October 14, 2015
How Do Used Car Dealerships Work?
Today’s consumers are becoming more and more informed when it comes to their purchasing decisions. They are performing online research and talking to their friends in order to understand products, make smarter decisions, and get better deals—and new car purchases are no exception. On the contrary, auto purchases often motivate consumers to do the most thorough research. But what about buying a car from used car dealerships? Purchasing a used car requires a whole different process than buying a new car. To get the most bang for your buck and the best vehicle for your situation, it’s important to understand how used car dealerships work.
It’s Key to Choose a Dealership You Trust
Not every used dealership has a lot full of affordable used cars in flawless condition. Used car dealers usually get their inventory by purchasing or accepting the cars as trade-ins from customers, buying them at auctions, or obtaining them from other dealers and fixing them up. Reputable used car dealerships will make sure that every vehicle they sell is fully functional and problem-free; others won’t. You should thus choose your used car dealer carefully to avoid buying your neighbor’s old broken-down car.
Used Car Dealerships Offer More Financing Options
Used car dealerships offer more flexible purchasing options than many new car dealerships do. Often, they cater to buyers who have less-than-perfect credit. The vehicles at a used car lot also tend to be much cheaper than late-model vehicles. Some banks and lenders have very rigid criteria for auto financing and will only work with new car dealerships. Other banks and auto lending institutions are less rigid with their lending criteria, so they are more willing to work with used car dealers to finance people with less-than-desirable credit histories for used vehicles. This gives used car dealerships a much wider selection of lenders and customers to work with. If you don’t want or can’t afford to spend your life savings on a car, you can always apply for financing.
You’ll Have Access to a Larger Inventory
Used car dealers have access to a larger inventory. The number of used cars in the United States greatly outnumbers new vehicles. Keep in mind that a used car is any vehicle that has been owned and driven. That means used car dealers can have certified, previously-owned, repossessed, and older-model used cars on their lots at any given time. These dealerships’ inventories are constantly changing, so even if you don’t immediately find the right used car for you, it’s a good idea to regularly check back with them and see what they have in stock.
Even though many used car lots look the same, they definitely are not. Research your options before purchasing a used car from any dealer to ensure you’ll get the best price, vehicle, and service in town.