My next door neighbor was the Used Car manger for a large Chyrsler and second GM dealerships. They got and sold primarily trade ins from new car sales. They primarily kept the new Chrysler and GM brands and sent the rest to the auction. All of the junk also went to the auction. Occasionally they would trade, for example, a used Ford to a Ford dealer down the street for a Chrysler or GM brand they had.

Selected keepers for the lot were sent to the mechanics bay for a once over. Oil, grease, and a brief inspection. The mechanics were only allowed 1/2 hour to do this. Sometimes a worn tire might be replaced but never the whole set. If something major was found the car went direct to the auction.

Something minor may be repaired or left alone in hopes the buyer would not discover it. If the buyer discovered it in time after buying it, they would repair it on a 50/50% basis in their service bay only. If the buyer discovered the problem before purchase, usually they would fix it to make the sale. The general rule is a dealer wants to make $1,000 on a used car sale. Out of this they had to pay salesman's commission and any repair costs. Obviously this varies based on the value of the vehicle.

On a few cars he would bring them home and let me drive them for 3 or 4 days on dealer plates. He brought me a Corvette one time. I was afraid to take it anywhere for fear it might get stolen. So I only drove it locally on the weekend and was very careful where I parked it. I was driving 100+ miles per day at the time so I usually pu 300 to 400 miles on these cars. I would give him a list of anything I found wrong. Again, if it was expensive like a slipping trans, the car would be sent to the auction. The others he kept for sale.

Now where do you think the non-dealership used car lots get most of their cars? - From the auction.

After many years as Used Car Sales Manager he went into the auto sales consulting business. He and a team of 5 partners are running around the country teaching week long seminars (primarily in dealerships) on how to sell both new and used cars. The prime directive he teaches is "Do NOT sell what the customer says he wants, Sell what you have on the lot".

In a used car lot, you are separated from the previous owner. You loose the ability to ask questions on who owned / drove it, how was it driven and what is wrong with it. Yes they can lie to you and you get no warranty. Used car warranties are usually very poor and only can be repaired at the selling dealer's location. Private parties almost always have the title in hand. Used car dealers many times will hide the fact that a vehicle is a "salvage" vehicle. Their favorite trick is to get your money and say the title is being held by the bank. "We will mail it to you next week." It is only when you receive the "repaired" title that you find out that you might have bought a lemon. Also "repaired" title vehicles usually go for about 70% of clean title ones.

Many NEW car dealerships do finance their in stock new vehicles with a bank. If they running on a shoe string operation the bank wants collateral and they will require that the titles be held at the bank. More reliable dealers just have a line of credit and finance their lots from it without titles on deposit. Some manufactures also will finance the lot and hold the titles until they are paid for.

Used car dealers have a harder time getting financing primarily because the bank does not have any idea what the vehicles are worth. So if a used car salesman says "we will mail you the title next week", this is a red flag that something might be amiss.

So if you want a used car cheaper check out private party sales. It is still BUYER BEWARE but the exposure is no different or better at a private party sale.

 

n9cv: I think that was a very thoughtful write-up. Thanks for posting. Despite all the experience you have developed in this matter, and the evidence you have presented based on those experiences, I am still surprised you would say that buying from an individual is no better or worse than a dealer. I am 100% in the camp that a person is better off buying a used car from an individual. First, I think that people with no moral compass tend to gravitate towards others with no moral compass. Used, and most new car dealers neither have knowledge of the cars they sell nor have morals acceptable to the average person, which is why their industry is held in such contempt. A car owner who knows they have a problem or even a serious problem with their car is more likely to "dump" the car at a dealership knowing that they are dealing with people with less than or no moral compass. I think it would be foolish, and in this day and age, dangerous for a private seller to sell their old car at their home knowing there is something wrong with the car. That opens up their family and property to retaliation by someone with a few screws loose (of which there are many these days). No, when purchasing a used car, I will always choose to first do all my homework and buy a reliable used vehicle like a Fit, and buy it from an individual that I can look in the eye and ask hundreds of questions about their car and expect an answer since they owned it and drove it for many years. I will always do this before ever going to a used car salesman who knows nothing of the history of the cars they sell, nor go to a new car dealership that is there for only one reason, to make profit. For me, it is easy to tell when someone is lying. If an owner can't answer my questions or is vague, evasive or appears to be lying, I walk away. As you know, many owners get quite attached to their cars and many of them like to see their "family possession" go to a good home. Those are the folks I buy from. Each one of them would still be welcome in my home today because they had a moral compass and simply wanted their car to live on with someone else.

