A used car, a pre-owned vehicle, or a second hand car, is a vehicle that has previously had one or more retail Retailing consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer& owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers A car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling. It may also provide maintenance services for cars, thus employing automobile mechanics, stock and sell, rental car A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee. It is an elaborate form of a rental shop, often organized with numerous local branches (which allow a user to return a vehicle to a different location), and primarily located near airports or busy city areas and often complemented by a website companies, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," "certified" Most often late-model, they differ from run of the mill used cars by having been inspected, refurbished, and certified by a manufacturer or other certifying authority. They also typically include an extended warranty, special financing, and additional benefits . Luxury marques Lexus and Mercedes-Benz were among the first to create CPO programs in used cars, and extended service plans A service plan is a contract to purchasers of products for an additional fee. While service plans resemble extended warranties, there are several important differences between the two, often cited by retailers that sell them or warranties In commercial and consumer transactions, a warranty is a collateral assurance or guarantee that certain facets of an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty. A breach of.
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Used car industry
With annual sales of nearly $370 billion, the used vehicle industry represents almost half of the U.S. auto retail market and is the largest retail segment of the economy.[dated info][citation needed] In 2005, about 44 million used cars were sold in the U.S., which is more than double that of the nearly 17 million new cars sold.[dated info]
The used vehicle market is substantially larger than other large retail sectors, such as the school and office products market ($206 billion in estimated annual sales) and the home improvement market ($291 billion in estimated annual sales).[dated info]
Used vehicle retailer
The Federal Trade Commission The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. Its principal mission is the promotion of "consumer protection" and the elimination and prevention of what regulators perceive to be harmfully "anti-competitive" business practices, recommends that consumers consider a car retailer’s reputation when deciding where to purchase a used car.
Vehicle history reports
In the United States, an estimated 34-percent of consumers (in 2006) are buying vehicle history reports for used cars.[1] Vehicle history reports are an inexpensive way to check the track record of any used vehicle. Vehicle history reports provide customers with a detailed record based on the vehicle's serial number (VIN A Vehicle Identification Number, commonly abbreviated to VIN , is a unique serial number used by the automotive industry to identify individual motor vehicles. Prior to 1981, there was no accepted standard for these numbers, so different manufacturers used different formats). These reports will indicate items of public record, such as vehicle title branding Vehicle title branding is the use of a permanent designation on a vehicle's title, registration or permit documents to indicate that a vehicle has been written off due to collision, fire or flood damage or has been sold for scrap, lemon law Lemon laws are American state laws that provide a remedy for purchasers of cars that repeatedly fail to meet standards of quality and performance. These cars are called lemons. The federal lemon law protects citizens of all states. State lemon laws vary by state and may not necessarily cover used or leased cars. The rights afforded to consumers by buybacks, odometer fraud Odometer fraud, also referred to as "busting miles" or "clocking" is the illegal practice of rolling back odometers to make it appear that vehicles have lower mileage than they actually do. Odometer fraud occurs when the seller of a vehicle falsely represents the actual mileage of a vehicle to the buyer and recalls. They may indicate minor/moderate collision damage or improper vehicle maintenance. An attempt to identify vehicles which have been previously owned by hire car rental agencies, police and emergency services or taxi fleets is also made. However, consumers should research vehicles carefully, as these reporting services only report the information to which they have access.
In some places the government is a provider of vehicle history - but this is usually a very limited service providing information on just one aspect of the history.
None of the vehicle history reporting services in any of the countries listed above offer the service for free.[citation needed] Several of the services, most notably those in the United Kingdom and the United States, sell reports to dealers and then encourage the dealers to display the reports on their Internet sites. These reports are paid for by the dealer and then offered for free to potential buyers of the vehicle.[citation needed]
In the UK, the DVLA provides information on the registration of vehicles to certain companies for consumer protection and anti-fraud purposes. The information may be added to by companies with details from the police, finance and insurance companies. Such companies are able to provide a car check online service for the public and motor trade.[1]
Used car pricing
Used car pricing reports typically produce three forms of pricing information.
- Dealer or Retail Price is the price you should expect to pay if buying from a licensed new-car or used-car dealer — retail price. Dealer prices will always be the highest listed because of the dealership’s need to make a profit.
