Used Car Buying Strategy That Works

The One Car Buying Strategy That Works

You are about to learn about the best car buying strategy that works. It actually beats up all other strategies. It is true that timing is important, as well as having control on the process. But the one car buying strategy that works, and by that I mean getting the best price on a used car, is what you are going to learn in this lens.

I work from home. And it happened that one of the companies that I am promoting is rewarding its affiliates with a CAR. So now I am not planning on using my own strategy for buying a car because someone else is paying for it :-). Just kidding. But still, I don’t need my strategy because it only works with used cars.

For new cars I do recommend reading this car-buying guide:

 

 

Connections

Make a deal with an insider

 
Don’t jump to conclusions yet, everything is ethical and legit. If you know a car dealer or an autosalesman who can work the deal for you it will be better. If not, approach more than one autodealership with the request that I’ll reveal to you in a minute and compare their responses, then negotiate with them based on the lowest offer to get an even lower one.

This is not the only kind of help you will need. Also approach a bunch of mechanics to come with you in a mission of choosing a car from thousands of cars. They should be able to evaluate the car by examining it and tell you about any repairs it might need and how much this will cost.

Again, compare their charges per hour and negotiate with them based on the lowest estimate to get an even lower one.

Find Government Auctions in your Area

Be open to drive to a nearby town, it’s worth it

If you have been to an auto auction before you’ll know that it is the best place to find the car of your dream for a dirt cheap price. I have a friend with an autodealer’s license and he is the one who introduced this strategy to me. He is also an expert in evaluating cars, so I didn’t need a mechanic to come with us.

Here is the deal that you need to work out with the dealer: You’ll go out with him to the auction (because they are going anyway, this is where they get most of their cars). You’ll pick the car of your choice, let the mechanic check it for you, test drive it yourself, and once you are comfortable with it let your dealer know that you want this car.

Tip: Pick a bunch of cars to bid one, if you chose just one car and someone outbids you you’ll need to pick another one in a hurry and you don’t want to do this. Trust me.

The dealer will bid on this car within the maximum you’re prepared to pay for it. After successfully getting the car he will pay an auction fee (around $60) and will ask you to drive the car to the dealership with him to finish the paper work. As a dealer he will issue you on the spot a temporary plate (just a piece of paper to stick on the back of the car) until you get permanent plate and car insurance.

How Much to Pay for The Car

It’s a simple calculation

Before you go to the auction do your research. Kelly blue book will give you a precise estimate for the car price based on the model year and conditions. If you have a black berry it will be better because you might see a car in the auction that you like but you didn’t search for in advance.

Your costs will be as follows:

– The auction fee: about $60
– The dealer’s fee: It really varies, but from my personal experience it could range between $200 and $400 based on the location of the auction, the number of cars you’ll be chosing to bid on, the price of the car itself … etc.
– The mechanic fee (they usually charge between $45 and $80 per hour)
– Any repairs the car might need as esimated by the mechanic (subtract this from the kelly blue book price)

As mentioned above, you’ll be negotiating those fees with the dealers and the mechanics until you get the lowest fee possible.

Add those to one another, and based on the price estimate you’ve got from your research you’ll decide your maximum bid on every car you chose.

Why Do you Need a Dealer

To get admitted into the acution location you’ll need a dealer’s license. So without the dealer you can forget about the auction. If you are a car expert, meaning that you can estimate the value of a car by checking the body, the engine, test driving … etc, you can omit the mechanic, but for most people it is not wise to depend on your own opinion when it comes to evaluating a car in a police auction.

The other reason you need the dealer is that you cannot drive the car out of the auction without the paper work that he will do for you until you get plates and auto insurance.

In addition, if you have been into an auto auction before you’ll know this. There is a language they speak in the auctions that I never understood. I always keep asking my dealer friend “what did he say” and he translates that jargon into English for me.

OK, What’s in it for the Dealer?

You need to know this in order to work your negotiations out

In the current economy, with thousands of autodealerships running out of business, any deal will be appreciated by the autodealers. They will go to the auction anyway. If you go with them, pick your car, and pay them for their efforts … they can’t say no.

Of course they would have made more money if they bought the car, brought it to the dealership lot and priced it as they will. But in this economy they will hesitate to buy the car or go the auction in the first place. With your deal they guarantee a sale from the auction.

Tip: If you are a group of friends buying cars at the same time you can work out a better deal and the dealer will be happier to work it out for you. Or better, if you know people who are interested to go out with you you can work out a better deal for yourself and get a lower fee because you are bringing business to the dealer.

In a Nutshell

Find the auction, do your reasearch about the car of your dreams, negotiate with dealers on going with you, or you going out with them to the auction, get a mechanic to evaluate the car for you, decide what is your maximum bid, and let the dealer do his job. This is the best strategy to get a used car for the lowest price ever.

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