| Due to bad economic situation, many people are | | | | Association, some of those independent small |
| considering to visit used car dealers even though they | | | | businesses are literally being forced to sell cars for less |
| can afford to purchase a new one with or without | | | | than what they paid at the auction, which will hurt more |
| having to go through auto financing option. One of the | | | | on their end. |
| few good reasons is that car value for any specific | | | | Often times, consumers are most likely relying on the |
| model will go down after 1-2 years of release dates; | | | | weekly published Kelley Blue Book or NADA Used |
| however it still maintains a good quality on mechanical | | | | Car Guide, but they would calculate the value of used |
| side, and customers can enjoy all other features with | | | | cars based on their own criteria and formulas which is |
| cheaper price. | | | | not known to the public. With current rapidly increasing |
| On the other hand, the reputation of those used | | | | price trends, the fair market values could become |
| dealerships has not been that good over the decade. | | | | already outdated by the time it is released. |
| Part of the reasons is that they were reported to be | | | | The Black Book is a different guide book which |
| involved in unfair deals and were claimed by many | | | | portrays the auction prices on a daily basis; however |
| consumers for allegedly wrong doings. How much of | | | | consumers and lenders won't favor it because their |
| all those will be really true? It could be some or a lot, | | | | main focus is on the dealer side of point. Their main |
| but most importantly the final responsibility might need | | | | customers are mostly dealerships and independent |
| to fall upon the buyer who will sign the final sales | | | | business people who are in this automotive buying and |
| contract. They are the ones who need to know what | | | | selling business and would like to know accurate price |
| they are buying and how much is being charged on | | | | gauge every day, which would be a valid reflection of |
| the vehicle that they are dealing with. Unless there is | | | | the current market. |
| an outright committed fraud by the dealership, the | | | | Because of this price disparity between auction sale |
| customer is fully responsible for the final contract | | | | and the book value, more independent dealers are |
| paper which is fully written and disclosed to them | | | | selling cars at prices less than what they paid at the |
| before they put the signature on it. | | | | wholesale auction. Some dealers are upfront and |
| Across the country, there are many independent used | | | | show the invoice telling the customers what they paid |
| car dealers who are not affiliated with the big auto | | | | for the specific vehicles, which sometimes is |
| manufacturers and franchise dealerships in most | | | | understandable by many customers. |
| states. Due to growing trends of sending once popular | | | | Regardless of above mentioned comments, don't |
| gas guzzler vehicles to the junkyard, they are | | | | overlook what is offered by local dealers and do a |
| struggling in this tough field of automotive business. At | | | | thorough research on any vehicles that you have in |
| the same time used car wholesale prices are up to | | | | your mind. Bring mechanic with you for further |
| new highs at a time when cost-conscious buyers who | | | | inspection. Check out the car financing alternatives, and |
| sometimes rely on dated information from guide books, | | | | a Car Fax history report online. After all, you will be |
| are not willing to paying more as they used to. | | | | walking out the door with dream car of your own at |
| According to the National Independent Auto Dealers | | | | cheaper price. |