Should I Buy a Car Privately?

Likely half of all

so-called 'private' sales...

are breaking the law              

The word "Curber" is commonly used in the motor vehicle sales industry to describe unlicensed motor dealers who sell vehicles posing as financiers, wholesalers, importers, collection agents, or "private citizens" under the guise of selling their own vehicles.

Private sales represent roughly one third of all used vehicle transactions in British Columbia each year, and many of these are simply individuals selling their own car, motorcycle or RV, but those who do it as a business - likely half of all so-called 'private' sales - are breaking the law.

There is great value in doing business only with licensed dealers and salespeople! If you do buy privately, keep in mind that old saying: If something appears to be too good to be true, there is likely a very good reason!

~Watch the video below for tips on how to spot a curber ~

I won't tell you to buy X over Y, but I will teach you the ABCs!

Buy Smartly!   -Peter

WHAT YOU SHOULD KNOW ABOUT VEHICLE RETURNS

A common misconception about purchasing a vehicle from a dealership is that you can return the vehicle if you're unsatisfied with it. A common belief is that there is a 10 or 30 day grace period, during which one could try out the vehicle while deciding whether or not to keep it.

There is no law that states that you have the right to return a vehicle; if you bought it, it's yours.

A particular dealership may have a return policy, which you should sign at the time of purchase. This is not to say, however, that ALL dealerships MUST have such a policy.

If there is a legitimate issue with the vehicle, or with the way in which the vehicle was sold to you, that's a different story! Simply because there is no legal right to return a vehicle does not mean that a vehicle cannot be returned under certain circumstances. 

Watch the video above to hear Ian Christman (Deputy Registrar, VSA) discuss vehicle returns at the 2011 Smart Shoppers event, held by the Better Business Bureau of BC.

Ask me a question on Twitter http://twitter.com/#!/VehicleSalesBC or via email peter@mvsabc.com



Buy Smartly!       -Peter

I won't tell you to buy X over Y, but I will teach you the ABCs!

What's Up, Dec?

 

NOT ALL DECLARATIONS ARE CREATED EQUAL

If you're buying a vehicle from a dealership, there are certain things that the salesperson must tell you about the vehicle. The most common declarations (or "decs") are damage history, past uses for the vehicle (ie. emergency vehicle, taxi, racing, etc.), and whether the vehicle was brought in from out of provice. For a full list of must-declare conditions, click this link: http://bit.ly/pANxAW

One thing to consider about declarations is how they impact the product value.

For example, a replaced windshield on an older vehicle, although probably installed as a result of damage sustained to the original windshield, is not necessarily a bad thing.

Don't reject a vehicle simply because it has a damage record; instead, consider how the damage has affected the real value of the vehicle.

Another example of this is multiple minor damage repairs (dents, scratches, etc.) versus one major damage repair (frame damage, etc.). The major damage will likely have a greater impact on the actual value of the vehicle.

Have you ever discovered problem with your vehicle that should have been declared by the seller?
Post a comment, or send me a message at peter@mvsabc.com

Buy Smartly!     -Peter

I won't tell you to buy X over Y, but I will teach you the ABCs!

Deposits 101

One question that gets thrown around a lot is "What's the difference between a deposit and a down payment?" Well, here's some stuff you should know about deposits:
Deposit: A sum of money paid by the buyer to the seller, to be forfeited if the buyer does not perform his/her/its part of the contract.

By making a deposit you demonstrate your good faith and intention to proceed with the deal.  As excited as you are about your purchase, it’s not a bad idea to protect yourself and expect the unexpected. So, take the time and read the fine print!

After reading the deposit agreement you should know under what circumstances you could get your deposit back and when you will not get a refund.

If your purchase is subject to any conditions, for example that the vehicle must pass a mechanical inspection, make sure it’s included in the deposit agreement.

And remember, if you are not comfortable with the terms and conditions of the deposit agreement, it’s not too late to walk away and find a dealer that has deposit practices that work for you! 

I'll discuss deposits more in later posts, but this should get us started. Stay tuned for the next post where we'll chat about down payments.

Have you ever had any problems with deposits (ie not getting it refunded when you feel it should have been)?


Buy Smartly!     -Peter

I won't tell you to buy X over Y, but I will teach you the ABCs!

New Drivers and an Angry Dog

I was awoken at 3:30am this morning to the barking of a neighbour's dog.

