Trade'r in? Yup! Nope! Whaaat?
Trade'r in? Yup! Nope! Whaaat?
When trading a vehicle there are four categories that will clearly affect the value of your vehicle; (1) Current market value. This is an adjustment amount to the book value that is made by the vehicle appraiser and occurs when there are real time changes in the market that are not readily reflected in current book values. One powerful example is the energy crisis that came along in the fall of 1973. Many consumers panicked (mildly) and began trading their gas hogs for fuel efficient smaller vehicles. As the extent of the crisis and its duration were unknown, and there were no real predictions as to the short and long term effects, most dealers looked on the gas hogs with an eye of concern, specifically in relation to their dollar value. I counseled many buyers during that time, encouraging them to be patient and wait it out. Most of them, nearly all, traded anyway. They received as little as 50% of the book value for their gas hogs and paid over retail in many cases to purchase a fuel efficient vehicle. Many of those people returned to the market within a short period of time and traded their fuel sippers for gas hogs. Again, values were adjusted to allow for the glut of small vehicles on the dealers lot. There are always current market value adjustments whether just at a dealership, in a city, an area, a state, a region, or across the country. These adjustments may be as simple as a dealership being overstocked with used vehicles due to some internal problem; therefore the dealer has to pay less for vehicles currently being traded in. An area may be affected by an economical crisis that overall affects the consumers ability or willingness to spend money. Wars and rumors of war have a strong negative effect on vehicle values, as does the price of fuel. One major factor that affects the value of trade-ins are the deals being offered on new vehicles. The greater the deal on new, the less is paid for the trade. Why? Used vehicle buyers will step up to new vehicles and pass on the late model used vehicles. In many cases payments on a new vehicle may be roughly the same as a one year old used. Additionally, consumers may determine that they are better off trading their current vehicle sooner than intended, taking advantage of the factory incentives, and driving off in a new vehicle with payments close to where they were, and offsetting maintenance expenditures in the process. (2) Dealership attitude. Vehicle values may be affected simply by some issue within a dealership. An inexperienced Used Vehicle Department manager, a poor cash flow in the dealership, a weak sales force not selling vehicles, and other situations. One thing learned when purchasing at an auction, talking with a wholesaler, or shopping a trade-in to another dealership is that prices vary widely across the board. Realistically I have witnessed value swings by as much as $2000.00. (3) Dealership wants. In some circumstances a dealer may not want your trade. You might have a very expensive trade, the dealer does not want to tie up money in a slow seller and the dealer cannot find a home for it with another dealer. Therefore to make a deal he will hit the trade low expecting to find a home for it at the auction, with another dealer, or attempt to cheap sell it on his own lot. Regardless, the vehicle may bring several thousand dollars below book, your loss. (4) Dealership need. The dealership may not need “another one of those”. Some vehicles are a glut on the market. An example would be the dumping of a rental car fleet at the auction, everyone buys them, everyone has one, and no one needs another one. Dealership want and dealership need may also swing in your favor. There were many times that I paid over book (more than $1200.00) to own a vehicle, knowing that if I did not, someone else would, and I would miss the sale on three vehicles; (1) my vehicle, (2) the trade-in, and (3) the trade-in on that one. Instead of missing business, I would make three profits. It should be clear that; (1) you must know the value of your vehicle to do business with it; (2) the book value is affected by other circumstances, some of which are beyond your control. However, because you know the value of your vehicle you have an idea of where you should be, and by shopping more than one dealership (if you don’t get the value up front) there is a very good chance you will get your money. It is absolute that you use a professional source to determine the value of your vehicle prior to shopping for your next vehicle. If you had a wad of $10.00 bills in your pocket, a big wad, and you wanted to trade them for $50.00 bills, and if you had never counted them, how would you possibly know how many $50.00 bills to get in return for your 10’s? Would you just throw them out there and take back whatever 50’s were offered? Or would you count them ahead of time, separate them in $50.00 packets, band all the packets together, and put in writing the total amount of all the packets, put that slip of paper with your packet, and put one in your pocket? Would you then watch as the other party counted your 10’s, and as the 50’s were counted out for you? Wise folks count their money first, record the amount, and observe while others handle their money! Chuck Norlin is a 41 year veteran of negotiating, a Cal U and General Motors University graduate, and 30 year career expert in the retail vehicle business.
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5 steps to sell a Japanese used vehicle
Japanese cars are renowned for their quality. Some of the top used Japanese cars for sale are Toyota, Nissan, Honda, Mazda, Mitsubishi, Fuji Heavy Industries (Subaru), Suzuki and Daihatsu. Many surveys have shown that most buyers shop online in purchasing their next used car. In this article we will discuss five key points on selling your car online.1. Surf the webThe internet has many choices on finding the right site to advertise your vehicle. Choose a website that is popular and has a high ranking. Do choose a site that specializes in your make and model. Select a site that will continuously show case your ad. And last but not least find a site that is reasonable in fees.2. Your adUsing correct and distinct terms to describe your car will make your ad concise. This will attract the buyer to further reading your ad. Use key phrases and solid facts. State the year, make, model, milage, and maintenance records. Mention any non-standard added features and improvements. And also be precise about the price you expect and contact details. 3. Quality Photo sDo photograph your car in sunlight. Take different angle view shots of your car. Make sure before you photograph your car, that it is clean and washed from inside and out. Take pictures of the inside interior and any special features like tires or hub-cabs. Do have a flattering backdrop for your car when taking the pictures. 4. Inquires Be prepared to answer questions, always keep a standard and basic list about your car on hand, near the phone and computer. Also make sure you can give out online resources to the buyer on your car. Choose specific times and dates for car viewing and showing. If dealing with people outside your area, make sure the buyer knows it s their responsibility to pick up or make arrangements on getting the car. 5. Protecting your investment and selfNever hand over your vehicle till you are paid in full. Verify the buyer s information to make sure your not getting scammed. Find you out which method of payment is safest. Always protect your privacy, never give out more than you have to. If you are in habit of changing to new models as brand new then I would highly recommend Japanese Makers. For more than two decades the impression of lesser safety in Japanese brands have been shifted to equally same standards as its German or American counterparts.With these tips, you will hopefully find your self on the right track to selling your vehicle online. http://www.nexusscars.com
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