “powertrain” warranties up to 75,000 miles. This covers all the parts that make the car driveable, such as the engine, transmission and suspension.

Once you sign the sales contract, the car is yours. So take your time reviewing the contract and don’t let yourself be pressured into signing just to get it over with. The contract will include the agreed-on sales price and these additional items:

• State sales tax. This is a percentage of the cost of the car.
• Documentation fee. It seems crazy but the dealership actually charges you for filling out the contract. This “doc fee” is limited in some states. In others states, such as Florida, some dealerships charge as much as $700 for doc fees.
• Registration fees. A dealer has the ability to register the car for you, which is convenient.

Some dealerships might include additional fees, some of which are bogus. It’s tricky to know what’s legit and what’s just included to boost their profit. If the finance manager can’t explain a fee in the contract, ask to have it removed.

https://lendedu.com/blog/how-much-should-you-spend-on-a-car/

If you're in the market for a new car, the last thing you want to do is step onto a car lot without knowing exactly how much you should spend on a car. After all, car salesmen are known for convincing people to spend more than they can afford for the sake of a ‘great’ deal.

But how much should you spend on a car? According to JD Power and Associates, the average car currently costs around $30,772. While that might be more than you can afford, you’ll be happy to know that there are still great cars with sticker prices that start as low as $15,000. You might even be happier to know that there are quality used cars out there for even cheaper.

When it comes to deciding just how much you should spend, it’s important to remember to stay within your means – especially if you’re planning on auto financing. The last thing you need is a car payment that is going to put a squeeze on your budget for many months to come. Here are some tips for deciding how much you should spend on a car:

Use the 20/4/10 Rule to Determine How Much You Should Spend on a Car

According to many financial experts, the 20/4/10 rule will help you make a financially responsible choice when buying a car. The maxim suggests that you should make at least a 20% down payment, take out a loan for no more than four years, and not pay more than 10% of your gross income towards auto expenses like your car payment, gas, maintenance, and insurance.

To give you an idea of how much that works out to, if you make $60,000 per year then you should only spend $500 per month or $6,000 per year on your auto expenses. If you are paying $100 per month on insurance, and another $100 on things like parking, gas and maintenance - then your car payment should be no more than $300 per month.

How Your Loan Affects What You Can Afford

While $300 might seem like a lot to spend on a car payment, what you can get with that payment depends significantly on the costs involved in financing your car. Someone with excellent credit who can qualify for a low interest rate will be able to spend more for an expensive car than someone who has poor credit since the costs of financing will add significant expenses to their payments. Also, if you stick to the 4 year rule, then your car payments will be more expensive than if you had opted for an 8 year auto loan.

Other financing expenses like whether there is are origination fees or prepayment fees charged on your auto loan could also impact how much you can spend.

Factor in Maintenance and Repairs and the Cost to Own Your Car

While you might think that you're getting a great deal on the car you have your eyes on since it costs less then a comparable vehicle by a competitor, if you're not careful you might end up buying a car that will cost a lot in things like gas, maintenance, and repairs. Those added expenses could make your auto payment more difficult to afford and that might be financially risky if you don’t have an emergency fund to pay for unexpected expenses.

According to Consumer Reports, some cars often look like a good deal when you look at just their sticker prices, but the expense of owning them adds up. They’ve looked at the expenses of owning cars by make and some are much more expensive than others. For example, if you buy an Acura, you’ll spend an average of $230 annually on maintenance and repairs but you’ll spend only $50 if you buy a Toyota.

Another great resource to help you understand the additional costs involved in buying your car is AAA's annual study that looks at driving costs and compares the average costs of ownership on different types of cars from the relatively cheap cost of driving a small sedan that rings in at $6,579 per year to the more expensive cost of driving a large sedan that comes in at over $10,492. This will help you figure out how much to spend on the right kind of vehicle for your needs and budget.

The Bottom Line

Buying a car is a huge financial investment, and you should know how much to spend on a car. If you stick to the 20-4-10 rule, factor in the costs of your financing and the expenses related to driving your vehicle, then you’ll be able to make a smart choice that won’t wreak havoc on your budget or leave you regretting your decision.

Used Car Myth: "A car sold by a big dealer has got to be ok!"

No matter where you buy, you have to perform your due diligence. We've seen certified pre-owned luxury cars that have been previously wrecked or have other problems. A totaled car was sold as "certified" by a Mercedes-Benz dealer. The dealers like to advertise things like 175 point inspections but in reality these don't mean much and they really don't do much to recondition the cars other than normal detailing. Please do the proper background check on any used car and get an AutoCheck report.

Don't Rely on a Used Car Lemon Law!

Lemon laws are generally written to protect new car buyers. Most states don't have lemon laws for used cars. Since these laws vary, check the web site for your state's Attorney General to see what might apply.

Just because a car isn't new doesn't mean it can't be new to you. Buying a used car can be just as exciting as purchasing a brand new model. Unfortunately, getting a used vehicle can also be just as complicated as figuring out which new car would suit you best. That's why we've compiled this guide to help you. 

Set a Budget

Before you can start used car shopping, you should figure out your budget. This will help your process in many respects—including setting the right expectation for the types of used vehicles you can purchase.

There are a few key factors to keep in mind while you're number crunching.

Personal Budget Factors

It's very important to have a realistic idea not only of what you can spend, but also of what you should spend on a used car. Just because you can afford it doesn't mean it's a good option for you.

It's generally suggested to spend no more than 20% of your monthly take-home pay on a monthly auto payment. However, this is just a broad recommendation and may not apply to every circumstance.

Keep all your other monthly expenses in mind, such as:

• Rent or mortgage.
• Utilities.
• Groceries.
• Phone and Internet bills.
• Student loans/other debts.

If your monthly budget is mostly spent after taking care of necessary bills, it may be more prudent to keep your car payments on the lower side.

Used Car “Hidden" Costs

Owning a vehicle entails more than paying for the vehicle itself. There will be costs associated with your used car other than your monthly auto payment, such as:

• Your car insurance rate.
• Various taxes and fees.
• Your car's depreciation rate.
• Gas, oil changes, and other maintenance.

Don't forget to keep these factors in mind when determining your used car budget.

For more help on putting together the best payment plan for you, check out our used car taxes and fees calculator and browse our guide to creating a budget.

Narrow the Search

Once you have a solid idea of how much money you can spend on your used car, you can start determining which type of car within that price range will be the best option for you.

Types of Used Cars

There are plenty of used vehicles to go around, and several ways to generally categorize them. When you begin your shopping process, consider these options:

• Certified pre-owned (CPO) vehicles—The purpose of CPO programs is to alleviate concerns about the condition of a non-new vehicle. Still, the inspections, repairs, and warranties involved in each program vary greatly. Make sure to read our guide on certified pre-owned vehicles for more information.
• “Second tier" vehicles—These cars may not be the biggest sellers on the lot, but can still be reliable—and much cheaper—regardless of their less-popular manufacturers.
  • i.e. the Honda Accord and Toyota Camry are comparable in quality to the Chevrolet Malibu or Nissan Altima, but can cost much more.

Usage Considerations

Another good way to begin narrowing your search is figuring out how you will mostly be using the car.

For example, if you have a large family, you might want to consider a vehicle with more seating; if you have a long commute, you may want to focus on cars that get the best gas mileage.

Be honest with yourself, and separate the features you need in your car from the features you simply want.

Shop for a Used Car

You know what you want and how much you can spend, so now it's time to figure out where to find this vehicle. There are a few methods to find the best used car near you.

Online Forums

If you love to do research or have a decent amount of car-related knowledge, you may have good luck looking for a used car on websites like Craigslist.

Peer-to-peer car buying and selling websites are another option. These sites essentially act as a middleman between buyer and seller. The process is similar to using Craigslist, but sales are typically more regulated by the website.

There are other less active online options, as well. Many websites will offer used car listings, which will allow you to search for vehicles based on factors like:

• Car mileage.
• Make.
• Model.
• Proximity to you.

In Person

Of course, there are other ways to track down used cars for sale, including:

• Used car lots.
• Used sections of a car dealership.
• Newspaper or magazine classified ads.

These methods typically involve more legwork but may be a good option to find deals that a buyer only using the Internet might miss.

Negotiating Used Car Prices

The price of a car, new or used, is almost always up for debate. If you put your negotiating skills to the test, you may be able to save some serious money when purchasing your used car.

Your number one ally at the negotiation table is information. Make sure you have a solid idea of the vehicle's general value, including:

• The Blue Book value. The Kelley Blue Book is one of the most common references for used car values.
• Prices of vehicles with similar:
  • Makes.
  • Model years.
  • Miles.

The specific price of the car will depend on other variables, like the condition the car is in and the vehicle's history.

Also ask if you can take the car for a test drive before making your final decision to buy it. This may reveal issues you may have with the vehicle that you can't discern from research alone.

Buying from Dealers

There may be several different factors in play when you purchase a used car from a lot or dealership, as opposed to a personal sale. Dealers usually have more information about and experience in vehicle sales and will typically stick to a bottom line.

