Opinion about buying used car

[Dark_flan]

Hi, need some opinion from experts here as I have no experience buying a used car.

 

Right now, I got my eye on a 2009 Honda Civic and have some doubts about the finance and reputation of the deal.

 

• I intend to pay full cash without any loan. Understanding that such arrangement would means that the price be mark up in a way. What is the norm market mark up for this case. They mark up my price around $2k.
• They propose a loan of half of purchase and mentioned for 4 yrs but I make full settlement after the 6th month without any penalty from the bank. But a repayment of unused interest of 70% to 80%. Is it so?
• I saw this particular car twice on the internet on SGcarmart. The first is sold and now the ad is opened again. Is there any reason for me to be careful of. Heard a lot of scams outside by second dealers a lot.

 

[So_nice]

Many other civics available. Cash is king. Got money no worry no car

[13177]

If you have doubts, source for another car. There are plenty of civic around.

[nizmo89]

Hi, need some opinion from experts here as I have no experience buying a used car.

 

Right now, I got my eye on a 2009 Honda Civic and have some doubts about the finance and reputation of the deal.

 

• I intend to pay full cash without any loan. Understanding that such arrangement would means that the price be mark up in a way. What is the norm market mark up for this case. They mark up my price around $2k.
• They propose a loan of half of purchase and mentioned for 4 yrs but I make full settlement after the 6th month without any penalty from the bank. But a repayment of unused interest of 70% to 80%. Is it so?
• I saw this particular car twice on the internet on SGcarmart. The first is sold and now the ad is opened again. Is there any reason for me to be careful of. Heard a lot of scams outside by second dealers a lot.

 

As far as i know if you pay full cash without needing any loan there shouldnt be any mark up. Regarding the same particular car, could be direct owner sell to car dealer and now car dealer put up another ad. Best is to read this topic first:http://www.mycarforum.com/topic/2685954-beware-of-2nd-hand-car-dealerspart-2-blacklist-here/?hl=blacklist.

 

 

[TameDriver]

 

TS, forget about paying the extra 2K .......don't see why should you be penalized for paying full cash; less paper work for them & faster transaction.

[Watwheels]

Hi, need some opinion from experts here as I have no experience buying a used car.

 

Right now, I got my eye on a 2009 Honda Civic and have some doubts about the finance and reputation of the deal.

 

• I intend to pay full cash without any loan. Understanding that such arrangement would means that the price be mark up in a way. What is the norm market mark up for this case. They mark up my price around $2k.
• They propose a loan of half of purchase and mentioned for 4 yrs but I make full settlement after the 6th month without any penalty from the bank. But a repayment of unused interest of 70% to 80%. Is it so?
• I saw this particular car twice on the internet on SGcarmart. The first is sold and now the ad is opened again. Is there any reason for me to be careful of. Heard a lot of scams outside by second dealers a lot.

 

 

Most likely there are a couple of other buyers who is interested in the same car. So the dealer will tell each of you this "particular buyer" is offering a higher price dan you. If you are able to up and raise the guy's offer the car will be yours. Long story short they will keep upping the price and see which fool takes their bait. The last buyer could have saw through their trick and didn't close the deal.

 

There's no harm going there to see if it's true. Just walk away if they really pull that trick.

Edited May 1, 2015 by Watwheels

[Throttle2]

Hi, need some opinion from experts here as I have no experience buying a used car.

 

Right now, I got my eye on a 2009 Honda Civic and have some doubts about the finance and reputation of the deal.

 

• I intend to pay full cash without any loan. Understanding that such arrangement would means that the price be mark up in a way. What is the norm market mark up for this case. They mark up my price around $2k.
• They propose a loan of half of purchase and mentioned for 4 yrs but I make full settlement after the 6th month without any penalty from the bank. But a repayment of unused interest of 70% to 80%. Is it so?
• I saw this particular car twice on the internet on SGcarmart. The first is sold and now the ad is opened again. Is there any reason for me to be careful of. Heard a lot of scams outside by second dealers a lot.

