Copyright (c) 2010 Brian Fricke
Whether you're in the market for a new or used car, most people hate going through the drill of haggling with car dealers. If that's not your idea of a fun way to spend the day, you may not be aware that there is a really good alternative out there to help you get a good deal on the car you want. I call them automobile brokers.
Automobile brokers can find you either a new or used vehicle for essentially the dealer wholesale cost, plus a service fee you pay to the broker. Automobile searches can be done on a nationwide basis, and if the numbers make sense a vehicle can be shipped or delivered and still end up costing you less money.
How much less money? Well, an informal survey from the discount auto purchase program we've made available to our clients for several years now, says that most folks are saving anywhere from $3-$5,000 on the vehicles they purchase, new or used.
Another good way to save money on a car is to consider a slightly used vehicle. When you purchase a car that's two or three years old with average to below average mileage, the original buyer takes the hit on depreciation and you end up with an almost new vehicle.
If you're set on a new vehicle, make sure that you negotiate the best price, and that you own the vehicle long enough to recover and recoup the depreciation. That means if you plan to trade cars every two or three years, you will be better off in a slightly used vehicle. On the other hand, if you're going to buy a new car and hang onto to it until you run it into the ground, then buying new is a more viable option.
Of course, when it comes to the question of used vs. new, some people feel more comfortable with new. They know they have the warranty and a dealership for repairs. But in some cases, people are a little misinformed about how vehicle warranties work. Typically, with any vehicle, the factory warranty stays with the vehicle whether you're the original purchaser or not.
My own experience with nearly new vehicles has always been that any of the dealership service mechanics are more than happy to work on your vehicle, whether you bought it from that particular dealership or not. Everyone is looking for service and repair work and will be more than happy with your business.
Other people might worry about the history of a used vehicle. A Carfax can be helpful, but Carfax doesn't pick up everything. The information is as good as the insurance claim information available -- so if a previous owner handled a repair with cash, and it doesn't show up in the insurance claims system, then it's not going to show up on a Carfax. It's always best to have an experienced mechanic look at a car - or to use an automobile broker service with an experienced mechanic on hand. It's always better to have an expert as part of your team when it comes time to purchase a vehicle.