Autosource Unlimited LLC - How to Buy a Used Car.

1. HOW TO BUY A USED CAR
Autosource Unlimited, LLC

2. INTRODUCTION
This scaled down lesson incorporates learning
goals, foundation data, examination addresses,
an action, and wellsprings of extra data.

3. OBJECTIVES
Learners will:
• Examine the favorable circumstances and
impediments of utilized vehicles.
• Depict places where utilized vehicles can be
bought.
• List the progressions in the value transaction
process.

4. USED CARS
Practically two out of each three autos sold are
utilized autos. Numerous shoppers, particularly
adolescents, can't stand to purchase another auto
when the normal cost is roughly $18,000. The
expense of protection is much higher for another
auto, expanding the interest for utilized autos.
The supply of utilized autos has expanded because of
the quantity of two and three-year-old lease autos
accessible.

5. Advantages of Used Cars
There are genuine focal points to purchasing an
utilized auto. The purchaser of an utilized auto
keeps away from a portion of the devaluation
costs, which can be up to 40% of its worth in the
initial two years. Now and then, purchasers can
bear the cost of more alternatives and
extravagance things when they buy an utilized
auto. Numerous shoppers feel that they can
organize a superior manage less bother on the off
chance that they purchase straightforwardly from
the proprietor of the auto.

6. Disadvantages of Used Cars
Purchasing an utilized auto can have disservices also.
One essential hindrance is that frequently the most
upkeep extra time of the autos life is amid the initial
two years. Some utilized autos have genuine
concealed deformities with restricted or no guarantee
scope. It is once in a while hard to figure out if the
auto was kept up appropriately by its past proprietor.
The utilized auto might not have all the alluring
security or specialized components of another auto,
and the choice of models, gear, and hues may be
restricted.

7. Where To Buy A Used Car
Purchasing an utilized auto is a vital money
related choice. By and large, the cost of an
utilized auto is dictated by who is offering it. In
this way, it is shrewd to assemble data before
you purchase, for example, recognizing what you
can manage, then painstakingly investigating
money related plans as you arrange the best
arrangement.

8. Dealerships
Purchasing an utilized auto is a vital money related
choice. By and large, the cost of an utilized auto
is dictated by who is offering it. In this way, it is
shrewd to assemble data before you purchase, for
example, recognizing what you can manage, then
painstakingly investigating money related plans
as you arrange the best arrangement.

9. Used Car Rule
The Federal Trade Commission's Used Car
Rule obliges merchants to show noticeably
and prominently a guarantee notification
called a Buyer's Guide sticker on every
single utilized auto (however not trucks).
The Buyer's Guide must state whether the
vehicle has a guarantee or is being sold "as
is ."

10. Superstores
Utilized Car Superstores are a late improvement.
They more often than not have a huge supply of
autos and purchasers have admittance to PC
helped determination. Two and three-year-old
models prevail and auto costs are settled and not
debatable. To start the determination process, you
utilize a work station to raise vehicles by make,
model, and cost. The PC will print a photo of any
auto and rundown its hardware, value, and part
area. The vehicles convey vender guarantees
which shift in quality from liberal to normal.

11. Superstore Disadvantages
Downsides of Superstores are that the
sales representatives may be
moderately ignorant, they can't give
data about past auto proprietors, and
the costs are typically not debatable
and are by and large higher.

12. Independent Lots
Free Lots offer an assortment of autos, from
astounding and costly to well-worn clunkers.
Generally, auto parts have no administration
offices, yet they may work with a nearby
carport. On the off chance that they offer
guarantees, the nearby repairman will perform
guarantee repairs. Autonomous parcels
frequently offer financing and there can be solid
weight to fund the auto through them. Their
fund rates are typically higher than at banks or
credit unions.

13. Rental Agencies
Rental Agencies offer rental autos available to be
purchased to the general population following a
year or two of utilization. These late model autos
frequently convey the equalization of the makers
guarantee and administration records are for the
most part accessible.
To purchase from a rental office, purchasers need to
orchestrate their own financing and no exchange
ins are acknowledged.

