by YAHOO! SEARCH
Family Finance /Auto sales
Turn used cars into cash
Dealers willing to pay up
Updated: August 23, 2010, 6:35 AM
If you’re looking to raise some cash, maybe you just need to look in the driveway.
Used cars are in demand by dealers, who are scouring want ads, craigslist and eBay for vehicles to fill their lots or flip at an auction.
“A good used car is bringing virtually a ton of money,” said Art Spinella, president of CNW Research in Bandon, Ore.
More dealers across the country, Spinella said, are advertising that they will buy your car for cash. And actually want your trade-in.
“We need trade-ins!!!” says one ad from Jay Chevrolet in Highland Township, Mich. The dealership also will buy your used car, even if you’re not buying a new one.
“We buy cars,” proclaims a huge black-and-white sign at the Jack Demmer Automotive Group Lincoln Mercury lot on Michigan Avenue in Dearborn, Mich.
“Cash for your car,” says a smaller green sign across the street at the Les Stanford Chevrolet-Cadillac dealership.
Why the surging interest?
“There’s a shortage,” Spinella said. “They’re just scrambling for used cars.”
Used-car prices are higher than they were a year ago, which is odd since a used car by definition declines in value.
“Traditionally, you don’t look at a used car as an appreciating asset,” said Alec Gutierrez, lead analyst for vehicle evaluation for Kelley Blue Book. But prices could be up about 7 percent for some cars from last year, Gutierrez said.
Some of it is supply and demand. Cash-for-clunkers, which ran in July and August 2009, took nearly 700,000 used cars out of circulation. The federal program — which offered up to $4,500 for a clunker — gave consumers an incentive to turn in their old cars and trucks to buy more fuel-efficient new models. Program rules required that clunkers be crushed or shredded.
Before you consider spinning off a car, do some prep work.
This isn’t like selling gold. You need the paperwork proving ownership and documents on any loans. Obviously, if the car’s not paid off, you want to net more than you owe from the sale. The lender will have to be paid off before you get any money.
In general, experts say the better prices are being offered for cars or trucks that are 2 to 5 years old and have less than 80,000 miles.
“They’re not going to buy your car if they’re not going to make any profit” from reselling it, Gutierrez said.
I did a short, nonscientific test using my 2004 white Chrysler Pacifica with 77,000 miles, heated leather seats, DVD player and tires replaced in 2008.
Two dealers looked it over, took it for a drive and wrote down my Vehicle Identification Number. One noted the dent in the back bumper, as well as a smaller ding on a front fender.
One dealer commented that the miles are low for 2004. For a 6-year-old car, about 90,000 would be average, he said. Lower miles mean higher price.
One dealer offered $4,500 and another $6,800.
If that’s not proof that you should shop around, I don’t know what is.
Gutierrez said that the dealers could offer vastly different prices in part because they might have different needs.
One may want the car for the lot while another is only interested in flipping it quickly at an auction.
Before you bargain, it’s essential to get an idea of what your car might be worth. Prices are easy enough to research online. See http:// www.kbb.com/ or http:// www.Edmunds.com/ .
At Edmunds.com, based on my ZIP code and the car’s features, the value ranged from $6,120 as a trade-in to $7,305 if I tried to sell it on my own.
Edmunds.com said the price would be $8,355 for the “dealer at retail” — meaning what customers are willing to pay a franchised dealer for similar vehicles in my area. The dealer retail value would be higher than a private party sale because of inspection, reconditioning and holding costs a dealer must incur before selling the vehicle, according to Edmunds.com.
Was I tempted to sell? Sure. But I’m not pulling the trigger.
Not while my child still needs a chauffeur with wheels.
advertisement
Entertainment Calendar
Best bets:
- Wed 2/22: Less Than Jake
- Wed 2/22: The Wolfe Tones
- Thu 2/23: An Evening with Brian McKnight
- Thu 2/23: Rascal Flatts
- Fri 2/24: Molly Hatchet and Jimmie Van Zant
- Fri 2/24: Denny Laine and Terry Sylvester
- Fri 2/24: An Evening with Sylvester Stallone
- Sat 2/25: Golden Dragon Acrobats
- Sat 2/25: Charles Bradley & His Extraodinaires
- Sat 2/25: Golden Dragon Acrobats
- Sat 2/25: Larry Carlton Trio
- more events »
The Feed / What’s Happening Now
Sabres facing Islanders downtown
Anello does not believe prison is his 'legacy'
Bills season ticket prices will remain the same
Council overrides mayor's veto of ice rink fee changes
Trade deadline looms over Sabres
Video shows woman at center of fracas
No tag for Stevie Johnson
Vacancy at One Bills Drive
Dogs find a happy home
Man accused of assaulting employee at restaurant
Making teachers more accountable
Stay Informed
Newsroom Tips
Have a news tip you think The Buffalo News should investigate?
Call The News tip line at 849-4475 or email us at investigations@buffnews.com.
All calls and emails will be kept confidential.
Buffalo Marketplace
Marketplace videos
Watch the latest offers, products and services from our advertisers.
Browse our print ads
It's the ultimate advantage for Buffalo consumers. Never miss another ad again!
Buffalo Savers: coupons
Buffalo coupons at your fingertips.
Just click and print. It's Easy!

