Carsut – Understand cars and drive better

Category: Car Buying

A complete, unique and special car buying guide that will lead you to the most compatible car for your situation.

Step 9: Making the deal

It comes to the deal when you have decided to buy a car. Do not be over excited with the new car you are buying and overlook some other important things including insurance, loan rates, processing fees, registration fees, ownership endorsement fees, extended warranty and sales tax which vary from state to state. Do not forget about incentives and rebates if you are buying a new car. If you are buying it with your company name, these fees could be doubled.

Steps to deal a new car

Ask for a complete quotation from the salesperson who arranged the deal with you. Bring the quotation home and view it in a stress-free environment if you are not in a hurry to seal the deal. In that way, you can clearly review the amounts and see if other expenses are too high. If the salesperson is giving you the best car price but with sky high insurance or loan rate, you can still buy the car from him but not the insurance and loan. Double check the invoice and see if there are redundant charges such as processing fees, handling fees or miscellaneous fees. All these refer to the same thing. You can request the dealer to have these extra fees removed. If they refused to do so, look for another dealer.

If there is no problem on the invoice, you can request the salesman to deliver the car to you at your convenience. You will have to check the car properly before signing the contract. Make sure you have gone through the car from head to toe before you nod your head to confirm the car. A person who had just bought a new car told Carsut that the dealer who delivered the car to his house showed him how a thief can open the car and drive it away without the key. They showed the whole process in front of him and tried to sell him additional security items to protect the car. Besides, a salesperson will always take this opportunity to sell you extended warranty, steering lock or a GPS locator. We recommend you turn down all these things, otherwise it will end up an extra few hundred or few thousand dollars. You may only consider extended warranty when you feel it is really needed in your situation.

There will be several forms to sign including the loan contract, insurance contract, transfer ownership of your trade-in (if you have one), and new car registration form. DO NOT HURRY! Nothing to rush about. Read every form one by one carefully before signing it. Last but not least, check if all the options and accessories are there when the salesperson passes you the key. If you are buying a full options model, make sure everything is there, for example, paddle shift, GPS system, 18” wheels or special edition body kit.

Steps to deal a used car

Things could be easy if you are paying cash for the deal. Make sure what you are getting is the same car that you have inspected (Refer to Step 7.1 Inspect a used car before buying it). Make sure there are no scratches and no parts have been replaced since the day you inspected the car. Compare it with the pictures you took on the inspection day if you are suspicious about the car.

If you are planning to finance the car, compare to see who is giving you the best rate; dealer, bank, credit union, online lender or some insurance companies that provide car loans. Financing through a bank is highly recommended because it is easier and usually cost less.

The dealer will prepare all the documents and sales contract for you if you are buying from them. Still, you will need to read through everything written in the contract before signing it. Ask the dealer to amend the contract if you find something is not right.

If you are lucky to get a great deal from a private seller, you may request the seller to prepare an automobile bill of sale. This is very important because it serves as a legal contract between buyer and seller (Refer to Step 9: Bill of Sale for more details). You can also print it out and use it for the deal. It is either the seller or the buyer do the leg work to transfer the title and registration. You can request the seller to do this before making the payment. In some cases, buyer and seller will have to do it together to have everything transferred on the same day. You will have to make sure you have insurance for the car you bought.

Last but not least, check again everything from head to toe and compare the car with the pictures you took on the day you inspected the car. If there is nothing wrong, all you need to do is get the key and go for a ride.

February 18, 2012
Step 8: Selling your car
There are ways to sell a car and turn it into cash. It is either fast or slow way. The biggest temptation for dummies when prepare to sell a car is to rush things. Based on our experience, no dealers or buyers will offer a good price for an urgent sale vehicle. We understand that there are times when one needs money urgently but at least show poker face. Here we created five easy steps to sell a vehicle.