Dealerships will usually also consider other elements when in negotiations with you, such as:

• A trade-in car, if you have one.
• Down payments vs. monthly payments.
• Auto warranties.

Typically, it's recommended to start the conversation with the total price you want to pay for the vehicle, rather than trying to figure out monthly payments off the bat.

Negotiating with a dealer can be difficult or intimidating, so make sure to read up on our guide to negotiating before making an offer on your used car.

Private Party Sales

Negotiating with a private seller may be easier than talking to a dealer about the price you want to pay for your used car. Typically, an individual will have less experience in selling vehicles and will likely be more eager to get rid of their auto.

Still, pursuing a private sale means you're much more likely to purchase the car “as is"—making you financially responsiblefor any and all problems with the vehicle, known and unknown. Check our guide to buying a car “as is" for tips on how to best deal with this situation.

Vehicle History Reports

No matter who you buy your used car from, it is a smart idea to ask for the vehicle's maintenance and crash history.

A vehicle history report will reveal many points about the car that could help you not only negotiate a fair price for the vehicle, but also make an informed decision on whether or not it's worth purchasing at all.

Vehicle history reports use the car's vehicle identification number (VIN) to turn up information about:

• Lemon status.
• Accident history.
• Major repairs.
• Lien and ownership history.
• Warranties remaining on the car.
• Mileage and miles per year.

Buy Your Used Car

You've successfully planned a budget, researched your needs, located your vehicle, and bargained for a good price. All that's left is signing off on the dotted line.

But before you do, make sure you have all of your paperwork in line. Then you can drive off into the sunset with your (almost) new ride.

 

When gas prices hovered around $4 per gallon about a decade ago, Jared Forgues might have been hesitant to consider certain vehicles.

But, with the cost of regular gas almost half what it once was, Forgues was in search of a new or used pickup truck Friday.

“Low gas prices have certainly allowed us to look at a wider range of vehicles for sure,” Forgues, of Leominster, said while he looked at a used Chevrolet Silverado pickup truck at the Imperial dealerships in Mendon.

Forgues said low gas prices are just a part of the reason to consider a pickup truck. The family of four also needs the space a pickup truck has for household projects, he said.

Forgues is not alone in looking for a pickup truck. Sales of trucks and SUVs have been rising as the price at the pump hovers in the $2 per gallon range. And, customers want the space those vehicles provide for carrying equipment or a large family, local car salespeople say.

The American Automobile Association found self-serve, regular unleaded gas in Massachusetts averaging $2.21 per gallon on Monday, up seven cents from a year ago.

That’s a far cry from prices that topped $4 a gallon in 2008. Increased U.S. production of oil and gasoline and a global glut of oil have helped bring prices down and stay relatively steady. Analysts continue to watch OPEC decisions, said Mary Maguire, an AAA spokeswoman.

The low, stable gas prices haven’t had a major positive or negative effect on gas stations. That could be due in part to cars becoming more fuel efficient and needing to fill up less, said Matt LeLacheur, co-executive director of the New England Service Station and Auto Repair Association.

Last month, buyers in the United States continued a trend toward purchasing SUVs and trucks. Trucks and SUVs made up 63 percent of auto sales in June, up from less than half of sales five years ago, the Associated Press reported.

“The big thing is there’s really no penalty to buying a crossover SUV vs. a sedan,” said Craig Fitzgerald, editor-in-chief of BestRide.com. GateHouse Media owns BestRide.com and the Daily News.

Fuel economies are similar and an SUV offers more storage and other features, Fitzgerald said.

And, there’s a relatively new class of compact crossovers such as the Mazda CX-3 that have come on the market in recent years. Pickup trucks are typically always good sellers, he said.

Gas prices will eventually go up, and that could be an opportunity for plug-in hybrid vehicles to explode in popularity, Fitzgerald said.

CAR DEALERS WEIGH IN

Small SUVs and pickup trucks are selling particularly well, said Mike Penner of the Imperial dealerships.

Imperial has seen about a 35 percent increase in sales of pickup trucks and crossovers over the past year, he said.

“Larger families are going for vehicles that have a third-row seat,” he said.

Cheap gas is helping fuel sales of large SUVs, although Penner said customers often look to trade in those vehicles when prices at the pump spike.

Fuel economy was a critical factor in car purchases in 2008, said Marlboro Nissan and Milford Nissan owner Jeff Batta.

Falling prices at the pump “removed gas from the equation,” Batta said.

Sedans such as the Altima or Maxima have historically been the top seller. Now, it’s the Rogue, which is a compact SUV, Batta said.

Carol DeMeo of Marlborough visited Marlboro Nissan Friday to get a loaner car as she looks to replace a Nissan Rogue that was totaled. She plans to get another Rogue. Gas prices are not a key factor in her decision, although she is pleased with the Rogue’s fuel economy.

A recent study from Accenture offers a telling peek at what today’s vehicle buyers want from dealers:

• 80 percent of the 13,000 study respondents want access to more intuitive, customized online content.
• Roughly 75 percent want a process that offers more simplified information, particularly when it comes to comparing vehicles.
• Nearly two-thirds of respondents want better, mobile-based content delivery options, and would welcome online chats with dealer sales teams.

To me, the survey findings underscore a reality most, if not all, dealers recognize: Today’s buyers want to buy cars like they purchase other goods and services — in a simpler, faster and more transparent fashion than they’ve bought them in the past. Indeed, the amount of time buyers spend online, and the number of sites they visit, are symptoms of a need to temper the distrust they feel toward dealers and the car-buying process.

In many ways, these dynamics represent an opportunity for dealers. Those who can best deliver what today’s buyers want will inevitably make more sales than those who don’t.

The key question then becomes: What exactly do today’s buyers want and need before they say “yes” to a car deal?

I’ll address this question from the perspective of used vehicles — an arguably more difficult sale, given the uncertainties about a vehicle’s condition, history and reliability compared to a new vehicle purchase.

The following are three essential elements of a used vehicle transaction that dealers must effectively address with today’s used vehicle customers — through a combination of market-based transparency and technology — to earn their business:

The vehicle

“Is this vehicle the right one for me?” This is perhaps the most fundamental question for any used vehicle buyer. Today’s customers appreciate when dealers answer this question through a compelling online or in-person presentation of photos, description, equipment / trim / performance specifications, safety ratings, third-party condition reports (e.g., Carfax) and service histories (if available). The presentations should also include expert and owner reviews of the car (drawn from recognized third-party sources when appropriate) to help the would-be buyer answer this question for themself — affirming the information they’ve already found online about the car.

The deal

The last thing a used vehicle buyer wants to find out post-purchase is that they paid too much for a vehicle or, even worse, feel like they got “took” at the dealership. As they say in professional sports, the best defense is a good offense. For dealers, this means addressing a vehicle’s asking price in a more up-front and transparent manner than we’ve done in the past. This challenge is far easier for dealers who base their initial asking prices on the market — that is, their prices reflect a vehicle’s unique value proposition in the context of available, competing vehicles in the marketplace. Today’s technology and tools can help dealers satisfy the ever-important “Is this a good deal?” question every customer brings to the table. It’s increasingly commonplace for dealers to share this type of market-based transparency in mobile and desktop presentations that present comparison vehicles and prices using third-party sources (such as Kelley Blue Book, Edmunds, NADA and Black Book) to validate the rationale behind their asking price. When this occurs, customers are less likely to push back on price because the presentation often validates the reasons they’ve inquired about a specific vehicle at a dealership in the first place.

The dealership

Let’s remind ourselves of the aforementioned study findings: Today’s buyers want dealers to provide a simpler, faster and more transparent process for purchasing vehicles. This strikes me as a clarion call for dealers to deliver an experience to foster customer satisfaction and trust in merchandising and sales processes. Historically, dealers have often sent mixed signals in this regard. They may claim to offer the lowest prices, but the in-showroom reality is something different. I encourage dealers to both “detail and demonstrate” when it comes to distinguishing their dealerships from the competition. That is, their merchandising and customer presentations should detail the positive customer feedback they’ve accrued and reasons they believe the customer has chosen the right place to buy a used vehicle. Beyond that, however, dealers must also proactively demonstrate what they claim to provide, which means consistently delivering simplicity, speed and transparency in every customer engagement. If they don’t, customers will likely sense a disconnect and potentially walk away from a deal, sharing their frustration with family and friends.

A final thought: Dealers and sales teams should seek to satisfy each essential element of a used vehicle deal in equal measure. While it’s true that the significance of a single element may vary from customer to customer, the consistent presentation of all three with every customer ensures you avoid creating potholes in an otherwise sound process — satisfying more customers and selling more vehicles.

 

Suppose you walk into a high-end clothing store and you tell the manager that you plan to spend $30K on a new wardrobe. How do you think the manager would react? I suspect you’d receive a pretty awesome shopping experience for the next hour or two, really solid fashion advice from their top staff, and a store that hopes to earn your loyalty for the long run. Yet today, in the typical car dealership, things don’t always go so well. Same $30k to spend, but not the same treatment from the sales team.