14. Reputation
So as to take in the notoriety of an utilized auto
part or dealership, purchasers can telephone
nearby customer assurance workplaces or the
Better Business Bureau to ask about
grievances against the business.

15. Private Sales
Private Sales are frequently great purchases, yet be careful
when purchasing from a person. Whenever possible,
purchasers ought to manage a vender they know and trust.
Venders are frequently individuals who have not possessed
the capacity to get the value they need for their auto as an
exchange. There is little weight to purchase and repair
records may be accessible. Be that as it may, these utilized
vehicles are sold "as is " with no guarantee. Late model
autos may at present have a makers guarantee that you can
buy for an exchange charge. The deal may be hazardous on
the grounds that stolen autos with fraud titles can be sold
thus can autos going to be repossessed. Likewise, there can
be hidden harm or significant repair issues.

16. BEFORE YOU NEGTIATE
Visit the dealership, superstore, auto parcel. on the
other hand other source. At the point when
purchasing from a private individual, adjust the
accompanying strides to that kind of offer. Take
a scratch pad and adding machine. Be arranged
to invest energy.
Meet the salesman or merchant and record his or
her name. Search for the models you are most
intrigued by. On the off chance that asked the
amount you might want to spend, say, "it relies
on upon the auto." Do not be reluctant to say that
you are searching for autos at different spots.

17. Information to Get
Discover maybe a couple models and assess
them. On your scratch pad, recognize the auto,
the year, the value, choices, trim line, mileage,
and vehicle distinguishing proof number (VIN).
Demand the name and telephone number of the
past proprietor from the title. Request that see
the title, then match the VIN with that on the
auto and note the name and telephone number
of the past proprietor.

18. Test Drive
Test drive maybe a couple vehicles. On the off
chance that you are keen on a specific auto,
inquire as to whether you can take the auto to
your workman for an assessment. Additionally,
inspect the autos guarantee. Check the
execution, security and administration records
for the auto.

19. Web Sites to Check
On the Internet, you can obtain price information
from Edmund's New and Used Car Prices and
Reviews, at http://www.edmund.com and from the
Kelley Blue Book http://www.kbb.com. Also the
NADA Official Used Car Guide:
http://www.discount-books.de/nada-blue-book/
gives information about the prices of used cars.

20. More Facts
These resources are available at your local public
library. You can check if a used car has had a
safety recall by calling the National Highway
Traffic Safety Administration's Auto Safety
Hotline at (800) 424-9393 or on the Internet at
http://www.dot.gov/affairs/nhtsain.htm.

21. Before You Buy
At home, phone the previous owner. Ask for the
mileage reading at the time of trade-in. It should
be consistent with the present reading. Contact
your financing sources, request price information
about specific cars and confirm loan availability.
Also, get an estimate of your insurance costs from
at least two insurance sellers.

22. Review Information
Review your information and estimate the wholesale
and retail price for the car you wish to purchase,
based on the following information:
♦price information from a current used-car
price guide or from financing sources
♦the cars condition, checked by you
♦prices of similar vehicles, from
advertisements

23. Have Mechanic Check Car
Return to the seller and make arrangements to
take the car to your mechanic. You may be asked
to leave your car at the lot as security. Once you
receive the mechanic's dollar estimate of needed
repairs, either subtract that amount from your
maximum offer or use it as a negotiating tool.

24. THE NEGOTIATING PROCESS
Negotiation is the process of discussing the price and
terms of a used car, eventually arriving at an
agreement between the buyer and seller. Any well-
informed buyer can negotiate a fair deal using the
following steps.
Make an offer. It should be 15% to 20% below the
maximum amount you would pay for room to
bargain. You may be asked about a trade-in or be
urged to sign up for dealer financing. To both
questions, say you are undecided. Your goal at this
point is to get agreement on the car price.

25. Your first offer will likely be rejected. Your
second offer should not split the difference
between your first offer and the seller's counter
offer. It should split the difference between your
first offer and the maximum amount you will
spend. You can use the cost estimates of repairs
supplied by your mechanic to help negotiations.
More Facts

26. If You Can’t Negotiate
Making an offer at used car Superstore with
no-haggle prices requires different strategy. If
you cannot negotiate on price, consider other
aspects of the sale, such as more attractive
financing, a higher trade-in price, a longer or a
more inclusive warranty.

