Car Dealer Secrets To Beating The Best Deal

Used Car Dealer Reviews: Do Your Homework

Like a lot of things in life, your successful purchase of a new or used Nissan (or any vehicle) requires research, a clear goal in mind and some guidance to keep you on track. To help, AutoNation Nissan Memphis has compiled a few homework tips for buying a new or used car, truck or SUV that will make your purchase journey less stressful and give you confidence in your decision.

There’s Nothing Like a New Vehicle

Everyone wants to feel like they got a great deal when buying a new car. Are great deals out there? Of course. But to get one takes a bit of homework. Buying a new vehicle isn’t something you do every day, so a little self-education will pay dividends.

Before showing up at the dealership:

  • Decide on the vehicle you want. Consider the make, model, color and options you want by reviewing vehicle specifications, photos and videos on the AutoNation Nissan Memphis website to help confirm your choice.
  • Determine what you can afford. You want to look at new vehicles and options that fit your financial situation. Be realistic about monthly payment, insurance costs and related expenses. That way your sales person can show you vehicles that will fit your financial picture, and AutoNation Nissan Memphis financing professionals can offer a great payment plan for you.
  • Find the factory price of the vehicle you want. As dealers, we make an investment in every vehicle on our lot. The more you know about the factory cost of a vehicle, the better you’ll be able to determine what you think is a fair price.
  • The best time to deal. Ask your sales person about factory-to-dealer incentives and available rebates. Manufacturers sometimes offer discounts to dealers and buying when those are in affect can result in a better deal.

Tips for Buying a Used Car

It has never been a better time than now to buy a used car. Dealerships get more used vehicles to sell than new ones, and there are several distinct advantages to buying a used car. There are more used cars than new to pick from, new cars lose value quickly, and you can find great deals on vehicles that are fairly new with relatively low mileage just because they have been driven off the lot. There are clearly many advantages – especially for your wallet – to buying used. With that in mind, you need to be aware of the best way to go about purchasing used cars for sale. In the following, we will provide you with five helpful tips that you should use to guide you in this process.

Use the Power of the Internet

Before you start your search, you should look up information on each used car dealership in your neighborhood. Keep in mind that not all dealers are created equal. I am sure you have heard horror stories from friends and relatives who purchased a used car from a less-than-reputable used car dealer. Sadly, there are many fly-by-night operators in this business, so be careful. This is where the internet becomes your valuable ally. Go through the list and make sure that each dealer has a website. The lack of a website can be a telltale sign that the dealer in question is not in it for the long run. Also, if they have a website, check to see if there are customer reviews.

Do Your Homework on Automobiles

Once you have narrowed down your search, you should do two things. First, you should read reviews on the different makes and models in the vehicle class that interests you. This will show you which vehicles are the best value for the money, and which ones seem to have problems. One place to look is JD Power & Associates, which regularly reviews and awards automakers for the best vehicles in each class. Second, you should go to the website. All the sales of used cars throughout the country to give you a ballpark figure for the sale or trade-in value of each vehicle based on make, model, year, trim, and condition. Once you have settled on the car you want, this will be a valuable tool in making the best deal with the used dealership.

Know the Difference Between Used and Pre-Owned

Every car that has had a previous owner is a used car. To be considered pre-owned, a vehicle must undergo a series of stringent tests to ensure its reliability and dependability by trained mechanics at the dealership. Also, most dealerships that offer pre-owned vehicles will provide a Carfax or AutoCheck vehicle report. This includes critical information on the prior ownership of the car, any accidents, open recalls of the model, and other data that will be necessary for you to determine the quality of the vehicle. Furthermore, many dealerships that are franchises of automakers will offer certified pre-owned vehicles. These may be the best value since only the highest quality used cars qualify for certified pre-owned programs. In addition to multi-point checks and vehicle reports, certified pre-owned vehicles often come with extended warranties and other benefits. Although the pre-owned and certified pre-owned vehicles will typically cost more than comparable used cars, they are often worth the extra money.

Inspections and Test Drives

When a car is sold “as-is,” there is no warranty and once you sign papers and drive away the seller has no more responsibility. This makes it especially important to know as much as you can about the condition of the car before you buy it. Don’t expect perfection in a used car, but don’t overlook serious defects. Be alert: some sellers are adept at masking problems, and a steam-cleaned engine and gleaming paint job are no indication of the quality of the automobile. Check the car in daylight and bring someone along to help you make a thorough inspection.

EXTERIOR: Be sure the body appears even, with no irregular spacing between the body joints. Check for rust, especially at the bottoms of fenders, around lights and bumpers, on splash panels, under doors, and in the wheel wells. Check the tires for uneven wear or signs of brake fluid leakage on the inside. Also, check the spare tire and make sure the correct jack is in the trunk and in working order. Check for paint that does not quite match, gritty surfaces, and paint overspray on chrome – a new paint job could be masking body problems. Look for warning signs of a past accident, like cracks, heat-discolored areas, and loose bumpers. Look for welded seams, which may indicate the car is “rebuilt” from salvaged parts. Look for hairline cracks and tiny holes in the windows. If the vehicle is dirty, have it washed for a better inspection.

