It doesn’t take a genius to figure out that gas prices have a huge impact on the car market.  When gas prices jump up, it sends consumers into a frenzy to trade in their gas guzzler for a more fuel efficient ride.  This causes a flood of 8 and even 6 cylinder vehicles on the secondary market, and a high demand for smaller, 4 cylinder vehicles.  On the new car market, dealers are having more trouble selling the big vehicles, so the manufacturers are offering significant incentives to move them.  This further reduces the value of similar vehicles on the secondary market. 

Those of us that took economics classes in school remember that when supply exceeds demand, as with the big gas guzzlers, prices plummet.  On the other hand, when demand increases (think little Honda), prices also increase. The recent gas hikes, combined with the overall state of the economy, have certainly caused a shift in the supply and demand for various vehicles.   Not surprisingly, the prices of large SUVs have dropped.  Pickups have also dropped in price, but there is still a demand for work trucks.  On the flip side, the price of 4 cylinder cars, like Hondas and Toyotas, has increased.  I went to auction last week to buy a Honda Element for a client.  I looked at the auction report and saw that they were selling for around $15,500 (auction price).  A vehicle with the exact same year, mileage and options sold for $17,300 just two weeks later!  Even the dealers are shaking their heads.  You can pretty much throw “book value” out the window. 

So, what does this mean for the average consumer?  Determining an accurate value for your trade is a little more challenging than usual right now.  So is determining a fair price to pay for a used car.  It also makes it harder to find a dealer who is willing to give you decent money for your gas guzzling trade.  Therefore, it is even more important to work with a consultant, like Women’s Automotive Solutions, to make sure you get the best price for both your trade and your new (or used) car.  We understand the current market conditions, and we know who is buying and selling what types of vehicles.  You can trust us to get you the best overall deal.  Just give us a call

While most people understand the importance of getting their car into pristine condition when selling to an individual, they rarely take the same care when trading in a vehicle to a dealer.  After all, they’re just “trading it in”, right?  WRONG! 

The term “trade in” was intentionally developed by the automotive industry to separate consumers from the idea that they were selling their car.  It’s the same reason that casinos have gamblers use chips instead of cash – to make them feel like they aren’t risking real money.  But, you are.  When you are “trading in” car to a dealer, you are really selling the car, and you should take the proper steps to prepare your vehicle, if you want to maximize the selling price.

Your car should be in the best possible mechanical condition when you try to sell it.  Be sure that you have performed all of the scheduled maintenance and consider fixing any minor issues.   Gather all of your maintenance records and receipts, including oil changes and any warranty or repair work, so you can prove to prospective buyers (including dealers) that the vehicle has been well maintained.

The appearance of the vehicle is equally important.  You may overlook some dirt, stains and cosmetic blemishes because you have an emotional attachment to the car (whether you realize it or not).  A prospective buyer does not.  That isn’t to say that you need to have every tiny scratch and door ding removed to make the car look brand new again.  A certain amount of wear and tear is to be expected on a used car, consistent with its age and mileage.  However, spending a few hundred dollars to have any dents or scrapes fixed (remember that time you backed into the mailbox?) could net you hundreds to thousand dollars in the selling price.  You may not even need to take your car to a body shop.  Mobile repair companies can perform minor body and paint work in the comfort of your own driveway at a lower cost than most body shops.
 
You should also thoroughly clean your car inside and out.  Clean out all the junk and trash you may have floating around inside, under the seats and in the trunk.  Vacuum every nook and cranny, clean the upholstery and headliner, and wipe down the dashboard and other interior surfaces.  Clean all the glass, inside and out, including the mirrors.  Wash and wax the exterior, polish the wheels and gloss the tires.  If the vehicle is a sports car or luxury car, consider buffing out any scratches, fixing any “curbed” wheels, and even detailing the engine compartment, as buyers of these vehicles tend to be more discriminating.   If all of this scrubbing sounds like too much work, consider having your vehicle professionally detailed.  Even taking it to the local car wash for a quick bath and vacuum will make a difference.
 
The appearance of your car is just as important if you are trading it in.  When a dealer appraises your car, he has to take into consideration all the costs he will incur to recondition the vehicle for resale.  He has to pay to fix it, clean it, advertise it and sell it, while making a comfortable profit.  While a dealer may be able to do repairs and detailing at a lower cost, it is still a hassle and increases his overhead expenses.  The dealer may even decide that the reconditioning costs are more trouble then they are worth, and he will simply haul the car off to an auction and offer you below wholesale price!
Dealers are also human beings and, therefore, not immune to the “wow” factor.  A clean, beautiful car invokes a positive emotional reaction, which easily raises the selling price.  Most of us, including dealers, also assume that people who care about their car’s appearance also take good care of it mechanically.  This can be a dangerous assumption, but you might as well use it to your advantage. 

The bottom line is that nobody wants to buy a dirty car.  Spending a few dollars upfront to make your vehicle looks its best will pay you back in the long run.

