How to get best deal when selling or buying a car
THERE has been a lot of news recently about the price of used cars.
And bearing the brunt of bad news is the Ford Kuga, which some reports suggest, is practically “worthless”.
However, putting the Kuga aside, how do you know if you are getting a fair price when selling a secondhand car?
Fernando Azevedo Pinheiro, joint MD of CarZar offers sellers some tips: 1) Learn the car’s book value: Book value is often thought to be the benchmark when negotiating the sale of a car. Pinheiro’s advice: use it as a starting point for setting a price. When selling a car, be aware that most buyers (private sellers and dealers) pay quite a bit less than book value.
“Book” refers to a pricing guide which uses various sources of historic data. The challenge with this is that the valuation looks back in time (rather than considering present market forces of supply and demand, for example).
Beyond this, the data sources for this pricing guide are limited.
The best source for reliable vehicle prices is car buying sites. 2) Pricing prangs: There are a range of factors that can impact the price of the vehicle, but one of the most important considerations is whether or not a car has been in an accident.
In particular, the severity of an accident needs to be confirmed and the extent of the structural damage assessed.
If the damage from an accident is cosmetic (like a low-speed bump requiring panel beating or a door replaced), the impact on value is limited.
However, if the chassis has been damaged, then the price could be reduced by as much as 50%.
Also pay close attention to possible mechanical faults. If a dashboard shows an engine light, it is possibly a very expensive problem.
3) Cost, size and complexity conscious:
Given the tight economic conditions currently (and into the foreseeable future), there is a shift in the market towards vehicles that are cheaper to run.
This includes preferring diesel over petrol engines, opting for smaller engines and buying vehicles with lower repair and maintenance costs (generally cars that are smaller and less complex).
This effect is most obvious in vehicles that people don’t want rather than those that they do.
For example, a consumer looking to sell a 3.4-litre petrol engine car will struggle to get a buyer. 4) Haggling and hassles: If selling privately, remember the “intangible costs”. It may appear quite easy to place a classified ad, but it can take weeks to vet possible buyers and find the right offer.
Apart from time and price, one’s personal safety can potentially be jeopardised in selling to strangers.
Pinheiro says: “As more of us find ourselves time-starved and financially challenged, online car buying services seem to be an attractive option.”
Convenient, transparent and offering fair market-related prices, these modern services may provide an opportunity to better appreciate the old idiom “a bird in the hand is worth two in the bush”.