With new car sales down, dealers seeing uptick in used vehicle sales
ORLANDO, Fla., April 2 /PRNewswire-USNewswire/ -- The decline in new vehicle sales has been widely reported, but Americans' need for automobiles has not eroded. When their current vehicles require replacement, many are looking to used vehicle dealers.
Franchised dealers were forecasted to close March with a 4.2 percent improvement in used vehicle sales, while independent dealers were predicted to see a 1.1 percent climb, according to CNW Market Research. Overall, CNW anticipates consumers will purchase 40 million used vehicles by the end of the year.
However, a combination of slumping new vehicle sales and longer terms on new-vehicle loans has resulted in fewer late-model trade-ins to supply used vehicle dealers. Still, it's possible to find a used vehicle capable of delivering thousands of trouble-free miles--if you're willing to invest the time.
AAA offers these steps to take the gamble out of used vehicle buying:
-- Decide what kind of vehicle you need. Ask yourself several questions to
evaluate all aspects of your lifestyle, such as: How large is your
family now and might it be in the near future? How long is your commute?
Will you need to tow a boat or use it for other recreational purposes?
Do you travel with pets? Do you want a more environmentally-friendly
vehicle?
When considering fuel economy, keep in mind that prices have fluctuated greatly in the past year and likely will not remain at current levels throughout the ownership of the vehicle.
-- Talk to owners of similar vehicles. Most owners will share their
experiences about their vehicles. Ask about maintenance, major and minor
problems and gas mileage. Many online forums are dedicated to specific
makes and models and can be a good resource for owner feedback.
-- Determine what you can afford and secure financing in advance. Do not
wait until you're at a dealer to think about financing. Due to the
financial crunch, many dealers are having difficulty providing financing
for buyers--even if they are well qualified. And if you are approved, it
might not be the best rate. Research financing options in advance,
including checking with your local AAA club for possible options.
-- Get an estimate of current pricing. Check the used vehicle ads in the
classified section of your newspaper, used vehicle advertising specialty
publications and online services, such as AAA.com. These ads will give
you some idea of current retail prices. New vehicle dealerships are
another good place to compare prices on used vehicles, but remember
dealer prices are usually higher than those in classified ads.
-- Determine if you want to purchase a vehicle from a private owner or a
dealer. While you might be able to negotiate a lower price from a
private owner, the vehicle usually does not come with a guarantee that
many dealers offer.
If you're buying the vehicle from a dealer, read the contract carefully. If there are problems that need to be corrected, make sure the dealer takes care of them before you drive away. Read everything before you sign, ask questions if you do not understand something and keep a copy of the contract.
In a private sale, check that the seller is, in fact, the registered owner of the vehicle. Make sure you get the vehicle's title and a bill of sale. Remember, most private party sales are "as is."
Occasionally, you may be able to buy a vehicle from someone within your family or a friend. This can result in a good buy, but it also can be a later source of friction if the vehicle turns out to have problems.
-- Get a CARFAX Vehicle History Report. History reports can potentially
reveal if the vehicle has hidden problems such as involvement in a major
accident, flood or fire damage or odometer fraud. It also can provide
background on if it was previously used as a rental, taxi or fleet
vehicle. Some dealerships will provide a history report or you can
perform a search on your own. AAA members can purchase CARFAX Vehicle
History Reports online at AAA.com/auto.
-- Always take a road test. Make sure the test is more than just a drive
around the block. Check how the vehicle handles at highway speeds and in
stop-and-go traffic.
-- Have a mechanic check it out. You likely will have to pay a fee to have
the vehicle inspected; however it's worth the money to catch
looming mechanical problems in advance. If you do not have an auto
repair shop that you trust, look for a AAA Approved Auto Repair facility
in your area. Those shops have been inspected to ensure they meet
AAA's standards for quality, training and customer service. You can
find a AAA Approved Auto Repair shop near you at AAA.com/repair.
-- Shop around. Don't be so enamored with a particular model that good
judgment falls by the wayside. The first one you see may not be the best
deal.
As North America's largest motoring and leisure travel organization, AAA provides more than 51 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.
AAA news releases, high resolution images, broadcast-quality video, fact sheets and podcasts are available on the AAA NewsRoom at AAA.com/news.
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Christie Hyde
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SOURCE AAA
