Buying a Used Vehicle

[Derek Sutton]

Originally Posted by RichieRich

Our current SUV had a major repair prior to us buying but gave me all the photos and I could see what was done. I also had a full mechanical inspection done. It's been almost 2 years and no issues so hopefully this continues as we got a significant price reduction.

A previous almost-bought vehicle... they promised no accidents or issues and yeah the history showed it had actually been written off. At that point I said gimme my deposit back and I'll leave otherwise you have a big problem. Got my deposit and off I went...
Like any business the idea is to sell for maximum profit and the consumers goal is minimum outlay. It shouldn't get personal but it does.

One thing to remember though is that previous damage will always tank the value going forward. If resale isn’t an issue for you then in a lot of cases there’s little concern given the repairs were done right. My bro’s Terrain got side swiped by a semi changing lanes on the hiway, he drove the vehicle for over 6 months before insurance got everything sorted out, he had $20,000 claim through insurance that will show on the CARFAX forever, told him to take pictures showing it’s just bossy panels and rear bumper for when he ever goes to get rid of it.

[Derek Sutton]

Originally Posted by bizaro86

I've been tentatively looking at SUVs for awhile now. I've previously bought new, but am thinking about doing a 1 or 2 year old one. Lots of dealers appear to have a number of 1 year old vehicles in inventory.

Is it reasonable to assume these are rental fleet sales? I can't imagine ever buying a new vehicle and then selling it a year later - I would have a hard time getting over the time and money lost.

There’s a number of reasons these could be on lots. There’s a good chance that they’ve been rentals previously, this would show on the CARFAX. Hertz has gone bankrupt and rental fleets are currently far outweighing rental demand, so rental companies thinning out there line up is happening.

People trade in 1-3 year old vehicles for so many reasons. These owners are actually the easier sell from a sales perspective as the majority can’t see the light at the end of the tunnel. They’re making payments for another 5-6 years so they might as well trade it in so long as their payments stay close to the same (certain mentalities). Other people out grow their 5 passengers quite easily as in sad slips on past the goalie and along comes kid number 3. Lots of blended families also out grow their vehilces quickly, the new gf has her own two kids, and now dad and his two kids becomes a family of 6 (this one is quite common).

Lease returns also fall into this age range for used vehicle. Pretty much every lease is between 2 and 4 years in term. There are those who do trade in every year, there are those who have originally purchased the wrong vehicle and have traded it in for what they really need. Or they went and bought a trailer and now need a truck. There are also those looking to reduce their payments and will go into something less expensive. People trade their vehicles in for all sorts of reasons.

[Derek Sutton]

Originally Posted by speede5

I have a question for Pylon, 4 square is enough to make me walk out the door but I also have a problem with the dealership charging document fees. Since when does a customer have to pay for the dealership to write a receipt. I've seen this fee as high as $700 and I think its a total gouge. I have a friend who defends it, saying how else is the finance manger supposed to get paid (she works at a dealership and sees who gets commision on what).

They already get the PDI and I am ok with a % of markup as they deserve to make money selling a product. Plus I am also the kind of customer who would return for service so it's not like they wont get their pound of flesh.

Doc fee question: Sir that fee pays for a number services our finance manager does to make this process as smooth for you as possible including; ensuring all your paperwork is handled properly in compliance with AMVIC, completing lein and title searches, providing CARFAX reports, ensuring we pay out your existing auto loan in full, ensuring you get the best finance rate available, handling all the documents which entitle you to the (insert credit here). They will also help with lining up your insurance. I gotta pay the dice fee when I buy me vehicles here.

Doc fee objection: Customer- “What’s this $549 for? I’m not paying that”
Me- try to justify it with above word track..... crickets.... “So if I can get that $549 taken care of your good with these numbers?”

Doc fees are just profit for the dealers, but if you can isolate that as the buyers objection, fairly easy to close.

EDIT: Triple post score!!!