Tell the fella, "i pay full cash so it should be $2k less"

 

If $2k more you want to be sucker to buy?

Oh come on!

 

Like the bros say, civic plenty, scared cannot find ah?

 

I sell you my 100% agent maintained genuine mileage Mazda 2 1.5R ai mai?

I love full cash buyers!

 

PM me if serious

[Dark_flan]

I was told that the first ad is posted by the owner as direct sales but because the the previous owner takes delivery of new car thus sold to the dealer for quick sale as they are friends. Nonetheless I think I shall hold out for another ride as there could be better ones out there since I got ready cash. Very tiring to buy a car I noted.

 

I set a lower price than what the dealer is asking so I think they might reject my offer anyway.

Tell the fella, "i pay full cash so it should be $2k less"

If $2k more you want to be sucker to buy?
Oh come on!

Like the bros say, civic plenty, scared cannot find ah?

I sell you my 100% agent maintained genuine mileage Mazda 2 1.5R ai mai?
I love full cash buyers!

PM me if serious

 

Ha sorri mate, Mazda 2 seems small for me. Gotten used to 1.6's body but looking to upgrade,

[Fcw75]

KNN, pay full cash still have to pay extra $2K?

 

That's FUBAR.

[NightWind]

Dont see why they should markup if they advertise this as the price. Infact i think they just wana make more margin. Many civics around. Take a look at other rides. Are they similarly priced adjusting for mileage, age and condition of the car?

 

Hi, need some opinion from experts here as I have no experience buying a used car.

 

Right now, I got my eye on a 2009 Honda Civic and have some doubts about the finance and reputation of the deal.

 

• I intend to pay full cash without any loan. Understanding that such arrangement would means that the price be mark up in a way. What is the norm market mark up for this case. They mark up my price around $2k.
• They propose a loan of half of purchase and mentioned for 4 yrs but I make full settlement after the 6th month without any penalty from the bank. But a repayment of unused interest of 70% to 80%. Is it so?
• I saw this particular car twice on the internet on SGcarmart. The first is sold and now the ad is opened again. Is there any reason for me to be careful of. Heard a lot of scams outside by second dealers a lot.

[Bigtoothpick]

I've had my share of pain browsing for used cars few months back. Noticed that :

1. Makes that are not so popular can be held by dealer for up to a year. And they still price it exactly the same throughout. So do a Google search to see if you want to buy a car sitting idle for one year (unlikely for Civic though).

2. Listings on SG Carmart can be $1k or $2k lower than the sticker price you see on the actual car itself.

3. Full cash payment makes no real diff to dealer. It's case by case. You just bargain for best price.

4. Ad listing price may suddenly go up by a few $'k after you see it. It's when some other buyer has agreed to buy at earlier price but had not completed transaction yet so the dealer is fishing for a better deal.

 

Just some first-hand observations. In the end, I gave up and downgraded to a smaller but new car.

[Nzy]

I thought pay full cash usually can bargain lower. When I bought my car, the guy gave me discount cuz I told him I can pay immediately and take the car.

[Othello]

I thought pay full cash usually can bargain lower. When I bought my car, the guy gave me discount cuz I told him I can pay immediately and take the car.

 

different dealers have different strategy. some play on volume - office at some old building to save on lots, earn a few K per car, do not want to hold car for long.

 

some wanna earn more from insurance, loan etc. Pay cash means no loan referral fee to earn.

 

but yeah, ultimately consumers are the ones that pay. Not happy, just walk away lor. So many cars in the market.

[BobbyTan_74287]

I've had my share of pain browsing for used cars few months back. Noticed that :

1. Makes that are not so popular can be held by dealer for up to a year. And they still price it exactly the same throughout. So do a Google search to see if you want to buy a car sitting idle for one year (unlikely for Civic though).

2. Listings on SG Carmart can be $1k or $2k lower than the sticker price you see on the actual car itself.

3. Full cash payment makes no real diff to dealer. It's case by case. You just bargain for best price.

4. Ad listing price may suddenly go up by a few $'k after you see it. It's when some other buyer has agreed to buy at earlier price but had not completed transaction yet so the dealer is fishing for a better deal.

