October 8, 2021 by Rick Griffith
Used car dealerships, like Car Credit, across the nation are putting in every effort to boost their used car inventory. Some dealerships already have the vehicles sold to customers on waiting lists even before the vehicles arrive on the lot. The high demand for used vehicles is due to the inability to buy newer models because of the chip shortage and tighter budget constraints which made people lean towards buying older models rather than taking out a large loan.Despite the rising prices, used car inventory is selling quickly so be ready to jump on a vehicle you like but also be prepared to spend more than expected. This demand has also influenced other related markets, since more people are buying used vehicles there is an increased demand for parts and services too.
One way Car Credit is boosting their used car inventory is through carefully selected trade-ins. Thanks to the high demand, the value of used cars is increasing which is quite rare. Higher prices means more for trade-ins that might help in purchasing a newer vehicle.
Of course, selling the car personally is an option but the demands of marketing the car to potential buyers will be on you. The work isn’t over after taking lots of pictures and describing the condition. There’s also scheduling the time for interested buyers to take a look and a test drive, negotiating the price, as well as completing the paperwork to confirm the sale and transfer of the title.
Used car trade-ins at a car dealership can actually save money. This is because the dealership takes the price they are willing to pay for your trade in and deducts it off of the price you negotiated for the new vehicle. Meaning you pay taxes just on the new reduced price instead of the new vehicle’s actual value.
Before going to get an appraisal, be sure to gather the maintenance paperwork such as service records or receipts of recently replaced components such as tires or brakes. Showing proof of a well-taken care of the vehicle will help increase the trade-in value. Be especially sure to bring any paperwork of repairs done if the vehicle was in an accident. Another important piece of paperwork to bring is the title of the vehicle if possible. Don’t forget to keep it on you rather than storing it in the car!
Just like when personally selling the vehicle, it needs to be cleaned up. Give it a good wash, throw away trash, and vacuum it out. Don’t forget to check for any personal items in the glove box, console holders, sunglasses compartment, and other compartments. Technology is another thing that needs to be cleaned as well. From wiping the navigation system to take out your home address as well as any saved destinations to clearing out the call history and deleting bluetooth connection pairings.
As for repairs, keep in mind that dealerships can usually fix small dings or replace things like brakes at a cheaper price than what an individual consumer could. Depending on what condition the vehicle is in, the deductions in the trade in value might be lower than the cost of fixing it up before trying to trade it in.
A car appraiser will inspect the condition, take it for a test drive, take a look at the vehicle history report, and prepare an offer. Car appraisers are usually quite experienced, although it would be best to get a second opinion from a mechanic if they do mention a problem. When calculating an offer they will look at the vehicle’s age, mileage, aesthetic condition, mechanical condition and the demand of the current market for that model. Even things like how many people have owned the vehicle, matching tires, a clean title, and color all factor into the value of a used vehicle trade-in.
An important thing to keep in mind when buying a vehicle is the ability to resell it when the time comes. Color is an important factor since color choices like blue, shades of grey and silver appeal to a larger audience than colors that have more personality like brown, orange, and purple.
It is recommended to not personalize or add modifications to your vehicle. Adding things like a custom stereo system, rear spoiler, or window tint can actually decrease the value of your vehicle. Not only will any future buyers not know if the job was done well but it also limits the pool of potential buyers to those who have the same tastes. Although there are some additions that can add value like leather seats, it is hard to determine whether or not the addition will actually increase the value of the vehicle.
Whether you are just shopping for a used vehicle or if you have a vehicle that has a clean title and is in great condition, visit Car Credit! At our dealership, we want to make sure you are confident about the condition your new vehicle is in. Each vehicle within our used car inventory at Car Credit is hand picked and fully inspected to ensure they are in excellent condition. We stock our dealership with a selection of premium vehicles for all types of payment needs. If you want the peace from knowing you are driving off in a dependable vehicle, check out our selection!