Buying a car shouldn’t be just your average customer experience. Think about the last time you had to put down over $10,000 for a single item or event — if it wasn’t a car, chances are the experience was a lot more fun than your typical car-buying experience. Since a car is frequently the second most expensive thing that Americans buy (behind their house), the purchase is really more of an occasion, filled with emotions and expectations, than a mere event.  The signs are emerging, though, that while negative purchase and servicing experiences were forgotten or forgiven by the next buying occasion, new forces are shaping the marketplace.

So how will customer experience fit in? Here are four key ways that customer experience is becoming increasingly important to the car purchasing experience.

1. Changing customer expectations

Carmakers have historically focused on product quality and the driving experience to create customer loyalty and repeat purchases. Customer loyalty was first and foremost based on the product experience — how satisfied customers are with the reliability of the vehicle and the driving experience. But product quality has improved dramatically, largely taking the reliability factor off the table. Over a ten-year period, from 2003 through 2012, reliability has improved so much that the top 20% of models available in 2003 would fall to the bottom 20% in 2012.  Meanwhile, the myriad of comforts and features offered in today’s cars is making it harder to compete on the driving experience – it’s pretty good on most vehicles in the competitive set. And finally, consumer expectations for the dealership experience are being elevated to new highs thanks to the superior experiences they’re getting in other large-ticket retailers such as Four Seasons, Nordstrom, Sephora, Tory Burch, and a whole host of other companies that have made customer experience a top priority.  The customer now has a lot more choice and a lot more experience with great customer service, both of which places the burden on dealerships to provide exceptional customer experiences.

2. The power of word of mouth

While customers may forget their previous poor experiences of purchasing a car, the internet doesn’t. Location-based online review sites are increasingly popular and it’s easier than ever for disappointed customers to air their poor sales experiences in a very public forum. Since the purchase experience is both stressful and expensive, customers are willing to travel a bit further from where they live to find a suitable car dealership, a decision made easier by looking at online reviews.  And as millennials, the generation most plugged into social media, approaches the age with the purchasing power to buy a car, online reputation becomes ever more important.

3. Transforming single transactions into a relationship

While the average American purchases cars infrequently due to cost, ideally the relationship with a car dealership doesn’t end there. The gross profit margins for dealerships are much higher for the Service and Parts Department than the new car sales department. But with a stress-inducing sales experience, customers may not want to return to the car dealership for servicing. This is a wasted opportunity. Scrolling through online reviews for car dealerships, you’ll notice that most of the positive reviews are reserved for the servicing side of the business, and many one-star reviews are given for the purchasing experience. Improving the sales experience will give dealerships the opportunity to connect a happy customer to the servicing department, establishing a relationship from a single sales transaction.

4. Building trust

Part of transforming the sales transaction into an ongoing relationship is building trust with the customer. Today’s typical car-buying household has more than one car in the driveway; so family input and trust in a car dealership can play a large role in purchasing decisions. In fact, since individuals, on average, purchase cars every 7-10 years, ensuring retention and loyalty often involves extending the web of connections to the entire family. A lot of the time, each spouse needs his or her own car for work and for shuttling the kids to their after-school activities. Once those kids become teenagers, they’re likely to clamor for a car as well. Having a great dealership experience helps strengthen a relationship between the dealer and the family, building trust and promoting customer loyalty.

With changing customer expectations and the rising importance of online reviews, car dealers can no longer afford to ignore the customer experience of new car sales.  Buying a car is one of the most stressful purchasing decisions most Americans have to deal with.  Easing the process can go a long way in cultivating a relationship with the customer that lasts well beyond the single transaction.

Tips to help to get the car you want at the right price

March 07, 2017    

Choosing the right car for you and your budget can take significant research and even require some test drives. Once you've narrowed the selection down to the special one you'd like in your driveway, there are still important steps left in the process.

These quick tips can help with the purchase, whether done at a large new-car dealership or at a corner used-car lot.

1. Know the Value of the Vehicle
Know the true value of your candidate car, regardless of what the seller is asking. Condition, mileage, age, equipment levels, and the region all affect vehicle value. Different pricing guide services can list widely varying "book" values. Avoid the high-ball/low-ball game by asking the dealer to use one guide to determine the value of the vehicle for sale and the value of any trade-in you may have.

2. Write Down Your Questions
Come in with a prepared list of questions about the vehicle and check them off when they are answered to your satisfaction. Make sure all of your questions are answered.

3. Don't Flash Your Cash
The dealership doesn't need to know anything about your finances during the negotiating process. Do not tell them how much car you can afford, or they'll try to take every penny of it.

4. Stay on the Subject
Never allow a salesperson to change the direction of the conversation to matters other than car buying. Salespeople often gloss over important questions, such as vehicle history and price, by changing the subject.

5. Don't Be Rushed
Salespeople's favorite customers are those who seem to be in a hurry, because they tend to be the ones who do not inspect the car thoroughly or don't negotiate the price. Never go to a dealership acting rushed, even if you need a car immediately—they'll take advantage of it. Many salespeople say they won't pressure or rush you into buying, but they usually do it anyway. If you feel the sales process is moving too fast, tell the salesperson that you'll come back at another time. If the car you're interested in is gone, remember that there are many other cars out there. 

6. Be Prepared to Walk Away
Once you've come up with a price you feel is fair, state your offer clearly, and say nothing more. If the seller won't budge, walk away. You shouldn't pay more than what your homework has told you is the worth of the vehicle. If you head for the door, you'll often have a deal you can live with before you reach it.

7. Be Wary of Costly Add-Ons
Service contracts, glass etching, undercoating, and paint sealants are all unnecessary add-ons to help the dealership maximize its profits. Don't buy them.

8. Check the Vehicle's History
Instead of taking the salesperson's word about the history and condition of the vehicle, get a vehicle-history report from CarFax or Experian Automotive. They can alert you to possible odometer fraud; reveal past flood, fire, and accident damage; or tell you if a rebuilt or salvage title was ever issued for the vehicle. But a clean report is no guarantee that a vehicle doesn't have hidden problems. You can also get a free VIN check from the National Insurance Crime Bureau.

Federal law does not require recalls to be performed on used cars—even certified used cars. Be sure to check whether there are any open recalls by entering the vehicle identification number (VIN) at safercar.gov. You can also check at ConsumerReports.org/carrecalls. Whether initiated by an automaker or required by the government, recalls are issued to address safety-related defects or problems, and related updates should be done promptly. The work will need to be done at a new-car dealership for that brand.

9. Visit a Mechanic
After you make an offer but before you sign a contract of sale, take the vehicle to a qualified mechanic that routinely does automotive diagnostic work. Don't let the dealer tell you they've inspected the car for you. Deduct any needed repairs that the mechanic finds from your offer. 

10. Get Your Financing Secured
Go to a bank or credit union and be approved for a loan before you go to the dealership. The dealer may even try to beat their rate, which works to your advantage. 

 

    

Shopping for a used car is like going on a treasure hunt. There are amazing deals out there, and with the emergence of the Internet as a car shopping tool, you have every chance of finding a good deal on a car that meets your needs and fits your budget.

There are plenty of incentives to buy used instead of new: It will save you money on insurance, registration, taxes and depreciation, which is the loss in a car’s value due to wear and tear over time. It also makes sense because cars have never been more reliable. It’s not unusual for some vehicles to be trouble-free for well over 100,000 miles.

Before we go into detail, here’s an overview of the steps you’ll need to take to buy a used car:

1. Set your budget. Decide how much you can spend on a car and how you’re going to pay for it.
2. Choose the right car. Pick the right model based on your needs.
3. Check reliability and ownership costs. Choose a car that’s less likely to break down — and won’t break the bank.
4. Locate good used cars. Search online classifieds or do it the old-fashioned way, by walking the car lot.
5. Price the cars. Use pricing guides and find out what experts say the car you’ve chosen is worth.
6. Check the vehicle history report. Use the car’s vehicle identification number to see its history.
7. Contact the seller. Save time by calling the seller and asking questions before you take a look.
8. Go on a test drive. Decide if this is the right car for you and if it’s in good shape.
9. Negotiate the best price. Use the information you’ve gathered in your car search to agree to a fair price.
10. Close the deal. Whether you’re on the car lot or buying from a neighbor, you have to handle the payment and paperwork correctly.

So that’s the basic outline. Now, let’s get started. (If it isn’t a used car you want after all, check out guide on how to buy a new car.)

Set your budget

There are really only two ways for you to buy a car: Pay cash or take out a loan. If you’re paying cash, budgeting is pretty simple. But don’t spend all your savings. Remember to set aside money for registration and insurance — and possible future repairs.

Most people take out a car loan so they can protect their savings and buy a more expensive model. It’s smart to get preapproved for a car loan because it simplifies the buying process and puts you in a stronger position at the car dealership. You’ll see later how preapproval fits into the process.

Use an auto loan calculator to compute the best loan for you. Plan to put about 10 percent down and finance the car for three years. Ideally, the total of your monthly auto expenses shouldn’t be more than 20% of your monthly take home pay.