Step 1: Determine the market value

Go to some famous websites to find out the average market value for your vehicle. You can also make use of online car classified websites like eBay to see what the price others are selling. Make use of the sorting function in eBay and you can find out the cheapest and the highest price. Forums, local newspapers and car classified magazines are some other good sources. A vehicle usually has three prices which include:
- Lowest price: This price is what the dealer will offer to the seller for the first time. It is the lowest price based on the model year. As a seller, you should treat it as the lowest offer and always ask for a higher price.
- Standard price: This is the price between the highest and the lowest.
- High price: High price usually comes from private sellers who hope to get more cash or create more room for bargain. If you think your car is in good condition compared to others, you may aim for this price.
Step 2: Know where to sell a car

In our opinion, there are four ways to sell a car.

Sell it to dealer

The fastest way to sell a car is to go to a reputable dealer. Trustworthy dealer often has adequate cash on hand and they are able to buy your car immediately. However, you will never get high price because a dealer needs profit. What you lose is usually what they earn. Dealer will offer the lowest price, bargain at least three times with them. Ask for more if your car is in good condition, for example, your mileage is lower than average, your car has full options, your car is the most wanted and popular color, your dashboard is still shining or you have just replaced all tires. Dealers will usually offer higher price if you are trading in the car and buying a new car from them. Dealer’s highest price means higher than the lowest but lower than the standard as mentioned in Step 1. Trade-in is often the fastest way to get rid of old one and get a new ride.

Sell it on eBay

The most attractive thing to sell an item on eBay is the auction system. You can set the starting price of your vehicle and let others bid it. REMEMBER to set the reserved price otherwise you may have to sell it at the price lower than your reserved price when the bidding ends. Beware of scams we mentioned in Step 6 Buying a used car. Avoid meeting up with buyer at secluded places or at night. The key to successfully sell a car on eBay is to present what is the best you have. State all the details of the car and give good description about the car. Wash the car and shoot a few nice pictures of it. It is recommended to remove the registration plate number by Photoshop before uploading it.

Sell it online

Other than eBay, there are many popular websites to sell a car privately including Autotrader and Motortrader.

Other ways to sell it yourself

In old days when the internet is not popular, people will print the word “FOR SALE” and stick it at the windows on each windscreen. You can still do it today. Sometimes it works well. Local newspapers, car classifieds or magazines are other good ways to sell a vehicle.

In the used car market, there are many brokers who try to arrange the deal between a buyer and a seller. You may receive calls from a broker after you have placed your advertisement. Ask if the caller is a broker once you receive a call. It is not recommended to give permission to sell or hand the car to a broker. We also recommend you to screen the caller, avoid arranging the viewing at your house or you should give up the sale if the caller sounds suspicious.

Step 3: Things to do before selling it
- Imagine yourself a genuine buyer, will you choose a dirty car? The first sight is important and therefore, wash it before arranging for anyone to view it. Consider polishing or detailing the car inside out if it looks dull. Clean the wheels, clear the windshield, and clear the interior. Hygienic seats, shining tires, spotless dashboard, dust-free floor mats and sparkling engine are what buyers expect to see.
- We have viewed over hundreds of used cars in a year and we found more than 80% of the cars are full with junks. Tissues paper, boxes, toll receipts, documents, tree leaves, children’s toys, books, among others. Make sure these things are no longer in the car.
- Prepare all related documents you have, including service history, parts replacement receipts or log book.
- If your car has involved in a minor collision, dented or scratches, you may consider fixing it up to get better selling price if the repair cost is not high.
- Last but not least, make sure the fuel tank has enough fuel for genuine buyer to test drive. Fuel gauge with the pointers point to F (Finish) shows how stingy an owner you are.
Step 4: Promote the car

Buyer will not know how well you have maintained the car. You need to convince them by showing the service record as a proof. Let them know the engine oil, oil filter, air filter and all fluids are changed according to schedule. Tell them if you are using grade one or high quality product to make the car better.

Step 5: Be confident with your price

As a buyer, you know how to bargain for the best price when buying a used car as mentioned in Step 7.2 Questions to ask when buying a used car. Now you as a seller, should have confidence with your selling price. Set a price and do not let the buyer go below it no matter what excuse they give. Often you will hear something like:

“I like your car very much, but the price is a little bit high for me.”

