LaRiche Subaru

5 Reasons to Trade in a Car 

When deciding whether or not to trade in a car, vehicle owners need to weigh the advantages and disadvantages of doing so. Once all options have been considered, many people decide that trading in the car is the better decision. There are many reasons why someone would make this decision. Below are 5 of them:

Trading in a Car Is Relatively Hassle-Free

By trading in a car, people avoid the hassle of selling it privately. People trading in a car do not have to spend money on advertising their vehicle. Additionally, they do not have to display their personal telephone number or email address in a publicly-communicated forum. All that is required when trading in a car is a willingness to accept the dealership's offering price.

Trading in a Car Is a More Timely Transaction

When a car is brought to a dealership for trade, the dealer will purchase it from you same day. Sellers do not have to wait days, weeks or months to unload an unwanted vehicle. Instead, the dealer will evaluate it, do a quick test-drive, and make an offer on the spot. Sellers can decide to accept the dealer's offer or negotiate for a higher price. Either way, the deal will be completed much quicker than if the car was being sold through the private party channel.

Trading in a Car Lessens the Previous Owner's Responsibility

Selling a car privately exposes the seller to potential liability if anything goes wrong with the vehicle a short time after selling it. Even though most privately sold cars are sold "as is," buyers have demanded financial assistance from sellers for unexpected mechanical repairs. In certain instances, buyers have even taken private party sellers to court in an attempt to acquire a legal judgment in their favor. When a vehicle is traded in, the dealership immediately assumes all responsibility for the car. If the car is resold and experiences mechanical failure, the buyer will pursue the dealership for financial assistance.

Trading in a Car Can Help People Get out from under a Bad Loan

Under most circumstances, dealerships will take any vehicle in a trade. This includes vehicles where the owner is upside-down in the loan. A loan is considered upside-down when the car is worth less than the owner owes on it. Regardless of the amount owed, dealerships will pay off the loan when a financed vehicle is traded in. Of course, the previous owner is responsible for any loan balance above and beyond the trade-in price of the car. Instead of forcing the seller to pay the difference, most dealers will simply add the difference to the new loan balance.

Trading in a Car May Reduce the Loan Balance on the Purchase of a New Car

If someone owns a vehicle outright or has positive equity in it, trading in a car will net them cash at the end of the transaction. If this cash is applied to the purchase price of the financed new vehicle, it will reduce the loan balance. A reduced loan balance directly equals a lower monthly payment.

The decision to trade in a car should be thoughtfully considered prior to doing so. The 5 reasons above should help sellers make the decision that is best for them.


Questions To Ask When  Buying a Used Car 

Don't be intimidated when buying a used car from a used car dealer. Make sure you have done your homework ahead of time about the used car's values and then consult these Top Questions To Ask a Used Car Dealer.

If the car is certified, can I see the mechanic's pre-certification inspection?

Every   certified car   has to go through an inspection before it can be certified. Ask to see that paperwork to find out what was fixed. It's a good piece of paper to hold onto for future problems.

Who was the vehicle purchased from?

If it was a trade-in to that dealership, ask to see the maintenance records. Tell them they can black out the owner's name and address. If it was bought at auction, make sure it is gone over with a fine-tooth comb by a mechanic who specializes in inspecting used cars.

Who certified a used car that is called certified?

The only certification that means anything is a manufacturer certified pre-owned car . All others are insurance backed programs that I have rarely heard good things about.

Is a CarFax report provided before purchase?

A reputable dealership will have no problem with this. A disreputable dealership might, or worse yet, might present a doctored report. Make sure the report's vehicle identification number matches the VIN on the used car you're looking at.

What is the dealership's return policy?

High-pressure dealerships will probably laugh at this question. However, a consumer friendly dealership will probably give you time to rethink the purchase and at least provide you equal value. No dealership is going to offer you cash back.

What service has the dealership performed on the used car since acquiring it?

This helps you determine what value you're getting for your purchase. Complete overhauls mean you won't be dealing with service repairs anytime soon after purchasing the car.

Do you take trade-ins?

This makes your life a lot easier if the dealership will handle this for you. Don't let yourself get tied up in trying to selling your own used car, especially if you hate selling.

Should You Buy a Certified Preowned Car?

You don't need us to tell you that buying a used car can be a stressful experience.  But there's one way to alleviate some of the fear that you'll drive off in a dud: You could opt for a  certified pre-owned vehicle . All certified vehicles are inspected by a manufacturer-trained mechanic and come with extended warranties that are backed by the manufacturer. Many programs even throw in extra services that once were offered only with new vehicles.

Not all programs are failsafe, however. While some warranties extend for several years, others last just a few months. And there's always the chance some unscrupulous dealer will try to pass off any old car as an officially certified vehicle.

Here's how to get a good deal.

1. Delve Into the Details

Some certified pre-owned programs are much more comprehensive than others. You may find an eight-year or 80,000-mile warranty, roadside assistance, and loaner-car reimbursement through one dealer, and a warranty covering just six months or 10,000 miles with no loaner-car coverage through another.

2. Watch Out for "Dealer-Certified" Vehicles

There are two types of  certified pre-owned vehicles : ones that are backed by the manufacturer and ones that are certified by someone else. Watch out for dealerships and independent used-car lots that simply slap a "certified" sticker on a windshield, then try to pass that vehicle off as having gone through the same checks dictated by a manufacturer's program. Dealer-certified cars tend to have less-stringent inspection policies and shorter extended warranties than manufacturer-certified vehicles.  How can you tell the difference? First, only a branded dealership can sell its own manufacturer-certified vehicles. So if a BMW dealer is trying to sell you a Mercedes or if you're shopping at an independent lot, you can be confident that the vehicle in question is dealer-certified. It's also a good idea to ask to see all the paperwork that guarantees the car is backed up by the manufacturer.