Choose the right car

Now the fun begins — picking your car. Take some time to think about how you plan to use this car. For example, if you have a family, you’ll want enough room for everyone plus ample cargo space. If safety is a top priority, check out the Insurance Institute for Highway Safety for crash tests.

Narrow the field by making a list of must-have features. Then, search for models with those features using tools such as Car Finder on Edmunds.com. As you move forward, build a list of three target car models to research in more detail.

Check reliability and ownership costs

Every used car is different. Some have been driven more miles and have more wear and tear. But, in general, you want to make sure you’re choosing models known for their dependability. Consumer Reports and J.D. Power collect maintenance reports from owners and rate all used cars.

A closely related issue is the total cost of ownership. Some cars are cheap to buy, but will cost a lot in the long run because of insurance, maintenance, repairs and depreciation. Several automotive websites, such as Kelley Blue Book’s Five-Year Cost to Own or Consumer Reports’ Cost of Vehicle Ownership, show estimates of these expenses.

Price the cars

Once you find several cars for sale in your area — but before you physically inspect them — look up that car model in a pricing guide such as Kelley Blue Book. You can use the guide to estimate the market value of the actual car you’re looking at by assessing its condition based on factors such as age, mileage and options. Once you have the price, if you want to make a deal, you’ll have the information you need to negotiate effectively.

When you look up a price, include the following information:

• Year, make and model. The model is sometimes called the “trim level.” For example, when looking up a 2015 Nissan Sentra, XE is one of several trim levels.
• Options. These are special features installed when the car was built, such as a navigation system.
• Mileage. Typical annual mileage on a car is about 12,000 miles. If a car has been driven more or less than this, the price is adjusted accordingly.
• Condition level. Read the descriptions of the condition levels carefully. The difference between “clean” and “outstanding,” for example, could easily be $1,500.

Most pricing guides give you several different prices. If you’re buying the car from a dealer, look at the “Dealer Retail” price. If your next-door neighbor is the seller, you should look at the “Private Party” price. You might also notice that pricing guides tell you what the car is worth as a trade-in. Make sure to price your current car if you plan to trade it in at the dealership.

Check the vehicle history report

Before you drive across town to see the car you’re interested in, run a vehicle history report. Using the vehicle identification number (VIN), you can get a detailed report of the car’s history from Carfax or AutoCheck. It’s a quick way to know if you should seriously consider buying this car.

In some cases, online classifieds will have links to free vehicle history reports. If not, it’s worth it to buy one. Here is some of the important information you’ll learn:

• • Does this car have a clean title? If a car’s been in a serious accident, fire or flood, and was “totaled” by the insurance company (declared a total loss) it still might be driveable. However, the insurance company will issue a “salvage title” to alert future buyers. Steer clear of cars with a salvage title because it kills the resale value, and the car might still have hidden problems.
  • Serious accidents are reported to the insurance company and will probably be on the vehicle history report.
  • Shady car lots might spin the odometer back to increase its selling price. The vehicle history report can alert you to this scam.
  • It’s nice to think the car you’re interested in was driven to church by a little old lady for its entire life. If you order the report, you’ll know for sure each time it changed hands.
  • Some reports show if required maintenance was done on time and where the work was performed.

Contact the seller

A quick chat will answer lots of questions and save time. First, verify the information you read in the advertisement. Then, here are some basic questions to ask:

• Are you the first owner?
• Are the service records available?
• Do you have the title and is it clear? (A clear title shows there are no liens on the car.)
• How did you set the asking price?
• Is there any important information that wasn’t in the ad?
• Can I have the car inspected by a mechanic?

Test drive the car

Up to this point you haven’t actually driven the car you’ve chosen. Now, you’ll not only see if you like this model, you’ll also have to decide if this particular car is worth buying.

Unless you’re a mechanic, you can’t be expected to inspect a car thoroughly. However, you can give the car a pretty good initial inspection. If it looks good, then you can pop for a full inspection, which will cost you about $100.

Select a test drive route that has a little bit of everything: hills, rough pavement, curves and even a stretch of highway. Drive the car with the radio off — you can test that later. Pay attention to the following things:

• Visibility: Are there any blind spots?
• Acceleration and cornering: Does the car have enough power? How does the steering feel?
• Brakes: Are they responsive and predictable?
• Ergonomics: Can you easily reach all the gauges and controls?
• Mechanical condition: Listen for any unusual noises or vibrations that could indicate worn suspension parts or tires.

After the test drive, check the back-seat leg room and cargo capacity. Now it’s time to blast the sound system and see if your phone connects via Bluetooth.

Inspect the car

If you liked driving the car, and it seems to be in good condition, you should still take it to a mechanic. Private party sellers are pretty relaxed about this. Some dealers might give you pushback, claiming they’ve already inspected it. Go ahead and insist if you have any doubt about the car’s condition.

On independent used car lots, you often see a sign in the window saying that the vehicle is “certified,” which can mean almost anything — and usually means nothing  — about the condition or reliability of the car.

But on new car lots, “certified” means the car’s in a certified preowned (CPO) program, which have become very popular and make used car shopping a whole lot easier. CPO cars are thoroughly inspected and include an extended factory warranty. You really don’t need to take a CPO car to your own mechanic.

Negotiate the best price

Here’s the part that everyone dreads: negotiation. But it doesn’t have to be stressful, particularly if you’ve done your research and have a good idea what the car you want is worth. Compare the seller’s asking price to the average market price you determined on the pricing guides. Chances are, the seller is asking more than the market average.

Let’s say the seller is asking $12,000 and your research has told you the car is worth only $10,500. Start by pointing out any concerns you have about the car’s condition. For example, you can say, “I like the way the car drives. But it really needs a new set of tires. And besides that, the book value is only $10,500. So I’d be willing to buy it for $10,000.”

Now, it’s up to the seller to either accept your offer or make a counteroffer. If his counteroffer still seems too high, you can either stick to your guns or invoke the time-honored phrase, “I’ll meet you halfway,” and split the difference. You can go back and forth until you agree.

When you bargain with a car salesperson at a car lot or dealership, keep in mind that you’re dealing with a pro who knows all the tricks.

Here are a few tips to use on the car lot:

• • Don’t be a monthly payment buyer. If you have a preapproved loan, you’re a cash buyer as far as the dealer is concerned and you should negotiate on the price of the car, not the size of the monthly payment. This allows you to dodge a common trap set for buyers by salesmen: convincing a buyer to focus on the monthly payment rather than the overall cost of the car.
  • Start low, but in the ballpark. Lowball the seller and they won’t treat you as a serious buyer. Instead, make an offer that is on the low side, but still enticing. Then, improve your offer slowly, perhaps in increments of $250.
  • Don’t be trapped in the sales office. Don’t let a salesman leave you alone while he “goes to talk with his boss.” Instead, roam around the showroom or go get a cup of coffee. Uncontrollable buyers keep salespeople off balance, which can help you in negotiations.
  • Negotiate slowly and repeat the numbers you hear. It’s easy to get confused, so go slow or even write down the numbers thrown at you. Make sure you know if you’re talking about the “out-the-door” price, which includes all taxes and fees, or just the sale price of the car.
  • Ask about fees before saying yes to a deal. Some dealers include bogus fees to take back profit they lose in negotiating. Ask for a breakdown of additional fees before you agree to any deal.
  • Always be ready to walk. If you aren’t making progress toward a deal, or you don’t like the way you’re being treated, just walk out. No goodbyes are necessary.

Close the deal

Before taking ownership of the car, you should add it to your insurance policy. Then, you only need to pay for the car — usually with cash or a cashier’s check. Make sure you get a title and have the seller sign it correctly. When in doubt, check the state’s registry website for more information. Most states allow about 10 days to register the car in your name.

If you’re buying from a private party, and there is still a loan on the car, call the lender to find out how to close the deal. If the lender is a bank, offer to meet the seller in a branch office and sign papers there.

If you’re at a dealer, even if you have a preapproved loan to pay for the car, the dealership’s finance manager will probably offer to beat the terms of the loan. It doesn’t hurt to see if he or she can get a better interest rate. Just make sure all the other terms of the loan are the same.

Before the contract is drawn up, the finance manager will also likely pitch you additional products and services. Buying an extended warranty at the right price can provide peace of mind. But check first to see how much warranty still remains on the car. Many manufacturers now include “powertrain” warranties up to 75,000 miles. This covers all the parts that make the car driveable, such as the engine, transmission and suspension.

Once you sign the sales contract, the car is yours. So take your time reviewing the contract and don’t let yourself be pressured into signing just to get it over with. The contract will include the agreed-on sales price and these additional items:

• State sales tax. This is a percentage of the cost of the car.
• Documentation fee. It seems crazy but the dealership actually charges you for filling out the contract. This “doc fee” is limited in some states. In others states, such as Florida, some dealerships charge as much as $700 for doc fees.
• Registration fees. A dealer has the ability to register the car for you, which is convenient.