DOORS, WINDOWS, AND TRUNK: Look for a close fit and easy opening and closing of doors. A door that fits unevenly may mean the car was involved in a collision.

FRAME AND ALIGNMENT: If you suspect a car’s structural condition, have it checked by a local tire alignment dealer. A car with a bent frame can be dangerous.

TAILPIPE: Look for black gummy soot in the tailpipe. This may indicate worn rings or bad valves.

INTERIOR: Check for badly worn carpeting or upholstery, which may be a sign of heavy use. Check the adjustability of the seats and make sure all seat belts work. If the seats have covers, look underneath. Turn on the ignition to check the warning lights, and check the brake pedal. Ask about the working order of the airbags and if they have ever been deployed. Take a sniff! A musty smell inside the car could mean the car was damaged in a flood or that rain leaked in.

FLUIDS: Pull out the oil dipstick. If it is dark and dirty, the engine may not be well maintained. If the oil is whitish or has white bubbles, it may mean there is water in the system, which can be a sign of major mechanical problems. If the transmission is automatic, check the transmission fluid to see if it is dark or has a burned odor. Check for leaks and stains under the car, on the underside of the engine, and around hoses and valve covers.

BATTERY: Look at the sticker on the battery for the guarantee date. You generally need to replace a battery after 25,000 miles.

ELECTRICAL SYSTEM: Check all electrical accessories, such as the lights, wipers, radio, and horn, one at a time.

SPRINGS AND SHOCKS: Push down on the front and rear corners of the car. If the car bounces several times, the shock absorbers are worn.

Find a Reputable Dealer

This is where the internet comes back to help you again. In the past, all you had to go by when looking for a used car dealer was word of mouth from family and friends. As you can imagine, this is a minimal amount of people. With the internet, there are reviews of every dealer in the business, including those selling used cars. These reviews are aggregated, providing you with a score on each dealer. Just go on your favorite search site and start reading. While everyone’s business may make a mistake from time-to-time, reputable used car dealers will fix the error. If you see the same complaint coming up in practically every review, you should probably look for a different dealer. Also, your local Better Business Bureau will maintain a website. Look up the dealer on the BBB to see if there are any open issues with them.

Be Patient

As with anything in life, good things come to those who wait. Keep in mind that there are more used cars for sale than new ones, so you are literally in the driver’s seat. Once you have decided on a specific vehicle, get a Carfax or AutoCheck report. This will show you the vehicle’s history, including accidents, recalls, and service. Most used car dealers will even include one as part of the purchase process. If not, order one since they are relatively inexpensive. Also, if you have any concerns, have an independent mechanic inspect the vehicle.

Make the Deal

Most used car dealers offer you a number of options when you are buying a vehicle. You can choose between paying cash, financing all or a portion of the purchase, or even leasing the used car. In addition, you can also see about trading in a car, truck, or SUV you currently own. Make sure you go over the deal in full before signing or paying anything.

Car Dealer Tricks

Inspecting a used car

Finding a trouble-free used car has nothing to do with luck and everything to do with applying good research and investigative skills. Knowing how to spot potential problems and determining how reliable a used vehicle is can save you from expensive automotive headaches down the road. The following advice can help you to avoid a lemon and find a good value.

Homework

To reduce the risk of purchasing a trouble-prone vehicle, identify models with a good reliability record before you begin shopping. Consumer Reports’ annual subscriber survey provides exclusive real-world reliability information that can help you narrow your selections. See our list of the best and worst used cars. Also read the reliability-history charts that accompany most of the car model pages to get a more detailed view at how specific vehicles have held up in 17 trouble areas, as well as overall. If the car you’re interested in is known to have certain trouble spots, you know to pay special attention to those components during inspection.

Read the window sticker

The Federal Trade Commission requires dealers to post a Buyer’s Guide in every used vehicle offered for sale. Usually attached to a window, it must contain certain information, including whether the vehicle is being sold “as is” or with a warranty, and what percentage of repair costs (if any) the dealer is obligated to pay. The Guide information overrides any contrary provisions in your sales contract. In other words, if the Guide says that the vehicle is covered by a warranty, the dealer must honor that warranty. If any changes in coverage are negotiated, the Guide must be altered to reflect them before the sale.

Inspection

No matter whom you buy from, always look over the vehicle thoroughly and, if possible, take it to a mechanic for a complete inspection. Dress in old clothes and give the car a good going-over. You can learn a great deal just by using your eyes, ears, and nose.

Exterior

Body condition. Check each body panel and the roof, looking for scratches, dents, and rust. Examine the lines of the fenders and doors. Misaligned panels or large gaps can indicate either sloppy assembly at the factory or shoddy repair. The paint color and finish should be the same on every body panel.

