Trade'r in? Yup! Nope! Whaaat?
When trading a vehicle there are four categories that will clearly affect the value of your vehicle; (1) Current market value. This is an adjustment amount to the book value that is made by the vehicle appraiser and occurs when there are real time changes in the market that are not readily reflected in current book values. One powerful example is the energy crisis that came along in the fall of 1973. Many consumers panicked (mildly) and began trading their gas hogs for fuel efficient smaller vehicles. As the extent of the crisis and its duration were unknown, and there were no real predictions as to the short and long term effects, most dealers looked on the gas hogs with an eye of concern, specifically in relation to their dollar value. I counseled many buyers during that time, encouraging them to be patient and wait it out. Most of them, nearly all, traded anyway. They received as little as 50% of the book value for their gas hogs and paid over retail in many cases to purchase a fuel efficient vehicle. Many of those people returned to the market within a short period of time and traded their fuel sippers for gas hogs. Again, values were adjusted to allow for the glut of small vehicles on the dealers lot. There are always current market value adjustments whether just at a dealership, in a city, an area, a state, a region, or across the country. These adjustments may be as simple as a dealership being overstocked with used vehicles due to some internal problem; therefore the dealer has to pay less for vehicles currently being traded in. An area may be affected by an economical crisis that overall affects the consumers ability or willingness to spend money. Wars and rumors of war have a strong negative effect on vehicle values, as does the price of fuel. One major factor that affects the value of trade-ins are the deals being offered on new vehicles. The greater the deal on new, the less is paid for the trade. Why? Used vehicle buyers will step up to new vehicles and pass on the late model used vehicles. In many cases payments on a new vehicle may be roughly the same as a one year old used. Additionally, consumers may determine that they are better off trading their current vehicle sooner than intended, taking advantage of the factory incentives, and driving off in a new vehicle with payments close to where they were, and offsetting maintenance expenditures in the process. (2) Dealership attitude. Vehicle values may be affected simply by some issue within a dealership. An inexperienced Used Vehicle Department manager, a poor cash flow in the dealership, a weak sales force not selling vehicles, and other situations. One thing learned when purchasing at an auction, talking with a wholesaler, or shopping a trade-in to another dealership is that prices vary widely across the board. Realistically I have witnessed value swings by as much as $2000.00. (3) Dealership wants. In some circumstances a dealer may not want your trade. You might have a very expensive trade, the dealer does not want to tie up money in a slow seller and the dealer cannot find a home for it with another dealer. Therefore to make a deal he will hit the trade low expecting to find a home for it at the auction, with another dealer, or attempt to cheap sell it on his own lot. Regardless, the vehicle may bring several thousand dollars below book, your loss. (4) Dealership need. The dealership may not need “another one of those”. Some vehicles are a glut on the market. An example would be the dumping of a rental car fleet at the auction, everyone buys them, everyone has one, and no one needs another one. Dealership want and dealership need may also swing in your favor. There were many times that I paid over book (more than $1200.00) to own a vehicle, knowing that if I did not, someone else would, and I would miss the sale on three vehicles; (1) my vehicle, (2) the trade-in, and (3) the trade-in on that one. Instead of missing business, I would make three profits. It should be clear that; (1) you must know the value of your vehicle to do business with it; (2) the book value is affected by other circumstances, some of which are beyond your control. However, because you know the value of your vehicle you have an idea of where you should be, and by shopping more than one dealership (if you don’t get the value up front) there is a very good chance you will get your money. It is absolute that you use a professional source to determine the value of your vehicle prior to shopping for your next vehicle. If you had a wad of $10.00 bills in your pocket, a big wad, and you wanted to trade them for $50.00 bills, and if you had never counted them, how would you possibly know how many $50.00 bills to get in return for your 10’s? Would you just throw them out there and take back whatever 50’s were offered? Or would you count them ahead of time, separate them in $50.00 packets, band all the packets together, and put in writing the total amount of all the packets, put that slip of paper with your packet, and put one in your pocket? Would you then watch as the other party counted your 10’s, and as the 50’s were counted out for you? Wise folks count their money first, record the amount, and observe while others handle their money! Chuck Norlin is a 41 year veteran of negotiating, a Cal U and General Motors University graduate, and 30 year career expert in the retail vehicle business.