- Dealer Trade-in Price or wholesale price is the price you should expect to receive from a dealer if you trade in a car. This is also the price that a dealer will typically pay for a car at a dealer wholesale auction.
- Private-Party Price is the price you should expect to pay if you were buying from an individual. A private-party seller is hoping to get more money than they would with a trade-in to a dealer. A private-party buyer is hoping to pay less than the dealer retail price.
The growth of the Internet has fueled the availability of information on the prices of used cars. Whereas this information was once only available in trade publications that dealers had access to, there are now numerous sources for used car pricing. Multiple sources of used car pricing means that the prices you get from different sources often won't agree with each other. This is a result of each pricing guide receiving data from different sources and making different judgments about that data. The best way to determine a price is to cross-check prices with multiple sources and add a dose of your own good judgment to arrive at your price.
Pricing of used cars can be affected by geography; generally a convertible has a much higher demand in Florida than in New Hampshire. Similarly, pickups are often more in demand in rural than urban settings. Condition – Is the car in excellent, good or fair condition – has a major impact on pricing. Condition is based on appearances, vehicle history, mechanical condition and mileage. There is much subjectivity in how the condition of a car is evaluated.[2]
Laws and regulations
Geographically specific laws
Canada
In Ontario, Canada, new and used vehicle sales are regulated by the Ontario Motor Vehicle Industry Council (OMVIC).
European Union
Used cars have a statutory warranty In commercial and consumer transactions, a warranty is a collateral assurance or guarantee that certain facets of an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty. A breach of according to the system of laws of the European Union, the so-called "Liability for defects", which lasts for 12 months.
See also
- Lemon (automobile) A lemon is a defective car that is found to have numerous or severe defects not readily apparent before its purchase. Any vehicle with these issues can be termed a 'lemon,' and, by extension, any product which has major flaws that render it unfit for its purpose can be described as a 'lemon'
- Import The term "import" is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is refered to an "importer" who is based in the country of import whereas the overseas based seller is refered to as an "exporter". Thus an import is any good
- Japanese used vehicle exporting Japanese used vehicle exporting is a large component of international trade, which involves the export of used cars and vehicles from the Japanese domestic market , to numerous markets around the world. Despite the high cost of transport, the sale of used cars and other vehicles to other countries is still profitable, due to the relatively low
- Old car Jalopy is an old, decrepit, unreliable and often nonfunctional car which has limited mechanical abilities and is often in an unmaintained and usually in a rusty or dented shape. A jalopy is not a well kept antique car, but a car which is mostly rundown or beaten up. As a slang term in American English, "Jalopy" was noted in 1924[citation
- Car Allowance Rebate System The Car Allowance Rebate System , colloquially known as "Cash for Clunkers", was a $3 billion U.S. federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. The program was promoted as providing stimulus to the economy, also known as "Cash for Clunkers", in the U.S.
References
External links
- Ontario Vehicle Information Package offers Ontario vehicle registration history
- Saskatchewan Damage Claims History Search provides the status of the vehicle (if any) in Saskatchewan and its damage claims history in Saskatchewan since Jan. 1, 1998.
- Federal Trade Commission
- Vincheck VIN A Vehicle Identification Number, commonly abbreviated to VIN , is a unique serial number used by the automotive industry to identify individual motor vehicles. Prior to 1981, there was no accepted standard for these numbers, so different manufacturers used different formats checking in the U.S.
WRGB
Unfortunately, the deduction does not apply to purchases of used cars , or where vehicles are leased. What's more, you may qualify for any of the five ...
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unknown
Mon, 25 Jan 2010 15:35:28 GM
Even though checking whether to purchase . used cars. for sale or a recent related vehicle could demand sufficient alert regard, it can be positively constructive.
Q. I have a nephew who wants to buy his own car. What is the cheapest used car out there? Anything lower than $2,000 and made after 2002?
Asked by Jack - Fri Aug 21 17:39:48 2009 - - 5 Answers - 0 Comments
A. Lets see... newer than 2002 and lower than $2000... do you want the car to run?
Answered by LT - Fri Aug 21 17:44:00 2009