Solving issues with your car dealer

Your rights and what to do if you bought a vehicle from a car dealer and there’s a problem, such as faults, misleading statements and money owing.

If there’s a problem with your car after purchase and it’s not your fault, you have more options if you bought from a car dealer. This is because buying from a dealer gives you many more consumer rights than if you buy privately.

Dealers must:

comply with the Consumer Guarantees Act (CGA), which gives you guarantees for new and used vehicles

comply with the Fair Trading Act (FTA) and not mislead you — if they sell online, they must tell you they are a car dealer

be registered and comply with the Motor Vehicle Sales Act (MVSA)

display an accurate Consumer Information Notice (CIN) on used vehicles

This applies whether you pay cash, get the car as a gift or buy on lease or on finance. You have these rights no matter if you buy from a car dealer online, from a car yard or at an auction. (Note: a car market operator – sometimes called “a park and sell” operator) is not required to be a registered dealer.

The CGA guarantees mean the vehicle should be:

of acceptable quality – reasonable in look and finish, durable and safe

fit for purpose – either generally or to meet a specific purpose you told the dealer before you bought the vehicle

as described – match the description in advertising or anything the dealer said at the time.

Tricks Up Your Car Dealer’s Sleeve

Auto dealers have lots of ways to make the most off of every sale. Common car dealer tricks range from interest rate markups and dealer add-ons to longer and longer loans can drive up the cost of buying a new car or truck

Preying on your lack of information.

There’s nothing a salesperson loves more than a clueless car shopper. You can’t negotiate a fair price for a vehicle when you don’t know what that price should be.

Making it all about the monthly payment.

Salespeople often ask potential buyers what’s the biggest monthly payment they can afford. With that number in hand, they’ll calculate the most you can possibly spend and still hit that monthly payment by dragging out the loan for as long as possible

Then you’ll be shown cars and trucks in that price range, which is often higher than what you wanted to spend, while you’re reassured that a better ride is well within your budget.

Imposing finance charge markups.

You’ve picked the car you want to buy, and now the finance manager is searching his computer for the best deal on a loan. The dealership is not required to tell you the cheapest loan you’ve qualified for and can legally pad the interest rate with a couple percentage points for themselves.

Used Car Purchases: What to do When Your Car Does Not Work Properly

Should I read this?

Yes, if your used car breaks down or needs costly repairs soon after you bought it from a dealer.  We talk about some state and federal laws that may help. If you want to do more research, we list these laws at the end of this publication.

What is an implied warranty of merchantability?

It is a warranty that gives you the right to expect that your car will be:

fit for ordinary driving purposes for a reasonable time.

reasonably safe and without substantial defects.

the average quality of similar cars sold under similar conditions by other sellers in the same price range.

Is there a checklist showing what an implied warranty covers?

No. What is acceptable quality for one used car may not be for another. You should take into account things like:

how much you paid for the car

its age

its mileage

the kinds of problems you are having

when these problems happened

No. Even if they sold you the car “as is,” you only gave up the implied warranty of merchantability if both these are also true:

You and the dealer must have expressly negotiated the waiver and reached an agreement that your car does not come with an implied warranty.

The dealer must give you a written statement of the particular characteristics or parts of the car not under warranty

Buying a Used Car

Buying a used car can be a tricky process to navigate because no two used cars are the same. Each car has it’s unique history which can either work in your favor or become your biggest nightmare. In addition to the steps required to get a good deal on a new car, when buying a used vehicle there are additional steps you must be aware of.

One of the most important steps is to make sure to run a used car history report in addition to having a certified mechanic inspect the car on a lift. Why should you spend your hard earned money on a mechanic? It’s better to pay for a mechanic now than spend thousands on repairs later.

Find the Right Used Car for You

This step may seem obvious but you shouldn’t just go out to used car dealerships and start the shopping process. First you should search the online used car classifieds. Go to the local newspaper websites to view the automotive classifieds to view ads for cars that are close to you. However, to get the largest selection we recommend that you use the larger sites with thousands of listings like the ones mentioned below.

Investigating the Car’s History

This is the most important tip to follow when buying a used car. Whatever you do, you should never buy a car without first verifying what you are buying by running a history report. I get a ton of emails from people that ended up buying a used car and later finding out it had been wrecked. There are body shops that are professionals at making a car look good. It can happen to anybody. If the VIN isn’t clearly listed in the ad and the seller won’t give it to you then move on to the next car. They are most likely trying to hide something. Since you are normally buying a used car “As Is,” you will want to know about any problems before the purchase

Financing a Used Car

Financing is handled differently depending on whether you are purchasing from a dealership or a private party. Either way, most banks will not give you a loan for a car older than 4 or 5 years. In general, you will pay at least 2% higher APR for a used car than you would on a new car loan but you can offset this by using an online lender that specialized in financing used cars such as the ones we recommend. Try to have your credit score over 680 because you will be considered a prime borrower and get the lowest possible APR. If your credit is really bad you might want to try and repair it before you buy a car.