 

We're big proponents of buying used cars, but unfortunately, sometimes a used car isn't a great value. You might look at a Cragislist listing for a seemingly perfect Miata being sold "as is," and while the car may seem totally fine, you should pause before you hand your money over.

As our columnist Steve Lehto explains in his Lehto's Law podcast, if you buy a used car that's sold "as is," you're totally out of luck if something catastrophic happens when you take possession. Engine blows up as you drive away from the seller? Sorry, it's your problem now.  Can be viewed on youtube

 

 

Used cars aren't as plentiful or as cheap as they once were. According to Jim Gorzelany at Forbes, "The National Automobile Dealers Association (NADA) in Orlando, FL. predicts the average used car (up to eight years old) will cost $14,375 this year, which is down by just 0.8% from $14,500 in 2012." Finding a place to buy a used car that you can trust at a price you can afford is getting more challenging since many people are driving cars longer in an effort to save money.

So, how do you determine where to get your next ride?

It's not impossible to find used cars at a good value with relative ease - but you have to be a smart shopper. “Prices can vary substantially from city to city, and depending on where you live, it may pay to look beyond your ZIP code to find greater savings,” said Langley Steinert, founder and CEO of CarGurus.com.

For many, the choice of where and how to go about shopping for a car is a personal one. What one person may determine is the best option might not be ideal for another. We here at Trusted Choice®want your car buying experience to be a good one, so we have compiled a list of places where you might consider shopping, along with the pros and cons of each.

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Dealerships: Not Just the Best Place for New Cars

When you're looking to buy a new car, you don't have many options outside of a dealership. Dealers work directly with car manufacturers and will have all the latest models. For someone looking to buy a spanking new car, this is definitely the best place to buy. For those seeking a used car, dealerships include a number of certified and non-certified pre-owned vehicles on their lots. These cars are typically obtained through trade-ins, and are often high-quality. They will send the lesser-quality vehicles to used-car lots at dealer auctions.

Certified pre-owned cars are those that are of the same make that the dealership specializes in. Mechanics who specialize in that sort of car and who use factory parts will have inspected and reconditioned these cars. USAA warns, though that this expertise and level of service is not without drawbacks, "While these services offer you more peace of mind, they also increase the price." Non-certified vehicles are those that are of a different make, and these vehicles, while inspected and maintained, will not have had the same level of attention placed on them.

• Pros: When you purchase a used car from a dealership, you are likely to receive a great warranty on it. Certified pre-owned vehicles frequently come with bumper-to-bumper and power train warranties for several thousand miles. Non-certified vehicles may also come with a warranty, but it will not be as extensive as those for certified vehicles will be. The dealership will also frequently assist you with financing the purchase of your used vehicle.
• Cons: This is nearly always the most expensive way to purchase a used car. The experts at AutoTrader.com break it down this way: "When a dealer offers to trade a used car for a new car, the dealer assumes the risk involved with that used car and the required legal documentation." That risk and cost they pass on to you, the buyer.

Independent Used-Car Lots: Possibly the Best Place to Buy a Used Car

Privately-owned used car lots often have lower quality vehicles than you will find in the pre-owned section of a dealership. However, the cars at these lots are also more affordable for those who are on a budget. Jamie Page Deaton at U.S. News explains that this is one of the best places to get the hottest used cars out there. "They tend to buy most of their inventory at auction, which means they have their finger on the pulse of the used car market."

• Pros: The cars are usually less expensive than those at a dealership. If you have bad credit, you may still be able to finance the purchase of your car through the lot, although the interest rate will likely be very high.
• Cons: You are less likely to receive a decent warranty on these vehicles, so it is a good idea to run a vehicle background check before making a purchase. Because these businesses tend to have a wide range of cars, the salespeople may not be as knowledgeable about the vehicles you are interested in.

Chain Used-Car Lots: The Best of Both Worlds for Buying Used Cars

Where is the best place to buy a car? It may be a chain used-car lot. These large, national used-car retail outlets are different in that they combine the benefits of purchasing at a dealership with the cost-effectiveness of purchasing at a traditional used-car lot. According to Ronald Montova, an editor at Edmunds.com, these are particularly nice places to buy used cars because, "whether they sell you a BMW or a Ford, they'll get paid the same." These large chains have a reputation to uphold, so they will have thoroughly inspected and reconditioned the vehicles on their lot. Those that are not in excellent shape they will typically sell off to used car lots.

• Pros: Cars from this type of lot will almost always come with a decent warranty. The number of cars sold, rather than the value of the car you are buying, typically determines sales commissions. Sales associates are more likely to direct you toward the best car for you.
• Cons: Because this type of used-car lot is a relatively new concept, there are not very many yet. You may not have such a retail outlet near you. Also, if your credit is bad, you should not expect these lots to finance your purchase.

Private-Party Sellers: Where To Buy a Car Used and at a Low Price

This may be the riskiest way to purchase a used car, but it is often also the least expensive. You will not have the added costs brought on by salesperson commissions, lot storage expenses or reconditioning costs. You can find private sellers through classified ads in newspapers, online sites and enthusiast forums, word of mouth or even a “For Sale” sign on a vehicle.

• Pros: Many sellers will ask for only slightly more than what a dealership would offer them on a trade-in. The folks at AutoTrader.com put it this way, "Private individuals are motivated by their need to get rid of the vehicle, not by maximizing profit on it."
• Cons: Sellers will nearly always expect full payment in cash at the time of sale, the cars do not come with any type of warranty. If you do not know much about cars when you're buying from a private seller, you should bring someone with you who does as you're evaluating the vehicle in person.

The Internet: The Best Way To Narrow Down Your Search for a New Car

Many people like to rely on the Internet when buying a used car. So what is the best place to buy a car online? There are several websites dedicated to helping people find the best place to buy a car. One of those is the car blogger site Jalopnik.

Raphael Orlov at Japopnik recently polled internet users about where they've had luck looking for used cars online. Not surprisingly, many favored online classified sites like Craigslist. "You get some weird crap thrown in every so often, but nothing can beat Craigslist when it comes to local listings," he said. It might be harder to verify the quality of a vehicle from a place like Craigslist or another online source, but certainly this is a user friendly option that nearly anyone can peruse with ease.

Another option is an auction site, like eBay Motors. Orlov sees these as a bit of a mixed bag. "That every car gets national exposure makes it harder to find a great deal yourself, but eBay Motors is generally more reliable and easier to deal with than Craigslist. It's also good when you already know what you want, and you're looking for something very specific."

At an auction, you could end up purchasing a vehicle that seems like a great deal. If you win the auction, you are contractually obligated to purchase the car. The problem is that pictures on the Internet can be deceiving, and the car may not turn out to be one that you want.

Used Cars Are a Wise Purchase

New cars depreciate in value at the fastest rate during the first two years of ownership. The older the car, the slower the depreciation. For most buyers, used cars are a wise investment, as they will retain purchase-price value longer than new cars will.

Before you go and find the best place for your next car, consider your insurance needs. No matter where you buy that next auto, you'll need coverage before you hit the road. In reality, both the law and often your lender will require you to carry coverage. It might be wise to shop for car insurance ahead of time with an independent, unbiased voice to help you evaluate policies. An independent Trusted Choice agent can help you when you're ready.

Be sure to explore all your options and purchase your vehicle at the place that best meets your needs. Share your experiences with us here in the comments. Good luck!

Today's piece of blatantly obvious news comes courtesy of J.D. Power and Associates. According to a new study, a whopping 52 percent of new car buyers said the main reason behind picking one car dealer over another was how they were treated on the lot. In fact, of those surveyed, only 38 percent pointed toward the vehicle's purchase price as the main reason for laying down their hard-earned cash in one place over another. That means that for all the incentives and bargain specials, it really is customer satisfaction that moves vehicles off the lot.

The J.D. Power study also found that the ease or difficulty of price negotiation had the largest impact on just how satisfied customers were with their purchase at the end of the day. That's likely because agreeing on a price takes the largest amount of time during the car buying process aside from actually choosing a model. J.D. Power says that on average, negotiation takes around 53 minutes. 

With all of the options available to car buyers these days, dealers would do well to heed the information in this particular study. Head over to the J.D. Power site for a closer look.

The Customer Service Skills that Matter

1. Patience

Not only is patience important to customers, who often reach out to support when they are confused and frustrated, but it's also important to the business at large: we've shown you before that great service beats fast service every single time.

Yet patience shouldn't be used as an excuse for slothful service either!

Derek Sivers explained his view on "slower" service as being an interaction where the time spent with the customer was used to better understand their problems and needs from the company.

If you deal with customers on a daily basis, be sure to stay patient when they come to you stumped and frustrated, but also be sure to take the time to truly figure out what they want — they'd rather get competent service than be rushed out the door!

2. Attentiveness

The ability to really listen to customers is so crucial for providing great service for a number of reasons.

Last week I went over a few customer feedback systems, and long before that I showed you the data on why listening to customer feedback is a must for manybusinesses who are looking to innovate.

