Cars are one of the most important purchases in a person’s life and therefore it is wise to have the best information going into such an investment. As a used car dealer this is especially important to remember when you are looking to sell cars that are used. Used cars are by far the best choice financially for someone that cannot afford to absorb the huge depreciation cost that goes along with the luxury of driving a used car. I’m sure you have heard the mantra that a new car instantly loses thousands of dollars of value as soon as you drive it off the lot.
Anyway the thing about used cars is that your buyers are not protected with things like warranties and the like that protect the owner of a new car from buying a lemon and having to pay for repair after repair. In one way the used car has stood the test of time (if the owner is being honest about its history) but, as a used car dealer, you never know sometimes and it is good to have ways of protecting yourself from a poor purchase when you sell cars.
If you are a used car dealer it is wise to check out the car’s repair history with a service called carfax. You simply give them the VIN (vehicle identification number) that is usually located on a metal tag on the dash of the car and they can pull up the history of the car as all repair shops enter the repairs in a national database. This includes everything from minor repairs to major overhauls.
Another thing to get in the habit of doing is taking it to a mechanic to get it looked at. Many times there are large repairs or service issues that have not shown up on the carfax report but are going to instantly add significantly more to the bottom line when you sell cars. This type of information can and should be used when negotiating on the price of the car as a used car dealer.
The last thing that I would suggest to you as you become a used car dealer is a vehicle appraisal service. This service is great for coming up with the market price when you look to sell cars. The appraisal service is good because it takes into account the extra features that the car may have as well as the area of the sale and the present condition of the car. It is an unbiased resource that the seller can’t argue with and provides another strong basis for price negotiation. Hope this helps, and have fun!