Everything You Need To Know About Used Car Dealers
If you are looking at used car dealers get their cars in one of three ways, or a combination of these ways. First option is simply through car owners who no longer want their car for whatever reason and choose to sell their cars. These cars can range in quality based on, mainly, the way the previous owners cared for the cars. The scond option is through companies that need to renew their rental fleet of vehicles. TO make their business more appealing to customers, rental companies try to have good looking newer cars in their lots. So if their cars get out of style or a few years old, they feel the need to sell them and get newer ones. They turn to used car dealers to sell their cars fast. The third commonly used option is through auctions. There are car auctions meant for individuals and there are other auctions that are meant for wholesale dealers. With the auction, the dealers do not get a chance to test drive the vehicles that they are buying and do not have full option for inspection before hand. This makes them buy cars that often need mechanical work done before they can be brought to their car lots for display. So after the needed repairs are done, the cars are cleaned and their prices are determined based mainly on the market price of the vehicles and the overall cars’ cost for the dealerships.
What to expect at the car lots?
If you are using traditional financing, here is what to expect. You first look at the cars in the lot, then ask to inspect the one you like and test drive it. You might have to test drive a few cars before you settle on one. If you like one, you sit down with a financial representative to negotiate the overall price. If you do not have the car’s price in cash, then like with many car buyers, you need to see which bank would approve you for financing. If approved by a bank, great, but if all the bankks that work with this dealership can’t approve you, then you have to leave empty handed. That would be a waste of time!
You have another option, which is having a pre-approval from other banks ahead of time. So you would walk in the dealership knowing that you already have an external loan amount that you already got approved for from other external banks that this dealership does not normally work with. This is often at a high interest cost to you.
The third option, which is in-house financing car dealers, is a great option for anyone with low credit score. Remember that with a low credit score, the traditional dealer would normally turn you away, and the external lenders would rip you off with high interest rates. In-house financing is also called buy here pay here financing and it involves no banks between the dealer and the car buyers. The dealers would directly finance the car buyer from their own money. This way, the dealers do not have to listen to the banks to approve you or not. This is important because avoiding the banks would mean eliminating the need for credit score checks. This is great for all those customers with low credit scores. Instead, they need to ask for your income. Higher, better incomes mean higher loan amounts approved. Of course because higher monthly income would mean that you can afford higher car payments on more expensive cars.
With todays fast pace life, many dealers have moved to the web. This way they can aim for more customers. Many dealers accept online applications to pre-approve customers. This speeds up the sale as well as gives the car dealers a clearer picture of what lots would approve them ahead of time.