Tag Archives: used car

Are You a Car Salesman’s Dream Customer?

There’s one kind of car buying customer that sales people just love. They are “payment buyers.” 

A car salesperson’s job is to sell cars — and make maximum profit for his dealership. The way to make maximum profit is by selling at the highest possible prices and including as many “add-on” extra items or services as possible.

Some customers are an easy sale but are difficult to make a big profit from. Others are easy on both counts. The latter of these two types are the kind of customers that car salespeople love.

A salesperson’s dream customer is one who has done little or no research about cars they might be interested in, understands almost nothing about the car buying process, knows little about car pricing, has few negotiating skills, but most of all, wants to negotiate monthly payments, and only monthly payments. These customers are called “payment buyers.”

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Hottest Cars – What Cars are Best Sellers?

most reliable carsThe best selling cars are those that car buyers like best and buy most often. Given that most of those buyers do at least some research before they make a decision, they choose their cars wisely and make informed decisions. If other buyers don’t want to do the research and make their decisions based on what other buyers are choosing, that’s okay. They still end up getting great cars.

Although we will be talking about best-selling new cars here, the same cars are generally the best-selling used cars as well. Furthermore, we won’t talk about trucks, but suffice it to say that the Ford F150 pickup has been the best-selling vehicle of any type for years.

Before we present our list, let’s take a moment to discuss why some cars are super-popular and others not so much.

Generally, the best-selling cars are those that have the best combination of all the things that buyers are looking for — the optimal “package.” Smart buyers want good value, a reasonable price, quality construction, high reliability, good performance, a comfortable drive, adequate space for passengers and cargo, good styling, good fuel economy, modern features, an excellent safety rating, and maybe some luxury features. They also want a car that is reasonably inexpensive to insure, maintain, and repair.

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How to Really Screw Up a Car Purchase

According to questions I see posted on Yahoo Answers, there are a huge number of first car buyers out there who have somehow found exactly the WRONG way to buy a car. They then look for help AFTER they realize their mistake. It’s nearly always too late by that time.

Here’s how NOT to buy a car:

Leave a deposit with a seller or dealer for a car you are not absolutely sure you’re going to buy. The problem is that you may not be able to get your deposit back if you change your mind, unless there is a clear written document that states that you’ll get your deposit refunded and under what conditions. In the worst case scenario, the seller sells the car to someone else AND keeps your deposit. Don’t leave deposits unless you absolutely must.

Buy a used car without having it inspected by a professional mechanic before the purchase. Used cars are sold “as-is” which means you can’t get your money back if you find the car has problems later. There are no “right-of-return” or used-car lemon laws to protect you, even if you feel the seller or dealer committed fraud. You can’t rely on a seller’s statement that a car “runs fine” or “has no problems.” A mechanic’s inspection will cost $75-$125 but can prevent you from making a multi-thousand dollar mistake.

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Negotiate Car Price

negotiate car priceWhen buying a car, everyone knows you don’t pay the asking price or sticker price. Right?

Right.

The process of buying a car in the United States is unusual in that it’s one of the very few times when we actually negotiate or “haggle” over prices. We don’t do it when buying a refrigerator at Sears, or a TV at BestBuy, or a watermelon at the supermarket. With cars, it’s more like haggling over an old lamp at a garage sale or, if we lived in the Middle East, getting a price on a donkey.

Although buyer-seller negotiating is common in many other countries, most people in the U.S. find it uncomfortable and awkward. Since we don’t do it very often, we’re not very skilled at it. Many people hate it.

Negotiating New-Car Prices

All new cars have standard manufacturer-suggested-retail-prices (MSRP) — retail prices — “sticker” prices that are exactly the same for the same car, same model, same equipment everywhere in the U.S.. Including the word “suggested” suggests that the prices are not necessarily the prices we have to pay. And dealers encourage us to expect less-than-sticker prices by their ads and TV commercials — “We beat anyone’s prices,” or “Less than invoice prices,” or “Lowest prices in town.”

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Where Are the Best Car Deals?

best car dealsEveryone buying a new car wants to get a bargain and a great deal. So where can those deals be found?

Although we’ll be primarily discussing brand new cars here, we can make some comments on used cars, if that’s the direction you think you want to go.

Used Car Deals

Finding a great deal on a used car is a bit more tricky than finding a new-car deal. That’s because used cars are, well, used. No two are alike. Even used cars of the same year, same brand, same model, and same equipment can have different mileage, different problems, may have been driven and maintained differently, may have been wrecked (or not), and may have very different prices for these and other assorted reasons. When you find a used car at a bargain price, it might be for a good reason — or the buyer may simply be desperate — or it could be a common scam, especially if bought online. Therefore, it takes much more care when buying used.

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