Car values have changed a lot in the last two years, in a downward direction. One of the affects of this decrease in value has been a very noticeable increase in the number of cars that are written off because the cost of repair is too high compared to the replacement cost. If you are getting tired of your older car and had planned the purchase of a newer one this is not really a problem. However it is a problem if you liked your old car and had no intention of replacing it for a few years. The car gets hit, the repair costs are too high and the insurance company pays you out $5,000 (or $3,000 or $11,000.) Now what; you weren’t planning to buy a car, have done no research and have to move pretty quickly because the rental will be gone in a few days. Some people are car hobbyists and like buying used cars; most people can think of many more interesting and less stressful ways to spend time.
One relatively painless method which I have suggested to a few people with good success is to go to a new car dealership and buy a used car of a brand that they do not sell new. You have to be a bit firm with yourself as to why you are there, which is to spend a lump sum $5,000 on a car to get you through a few years. You know the salesman will show you very nice new cars that cost a lot more and would be nice to have, but that’s his job. Stay firm and focused and you will get what you need.
Why would you go to a Ford dealer for a Honda? The Ford dealer wants to get you on the lot and sell you a Ford, but if you think you want a Honda you won’t go there if he doesn’t have any Hondas. He will have no chance of selling you a Ford if he does not see you on his lot. If he can get you on the lot to look at the Honda he has a chance to show you the features of his new Fords and perhaps convince you that would be a better choice. See the part above about firm and clear. It is your choice.
The dealer has the Honda as bait for his Fords, but he will sell you the Honda if that is the car you want. He is also there to make a profit on the sale but he will only do this if the deal is right, you are happy with the car and he doesn’t see you again until the good experience brings you back for another car in a year or two. He doesn’t make any money if he sells you a crock that has you calling him with constant problems. If he has taken in a car that he does not trust he will wholesale it off and not put it on his lot.
So now he has a good Honda on his lot and is ready to talk to you about it and sell it with confidence. He is not trying to sell you the Honda however, but a new Ford. This means that he can’t talk up the Honda as a great car because why would you want a new Ford, or any Ford if he tells you the Honda is the best car in the world. He will tell you it is a good car but not as good as his Fords. And he can only charge you a good car price, because he would make his Fords look bad if he were trying to get a really high dollar for the Honda.
He gets you on the lot, has a chance to sell you the Ford, sells you the Honda instead and makes a few dollars and a new contact. You have the reassurance of dealing with a large company who you hope will go to a reasonable degree to keep you happy and you are dealing in a real office rather than someone’s driveway. You can also check three or four dealers in an evening, which is a lot less of a project than lots of calls and driving all over to look at private sales.
