Car Ownership Why Negotiations Pay Off
The average age of the car in America is 11 years old. That is a significant number. It shows that new cars aren’t the only ones being sold. And that hunch is correct. Today, Americans are faced with some of the highest prices on auto new car market: nearly $33,000 per new vehicle. It makes sense that some Americans would be turning to used cars.
Today, it has never been more possible to buy a used car. A consumer can choose between used car lots, Carmax and other online retailers, and “certified” used-car programs, which are offered by car dealers and back by manufacturers and are typically programs for newer used cars (usually up to three years old).
Used cars have many added benefits compared to buying a new car. They are likely to be cheaper compared to new cars, as cars depreciate in value once they are driven off the lot as new cars. It is possible to get them with a warranty, especially with the certified used-car programs offered by car dealers. And they often come with a vehicle history.
The car price being lower is significant in terms of savings. The average used car price dropped from $16,000 in 2014 to $15,000 in 2016, still less than half the price of the average cost for a car in the new car market ($33,000). That and the possibility of a warranty and a vehicle history report and a used car purchase may not be a bad decision.
New consumers, whether shopping for new cars or for used cars, faces a difficult challenge however: the dealership. It is often a difficult moment for individuals when they head to a dealer. A car, whether a new one or a used one, is a significant purchase, one that will likely be with them for years. And then there is the attitude of the dealer.
Some Americans report that going to the dealership is one that causes extreme stress. They feel, like many Americans feel, that the salesperson will likely pressure them or use high pressure tactics to make the sale. These tactics can include a verbal pressure or even a managerial pressure.
This prospect of having to negotiate with the salesperson and with the manager provoke stress for many people, when the pressure to buy a new car is already great enough. For this reason, many opt to make online decisions first, such as comparing the makes and models of similar cars online before going to the dealership.
The ability to make decisions online has helped consumers out immensely when it comes to purchasing vehicles. Online sites like Kelley Blue Book enable consumers to see what people are paying for that car in the area and then have the salesperson match the price. This gives consumers an edge in the negotiating.
Then, of course, there is the financing that causes stress within consumers. Financing is the part of the process where the person’s credit history is run and the car dealership decides how much to offer in terms of a loan, in particular how much interest will be on the loan. This is stressful, as it determines the person’s financial future.
All of these steps occur whether the consumer is shopping for a new car or a used car. Shopping for a used car can have both advantages and disadvantages. The advantages include knowing the car’s history, whether it has been in any accidents, has any structural damage, and how many miles it has. This can help during negotiations.
Someone who is shopping for a used car may have options as well. There is the used car dealer, Carmax, which links up sellers and buyers, and other used car dealers in the area or in the region. Car ownership is a significant step and it requires a great deal of responsibility.
Car ownership is one of the bigger commitments a person can make as the loan takes a number of years before it is paid off and it is a significant payment to back on its own. But car ownership is a big hurdle for many Americans who need a vehicle. The key to successful car ownership is taking care of the car and maintenance.