Not only is it important to pay attention to individual customer interactions (watching the language/terms that they use to describe their problems), but it's also important to be mindful and attentive to the feedback that you receive at large.

For instance, customers may not be saying it outright, but perhaps there is a pervasive feeling that your software's dashboard isn't laid out correctly. Customers aren't likely to say, "Please improve your UX!", but they may say things like, "I can never find the search feature," or, "Where is the _____ function at again?"

What are your customers telling you without saying it?

3. Clear Communication Skills

Make sure you're getting to the problem at hand quickly; customers don't need your life story or to hear about how your day is going.

More importantly, you need to be cautious about how some of your communication habits translate to customers, and it's best to err on the side of caution whenever you find yourself questioning a situation.

When it comes to important points that you need to relay clearly to customers, keep it simple and leave nothing to doubt.

4. Knowledge of the Product

The best forward-facing employees in your company will work on having a deepknowledge of how your product works.

It's not that every single team member should be able to build your product from scratch, but rather they should know the ins and outs of how your product works, just like a customer who uses it everyday would.

Without knowing your product from front-to-back, you won't know how to help customers when they run into problems.

5. Ability to Use "Positive Language"

Sounds like fluffy nonsense, but your ability to make minor changes in your conversational patterns can truly go a long way in creating happy customers.

Language is a very important part of persuasion, and people (especially customers) create perceptions about you and your company based off of the language that you use.

Here's an example: Let's say a customer contacts you with an interest in a particular product, but that product happens to be backordered until next month.

Small changes that utilize "positive language" can greatly affect how the customer hears your response...

• Without positive language: "I can't get you that product until next month; it is back-ordered and unavailable at this time."
• With positive language: "That product will be available next month. I can place the order for you right now and make sure that it is sent to you as soon as it reaches our warehouse."

The first example isn't negative by any means, but the tone that it conveys feels abrupt and impersonal, and can be taken the wrong way by customers.

Conversely, the second example is stating the same thing (the item is unavailable), but instead focuses on when/how the customer will get to their resolution rather than focusing on the negative.

6. Acting Skills

Sometimes you're going to come across people that you'll never be able to make happy.

Situations outside of your control (they had a terrible day, or they are just a natural-born complainer) will sometimes creep into your usual support routine, and you'll be greeted with those "barnacle" customers that seem to want nothing else but to pull you down.

Every great customer service rep will have those basic acting skillsnecessary to maintain their usual cheery persona in spite of dealing with people who may be just plain grumpy.

7. Time Management Skills

Hey, despite my many research-backed rants on why you should spend more time with customers, the bottom line is that there is a limit, and you need to be concerned with getting customers what they want in an efficient manner.

The trick here is that this should also be applied when realizing when you simply cannot help a customer. If you don't know the solution to a problem, the best kind of support member will get a customer over to someone who does.

Don't waste time trying to go above and beyond for a customer in an area where you will just end up wasting both of your time!

8. Ability to "Read" Customers

You won't always be able to see customers face-to-face, and in many instances (nowadays) you won't even hear a customer's voice!

That doesn't exempt you from understanding some basic principles of behavioral psychology and being able to "read" the customer's current emotional state.

This is an important part of the personalization process as well, because it takes knowing your customers to create a personal experience for them.

More importantly though, this skill is essential because you don't want to mis-read a customer and end up losing them due to confusion and miscommunication.

Look and listen for subtle clues about their current mood, patience level, personality, etc., and you'll go far in keeping your customer interactions positive.

9. A Calming Presence

There's a lot of metaphors for this type of personality: "keeps their cool," "staying cool under pressure," etc., but it all represents the same thing: the ability that some people have to stay calm and even influence others when things get a little hectic.

I've had my fair share of hairy hosting situations, and I can tell you in all honesty that the #1 reason I stick with certain hosting companies is due to the ability of their customer support team to keep me from pulling my hair out.

The best customer service reps know that they cannot let a heated customer force them to lose their cool; in fact it is their job to try to be the "rock" for a customer who thinks the world is falling down due to their current problem.

10. Goal Oriented Focus

This may seem like a strange thing to list as a customer service skill, but I assure you that it is vitally important.

In my article on empowering employees, I noted that many customer service experts have shown how giving employees unfettered power to "WOW" customers doesn't always generated the returns that many businesses expect to see.

That's because it leaves employees without goals, and business goals + customer happiness can work hand-in-hand without resulting in poor service.

Relying on frameworks like the Net Promoter Score can help businesses come up with guidelines for their employees that allow plenty of freedom to handle customers on a case-to-case basis, but also leave them priority solutions and "go-to" fixes for common problems.

» Read more about this concept here.

11. Ability to Handle Surprises

Sometimes the customer support world is going to throw you a curveball.

Maybe the problem you encounter isn't specifically covered in the company's guidelines, or maybe the customer isn't reacting how you thought they would.

Whatever the case, it's best to be able to think on your feet... but it's even better to create guidelines for yourself in these sorts of situations.

Let's say, for instance, you want to come up with a quick system for when you come across a customer who has a product problem you've never seen before...

• Who? One thing you can decide right off the bat is who you should consider your "go-to" person when you don't know what to do. The CEO might be able to help you, but you can't go to them with every single question! Define a logical chain for yourself to use, then you won't be left wondering who you should forward the problem too.
• What? When the problem is noticeably out of your league, what are you going to send to the people above? The full conversation, just the important parts, or maybe some highlights and an example of a similar ticket?
• How? When it comes time to get someone else involved, how are you going to contact them? For instance, at Help Scout we prefer to solve small dilemmas over chat, and save bigger problems for email, keeping inbox clutter down to a minimum.

12. Persuasion Skills

This is one a lot of people didn't see coming!

Experienced customer support personnel know that oftentimes, you will get messages in your inbox that are more about the curiosity of your company's product, rather than having problems with it.

(Especially true if your email is available on-site, like ours)

To truly take your customer service skills to the next level, you need to have some mastery of persuasion so that you can convince interested customers that your product is right for them (if it truly is).

It's not about making a sales pitch in each email, but it is about not letting potential customers slip away because you couldn't create a compelling message that your company's product is worth purchasing!

13. Tenacity

Call it what you want, but a great work ethic and a willingness to do what needs to be done (and not take shorcuts) is a key skill when providing the kind of service that people talk about.

The many memorable customer service stories out there (many of which had a huge impact on the business) were created by a single employee who refused to just do the "status quo" when it came to helping someone out.

Remembering that your customers are people too, and knowing that putting in the extra effort will come back to you ten-fold should be your driving motivation to never "cheat" your customers with lazy service.

14. Closing Ability

To be clear, this has nothing to do with "closing sales" or other related terms.

Being able to close with a customer means being able to end the conversation with confirmed satisfaction (or as close to it as you can achieve) and with the customer feeling that everything has been taken care of (or will be).

Getting booted after a customer service call or before all of their problems have been addressed is the last thing that customers want, so be sure to take the time to confirm with customers that each and every issue they had on deck has been entirely resolved.

Your willingness to do this shows the customer 3 very important things:

• That you care about getting it right
• That you're willing to keep going until you get it right
• That the customer is the one who determines what "right" is.

When you get a customer to, "Yes, I'm all set!" is when you know the conversation is over.

15. Willingness to Learn

If you came across this article and read all the way to the bottom, you likely already have this skill (nice!).

This is probably the most "general" skill on the list, but it's still necessary.

Those who don't seek to improve what they do, whether it's building products, marketing businesses, or helping customers, will get left behind by the people willing to invest in their skills.

We love how the BufferApp team approaches this skill with their wonderfulmonthly customer happiness updates.

The updates are public, detailed, and go through how the support team (and the team at large) handled incoming emails for the month.

What better way can a startup's support team learn as it goes then breaking down their own customer happiness metrics each and every month, for the public to see?

1. Clean the car out. Like, really clean it. Whether you're trading the car in or selling it yourself, a clean car shows much better than a dirty one. If a $100 professional detailing job is too much to stomach, a few hours and some elbow grease should do the trick.

2. Consider fixing major problems. Top off all fluids and replace burnt-out fuses or light bulbs. If your car has major cosmetic or mechanical problems, or things that need obvious changing (bald tires, for example), consider fixing them, especially if they affect the car's drivability. For any expensive repairs, you'll want to weigh their cost against the value they would add. A trusted mechanic should be able to help, but a general rule of thumb is that the older the car, the less likely you'll come out ahead on an expensive repair. A relatively cheap fix on a newer or more valuable car, by contrast, could be worth it.

3. Decide how to sell it. Trading your car in at a dealership is simple, but it adds another variable to the negotiation process and typically gets you less money than if you were to sell it yourself. A white 2008 Chevrolet Malibu 1LT with 60,000 miles, for example, would sell for $3,975 to $6,875 depending on geography and condition. Sell or trade it to the dealer, by contrast, and that range drops to $2,880 to $5,700.

