The One Car Buying Strategy That Works
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:
Make a deal with an insider
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
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
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
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
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.