The truth about car buying

In today’s world, most people are concerned with saving as much money as possible; definitely not wasting money.

When it comes to purchasing a new vehicle you have some options. You can purchase a brand new vehicle and you can only do so by going to the OEM franchise stores. These dealerships usually have higher fees and you will most definitely pay more in sales tax as the vehicle prices will be higher than buying used.

You can buy a used vehicle from a private owner. This sale will most of the time be more cost effective than going to a used car dealer. The adverse side to buying from a private owner is accountability. Most private owner sales will not have a recourse if you bought a bad vehicle. There are many horror stories out there all over the internet of people who purchased used vehicles off sites like craigslist, ebay or even mobile apps like OfferUp, Let Go and 5 Miles. People sell vehicles, most of which are selling open titled vehicles (which is illegal) on these platforms. If they happen to sell you a bad vehicle you will have a tough time getting your money back or having the vehicle repaired.

In the event the car is okay, you still need to go to your local DMV and pay sales tax and have the vehicle registered and titled in your name. This is very time consuming and a hassle to say the least.

Finally you can purchase a used vehicle from a used car dealer. Most people are concerned with buying from used car dealers because they feel the used car dealer will sell you a bad vehicle and charge too many fees.

Well, this is something you may or may not know. Used car dealers (in the state of Florida), go through so much red tape and regulations all for the protection of the consumer……so YOU! We have to obtain an auto dealers license from the state which is a big undertaking. You must complete the dealer’s school program which teaches the laws and regulations in selling vehicles to consumers. To become a Florida auto dealer, you must provide a $25,000 bond to the state. This bond must be renewed every year which means the dealer must pay for a new bond each year. Why is a bond required to receive an auto dealers license? I’m glad you asked…in the event you purchase a bad vehicle from a used car dealer and the dealer makes no effort in resolving the issue; you as the consumer can make a complaint with the state and the state will compensate the consumer and deduct those funds from the dealer’s bond. At that point the dealer has a defined amount of time to replace those deducted funds or their auto dealers license will be voided.

Addition to the bond, the auto dealer is required to have garage liability and in some cases open lot insurance coverage. These insurance policies cover the vehicles in inventory, customer vehicles while on the property and customers on the property in the event of an accident or slip and fall, etc. This type coverage is very costly.

Finally, the state requires that all auto dealers have a place of business (a physical location) either a leased or purchased property. The property must have at least one office big enough to conduct business out of and enough parking spaces to split from customer parking and inventory vehicle display spaces.

So this is why most of the time, auto dealers market their vehicles on a retail basis. Its is for good reason, licensed dealers are required to have systems and insurance and bonds in place for the protection of the car buyer. This makes the operations of running an auto dealership more costly than a private owner exponentially. This also make buying cars from used car dealers a very safe and sensible method. Most used car dealers today even have outlets to sell extended coverage warranties on vehicles for that added piece of mind. So the next time you find yourself shopping for a vehicle, don’t hesitate visiting a used car lot, its safer than you think.

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