Sunday, September 13, 2009

Knock 15% Off the Price of Your Next Used Truck or SUV

one of my favorite articles about used trucks, you will like it:

There is no reason to pay list price for a used pickup truck or SUV – absolutely none. Take a moment to read this article and you should knock 15% off the cost of your next used truck or SUV.

  • You’re Going To Save Money at Smart Dealers: Industry expert Dale Pollak writes in his book, “Velocity-From the Front Line to the Bottom Line” that used vehicles are assets that depreciate every day. Smart dealers know they make more money from quantity. They want to turn their inventory. Selling 1500 vehicles at a $400 profit is always going to be better than selling 400 vehicles at a $1500 markup because most dealers don’t have a handle on what it costs them to stock their inventory and carry it for 30 days or more.

  • Find a Smart Dealer: Check the dealer’s website for the vehicle you want. If the price changes daily (or more often), you’ve found a dealer who has smart business practices. Websites with prices that don’t change for a week or more point to dealers who are living in the Stone Age.

  • Independent Dealers Need Your Money More: Their sales are lagging behind franchised dealers who are better able to advertise their wares both new and used. An independent dealer faces greater pressure to deal.

  • Private Sellers Are Your Best Bet: Facing the lion's share of used-vehicle declines were private-party sellers, which were down 13 percent. CNW Research of Bradenton, Ore., attributes a large part of private-party sales drop-off to an inability to find financing.

  • Cash Is King: If you got it, flaunt it. Be up front that you’re paying cash and you’re willing to walk out the door. It’s just like real estate. The seller wants to know they’re dealing with a buyer who can actually pay.

  • Most value-setting websites are at least a week behind: Websites open to consumers just don’t update that quickly. The introduction of a $2000 rebate on a new truck can have an instant impact on the price of used vehicles. Track manufacturers’ websites for special offers. By the way, smart dealers have tools at their disposal that are going to give daily updates on used car values.

  • Be Patient: Find a truck or SUV you like. Note the price and wait a week. If the truck’s still on the lot, the dealer might start thinking it’s a dog that won’t hunt. If you’re really patient, wait two weeks. The dealer’s going to be ready to deal and grateful you’re taking the car off his or her hands. For example, according to an article in AutoRemarketing.com, a 2005 Cadillac Escalade ESV in mid-July 2008 had a wholesale price of $17,500, which was down $6,000 from a few weeks prior. In less than a month, the vehicle’s value dropped 25%.

  • Do Your Homework on the Options: Some are overpriced because they were expensive when new. A three-year old DVD system, for example, could add $492 to the price of an F-150. Tell the dealer it’s a deal breaker. Old electronics aren’t worth squat. They depreciate much more rapidly than automobiles.

  • Be Willing to Settle: Don’t lose a truck or SUV you really want over a couple hundred bucks. You offer a dealer $17,000 for a $20,000 truck. The dealer counter-offers $17,500. Take it. You’re still coming out ahead of the game – and the suckers out there still paying full price.

  • Avoid Certified Pre-Owned: If the vehicle can pass a thorough inspection, now might be the time to avoid certified pre-owned. These vehicles cost more and are subject to higher markup. This step depends on your comfort level.

    source: http://usedcars.about.com/od/settingavalue/a/Save15Percent.htm

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