“I like your car but it is beyond my budget.”

“This is the third car I have viewed but it is a bit expensive compared to the other two.”

“What is your best price?”

“I would offer $…, will you consider that?”

All these bargain techniques from a buyer are normal. You should stay firm at your expected price and if the buyer is a prospective, the deal will be sealed. Otherwise, wait for the next potential buyer.

Step 6: Close the deal

Collect a down payment from the buyer once they have confirmed to buy the car. It can be of any amount, 5 to 10% of the car price sounds reasonable. If the buyer requests to send the car to his mechanic for inspection, go ahead. It is important to have a vehicle bill of sale and state everything clearly with signatures from the buyer, the seller, and the witnesses. If the buyer is paying cash for the deal, you could transfer the ownership to him after the payment has been made. If he is going to buy it with loan, you may have to keep the car until his loan is approved and the payment is made to you. Keep the log book until payment is completed. Last but not least, pass the car together with the key to the new owner and wish him all the best with the new ride.
February 17, 2012
Step 7.2 Questions to ask when buying a used car

These are some of the questions to ask before buying a used car. Some of these questions are taken out of our questionnaire we mentioned in Step 1.

1. What is your monthly budget for a car?

If the monthly budget is low, consider a cheap used car below $10,000. If budget is not the concern and you are willing to pay anything to get the car you want, you may reconsider buying a new one rather than used.

2. How many miles you will drive it in a year?

A used car could not perform better than a new one if you are going to put a lot of mileage on it. If you are putting more than 30,000 miles a month, used car may not be practical.

3. Are you familiar with car maintenance?

If you are not, you could probably end up spending more money to maintain it. (more…)

February 16, 2012
Step 7.1 Inspect a used car before buying it

There is no perfect used car because no one will buy a new car, keep it in the garage, and then sell it. Therefore, inspection is an inevitable process. You can either bring a mechanic or a trusted friend who knows about cars to inspect it. A good used car inspection usually costs between $40 and $100. You can learn some of the basic inspection and check the car yourself before bringing a lemon to an experienced mechanic.

As we mentioned in Step 7, a vehicle history report is indeed important. Inspection should come after you have ascertained the car is clean from any bad stuff. If the vehicle history report from either Carfax or AutoCheck shows that the car is stolen, totaled, flooded, or involved in any criminal cases before; do not waste time to check on the car and try to look for another one.

Let’s start the inspection step by step through the checklist here.

1. Preparation

Prepare a penny, a plastic coated magnet, torchlight and a digital camera or a mobile phone with built-in camera. The penny is to check the tire tread, magnet is to check the body, torchlight is to inspect dark zone and camera is to record down what you see to prevent the seller from manipulating the parts. Before inspecting the car, make sure you fill up your stomach. Never view a used car with an empty stomach. Arrange with the seller or dealer to view the car during day time, night time is almost impossible to check a car properly.

2. First look and check the body

Paint and body: Inexperienced buyer may find this hard but you can still see the differences if a car had an accident before. Look for dented area, scratches, or any collisions. Try to observe the body color. If the color is not consistent, this could mean that the body has been repaired before with a new coat of paint. Newer paint indicates that the part has just been recently repaired. Sometimes metallic or pearl 3K paint is hard to notice. You can use the magnet to check for rust and filled areas. Magnet will not stick to the area that has a major repair. Make sure you do not scratch the car with the magnet!

Body parts: Many parts come in pairs, headlamps, rear lamps, signals, side mirrors, and sport lights. Compare and see if the pairs look alike. If they are not alike, it could mean that the car has been involved in an accident before and one of the parts has been replaced with either new or OEM parts. Open and close all the doors several times. If the doors do not close properly or if it sounds peculiar, the car may have been involved in a collision before. High quality car usually has a pleasing sound when one closes the door. Shake the door and see if there is any sound of a gap. If the car was involved in a serious accident before, the door may loosen. If you are buying an older vehicle, you may need to remove the floor mat and check the floor board (foot board). Sometimes you can find a few holes underneath. Also, look carefully if there is any crack or small holes on windscreen.

