Auto Auction Bargains 10 Guidelines For Intelligent Purchasing

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Auto Auction Bargains 10 Guidelines For Intelligent Purchasing

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Auto Auction Bargains: Ten Recommendations For Intelligent Buying

You’ve been hearing about Congress approving a “Cash for Clunkers” bill that provides cash to buyers who trade-in old, low-mileage vehicles for new, higher mileage models, right? But you aren’t sure if you qualify? Or if the kind of vehicle you want or would trade qualifies?

The past few years, with the economy continuing to sputter and auto lenders tightening their belts, a large portion of buyers flocked to used car dealers. And, as we all know, increase in demand generally produces increase in price. So, the average price of a 3-year-old used car is now up 11.5 percent over last year. In sharp contrast, auto makers are discounting new cars heavily.

Not a good idea! Yes, you can give the vehicle back to the bank. However, a voluntary repo will hurt your credit. You can’t just walk way from the loan. The bank will take your vehicle to the auction and take whatever they get; and then they will come after you for the balance of the loan.

Set a limit that you are willing to spend BEFORE you get to the auction and do not go beyond that limit. Too often people get caught up in the frenzy of bidding and chase the price of a car well above what would be considered a good deal.

Conventions are a good way to discover new marketing strategies. The National Association holds an annual convention and expo that teaches dealers how to market without advertisements. The National Automobile Dealers Association also is a trusted source with a yearly convention that addresses dealers’ needs.

Check VINs on a car’s trunk, hood, doors, etc. If all the VIN markings on a car aren’t the same, the vehicle has been assembled from parts of other cars, and may have been stolen.

In an economy where the vital signs are close to flat-lining, these kinds of increases are worth exploring. A 30% increase in the auto dealer world is huge. A good year is a 5% increase.

Another great blue book guide is the N.A.D.A. Recreation Vehicle Appraisal Guide. This guide, provided by the National Automobile Dealers Association (N.A.D.A.) offers a wide range of prices that includes suggested listing, retail, and wholesale. This guide is updated three times yearly.

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