Franchise Automobile Dealers
The major advantage of shopping the used-car lots of new-car dealers is that they frequently have the widest selection of low-mileage, latemodel used cars. If you decide to buy from a new-car dealer, we recommend that you buy a used car from the dealer who sells that same car new. In other words, you're probably better off buying a used Ford from a Ford dealer than from a dealer who sells an entirely different line of cars.
Chances are that a new-car dealer's used cars will be more expensive than other sources because the dealer is selling only the "cream of the crop" of cars taken as trade-ins. Lesser cars, cars with high mileage, body damage, or in need of repair, are frequently sold at auction. Most new-car dealers offer the added advantage of a stronger used-car warranty, and they usually have people who know how to service your car. Plus, the better new-car dealers are very conscious of building a base of satisfied customers. The smart ones know that if you're satisfied with their used car and the service they offer, you may one day be looking at one of their new cars.
Price:
• The asking prices of franchise dealer used cars are generally the highest of any source. They are also usually in the best condition and have th-A warranties.
• Asking price is based on a variety of market factors.
• Dealers will almost never sell below the wholesale value of the car.
Risk:
Independent Used-Car Dealers it can reveal
You may find that there are independent dealers in your area who have a reliable record of selling good used cars. Generally, your best guide is the recommendations of friends who have had firsthand experience with the dealer.
However, in many cases used-car dealers who are not affiliated with a major new-car franchise are the sellers of last resort. Often their cars are the ones no one else wanted to peddle. Their selection is often heavily peppered with fleet cars, taxis, and cars bought at auctions. Many of these dealers are interested in only one thing: today's sale. While there are exceptions, most don't expect repeat business. Many don't have on-premises repair facilities, and they are much less inclined than a new dealer to think about long-term customer satisfaction.
One potential advantage of dealing with an independent is that often it's easier to get them down closer to the wholesale price. First, they don't usually have the backup capital of a franchise dealer, so they are more likely to accept a low deal than to let your money walk off their lot. Second, because they won't have as much overhead to account for, they can afford to accept smaller margins. If you have the financial ability to write a check right now, right here you have serious negotiation power.
They'll love you today, but will they fix it tomorrow?
There are few people who like you more than a guy on a used-car lot before you buy his car. However, if you have a problem the day after your check has cleared, you may find that yesterday's friendship was just that. Does this mean that independents are out to take the public
' Some are.
Most aren't.
Like franchise dealers, licensed independent used-car dealers must conform to the various lemon laws and state or federally dictated disclosure laws. Unlike franchise dealers, most independents have no facilities either to fix a car before it's put on their lot or to provide you with after-sale service.
But he said it had a warranty!
And maybe it does. Many used-car lots offer warranties through inde¬pendent companies. Commonly, these warranties require you to pay for the repairs and then submit a claim. Unfortunately, far too many of these non-dealer warranties cover very little and are hardly worth their paper they're printed on. Curiously, the negatives of an independent dealer can also be turned to your advantage in a negotiation. Every time you point out a risk, you can lower what you're willing to pay.
However, as we've said before and will keep on saying: Before you write the check, we strongly urge that you perform the complete inspection outlined in this segment and then, if it passes your inspection, take it to a professional mechanic.
Price:
• Moderate
• Very sensitive to going market prices
Risk:
• Moderate to very high
• Quality of car is almost always a key concern
• Car's history is frequently unknown
• Warranties can be next to worthless
