Buying a used car helps you save a lot of money. However, not every deal you come across is a good deal, and you’ll likely hear a lot of used car dealership horror stories. Sadly, the used automobile market is filled with scams at every step, and therefore, you must know exactly what to expect when shopping at a used car dealership.
Types of Used Car Dealerships
Used Car Wings At New Car Dealerships
It isn't uncommon for people to see used vehicles at Kia, Ford, or Chevy dealerships. Reputable automotive companies welcome trade-ins and cars with expiring leases. These cars are reconditioned and sent to the company's used car lot.
Used cars sold by reputable brands are certified, which adds to the vehicle's credibility. Moreover, these used vehicles have undergone a comprehensive and standardized inspection and reconditioning process, so you know what you are paying for. Certified pre-owned cars are in good shape, have fewer issues, and have extended warranties, unlike used cars in private dealerships.
Furthermore, these cars are cheaper than brand-new cars. Financing options are available if you can't purchase such cars using cash.
Franchise Dealerships
Have you ever visited a medium-sized town with several car dealerships with the same name? These used car dealerships are called franchise car dealerships. Unlike the used car dealerships discussed above, franchise car dealerships aren't affiliated with big names like Honda, Toyota, Kia, Ford, and Suzuki.
Most of the cars at such dealerships come from car auctions. Despite the bad reputation of auction vehicles, you can find some good cars at franchise dealerships. Most cars at auctions come from used car dealerships that fail to sell them due to climate, demographic, or legal issues.
Most of these dealerships are nationally or locally standardized and feel trustworthy. These dealerships have good customer service, and you will hardly find anything shady at the facility. However, some franchise car dealerships are dodgy. Use online tools like Yelp to determine a car dealer's reputation.
Local Used Vehicle Dealerships
Local used car dealerships are the reason why used car dealerships have a bad reputation. Some of these dealerships are home to pushy salespeople. Most have adapted to modern customer service standards but are still out for your money.
If not all, over 50% of such dealerships sell the cheapest auction inventory possible. Furthermore, they use the worst repair techniques to get these cars running. Their repair techniques are subpar, and some of them are downright unethical.
That said, not every local used car dealership wants to rip you off. Many such dealerships have fair practices, and you can land a decent vehicle at their lots. Check their online reputation; the Better Business Bureau ratings are a good place to start.
Things to Expect at Used Car Dealerships
Your Budget Is the First to Come Up
Most used car dealerships don't care whether you want an MG or a Glory. They're more concerned about your budget. Because of such stone age practices, you might find yourself in the sales office too soon, where the sales representative conducts a credit check and a four-square assessment.
The four-square assessment is a document with four squares on it. The salesperson fills each square with a different budgetary requirement, like the ones below.
- Trade-in amount
- interest rate
- Monthly Payment
- Sales price.
The four-square assessment aims to determine which budgetary requirement matters to you the most. Most buyers are too concerned about the monthly payments, which provide the dealer enough room to play around with the remaining three squares, thus profiting from the deal.
With these four squares in mind, the dealer will show you vehicle options that fit your budget instead of your needs. Suppose you need a Grand Caravan; the dealer will show you a CR-V Crossover or a Mazda3 Hatchback because they suit your budget.
Luckily, some trusted dealerships conduct a needs assessment before offering options. After determining whether a car fits your needs, they will move over to the budget side.
Evaluating the Trade-In
At some point, the dealer may take away your current vehicle to inspect it and confirm it qualifies as a good trade-in. They mostly conduct a mechanical and visual inspection, followed by a test drive.
If the car has low mileage and is in good physical shape, the inspection process will be quick and direct, and vice versa.
Negotiation Time
Your first encounter will be with the salesperson. The salesperson will tell you about the trade-in value, the car's price, and your monthly payments. If you agree to everything the salesperson says, you will put your money on the table.
If the salesperson fails to convince you, they will talk to their manager. The manager will provide them with a few other numbers to play around with. The salesperson will even cross out the initial deal and write a fresh new deal for you with a spot of brightly colored ink. These are just sales tactics; you don't have to fall for them.
There will be some back and forth with the manager. Be confident enough to stick to your budget. You can also use the four squares in the four-square assessment. When the manager throws in the towel, you must know you have landed the deal. However, if you aren't satisfied, you can walk away to a different used car dealership.
Next, the salesperson will try fetching you some decent financing, which may take a few hours. Then, you will be taken to the F&I manager's office to see the official paperwork. These documents include your loan terms, sales price, and monthly payments. Some F&I managers try selling you unnecessary add-ons to make a quick buck. Make sure not to fall for these add-ons, as you can get better rates in the marketplace.
Lastly, the keys are handed over to you; you can drive away in peace. Sometimes, the car needs cleaning and a few last-minute touch-ups, which may take hours.
Final Word
If you plan to purchase a used car, you have come to the right place. At Green Light Car Sales, we use our knowledge and experience to help our customers make smart buying decisions. To benefit from our services, feel free to visit our website today.