Getting your car ready to sell can be a pain, especially if your vehicle has some minor damage.  You know that you should really fix that scrape on the side where you grazed the garage door or the dent in the bumper where you hit the mailbox, but you don’t want the hassle of putting your car into the body shop for a couple days.  Fortunately, there are companies that bring the body shop to you! 

Companies like Collision on Wheels can do minor collision repairs in your own driveway or the parking lot at your office, saving you valuable time.  They even have a mobile paint booth (think big, blow-up tent) to do paint touch-ups.  Naturally, they can’t fix the big stuff, but bumper dings and scrapes are their specialty and at a price that is typically 20% - 50% less than a traditional body shop.

Go one step further, and have your car professionally cleaned by a mobile detailer.  Professional detailers know how to buff out light scratches, get stains out of upholstery and make your car shine! 

Collision on Wheels is a national franchise with certified technicians in most major cities, including Charlotte.  For a free estimate, call 1-866-551-DENT.  Visit them on the web at www.CollisionOnWheels.com.

Zoom Impressions is a mobile detailer in Charlotte, NC that cleans cars, trucks, boats, motorcycles and even airplanes.  For a quote or appointment, call 980-297-6546 or visit www.ZoomImpressions.com.

I have so many clients who come to me and say, “I looked up my car on Kelley Blue Book, and it’s worth $XXX!”  Unfortunately, it’s probably not.  Let’s face it – we all love our cars (ok, some of us more than others) and think they are worth more than they actually are.  Guides like Kelley Blue Book often serve to confuse us further.  That is why I wanted to take this month to explain what truly determines a vehicle’s value.  Not to make you mad, but simply informed.  To do this, we first need to learn who this “Kelley” guy is, and where his “Blue Book” came from. 

Kelley Blue Book Co., Inc., began as the Kelley Kar Company, a Los Angeles based car dealership, in 1918, founded by Les Kelley.  The dealership with three used Model T Fords and one employee, his 13 year old brother Buster.   In order to build up inventory, he began circulating lists of cars he wanted to buy along with the price he was willing to pay for them.  These price lists quickly became a trusted “standard” (since nothing else existed) among Los Angeles area banks and car dealers.  In 1926, Les published his first “Kelley Blue Book”, a guide to used car values.  Over the years, Kelley Blue Book expanded nationwide and began to be used by insurance companies and lending institutions to estimate the value of a vehicle. 

The problem with Kelley Blue Book is that its estimates are based on vehicle values in California, which (like everything else) are higher than most other areas of the country.  This was acutally a benefit if you were applying for a car loan or anticipating a payout from your insurance company!  Unfortunately, the insurance companies caught on to this, and now most of them keep their own “books” with estimated values that are more favorable to their pockets.  Auto dealers like CarMax use the inflated Kelley Blue Book values to their favor, making you think that you are getting a good deal on a car when you are really not.  Some banks still determine auto loans based on Kelley Blue Book value, but many have moved to using the NADA (National Automobile Dealers Association) guides, which is based on both dealer and auction sales data.   Dealers have their own book, called the Black Book, that estimates the wholesale value of vehicles based on weekly auction data.  Edmunds.com has an online vehicle appraisal tool, but I have found their estimates to be high on most cars and low on others.

So, then, what does determine a vehicle’s value?  The same thing that determines the value of houses, stocks and cotton t-shirts – the market.   That market varies almost daily, depending on your geographic location, the time of year, and who is buying cars that day.   Everyone knows that convertibles sell better in the spring and summer, while SUVs sell better in the fall and winter.  Except in Florida.  You may ask, “If the market for my car changes every day, then how do I know what my car is worth?” 

If you want to get a rough idea of what your trade is worth, call any car dealer or Women’s Automotive Solutions and ask what the Black Book value of you car is, based on the make, model, year, mileage and condition.  You should also look on Cars.com and Autotrader.com to see what retail prices local dealers are asking for similar cars.  A dealer will usually sell a car for a few hundred to a couple of thousand dollars less than the listed price.  The dealer will typically offer you anywhere from $2,000 to $6,000 less than the retail price for your trade, depending on the type and condition of your vehicle, in order for him to make a fair profit on the resale.

The key things that affect your vehicle’s market value are year, mileage, reliability (of the make/model), popularity and condition.  Cars with high reliability ratings, like Honda and Toyota, hold their values better over time.  So do certain “high line” cars like BMW and Lexus because of their desirability.  A vehicle’s condition is determined by how well it has been maintained mechanically, the condition of the upholstery and paint, and whether or not it has been in any accidents.  A scratch or scrape in the paint may lower the car’s value by a few hundred dollars.  If you smoked in your car, you will typically lose over $1,000 in value!  Finally, if you show up to the dealership with a car that hasn’t been washed or vaccumed in months, don’t expect them to offer you top dollar.  They will have to spend several hundred dollars to get the car cleaned up and ready to resell.   Remember - dealers are people too – and everyone likes a clean, shiny car.