Buying a second hand car can be a stressful experience as a lot of customers looking for a new car will feel they are going into a situation where they could fall prey to the professionals in the trade and end up getting a rough deal.
TV shows such as ?Right Car ? Wrong Car? became popular a few years back giving a behind the scenes look into the motor trade and lifting the lid on some of the trade?s tactics, particularly looking at price negotiations and how to level the playing field to the customers advantage with the best method to get a better deal through a little bit of research particularly when it came to part exchanging.
The more information the better for when looking at buying a new car and here we aim to give you some of the best tips as well as advice on how to deal with disposing of your old car as part exchange isn?t always the best option.
One of the first places people will look at when purchasing a new car is a franchised dealer as these obviously sell new cars as well as second hand and give the buyer that bit more confidence as they are backed by the manufacturer. Franchise dealerships tend to have high standards when it comes to preparation of second hand cars with most having an approved used car program that will come with a list of benefits such as manufacturer backed warranty, safety checks, breakdown cover and and exchange plan.? This obviously doesn?t come for free however and it?s therefore not surprising that you can expect to pay top prices at these outlets.
Independent dealers or a car supermarket however which in some cases may also supply new cars or ?pre-registered? vehicles and many will be registered to the RMIF (Retail Motor Industry Federation) which can give an indication to them being a reputable business to deal with. Nearly all these dealers will carry out a car data check through the likes of Experian or HPI that will brief there is finance outstanding.
One of the benefits of dealing with a retail / independent dealer is that in most cases a part exchange facility will be available along with finance options and aftersales services and you will be legally protected if you should experience any issues. Again these facilities need to be paid for and this is done by higher profit margins and therefore the vehicles will be some of the most expensive so you will need to do your homework and shop around on prices.
The other option is to buy privately, here you will find that in most cases these will tend to be slightly older vehicle but prices should be quite a bit cheaper at least by 10% but again you will need to do your research and beware that there can be dealers out there posing as private sellers so ask as many details as possible about any vehicle you are considering buying and another little tip is to google the telephone number of the seller and see if it brings up any other vehicles being sold on other websites or previously sold vehicles, a good indication that the private seller is in fact a trader.
If you are dealing with a true private seller then you can expect to save a considerable amount of money here but please remember you will have no legal protection if things go wrong and the seller will be under no obligation to check the history of the car so it is vital that you carry out a car data check as mentioned previously above. A quick search for ?car data check?,, ?HPI vehicle check? or ?Experian car data check? will return a list of links that will be able to help you with this.
The final option would be to buy from auction, but this is definitely the most risky option. The better cars here will usually come from a main dealer or manufacturer and will come with some form of warranty or report but please keep in mind that these will not be prepared to retail standard so you will need to look for things like tyres needing replacing, paintwork issues and warning lights on the dash board indicating problems. You could pick up a right bargain here but you could also end up shooting yourself in the foot with a ?lemon? which you might end up regretting ever setting eyes on.
So you?ve found your new ideal car but you have your old car to dispose of. Well if dealing with a franchised / independent dealer as previously discussed most will offer a part exchange option. This may sound like the best and easiest option but in a lot of cases it won?t be the best for your pocket.
The reason for this is that the dealer will then have to sell your car on and if it is not the type of make or model they like to stock or maybe it?s too old or done too many miles they will usually put back into an auction. This means they will usually make you an offer for your car that is on the cautious side and in some cases inflate the price to make it seem more acceptable by taking some of the profit in the car they are selling you and adding it to the offer price of your part exchange.
Here?s an example ?
Car you are looking at buying is ?10,000 you want to part exchange your old car which the dealer thinks is worth ?3,000 they may offer you ?3,500 to keep you happy meaning they have in effect taken ?500 off the price of? the car you are buying and put it on to the price of your old car. This is called an ?over allowance?.
Now let?s imagine you had no part exchange, the dealer would then be able to simply ?knock? the ?500 ?over allowance? off the price of the car you are buying meaning you get your new car for ?9,500. This question should always be asked ?How much would you reduce the price of the car I?m looking at buying if I had no part exchange?.
So now you need to move your old car on. Now you could obviously do this privately, but it you have found a car this will in most cases take too much time. The best option here would be to contact a car buying company such as ?webuyanycar?. A quick search on the net for ?car buying websites? or “sell my car” will give you a list of links you can visit and obtain offers to immediately buy your car for cash. An even better alternative is a site called ?dealerbid.co.uk?, this is a comparison website which will allow you to enter your vehicle details once and then receive offers from interested dealers across the country, obviously saving you a lot of time and making you able to compare the market.
Let?s say that a dealer from the dealerbid site has a client for your vehicle and is prepared to offer you ?3,500. It?s the same price you have been offered originally in part exchange but now you won?t have a part exchange meaning you can receive the reduction on the selling price of the car you are buying instead.
?9,500 – ?3,500 giving you a change figure of ?6,000, now you are ?500 better off !
To sum up, always research the prices of the car you are looking at buying, be careful when buying privately and make sure you are really dealing with a private seller and carry out a car datacheck.
When part exchanging always ask for a price with no part exchange and enter your details on to a site like dealerbid.co.uk to compare prices for your old car as it could gain you a lot of money with hardly any effort.