Buying and Selling a Used Car

Buying and selling a used car was in the spotlight last Saturday. With values dropping on used trucks and SUV's, selling these vehicles has been challenging lately. The first thing you've got to when selling any vehicle is get it cleaned up and ready to sell. This past week one of our listeners approached me about selling her 2005 Toyota Sienna. Although the owner had told me the van was clean, when I got over there to take pictures for the ad I found the vehicle was anything but clean. Nice van, just NOT cleaned up! The owner (a very nice lady) was so used to seeing the van as it was that she didn't realize how dirty it had become. I suggested she bring the van to my house where we spent the better part of 3 hours detailing the interior and waxing the van. When we were all done she was amazed at the improvement.

We started by degreasing and washing the engine compartment. Then we moved to the interior where we cleaned the carpets and used Amourall on all the surface areas like the dash and door panels and the rear cargo area. While she was doing this, I waxed the vehicle. The results were dramatic. I'm sure we improved the value by several hundred dollars by simply cleaning it up. Remember, you only have one chance to make a first impression. When it comes to valuing the vehicle, you have to be realistic. Everyone thinks (or hopes) their car is worth more than it actually is in the marketplace. As my dad used to say, it's worth exactly what someone is willing to pay for it.

I like to use Edmunds Tru Market Value; check it out at www.edmunds.com. Another good source is Kelly Blue Book's ‘Private Party Value at www.kbb.com. Do not use NADA retail. This is what dealers and banks like to use and its fine for retail. Private party values will be less. Dealers provide financing and this affords them the luxury of demanding higher prices. Also, with the dealer, you generally have some recourse after the sale if there is a problem with the vehicle. All of this drives up retail prices. You can also compare your vehicle with others already listed for sale.

How do you advertise the car? I have had good luck with craigslist, www.craigslist.com. It is a free service and you can load up to 4 pictures. You could also use www.cars.com but this will cost you money. Expect to pay something like $50.00 for the ad. There was a time when I used the classifieds section of the newspaper but no one reads that anymore. The paper has pretty much priced itself out of the market. With the ad up on craigslist, the next step is to wait for the phone to ring with prospective buyers. It is a good idea to allow for some bargaining room so I usually price the car a little higher than I'm prepared to accept.

A word on test drives: The prospective buyer will want to drive the car. I make it a point to ride with them during the drive. It's good to be with them so you can answer questions along the way. Obviously, you want to be there so you can monitor how the vehicle is driven during the road test. If you are a single woman, I strongly advise you to meet at a neutral location. A good place to do this is at the shop where you have had the vehicle serviced. That way, your shop can answer questions about the maintenance and servicing of the vehicle. The other reason to do this is to conceal your address from the buyer. You don't want strangers finding out where you live.

The buyer may want his mechanic to inspect the car. This is a good idea and I suggest you offer to let them do this. Go with them or better yet, agree to meet the buyer at his shop for the inspection. In most cases, the buyer should pay for this pre-purchase inspection. Provide service records if you have them. Remember to include the words ‘as is' in your bill of sale. Accept only cash or certified funds. Photocopy the buyer's driver's license at the time of the transaction and meet him at his bank (or yours) if you are accepting a certified check. That way, the bank can inspect the certified check to make sure it's legitimate. Of course, you will have to sign the title under ‘signature of seller'. If the bank is holding the title they can also answer questions about how and when the title will be released.

When it comes to buying a used car, the first step is run the VIN through a car inspection service like www.carfax.com. Avoid cars from back east because of rust. Look for the total number of owners: The fewer the better. Hopefully the car is a one or two owner local vehicle. If not, vehicles from the west are generally a good bet. What you are concerned about here is rust. A lot of cars from back east are brought out here for higher resale values. Avoid them. I also stay away from rental cars. Previously leased vehicles are generally fine. Of course, you will want to avoid vehicles with an accident history. Carfax will tell you this but remember that unless the accident was reported it will not show up.

The single most important step is to have the vehicle inspected by one of The Auto Answerman shops. This cannot be understated. Know what you buying. My shops will drive the car and put it up on a lift to look for signs of an accident and inspect the brakes, exhaust, suspension, engine and transmission. It is a good idea to check the A/C, lights and tires. Look for signs of oil leaks too. Is the car clean? A dirty car can be a sign of a poorly cared for vehicle. Ask for service records so you can get an idea if the timing belt and other maintenance have been performed.

If problems are found, and you like the car otherwise, have your shop give an estimate on the cost of repairs. Use this as a negotiating tool on price. Use the aforementioned price guides to get a feel for value. Ask your shop how they feel about the car. Trust their judgment on condition. If there are too many issues start over with another car. Don't buy someone else's problems! If you are looking at a late model used vehicle from a dealer look for a ‘certified' used car. These vehicles meet tougher standards and they have been reconditioned to manufactures requirements. These cars are generally one owner vehicles of high quality. The bonus is that you have recourse if problems crop up after the sale.

As always, (shameless plug coming) my car buying service is only a phone call away at 720-560-3657. I would be happy to answer your questions or assist you on the purchase of your next new or used vehicle.

Tom Collins
The Auto Answerman