Used car
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A used car, also known as a pre-owned vehicle and second hand car, is a vehicle that has previously had one or more owners. Used cars are sold through franchise and independent dealers, rental car companies, leasing companies, auctions and private party sales.
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[edit] Used Car Sales are As-is sales
Almost every used car sale is an "as-is" sale. What you see is what you get so a used car buyer should do all their research before buying a vehicle. Some countries or states/provinces within those countries have specific laws which grant the used car buyer some additional protection. For example, the law may provide for a cooling off period in which the buyer may return the car or the law may require warranties on the used car.
- Canada
- Ontario - New and used vehicle sales are regulated by the Ontario Motor Vehicle Industry Council (OMVIC).
- European Union - Used cars have a statutory warranty according to the system of laws of the European Union, the so-called "Liability for defects", which lasts for 12 months.
- United States - The Federal Trade Commission's Used Car Rule[1] requires dealers to post a Buyers Guide in every used car they offer for sale.
[edit] Research used car history
In the United States, an estimated 34-percent of consumers (in 2006) are buying vehicle history reports for used cars.[2] Vehicle history reports are an inexpensive way to check the track record of any used vehicle. Vehicle history reports provide customers with a detailed record based on the vehicle's serial number (VIN). These reports will indicate items of public record, such as vehicle title branding, lemon law buybacks, odometer fraud and recalls. They may indicate minor/moderate collision damage or improper vehicle maintenance. An attempt to identify vehicles which have been previously owned by hire car rental agencies, police and emergency services or taxi fleets is also made. However, consumers should research vehicles carefully, as these reporting services only report the information to which they have access.
[edit] Sources of Vehicle History Reports
Vehicle History Reports are available in the following countries.
- Australia - Checkitout
- Brazil - Check@uto
- Canada - CarProof, Carfax
- Ireland - Cartell, AA, Motorcheck
- Italy - Autocheck
- New Zealand - AA Lemoncheck
- Northern Ireland - HPI, Cartell
- United Kingdom - Autocheck, HPI, Mycarcheck
- United States - Autocheck, Carfax
In some places the government is a provider of vehicle history - but this is usually a very limited service providing information on just one aspect of the history. Services include:
- Ontario, Canada - Vehicle Information Package offers Ontario vehicle registration history. If the car was ever titled outside of Ontario, no information is provided.
- Saskatchewan, Canada - Saskatchewan Damage Claims History Search provides the status of the vehicle (if any) in Saskatchewan and its damage claims history in Saskatchewan since Jan. 1, 1998.
- United States Vincheck offers a free service that provides two pieces of information on stolen vehicles and on vehicles that have been reported as a previously declared total loss.
The above is not a list of where to buy or obtain a report as there are many resellers of these reports. This list identifies in which countries reports are available and the primary provider where you can learn what type of data is available in each country.
An often overlooked avenue is for sellers of cars. The seller, particularly the original owner should have service and repair records - great information to show the value and remove doubt in the mind of potential buyers.[3] Services like DriverSide in the United States and DriveArchivein the United Kingdom are trying to create tools to help car owners track this service information.
[edit] Free Vehicle History Reports
There is much confusion about the availability of "free vehicle history reports" or "free Carfax reports." None of the vehicle history reporting services in any of the countries listed above offer the service for free. Several of the services, most notably those in the United Kingdom and the United States, sell reports to dealers and then encourage the dealers to display the reports on their Internet sites. These reports are paid for by the dealer and then offered for free to potential buyers of the vehicle.
[edit] Research used car pricing
When researching used car prices, you'll typically find three kinds of prices:
- Dealer or Retail Price is the price you should expect to pay if buying from a licensed new-car or used-car dealer — retail price. Dealer prices will always be the highest listed because of the dealership’s need to make a profit.
- Dealer Trade-in Price or wholesale price is the price you should expect to receive from a dealer if you trade in a car. This is also the price that a dealer will typically pay for a car at a dealer wholesale auction.
- Private-Party Price is the price you should expect to pay if you were buying from an individual. A private-party seller is hoping to get more money than they would with a trade-in to a dealer. A private-party buyer is hoping to pay less than the dealer retail price.
The growth of the Internet has fueled the availability of information on the prices of used cars. Whereas this information was once only available in trade publications that dealers had access to, there are now numerous sources for used car pricing. Multiple sources of used car pricing means that the prices you get from different sources often won't agree with each other. This is a result of each pricing guide receiving data from different sources and making different judgments about that data. The best way to determine a price is to cross-check prices with multiple sources and add a dose of your own good judgment to arrive at your price.
Pricing of used cars can be affected by geography; generally a convertible has a much higher demand in Florida than in New Hampshire. Similarly, pickups are often more in demand in rural than urban settings. Condition – Is the car in excellent, good or fair condition – has a major impact on pricing. Condition is based on appearances, vehicle history, mechanical condition and mileage. There is much subjectivity in how the condition of a car is evaluated. [4]
[edit] References
- ^ http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut03.shtm
- ^ http://www.theautochannel.com/news/2006/05/10/006250.html
- ^ Make More Money Selling Your Car, Google Knol
- ^ http://autos.msn.com/kbb/faq.aspx