This dog continued to bark, uninterrupted, for over two hours. As I lay in bed listening to this, I couldn't help but form the following thought:

"Just because you can afford to buy a dog, doesn't mean that you're prepared to own one."

There are more things to consider than simple dollars in determining whether or not to become a dog owner.

This led me to think about new drivers.

I reflected upon the high-school version of myself; I remember calculating how long it would take to save up enough money for my first car. As far as I was concerned, buying a car would be a two step process:

1. Save enough money to buy a car
2. Buy a car

... that was it!

These two steps were all that I had considered in the quest for my own wheels. Much like my neighbour, I was making some pretty major oversights!

So, for you readers who are prepping to buy your first car, consider this checklist before spending your allowance and 'cleaned-the-gutters' money:

More than dollars, you'll need to bring some sense to the table.

How did you prepare before buying your first car? Leave your comments and questions below!

Buy Smartly       -Peter

I won't tell you to buy X over Y, but I will teach you the ABCs!

Story Submitted by a Consumer #2

First of all let me say I wish I had discovered your blog a year ago before I bought my car.

I had my first experience in buying a new car last August.  My ’94 Dodge Colt was dying a slow & painful death.  With my Dad’s help and guidance we decided that we would go to Wheaton GM to look for a new car and take advantage of the “Employee Pricing” and 0% Financing.   

Overall I was pretty happy with the experience.  Having said that there are a few things that upon reflection are a little disappointing. 

The amount of time it took to actually purchase a new car was a little ridiculous.  I’m pretty sure I spent more of my work day there than actually at work.  It certainly was not a speedy process.  I also got talked into buying the extended warranty and payment insurance.  Seemed like a good idea at the time but in doing the math now the amount of money those two things will add up to in the long run makes me wonder the value vs. cost....  It ended up being a quick decision made on the fly with not much information. 

But aside from those two things the one that gets under my skin the most is my poor little Dodge Colt.  When they took a look at it to determine a value as a trade in I certainly was not expecting much.  It was a great car and certainly did not owe me anything.  The left headlight was being held in by duct tape...  I did treat it somewhat like a bumper car so it had a few scratches and small dents in it.  But it drove like stink, new brakes and certainly was still a very useful car.  I was told that there was no way they could sell it and would simply be scrap.  I almost wanted to have a funeral for the little car, having grown quite attached to it!  They gave me a small amount for the car around $150 if I remember correctly give or take a little. 

So imagine my surprise when I started getting texts from friends, “I saw your car!”  I even had a friend send me a picture.  I didn’t believe it.  Call me crazy but I believed the salesperson when they said she was destined to become scrap.  Maybe my expectation of a cars salesman being honest was a little foolish..?  Sure enough not too long ago I saw her.  She looked much the same, but with an older gentleman driving her.  How could I be sure?  She still had the Hanoverian sticker on the back bumper I brought home from Germany.  There was no doubt this was my car.

When talking to a friend about this her reaction was that that was typical of a transaction with a dealership.  But why should that kind of dishonesty be acceptable?  What bothers me the most is not the small amount of money they gave me for the car but more so the deceit.  The best part is the salesperson asked me for referrals which I certainly will not be giving.  Word of mouth is the strongest form of advertising and I for one want people to hear this story.  If nothing else to be prepared when going to a dealership.  I wish I had been.    

April

Pick Pocketing Piñata

Close your eyes for a moment.

Wait, if you close your eyes, you won’t be able to read this...  or this...

Alright, don’t close them.

Imagine that you’re blindfolded, standing before a very small piñata; a wooden stick is in your hands. You have only one swing to hit the piñata, and if you miss on your one and only opportunity, the very small piñata will pick your pocket during your follow through.*

*Fear not, this is only a metaphor. To my knowledge, Pick Pocketing Piñatas have been extinct for some time now

This is how your vehicle purchase will turn out if you don’t prepare.  If you go blindly into a major transaction, without seriously considering your needs or budget, the likelihood of picking the perfect vehicle for the perfect price is pretty poor; you’ll probably swing and miss, and it will probably cost you.

Is my metaphor starting to make sense?

What do you need out of a car? You should think very carefully about this before you start the process.

Watch this great video on ditching the metaphorical blindfold!

Don't forget to follow us on Twitter! (@VehicleSalesBC)

Buy Smartly!     -Peter

I won’t tell you to buy ‘X’ over ‘Y’, but I will teach you the ABCs