NEW YORK – If you’re planning to sell or trade in your car any time soon, listen up.
There’s a glut of used cars on the market right now – because of those headline-making employee discounts the Big Three automakers have offered to all of us non-employees.
The prices of used cars have dropped. If you want decent money for your vehicle, you need to do some serious prep work before you head to the dealer or post your for-sale ads.
If you don’t, you’ll get $500 to $1,500 less for your car, said Chip Perry, CEO of AutoTrader.com, an online classified-ad service for used cars.
“Consumers need to understand that the cosmetic appearance of a car and its mechanical condition are very important,” he said.
Spurred by car manufacturers’ dramatic incentives, Americans bought a record 1.8 million new cars last month – compared with the 1.4 million new cars they typically purchase in July. As a rule of thumb, 60 percent of new-car buyers trade in their old cars – so it’s not surprising there’s a flood of used cars on the market.
Used-car prices have fallen at least 5 percent from May to July, said Paul Taylor, chief economist at the National Automobile Dealers Association. And they could fall an additional 3 percent this month, he said.
Taylor doesn’t expect prices to start firming up until October.
So it’s important to heed these tips from the experts and get your car – and paperwork – in tip-top shape.
The worst mistake you can make is to take a messy car to the dealer for a trade-in – like the people who arrive at Manhattan Jeep Chrysler Dodge with empty soda cans and candy wrappers littering their vehicles’ interiors.
“A dirty car makes a light go on in our appraiser’s eye, that the car has been badly maintained,” said general manager Patrick Monninger. “You want your car to look like it could be on the front line of the dealership.”
A car owner who doesn’t tidy up his vehicle and put his paperwork in order could wind up being unable to get a new one – because he’s going to receive too small a sum from his trade-in to be able to afford the purchase.
“It can mean the difference between getting book value for your car, or substantially below book value,” Monninger said.
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HERE’S SOME ADVICE, collected from Jeep Chrysler Dodge service specialists, AutoTrader.com CEO Chip Perry, and National Automobile Dealers Association chief economist Paul Taylor.
-Expect to spend at least $125 to have the car professionally washed and detailed, or more if other fix-ups on this check list are needed. As long as you don’t go overboard, your investment will pay off – you’ll get $500 to $1,500 more for a tidy car, Perry of AutoTrader.com said.
-Find the ownership materials that came with the car. That means the warranty manual, the owner’s manual, the spare keys – and if you have a convertible, the covering for the convertible top.
-Inflate the spare tire and find the jack and any other tools that belong in the car.
-Top off all the fluids, from antifreeze to wiper fluid.
-Be sure the operational mechanisms all work. If any dashboard warning lights are on, find out why. Check the locks, the lights, the windows and the wipers. Is the horn sounding? Are all the mirrors intact? What about the seat belts, and the air-conditioning and heater?
-Jeep Chrysler Dodge recommends you take your car on a test drive – as though you’re an automotive technician who scrutinizes trade-ins for car dealers. Check the steering, the cruise control, the acceleration and the brakes.
-Fix any obvious mechanical problems you notice. New brake pads and a tune-up are well worth the money if you’re going for a trade-in.
-Check the car for leaks when your test drive is done. And check under the hood – make sure there are no big drops in fluid levels.
-Think of this as a beauty contest – make your car as pretty as you can. This means pay for professional cleaning.
-Get rid of any stickers and decals – and the stuff you’ve left in the trunk and glove compartment.
-Fix the obvious dents.
-Compile as complete a record as possible of all the maintenance work that’s been done on the car. Include every receipt you can find. Go to the dealer and any garages that worked on your car to get all the records you can.
“Service records give you a big leg up in negotiating the price,” Perry said. “They give a car buyer peace of mind that the car has been properly maintained.”
-Get a vehicle history from a service like Carfax or AutoCheck for $24.99, if you’re selling the car yourself. You can show this record to potential buyers – so they won’t have to look it up. If you’re trading in the car, you don’t need to get a vehicle history – because dealers usually subscribe to vehicle-history services, and they’ll get this info themselves.
-If you don’t like the offers you get from dealers or individual purchasers, consider selling to a family member. If all else fails, you can always contribute the car to charity and get a tax deduction.
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AP-NY-09-02-05 0615EDT
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