Buying a used car can be very tricky if you don’t understand what to look for and what to watch out for, The value of a used car is based on its condition, mileage, reliability, performance, and popularity.When speaking of the condition, you have to be certain that there is no permanent body damage, meaning is the frame tweaked? This would be very important to anyone. All other body damage is something you can work on for the customer as long as it’s minimal. Large dents may in fact need to go to the body shop.

Your customers need to spend the time researching the car before purchasing it. There are a few tools available to the prospective owner; one is TCO which is the True Cost to Own, TCO information is not available for all cars. Another such tool is True Market Value (TMV) pricing. TMV pricing is based on sales figures of similar cars across the country.

Running a vehicle history report on any used car you are considering buying is a must. Several companies sell these reports, which are based on the VIN. AutoCheck and Carfax seem to be the most comprehensive. With that said, Carfax has come under fire lately because of falsified reports. Now, not only do you have to check the car out, but you need to run a check on the companies giving you the report. If you have to pay $25-$50 for this report, then make sure the information is true and correct.

These type of reports can reveal vital information including whether the vehicle has a salvage title, which would mean that the car has been declared a total loss by the insurance company, or if the odometer has been rolled back. This is a pretty good time to decide if you want a certified pre-owned (CPO) car. 

Follow me to Part III and we will finish up with how to help your customers understand how to buy a used car.