How to Determine What That Used Car is Really Worth

 

Don't you just wish you knew what the Used Car Dealer paid for the car you are interested in purchasing? This is a question we all have asked ourselves when thinking about buying our next vehicle. The problem is that unless you work for them or have a friend working there, it is impossible to figure out their cost. But, you can get pretty close by doing some research yourself. The following tips will help you to determine the Dealer's cost on any vehicle:

1) Inspect it. Look the vehicle over from top to bottom, write down the VIN (vehicle identification number), mileage (make a note if the mileage is excessive around 12,000 per year for cars, 15,000 per year for trucks) and exact model designation. Notice the overall condition both inside and out and rate it using a scale from 'poor to fair to good to excellent'. Does it have any new equipment on it (tires, engine, transmission, interior, etc), this will add to the cost of the car.
2) Talk to the salesman. Yes you need to in order to get some background information. Ask where they got the car, trade in, an individual, at an auction or what. Ask them their opinion of the vehicle, would they buy it to drive. Surprisingly most used car salesmen are honest about the origin of the vehicle. Also ask them and the Manager about any damage the vehicle may have had; if they know about it, by law they have to disclose the information.
3) Go online. Research Kelly Blue Book and NADA for used car values on the vehicle. You can generally figure that if the vehicle was a tradein, the lowest price is close to what they gave the owner. If the vehicle was bought at auction, then the middle figure would be more characteristic of the price paid. Also go to Carfax and run the VIN to see if there is any information out there about the repair history.
4) Add it all together. The overall condition and mileage of the vehicle (deducting for high miles), how they acquired it in order to decide which used vehicle value to go by.

By using this information, you can get close to their cost in the vehicle and thus make a better determination on what you are willing to pay to purchase it. The key to a successful buying experience is knowledge and information, without it you are defenseless and vulnerable.

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About the Author

Chuck Parrish is a former used car salesman turned consumer advocate. His website and E-course at http://www.usedcarangels.com outlines ploys used by unethical salespeople, as well as how to get low-cost finance and insuarance for used cars.