 

I agree with everything you said. I probably should have worded it better. What I wanted to leave was the idea that you can still get screwed on a private party sale so watch out.

Also on the private party side there are several sellers advertising used Fits as "Private Party" when they are indeed rebuilders. Three come to mind. One near Memphis, one in Eastern Oklahoma, and one in S.Carolina. They put up for sale one car a month or every 6 weeks and call it "Private Party". So even though I highly recommend Private party purchases, you still need to do your home work including a history check on the vehicle and verification of a clean no outstanding lien title.

As an example If the vehicle belonged to someone's daughter who just graduated from college and she used it a school and now she she wants something new. That is probably a good Private Party purchase AFTER you have done a history check and seen a clean title with no liens on it.

I'm sorry I left the wrong impression.

 

If you get the phone number of a 'private' seller you might be surprised what you find when you put that number into the search box on craigslist!

 

Our experience as a dealer was much as yours except that we sold cars to people buying for used car dealers or rebuilders if they weren't worth going to auction. Auctions inspected cars visually and driveability so problem cars weren't sent there.The main premise is private sellers are FAR more likely to lie to private buyers than to dealers because they know dealers are a good bit more knowledgeable about the vehicle than the averasge buyer. Thats why they keep only cars they don't expect a 'come back'. My favorite and most common lie is "I change oil and filter every 3000 miles". Just a cursory inspection of inside the valve cover almost always showed the oil was so old that it was almost thick.
Once away from that, used car sellers will lie or hide defects in the vehicles, regardless of dealer or used car lots. You have a marginally better chance with dealerrs. But will likely get a better price from a private party as long as you have a knowledgeable mechanic, NADA or equal, and Carfax on hand. And also for buying from a dealer especially since they're taught to 'start high to end high'. do your homework getting the WHOLESALE value of both your car honestly, the intended buy, and the reasonable profit added to the difference. Plus tax, tags, and license. car buying is really simple but dealers like to hide that so they can disguise the actual selling process.
That pofit margin is often based on the desireability of the intended car. Go check the selling prices over list for the original Miata. Gouging was so easy it was like taking candy from a baby. The more eager the higher the profit - and extras - you will pay so be business like.
Good luck, you'll need it.

 

If I was in your situation, I would buy a salvaged 2012 Fit sport with under 30,000 miles after a thorough inspection and the "before repairs" pictures.

There really are quiet a lot of them on craigslist in LA. Some were hit in the back, so the entire front are is pristine. That can give you years of service and several hundred thousand miles of driving.

The first Gen Fit is a lot less crashworthy vehicle. The structure is designed in the 90s (it was first sold outside north america in 2001). The rigidity of a second gen Fit is something like 150% higher, making it a lot safer vehicle. Not to mention that you can get one with VSA.

I wouldn't go with matrix as it is cramped and in my opinion is not a very efficient car. The aerodynamics just wont allow it to be very efficient. 1.5 liter fit can haul 5 adults plus cargo, so that's not an argument that should change the decision.

I don't much about Matrix's safety performance but being a heavier vehicle, it may have some edge over fit, though it is an old design as well.

I've done a lot of research before settling on the Fit (twice in fact, with 3 yrs in between).
Good luck.

http://losangeles.craigslist.org/sea...=&autoMaxYear=

 

The bottom line is that a used car is just that a used car. I knew a guy who had a shop put two wrecked cars together and then have individuals sell the cars with a story about a divorce or something so the buyer thinks he was dealing with an individual instead of the crook that this guy was. A car fax is a good way to tell if the history of the car is being misrepresented by either a dealer or an individual. Taking the car to a good mechanic that you trust for a pre-purchase inspection that you pay for is good advice. I think buying a late model car from a new car dealer with a warrantee will be more expensive but safest with a car fax.