4. Organize the paperwork. Make a copy of your vehicle title in preparation for getting rid of it. If you don't have the title, read Prepping Your Car for more info. If you plan to sell the car, itemize any maintenance and repair records with receipts to present to shoppers. Consider purchasing a vehicle history report, which is available on Cars.com, to give to prospective buyers. Print a bill of sale, which should have on it the car's vehicle identification number, a description of the car, the date of the sale, the purchase price, and the names and signatures of the buyer and seller.

5. If you're trading in, get multiple offers. Many dealerships will make you an offer on your old car even if you aren't buying one from them. Secure a couple of other offers in writing, and you'll have a backup if the dealership where you're negotiating on the newer car gives a lowball offer on the trade. That can throw a real wrench in the negotiations.

6. If you're selling, price and list it right. Estimate your car's value with a fair assessment of its condition, and factor in any repairs, if necessary. Search used-car listings in your area to see how other sellers have priced your model. List your car with lots of photos, and start the text with a phrase written to generate interest. Highlight certain features, including any aftermarket additions, and avoid generalities like "loaded" or "like new."

7. Find a buyer. Depending on the contact information you provided, expect to get voicemails or emails once you place the ad. Respond within 48 hours, and get the buyer's full name, email address and phone number. Highlight the car's selling points, without exaggeration, in your initial exchange, and encourage the shopper to meet you for a test drive. Follow up via email to confirm their identity, and beware of anything that doesn't seem right or check out.

8. Meet in public. Never agree to meet the shopper at your home, or drive to their home, for a test drive. Arrange to meet during daylight hours at a public place, like a large parking lot at a shopping mall or grocery store. Whenever possible, bring a friend or family member.

9. Accompany the shopper on the test drive or at least get their information. Ride along with the shopper during the test drive if possible. If they insist on going it alone, take a photo of their driver's license, or at minimum take down their name, address and driver's license number before handing over the keys. Most liability insurance covers anyone who drives your car as long as they have a valid driver's license, but check with your insurer for specifics.

10. Agree on a price, collect the payment and sign the paperwork. Collect a cash payment, if possible. A cashier's check is also acceptable, as long as you can verify its authenticity with the buyer's bank. Don't accept a personal check. Once you've verified payment, you'll generally want to sign the title over to the buyer and complete the bill of sale. Make copies of both, and notify your state's department of motor vehicles that you sold your car. The legalities of transferring ownership can vary by state, so check with the DMV for specifics. When you're through, don't forget to cancel your auto insurance or transfer it to your new car.

One final note: Watch out for scams. Deal with shoppers face-to-face and beware of anyone who wants to communicate only by email. If possible, avoid transferring the title to the buyer until the check has cleared or you've received full payment. If the buyer gives you a cashier's check, go to the issuing bank to verify its authenticity. Never accept a check for more than the agreed-upon price, and never wire money to someone who asks you to refund the difference.

 

Much of the test drive should happen before you actually drive. It's tempting to hop in the car and take it for a spin, but it's wise to inspect the car carefully before — and after — the drive to determine its condition and attempt to confirm the answers the seller gave you before you arrived for the test drive.

Remember that a used car's current condition and the way it was cared for are at least as important as the style, features and fit when it was new. When you're done with this test drive, you may not know for sure if the car is mechanically sound without the help of a mechanic, but you may know if it's definitely not — and be able to rule it out without paying a professional up to $100 to tell you so. You're also looking for smaller problems that may help you reduce the price.

Wear clothing you don't mind getting dirty, bring a flashlight, a flat refrigerator magnet and always — always — evaluate cars in daylight.

Rust Can't Hide

Despite advances in manufacturing, rust remains one of a vehicle's greatest enemies — one you should be able to detect on your own. Rust is generally more damaging to a car's appearance and value than to its ability to get you where you need to go. It's expensive to repair well and nearly impossible to reverse.

Start at the Bottom

Start by looking at the car's undercarriage (underside). Use your flashlight to inspect the floor pans (the metal that forms the floors) and frame rails (the structural members that run around the perimeter of the car's underbelly). Look for rust. Also look for marked differences in the condition of different sections. One pristine or freshly painted section in an otherwise moderately rusty car is a reliable indication that part of the vehicle was repaired. Did the seller disclose any accidents in the car's history?

While you're down there, look up into the wheel wells for rust. Take note if the car seems to be dripping anything (check out the driveway and/or the garage floor if you can) and look for rust and signs of wear on the muffler and exhaust pipes.

The Tires

Don't get up yet. The tires tell a lot about a car and how it's been driven and cared for. You're looking for several signs:

Overall wear: Do the tires have enough tread on them to be safe, or are they bald or close enough to it that you'll have to replace them soon? Look for tread-wear indicators, which become visible when the tread has worn down far enough that the tires need to be replaced. The indicators are ridges that run across the surface of the tires, perpendicular to the sidewall. Each tire has six of these indicators evenly spaced around its circumference. The location of each is marked by an arrowhead found on the sidewall, typically at the base of the tread.

If you're not sure about the wear indicators, try the penny test: Hold a penny, head side toward you, and insert the top of Lincoln's head into the tire tread until the coin's edge rests in the groove. If you can see the top of Honest Abe's noggin from the side of the tire, the tread is probably worn too far. If the top of Lincoln's head disappears into the groove, your tire has some life left. It's simple: If you see Abe's head, there's not enough tread. Repeat with all the tires.

Uneven wear: Have all the tires worn evenly from one sidewall to the other? Try the penny test to verify a difference. Tires should wear evenly. If they don't, it's likely the car has been in an accident and/or is out of alignment.

This does not compute: Does the car have low mileage but worn-out tires? Why the contrast? Maybe the odometer is not accurate. It's not a crime to put used tires on a car, but you should try and find out what's behind the disparity. The same is true if the car has low mileage yet brand-new tires. Perhaps the owner decided to upgrade, had a blowout or simply replaced all four tires. It can't hurt to ask about anything that just doesn't make sense.

The Walkaround

Stroll around the car looking for rust, dents and dings. Check how well the hood, doors and trunk/hatch lid meet the body. All should close and seal well and rest on the same plane. Try all the doors and their windows and locks. (With a convertible, try the doors and windows with the roof up and down.) Some of these tests may seem unnecessary, but every little problem could become your problem, and every shortcoming can be used to drive the price down.

Whip out that refrigerator magnet (the flexible kind that looks like a business card is best). Place it on at least one point of every major panel of the car's exterior. It should stick. If it doesn't, it means one of three things:

·        The panel has been repaired with Bondo, fiberglass or some other nonmetallic dent filler.

·        The car is made of fiberglass, as is the Chevrolet Corvette.

·        That particular panel is nonmetallic or nonmagnetic (aluminum). In the case of 2 and 3, chances are that the whole car, or like panels, will also not support the magnet. Whole panels — let alone whole cars — are seldom rebuilt with body filler, so you'll know you're onto something if the magnet doesn't stick to part of a panel, or one of four doors. Be aware that bumpers and grilles tend to be molded from plastic nowadays. WARNING: Be sure only to use a pliable magnet, or place a piece of paper or cloth between a metal or ceramic magnet and the car; you don't want to scratch the paint.

The Trunk or Hatch

Check out the trunk (or "hatch," if the car is a hatchback, sport utility vehicle or minivan). If possible, lift the carpet and check for rust. Will the cargo capacity meet your needs? Is the spare tire in its proper location, full of air and in good condition? Pay attention to how simple or difficult it is to lift the trunk or hatch lid. Does it stay up or fall on your head? Will you be likely to hit your head on it even if it stays up?

The Engine Compartment

You don't have to be a mechanic to learn something about a car and its owner by inspecting the engine compartment. Pop the hood and perform these checks:

·        Take a good look at the overall condition. Is the engine clean, or are there signs of leaking oil or other fluids? Take a mental picture, because you'll want to look again after you drive it.

·        Check for rust, particularly on the shock or strut towers, the points at the corners near the windshield to which the front suspension is anchored.

·        Do you see any sign of fresh paint (or paint that is clearly newer than elsewhere on the car)? Have any of the rubber bumpers been painted over? These can be signs of an accident or simply a re-paint job.

·        With the engine turned off, check the underside of the fan belts (the surface that comes in contact with the pulleys) for cracks and obvious wear.

·        Pull the oil dipstick, wipe it clean with a rag, and reinsert and remove it. Is the level correct? Is the oil dark and dirty? Both are signs that the car isn't getting the care it deserves. You can also look for beads of water on the oil clinging to the dipstick, which could reflect a costly head gasket problem.

·        If the engine hasn't run for hours and the radiator is cool to the touch, remove the radiator cap carefully and slowly using a rag (the car's coolant system is pressurized and can spray, causing injury; open it only if you know it's cool). Is there a layer of oily film floating on the top? Is the coolant clean and green or rust-colored? A layer of film is caused by oil, which reflects a costly head gasket problem. A rusty color is caused by, you guessed it, rust, which reflects that the vehicle has been neglected.

Start It

Go ahead and start the car. Does it start easily? Run smoothly? Don't hesitate to test all the lights and signals, inside the car and outside. Same thing for the wipers, heat and air conditioning, and cigarette lighter.

