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Entries in Used Cars (3)

Thursday
Jun162016

Used Vehicle Values

We were just reading an informative article, that Canadians lack information when it come to knowing what the value of their vehicle. Its a bit of a wow moment. Since most folks we talk to all mention that CMS (Citizen Main Street) is well informed on to the value of their vehicle.

Just in case you missed some entries in our "Tip of the Day"

What is My Car Worth this was the first entry in our tip of the day series. We provided a concise process to arrive at what your car is worth.

You Have a Trade In we described the trade in process.

Do You Have Equity or Cash or Both as you know with longer finance terms having equity in a vehicle can be challenging.

Is CMS really so far behind the 8 ball. We don't think so. Perhaps its a simple point that if you are not considering, buying, trading, selling a vehicle. Who cares what they are worth, or selling for.

We are all under time constraints and there are surely better things to do than exploring vehicle values that change weekly just for the fun of it.

When you do need information, you scramble to remember where to find it, the URL, the search takes  you somewhere else, and so on.

If you are a regular reader of our publication you are not in the dark, and perhaps you should tell your friends that Strada will keep them informed.

Here is Brian Murphy of Canadian Black Book describing the results of the survey.

 

Tuesday
Feb092016

Safety Inspection

As you certainly know the various jurisdictions in Canada, have their own rules, laws governing the inspection and sales of used vehicles to consumers.

Lets focus on the new regulations that will become effective in Ontario on July 1, 2016 regarding the mandatory safety inspection prior to selling a vehicle to a consumer.

The safety inspection that is in place now, basically ensures that a vehicle is safe to be driven on the road at that particular moment in time.

Reflect on this for a moment...the inspection ensures that a vehicle is safe to be driven on the road.

We all know the "misconception" that a safety inspection implies that its a good vehicle, as well as the trend of advertising a price for a used vehicle, while mentioning that a sefety inspection is an option above the advertised price.

We could keep on going...we are certain that you have grasped that in Ontario a safety certificate (safe to be driven on the road) is essential to to put plates on a vehicle.

Well...its all changing in a few months, and its about time too.

A quick overview

The powertrain section gains a raft of new checks to items such as the gas pedal, throttle actuator, exhaust system, driveshafts, differentials, clutch and clutch pedal, engine and transmission mounts, gear shifter and position indicator, drive belt pulleys, and fuel system. There’s also a timely new requirement related to hybrid and electric drivetrains.

Tires will be subject to a deeper minimum tread depth, and tires will fail a safety inspection if “any single point on the… tread is below the minimum.”

Requirements for structural integrity will be much more stringent, “to deal with a loss of structural integrity of cab, cargo or passenger body, frame or sub-frame, tailgate, bumper, seats and seat belts due to specified weaknesses, deficiencies, damage, seizure, wear, loss of components or material or improper repair procedures.” All door latches, handles, and hinges will be subject to more rigorous inspection, and all occupant protection systems (including airbags and seatbelt pre-tensioners, in cars so equipped) must be tested “via the telltale diagnostic lamp.”

A car or light truck’s suspension will have to meet new standards for ride height, bushings, and shock/strut performance, and there are revised rules for measuring brake lining thickness and ensuring that anti-lock (ABS) and – in vehicles built on or after September 1, 2011 – stability control (ESC) systems work properly. The steering system also comes under increased scrutiny, with new requirements for components such as strut bearings and tilt/telescopic steering column hardware.

In the lighting department, LED (light-emitting diode) brake lights and turn indicators – which are becoming increasingly common – will need to meet a standard for the number of diodes (many automotive LED lights are made up of a large number of individual diodes) that must light up. As well, there are updated rules for vehicle wiring, plus other components such as the horn, speedometer, odometer, and windshield wipers.

From our perspective its about time the "safety inspection" in Ontario became more comprehensive, stringent. To reflect the reality of modern vehicles...click. Yes...a report must be provided to the consumer.

We could keep on going here, but its great that finally a more comprehensive "safety inspection" will be required to ensure that a vehicle is safe to be driven on the road.

Think of the exploding popularity of CPO (certified pre owned) vehicles which imply inspections and reconditioning dramatically above a safety inspection.

The current pedestrian discussion is that dealers will pay less for vehicles and trade ins, and sell them for more money. Reflect on this for a moment...a good vehicle is a good vehicle always was, and always will be.

 

 

Tuesday
Jan192016

You Have A Trade In...

Who doesn't have a trade in?


How many trade ins have negative equity?

The classic sell it yourself, to get more money.

The ongoing conversations around trade ins are antiquated, stale, and a different version of the same old.

In 2016 empowered by technology do you want to be part of the "haves" with the same old stories, perspectives. Or do you want to be part of the "have mores" by being innovative and disruptive?

The "Haves"

I'll get low balled by the dealer, who is an expert negotiator they earn a living negotiating. I'll try to sell it myself, how challenging can it be to sell a 15 to 20K vehicle out of my driveway? Dealers do it every day.

We could keep on going, surely by now you know the story of the "haves".

The "Have Mores"

I need to maximise the value of my vehicle. I need to sell my vehicle to a dealer. I know what my vehicle is worth. I will clean my vehicle or have it detailed...we all buy with our eyes. I will have my own Carproof report for my vehicle. If my vehicle is financed or leased I will know my payout. I will know if I am in a positive or negative equity position.

Sell it yourself from your driveway

If its a 1K to 5K vehicle its somewhat easier, if its a 15K to 20K vehicle its dramatically more challenging to sell it from your driveway, while providing financial services to fund the sale.

I want the most money for my trade in

Everybody wants the most money, in a wishing and hoping way. You did your due diligence, your vehicle is clean inside and out, you have a Carproof to support the "provenance" of your vehicle. You know the pay out if its applicable. In your mind you have a "value point" for your vehicle that will trigger a decision.

You have a story line to describe why your vehicle is unique, why its worth more money.

The dealer is a magician with trade ins

Remember the dealer needs to take a trade in to close a deal. Especially around the end of the month there is heightened pressure on the dealer, and sales consultants to close additional deals. Does the vehicle you are trading present a retail profit opportunity to the dealer? Be aware that his software already told him if your vehicle today is a retail opportunity, or a wholesale unit.

The dealer is not a magician, he is as vulnerable as you are with trade ins.