Car boot: Open the boot and remove the spare tire. The main thing to look at is the circle where the spare tire sits. It should be nice and perfect. It could mean the rear was hit by some other vehicle if you find it dented. The picture here shows that the car boot has been knocked before.

Odometer mileage: The annual average mileage on a used car should be around 10 to 15K miles (15K to 25K km). You can do your own calculation to judge whether the car is heavily used. A two-year-old car should be between 20 to 30K miles. Think twice about the car if the mileage exceeds a lot more than the annual average mileage.

Tires: Our eye can tell if the tire is in very bad condition like the image below. Otherwise, use a penny to go through the tire tread. If you can see more than half of the penny or Lincoln’s head, it’s time to replace the tires.

3. Under the hood

Check the area under the hood. Use a torchlight to check hidden places that are dark. If there is oil, fluid or battery acid spilled around; it could mean that something needs to be replaced. It can be brake hoses, oil seals, or battery. Check carefully for broken parts like cracked rubber hoses, brake hoses, fuel hoses, or radiator fan. Pull out the dipstick and check the oil level. It must be the correct level. Often, most of these things will look perfect after the dealer has fixed it. Therefore, you need to check everything under the hood again after test drive. A well-maintain engine should look clean and tidy.

Request the log book from the seller or dealer, compare the VIN (Vehicle Identification Number) or chassis number and engine number with the report you get from Carfax or AutoCheck. Vehicle that does not have a match VIN number is NOT worth buying.

4. Start the car

Observe several things when you are at the driver seat. The oil warning light should go off after few seconds. Oil warning light symbol usually looks like Aladdin brass lamp. This is one car dashboard symbol for oil warning.

Turn on all the buttons and electronics to see if something is not working, for instance, wiper, signals, headlamps, rear heater, air-condition, stereo, central-locking and power window. Observe the smoke color from the exhaust when the car is started. If it is early morning or the car has been sitting in the car park for some time, you may see white smoke. Black smoke or blue smoke indicates burning oil. Bad smell from the smoke could mean the engine is not healthy.

5. Test drive

You may not find out the hidden problems if you love the car too much before buying it. Driving below 20 mph in a housing area will not help to identify problems. Arrange to test drive the car at wider road or speedway if possible. At least drive the car up till 60 mph (100km/h). See if anything in the car is shaking or vibrating, for example, steering wheel, stereo, dashboard, or car seat. Try to listen also if the car is making weird noises. All these are symptoms for an unhealthy car.

Check the transmission. Shift into reverse gear and see if it is working. This step is definitely a must because some cars can only go forward. Try to shift every gear if possible. Some cars, like the latest Honda City, have up to seven gears. Newer car has paddle shift and you should check on that too.

Observe the temperature gauge. If the engine is overheated just after one round of driving, the cooling system is having problem.

6. After test drive

Open the car hood again after the car stops. Do not turn off the engine and monitor for some obvious signs including bad smells, bad smoke, and splattered fluid/oil/coolant. Do not touch anything because it is extremely hot after the drive.

In conclusion, it is no point to waste a few bucks to send the car for inspection if it did not pass your own inspection with these six steps. Try to test drive the same model from different sellers or dealers and it can roughly tell which is the best. Nothing to lose to test drives a few cars before getting the best deal.

February 15, 2012
Step 7: Buying a used car

“This is one of the best used Toyota in town.” Sounds familiar? Ever heard something like this before from a used car dealer? Buying a used car is more complicated and challenging compared to buying a new one. This is because used car market is a business twisted with scams. Shoppers who love to buy a used car online have to take extra care. If you have gone through Step 1 to Step 6, you may continue your journey to choose the best ride with some of the used car buying tips. (more…)

February 13, 2012