3. Go Online

Even with certified vehicles, you need to make sure you're getting what's advertised. The fact is, even though all dealerships must make sure that their certified inventory passes the same 100+ point inspection process, there's some wiggle room that's left to the mechanic's judgment. So while one mechanic might think it's fine to certify a car that has been in a small collision but is otherwise running well, another might not.
To protect yourself, make sure you ask for a full maintenance history and inspection report, and run a vehicle history report from CarFax or AutoCheck.


Should You Buy a New or Used Car?

There are two car-buying options: new or used. As the cost of a  new car  continues to rise, many car buyers are opting for quality used cars. Car manufacturers are fighting back with  incentives  including low interest payment plans, rebates and other means of attracting new car buyers. The Internet, meanwhile, has made it much easier than ever to locate new car incentives and used car savings. Either way, the choice typically comes down to:

Why you are buying the car: Often, a second or third car, perhaps one for your son or daughter, will be a used car.

How much you can afford: Used cars cost significantly less than new cars (even with rebates). There are greater risks involved, however.

Whether a car is a status symbol: For some people a car is a sign of stature, while for others it is simply a means of getting around.

Typically, if you can put some money down on a new car without dipping into your investments or putting a dent in your budget and can pay off the car in three or four years with monthly payments, then a new car is a possibility. Of course, you have to consider your insurance payments and the regular costs of maintaining a car.

An advantage of a new car is that you will be under warranty for a period of time. Before buying, you want to shop around for a lender , find out the APR (annual percentage rate - or interest rate for the loan and the terms) and watch for the best deals. Often there are better deals offered on new cars as the fall approaches and the following year's new models role in.

Used cars are a little trickier. There are numerous places to look, including local ads, major used car dealers and online sites devoted to finding cars. The trick is evaluating the condition of the car and determining whether you are getting a fair deal or overpaying.

There are a few things to look for when buying a used car:

How old are the parts in the car? Has it been well-maintained? Have parts been replaced?
Does the paint feel smooth or is it covering rust or dents?
Can you get the paperwork that should come with the vehicle?
Check the car's history. CarFax can provide the accident history of the car, any odometer rollbacks, and so on.

There are many things to check when buying a used car, including the reputation of the dealer.



Why You Should Do Your Maintenance At The Dealer 

If your car or truck is 8 years old or newer, often times the best answer is the dealership. Here's why:

Manufacturers keep secrets. Manufacturers are legally allowed to keep status codes and repair manuals secret, and often times a vehicle that's just two or three years old can't be diagnosed by an independent shop because the independent doesn't have access to the manufacturer's documentation. On vehicles that are less than 5 years old, independent shops don't always have the right equipment to diagnose your car correctly (especially for the more complicated problems).

Dealers have tremendous resources. Answer these two questions before your next oil change:

1. If your independent shop screws up and forgets to tighten lugnuts, or forgets to put your drain plug in your engine, can they write you a check for a new vehicle? Do they have insurance to cover any accidents their mistakes might cause?

2. If your independent repair shop can't figure out what's wrong with your truck, can they call the engineer in charge of the system?

The answer to question 2 of course is 'No,' and often times the answer to question 1 is 'No' as well. While every shop carries some sort of liability policy, a lot of the smaller shops don't have the best insurance, nor do they have a lot of cash on hand. Auto dealers, on the other hand, are required by both the manufacturer they represent and the state they do business in to carry comprehensive insurance, and dealerships are significantly more likely to have cash to pay for their mistakes.

Dealers aren't any more expensive than independents. OK - the guy down the block that changes oil for $30 cash is definitely cheaper, and if you want to take your $20k-$50k vehicle to a guy that changes oil in his driveway be my guest. However, if you compare pricing at your typical independent chain (like Midas or Jiffy Lube), often times the costs are the same as those you would find at a dealership. Dealerships might be a little higher on some things, but often times they provide services that Midas and Jiffy Lube do not (like free loaner cars and high-quality waiting areas with free capuccinos, etc.).

Dealers are less likely to lie to you. A lot of people believe that independent shops are more honest than dealers, but a comprehensive study conducted by AutoMD.com found that independent shops change their pricing from day to day. In Chicago, for example, AutoMD found that every shop they contacted changed their price quote for the same service over the course of a few days.

Think about it - who has more to lose by lying to customers? The guy who works out of an abandoned gas station, or the corporation that owns a $25 million dealership complex? If an independent shop gets a bad reputation, they can always close and move somewhere else and start over. However, if a Toyota dealer gets a bad reputation (for example), Toyota (or any other manufacturer) can take their franchise away and ban them from ever owning a Toyota dealership again.

After warranty assistance. A lot of consumers don't know about it, but After Warranty Assistance (AWA) can be a life-saver. Every new car dealership has the discretion to "warranty" a portion of repairs that aren't actually covered in the interests of customer service. For example, if your Tundra loses an air induction pump and it's no longer under factory warranty, your local Toyota dealer has the discretion to pay for some or all of the repair as a sign of goodwill (known in the business as AWA).

This, obviously, is a tremendous benefit. Even if the dealership charges you a little more for your normal maintenance (and they often don't), all it takes is one repair covered by after-warranty-assistance to earn back your higher expenses.

Dealers don't just hand out AWA, however. They have a limited amount of funds that they can give away, and they usually don't grant AWA to people that don't do all their service at the dealership. So, all the more reason to do your vehicle maintenance at your local dealer.

The dealer specializes in your car. Can it be any simpler? They see hundreds of cars just like yours every month. Your independent? Maybe? But most likely no. He or she probably sees a different make and model every day, and as a result they don't know as much about your vehicle as your local dealer.