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ASK THE CAR BUYING EXPERT |
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Is there a question you'd like to ask our car buying experts?
SELECTED USER QUESTIONS
What is the insurance book value of a 2000 Kia Spectra?
The term "insurance book value" means the same thing as a traditional Blue Book value, as insurance
companies use the same standards as dealerships when calculating the worth of a car.
To definitively answer the question about the Blue Book value, some more information is needed: the state the car is in,
the options on the car and the mileage. If the car was in California, with no options and normal mileage
it would be have the following values:
Retail (if a dealer was selling it).......$5915
Trade In (if the dealer is buying it)....$2575
These numbers are based on a base Spectra GS with manual transmission. If you would like more
exact figures for your specific car, visit http://www.kbb.com
and fill out the site's forms.
Should I buy a used car privately?
If you are thinking of buying a car from an individual, you really need to think about it.
Typically, you are going to spend more money than you would at a dealer. Most people selling their
cars privately are doing so because they didn't like the figure the dealer put on their car as a
trade-in. Also, when you purchase from an individual you are buying the car "as is," which means if
anything goes wrong with the car it's your responsibility. The person that sold you the car is more
than likely not going to help you in any way. In other words, you have just bought and paid
for someone else's problems.
The only way I would buy a used car from an individual is if the car had significant time left
on the warranty. If I were in the market for a 5 or 6 year old car, I would stay away from the
individuals and concentrate on the car dealers. If you're in the market for a car with no
warranty, at least you could purchase a warranty from the dealer if you negotiated the warranty
correctly. The price would have to be significantly better than a dealer's price in order for me
to buy from an individual.
Shop around...you can almost always find a better deal and a better car from a dealer. A dealer
is governed by state requirements for selling used cars — individuals are not. The dealer performs
inspections on almost every used car it sells. An individual isn't going to do that, because they
aren't required to by the state.
Again, the only way I would buy from a private party is if the price was significantly lower than
what I found at a dealer. Also, I would never take ownership until the private party agreed that
the sale of the car was contingent on a mechanic's approval. If the private party hems and haws...
then you know there is something there they don't want you to know.
Can I write off my payments if I buy a car?
Yes you can, but only in certain situations. Tax laws change from year to year. You'll feel much
more confident if you consult your own tax expert.
How do I get a 10-day payoff on my trade in?
You must call your financing institution and ask for a 10-day payoff figure. The reason the
dealer needs this figure is because loans accrue interest on a daily basis. The reason for a
10-day figure is that it will take the dealer 10 days (mail time) to get a check in the hands of
the bank to payoff your car after you trade it in. You should also negotiate a per diem, which
is the amount the payoff will increase each day past the 10 day figure. Negotiate this whether
you are leasing or financing the car.
What is credit life insurance and do I need it?
NO, NO, NO...did I say NO? You do not under any circumstance need to purchase credit life
insurance from a car dealer. The finance manager will pitch it as if it is necessary, but it's not.
It is typically a five-year term life insurance policy available at an incredibly inflated price.
If you really want a five-year term life insurance policy, deal with your insurance agent or broker,
not with the car dealer. The finance manager makes huge profits by selling credit life insurance
and the customer benefits in no way unless he dies in that five-year time frame. Tell the finance
manager, "No thank you, I plan to live a long and healthy life!"
The only way to win the car buying game is to level the playing field through education.
Get educated now — read this entire website to gain the confidence to negotiate your way to a
winning car deal.
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