27. Price Standoff
If you reach a price standoff, take another look at
the car. Using the Buyers Inspection Checklist, you
may notice problems you overlooked previously.
At this point, do not agree to a deposit since you
have no contract, only your offer. A deposit may
give the seller the leisure to negotiate a higher
price. Some buyers make several offers and
counter-offers, negotiating for better warranty
coverage or additional equipment. They may give
up $50 to $l00, but they expect something in return.
Be sure to write down any promises made by the
salesperson.

28. Last Offer
Your last offer should be close to the maximum
amount you would pay for the car. Be ready to
justify your offer as reasonable and fair by
showing how you arrived at it. Make it clear that
this offer is final. If the dealership rejects it, be
prepared to walk away. The salesperson may
catch you in the parking lot or phone you the next
day.

29. Low-balled
If the salesperson accepts an early offer but then
says that the sales manager will not approve the
deal, it is likely that you are being low-balled.
That is, a low offer is initially accepted by the
salesperson who knows it will be rejected so that a
higher price can be reached in further
negotiations. If that happens, leave, because low-
balling is a form of dishonesty.

30. Your Deal
If the seller accepts your offer, you have a deal.
The salesperson will then prepare a Buyer’s
Order or Purchase Agreement to be signed by
you. Insist on a readable document, not a first
draft. A preprinted form or computer-generated
form may automatically charge you for things
you have already refused; so examine the
contract before you sign.

31. Before You Sign
• Check the purchase agreement for arithmetic
errors, mistaken prices, extra charges, omissions,
and blank spaces.
• Be sure that the information on the purchase
agreement is consistent with the information in
your notes.
• Get all verbal promises in writing.
There is no three-day cooling off period for auto
contracts so do not sign any automobile contract
without understanding it. Your signature is
legally binding.

32. SUMMARY OF TIPS
• Check out the car's repair record, maintenance
costs, and safety and mileage ratings in
consumer magazines or online. Look up the
"blue book" value and be prepared to negotiate
the price.
• Buying from a dealer? Look for the Buyers
Guide. It's required by a federal regulation
called the Used Car Rule.
• Make sure all oral promises are written into the
Buyers Guide.
• You have the right to see a copy of the dealer’s
warranty before you buy.

33. Summary of Tips
• Warranties are included in the price of the
product; service contracts cost extra and are sold
separately.
• Ask for the car's maintenance record from the
owner, dealer, or repair shop.
• Test drive the car on hills, highways, and in
stop-and-go traffic.
• Have the car inspected by a mechanic you hire.

34. • Check out the dealer with local consumer
protection officials.
• If you buy a car "as is," you'll have to pay for
anything that goes wrong after the sale.
• The Used Car Rule generally doesn't apply to
private sales.
Summary of Tips

35. In Writing
Sellers of used cars have set a price that allows
room for bargaining. However, buyers do not
always think about having all verbal promises
and guarantees in writing. Unless promises are
in writing and signed by the seller, they are
legally unenforceable. So if the seller will not
put everything in writing, your best option is to
shop for a better deal elsewhere.

36. DISCUSSION QUESTIONS
1. Discuss the advantages and disadvantages of
used cars for teenagers as a "first car."
2. How does depreciation affect the price of a car?
3. How can you estimate the wholesale and retail
prices of used cars?
4. What are the disadvantages of buying a used car
from a private seller?
5. List the major steps in the negotiation process.

37. ACTIVITY
Shop for a used car using the Negotiation Process
and Buyers Inspection Checklist included in this
mini-lesson. Compare each used car source.
Justify your choice of a used car and the used
car source.
List the following used car sources:
• Dealerships
• Independent Used Car Lots
• Rental Agencies
• Private Sales

38. Activity
Then use advertisements to identify local
businesses that could be included under each
source. List the advantages and disadvantages
of using each source.