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Understanding The Provisions Of Your Extended Auto Warranty
An extended auto warranty can be a confusing document for many people. Indeed, there are very few people who actually completely understand the terms and conditions — and the requirements placed on the consumer — associated with an extended auto warranty. In this article, the reader is provided with a general overview of the standard terms and conditions associated with an extended auto warranty. By understanding the terms, conditions and provisions of an extended auto warranty, you can determine if the added protection is right for you. Do keep in mind that when you purchase a new automobile, the manufacturer provides you with a relatively comprehensive warranty at no additional charge. As a general rule, an extended auto warranty expands the term that the manufacturer’s warranty will remain in place. For example, there are warranties available that will expand the length of coverage from a standard three year term to five or even ten years. (In some instances the extended warranty will also broaden the items that are covered by at least some degree.) When considering the purchase of an extended auto warranty, you need to closely examine what precisely you will gain by paying additional money for the added protection. As mentioned, the primary benefit that can be had by purchasing most extended warranties is a lengthening of the amount of time the automobile will be protected by the warranty coverage. Extending the warranty may not make practical sense in some situations. For example, if you have purchased a new automobile that comes with a standard three year warranty coverage, you will not want to obtain extended protection if you will not own the car much beyond the three year term. Some extended auto warranty plans also expand the breadth of coverage. If you tend to be “hard” on a car, if you tend to incur a significant number of bills for auto maintenance, repair and the like, an extended and expanded warranty program that will provide broader coverage may be a perfect idea for you. There are a number of oftentimes overlooked elements associated with an extended auto warranty that are extremely important. First of all, many extended auto warranty plans require you to obtain service work on your vehicle at a specific location. Many such plans require you to obtain service work at the dealership or at another specifically authorized service center. If you obtain service work elsewhere, you may void or cancel the warranty all together. Another common provision on most extended auto warranty plans oblige you to obtain regular service on your vehicle within specifically delineated timeframes. A failure to obtain such service will result in the voiding or cancellation of the warranty. In the final analysis, before you spend additional money on an extended auto warranty, you need to take the time to weigh and balance the costs and benefits, the obligations and recompenses that are associated with the proposed warranty plan. By doing your homework in advance of enrolling in any extended auto warranty plan you will make certain that you elect the coverage that best meets your particular needs. For more information, please visit <a href="http://www.carautowarranty.info" target="_blank">http://www.carautowarranty.info</a>
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How I sold my teachers used car in less than two hours!
Class projectMarketing teachers have always been dynamic, which is probably why I enjoy my marketing courses so much in school. One teacher in particular stands out to me, he made a big deal of utilizing real life examples to demonstrate his curriculum. Generally searing the concept into our ripe minds. His most recent brainstorm came last week when he told the class that whoever could sell his used car the fastest and for the most money would be excused from the midterm. This was not a ’sell a used car’ lesson, this was a ‘market value’ lesson.Everyone was game for the task and ready to get started, but there was just one question left to ask; what was the car and where was the car? The car was in the parking lot, and by the looks of it had been there a while, it was a ratty old Honda Accord that had seen better days. Everyone cringed as they saw it, but then the look of steely determination took over most faces, the idea of skipping a hefty midterm high in everyone’s minds. Method optionsThis class met twice a week for two hours both times, he gave us this assignment at the beginning of the class period and told us to research our options and the market value of the vehicle, and to have something to show him by the end of the class period. Everyone went to work right away, some of the guys even borrowed a hose from maintenance and went to town washing the Accord in the hopes of raising its value. I took another route, I jotted down all of the information about the vehicle, then I went directly to the computer lab. I had a secret weapon, the fastest way to sell a car is to go online. My sister had just sold her car to an online service, and had raved about how easy it had been. Online solution to a real life problemI went to their website and filled out their brief online form, which allowed the car to start accumulating bids right away. Then I called their 800 number to cover all my bases. The woman who answered the phone was very helpful and when I explained the project to her she was eager to help me win. She said it was lucky I called when I did because they had an appraiser near the school who would be finished with his appointment shortly. She phoned him and asked him to come see my teachers Accord, sure enough he appeared in the parking lot 15 minutes later. No midterm for meMy fellow students didn’t know what hit them. I called my teacher out to the parking lot and less than half an hour later he had cash in his hand for his ratty old Honda. Not only did I eliminate one midterm off my schedule, but I earned the respect of a teacher I respected. <b>About the Author:</b> My name is Paige Filler and I'm a creative writer with a love of all things that go vroom. I do my homework to bring thought and innovation into everything I write about the auto industry. You can find more of my stuff at <a href="http://www.cash4usedcars.com/" target="blank">Cash 4 Used Cars</a>, and <a href="http://blog.cash4usedcars.com/" target="blank"> this blog.</a>
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