SANTA MONICA, Calif. — Last year marked a record-setting year for the used vehicle market, according to Edmunds.com's 2015 Used Vehicle Market Report. It showed that a total of 38,276,140 used cars were sold in 2015, a 5.6% increase over the prior-year period and the highest single-year total since 2007.

Aside from rising unit sales, the report showed that the average price of each used car sold also went up. In 2015, the average used car sold for $18,600, an increase of 4.6% over 2014's average used car price. 

“The key factor driving all of the trends in used-car sales today is the popularity of leasing, which is bringing younger and higher quality used cars back in the market,” said Jessica Caldwell, director of Industry Analysis at Edmunds.com. “We’re truly in the midst of a Golden Age for ceritfied pre-owned and near-new used cars. And with a record number of lease terminations expected in 2016, there certainly will be no shortage of supply to meet the growing demand for used cars.”

In the past five years, the reported noted, CPO sales have grown by 55%. That growth culminated in a record-setting 2.55 million CPO vehicles sold in 2015.

 

 

Barrett-Jackson Records Strong Sales, Exceeds Expectations At 2009 Scottsdale Auction January 20, 2009 Posted by Barrett-Jackson Scottsdale, Ariz. – January 20, 2009 – The Barrett-Jackson Auction Company exceeded industry-wide expectations by recording more than $63 million in sales last week during the 38th annual Scottsdale auction. From Jan. 11-18, 2009, the all No Reserve auction featured an eclectic offering, including a 1929 Ford 4-AT-E Tri-Motor airplane that sold for $1.21 million and the “first production” 1955 Ford Thunderbird that fetched $660,000. Despite an uncertain economy, numerous Barrett-Jackson records were set, including $220,000 for a 1959 Chevrolet Corvette convertible, $250,000 for a 50th Anniversary Hurst Performance 2008 Dodge Viper and $137,500 for a 1970 Ford Mustang Boss 302 fastback. Hailed as “The World’s Greatest Collector Car Auctions™,” the 2009 Scottsdale event featured over 1,100 collector vehicles and 40 hours of live, high-definition TV coverage on SPEED. For the third consecutive year, more than 200,000 people attended the Scottsdale auction. “The car collector community enjoyed another stellar Scottsdale event at Barrett-Jackson,” said Craig Jackson, Chairman/CEO of Barrett-Jackson. “It was truly a celebration of our hobby and its resiliency. Sales were solid from start to finish and exceeded expectations. Barrett-Jackson was an oasis for hundreds of thousands of people looking to escape the economic headlines and enjoy some amazing cars in beautiful weather.” The rare Tri-Motor aircraft, one of only a handful known to be in existence today and extensively restored by aviation expert, Bob Woods, has led a storybook existence, including being shot during the World War II attack at Pearl Harbor. The Thunderbird that was sold is also overflowing with provenance, as it is documented by Ford Motor Company as No. 1 and represents the birth of Ford’s sports car program. In addition to the top sellers, Barrett-Jackson offered a healthy collection of entry level to mid range cars. With nearly 70 percent of all purchases made by new buyers, these vehicles served as the nucleus of the 2009 event. The diverse docket also catered to buyers planning to spend conservatively in today’s economy. “Our customers asked us to offer more mid range vehicles this year,” noted Steve Davis, president of Barrett-Jackson. “And the solid sales performance demonstrates the wisdom of our approach. While the Tri-Motor and Thunderbird were highlights of the week, collectors really responded to cars in the $50,000 to $150,000 price range. We’re cognizant of the current economic conditions and made sure to offer something for everyone.” Barrett-Jackson joined forces with General Motors to offer a select group of vehicles from the GM Heritage Fleet, which was embraced by the company’s diverse clientele. “The General Motors Offering represented an opportunity for collectors to own a piece of GM history,” continued Davis. “An example was the show-stopping ‘Blackhawk’ concept that went for more than $500,000. Many of the vehicles from the GM Offering exceeded our original estimates, validating this once-in-a-lifetime opportunity.” Barrett-Jackson continued to elevate into a passion-filled lifestyle experience, including celebrities in attendance and more than 350 exhibitors, ranging from luxury to mainstream products and services. The passion and enthusiasm for the car collecting hobby and the lifestyle it represents remains healthy, despite the current economy. Additionally, Barrett-Jackson helped raise more than $4.4 million for various charitable organizations during the 2009 Scottsdale auction with the help of Richard Petty, Rusty Wallace, Goose Gossage, Bill Goldberg, Reggie Jackson and Robert Yates, among others. “The Scottsdale auction was a success on many levels,” added Jackson. “People are already asking for bidder and consignment applications for our Palm Beach event in April. Everyone involved in this fantastic week would agree that the collector car hobby continues to be healthy.” The top 10 cars sold in Scottsdale include: 1929 Ford 4-AT-E Tri-Motor airplane – $1.21 million (Lot #1307) 1955 Ford Thunderbird convertible “Production No. 1” – $660,000 (Lot #1295) 1996 Buick Custom “Blackhawk” – $522,500 (Lot #1303) 1970 Plymouth Superbird custom tribute – $501,000 (Lot #1289) 2006 Chevrolet Monte Carlo NASCAR “Jeff Gordon’s” – $500,000 (Lot #1274) 2005 Saleen S7 Twin-Turbo 2-door coupe – $412,500 (Lot #1305) 2009 Ford Mustang FR500CJ Cobra Jet prototype – $375,000 (Lot #1333.1) 2010 Chevrolet Camaro “First Retail Production” – $350,000 (Lot #1316) 1969 Chevrolet Camaro ZL-1 COPO coupe – $319,000 (Lot #1277.1) 1969 Chevrolet Camaro Yenko COPO coupe – $297,000 (Lot #1278) With strong sales last week in Scottsdale and a successful inaugural Las Vegas auction last October, Barrett-Jackson has recorded over $90 million in sales over the last four months. The company is taking consignments for Palm Beach as it carries forward the momentum of the car collecting passion exhibited by its performance in Las Vegas and Scottsdale. The 7th Annual Barrett-Jackson Collector Car Auction in Palm Beach, Fla., will be held April 9-11, 2009.

Personal Service Is a Small Business Advantage

Good personal service in retail establishments is difficult for many firms to achieve. This is especially true in larger department stores and retail chains, where the overhead costs of adding sufficient service personnel can be prohibitive. Increasingly self-service is the mode of service today.

The gap between full-service and self-service provides entrepreneurs with the opportunity to deliver personalized service. Know you customers, their wants, needs, preferences and price point. Your knowledge can provide them with a better shopping experience and your store with more loyal customers. The small business owner has the opportunity to order a select line of merchandise or offer a customized line of services. The level of customization and targeting a small business can achieve will draw a specialized audience loyal to a particular product or service category. The personal service that accompany such offerings close provide value-added benefits to the consumer.

Keep in mind that exceptional customer service doesn’t just happen. Your small sales force should walk in the door well-skilled, well paid and well motivated to perform. If personalized service and strong product knowledge are part of your marketing and sales strategy, you may be paying a more premium price for your sales agents. If you are paying those key staffers above average wages, be sure that you incorporate sales and service goals into an incentive plan. Get a return on the staff investment, that helps grow the business.

One aspect of good personal service is matching the customer’s needs with the business’s products or services. The better this match, the better the personal service. Another aspect is customer relations. Each buyer should be made to feel important and valued. Only when both aspects of the relationship have been fulfilled can a profitable, long-term relationship be forged between the patron and the business. Conduct period role-playing or training sessions. Keep your skills and your employees skills keen in three areas: demonstrating a sincere interest in the customer; listening to the customer to ascertain his or her true needs; and building product and service knowledge to offer customers informed suggestions.

 

The best time to buy a used car is between Thanksgiving and January.

Used car prices tend to go through a predictable cycle in which they peak during the summer months followed by a downward slope hitting rock bottom around January 

Prices tend to shoot back up quickly through the end of February.

The difference in prices between August and January can be as much as 5%.

This is according to statistics compiled by Kelly Blue Book and CarGurus.com.

"I am a big fan of buying used," says Philip Reed, Edmunds.com senior consumer advice editor. "I think it's an extremely important way for a family on a budget to save money."

Jack Nerad, Kelley Blue Book's executive market analyst, is another cheerleader of buying used. "Used cars are a great value," he says. "Cars today are really good and really last a long time. They have longer useful lives than in the '50s and '60s when I was growing up."

While paying a lower purchase price for the same car model used rather than new is the obvious reason to buy a used car, there are others as well.

Even so, Reed cautions that all used cars aren't created equal. A consumer must do his homework before deciding if a used car is in good or bad shape. With that caveat, here are five of the best reasons to buy a used car.

 

Used vehicles are often the best values you’ll find in the automotive market. Not only is the price lower than a comparable new car’s, but continuing ownership expenses such as collision insurance and taxes are lower, and used vehicle has already taken its biggest depreciation hit. In addition, buying used is a way to get a nicer car than you’d be able to afford new.