Cars Under

Many people who visit a car lot with the hopes of eventually buying a new or used car are simply on an information gathering mission. We see this as not only a smart thing to do but it often leads to becoming aware of exactly how the dealer is pricing their used car inventory as well.

As a result of today’s economic climate the previously consistent, if not down right predictable volume of information seekers as well as buyers has slowed. This is evident in varying degrees depending on just which part of the country you happen to be in and it has led to some significant changes in just how dealers are approaching their marketing efforts. We have found that aside from the special pricing, the special new or used car financing and the overall plethora of creative used car buying incentives out there right now that the smart dealers are also focusing on their customer service practices.

It has long since been our belief that word of mouth is the most powerful form of advertising and the most reliable way to generate this form of advertising is to ensure that the customer has a great buying experience. This includes each step of the used car buying process from the information gathering stage to the coming together on the exact details of the price and the vehicle financing. Of course there are many courtesies which the dealerships will offer well beyond the basics.

With respect to the information gathering process we find that consumers today want honest and relevant information regarding the vehicles which they show an interest in. This is a rather easy position to be in for anyone who is selling a used car and by that we simply mean that the seller typically has most of the answers which the buyer is seeking and should be absolutely forthcoming in regards to the information which they provide.

For example the information is ultimately going to get to the price in any discussion so it is important for the prospective buyer to be aware that there are a few different price point angles which exist in the automobile industry. These particular price points may be dealer price, trade-in price or a private seller price. As a prospective buyer who is looking find the best deal, which does not necessarily mean the lowest price, they should be able to logically apply which price point is coming into play in each specific instance. For example if a dealer really wants to move the vehicle then they will be inclined to sell the vehicle at a price which is much closer to the actual trade-in price.

This means that they will be selling used cars under 3000 dollars for example which may have a relative trade-in value under what a private party would try to get for the vehicle and still they could provide the best price as well as the additional service and courtesies such as filling out all of the proper state required paperwork. There are numerous reasons why a dealer would need to sell a particular used vehicle or group of used vehicles at prices under value. We often find these situations existing in dealer networks where inventory rotation or reductions are the reasons behind these special prices. When it comes to dealer retail prices this is going to indicate for example a newer model which is still within the initial tier of valuation. The same approaches will typically apply in these situations and the pricing will be dependent ultimately in the dealer’s current position. In today’s marketplace across the nation the price points tend to reflect not so much special inventory adjustment methodology so much as they do the overall reduction in potential customers. This creates many used car buying opportunities which in better economic times would likely be reserved for these special inventory adjustments.