 

Just some first-hand observations. In the end, I gave up and downgraded to a smaller but new car.

I also downgraded from MPV to 1,6 new car. Used car really too expensive compared to new car.

[Pioneer]

With regards to your points:

 

1. The car may be sitting there for an year but there may be test drives as well. Also they need to shift the car around so it is unlikely the car literally sits there without the engine starting at all. I have gotten a car that belongs to the unpopular brand. I did all the necessary maintenance and it is working well.

 

2. Listing prices are different on SG Carmart and the sticker price because the person updating the price online is not the same person updating the sticker price. If you tell the SEs politely, they will honour the online price. I do not see anything wrong with it.

 

3. Full cash payment is bad for the dealers. They want you to take loan because there is additional money to be earned.

 

4. They raised the price of the car they are going to sell because so that they can get a bigger loan for their customers. Enough buyers have requested the dealers to get a higher loan for them. This is why some car prices increased from a few thousand to 10 thousand+. I doubt they raised their price to fish for better deal. It sounds counterproductive.

 

I have been often offered a loan amount larger than the 50% or 60% of the selling price of the car so I am very sure the raise in price is to bend the MAS rules.

 

 

 

I've had my share of pain browsing for used cars few months back. Noticed that :
1. Makes that are not so popular can be held by dealer for up to a year. And they still price it exactly the same throughout. So do a Google search to see if you want to buy a car sitting idle for one year (unlikely for Civic though).
2. Listings on SG Carmart can be $1k or $2k lower than the sticker price you see on the actual car itself.
3. Full cash payment makes no real diff to dealer. It's case by case. You just bargain for best price.
4. Ad listing price may suddenly go up by a few $'k after you see it. It's when some other buyer has agreed to buy at earlier price but had not completed transaction yet so the dealer is fishing for a better deal.

Just some first-hand observations. In the end, I gave up and downgraded to a smaller but new car.

 

Used cars are expensive because of the brand that you choose.

 

Basic Economics - When demand exceed supply, price level goes up.

 

The truth is that people are still willing to buy those reputable car brand despite the high price. Therefore, the dealers are happy to sell you at a high price.

 

Someone did a calculation and compared that the price of owning a unpopular brand (Fear of higher maintenance cost) was actually still cheaper than a reputable car model with lower maintenance cost.

 

As long as we believe the brand X is more reliable and cheaper to service, we then must prepare to pay more for the car itself.

 

 

 

I also downgraded from MPV to 1,6 new car. Used car really too expensive compared to new car.

 

[TameDriver]

I thought pay full cash usually can bargain lower. When I bought my car, the guy gave me discount cuz I told him I can pay immediately and take the car.

Not always this way. I think u already paid the higher end of his profit margin, even after bargaining. By not charging/stating extra for paying full cash, it makes customer satisfied & happy thinking that he's got a good bargain.

 

From a few personal experiences - bargaining power from listed price is lowered when I mentioned that no loan was needed. Didn't know why it was so.....until a naive sales guy explained that when one takes a loan, the company/agent gets a cut from the lending company/bank.

 

 

Had the same experience when buying a new car.......long long ago......when Kah Motors was doing very well, I had my eyes on a outgoing CRV model & the price was attractive. However, have to be tied down to a certain number of years in loan. When I stated that I don't need to take such long repayment period, they raised the price of the car...to make up for the loss in interest earned!

Edited May 2, 2015 by TameDriver

[Bigtoothpick]

With regards to your points:

 

1. The car may be sitting there for an year but there may be test drives as well. Also they need to shift the car around so it is unlikely the car literally sits there without the engine starting at all. I have gotten a car that belongs to the unpopular brand. I did all the necessary maintenance and it is working well.

 

2. Listing prices are different on SG Carmart and the sticker price because the person updating the price online is not the same person updating the sticker price. If you tell the SEs politely, they will honour the online price. I do not see anything wrong with it.

 

3. Full cash payment is bad for the dealers. They want you to take loan because there is additional money to be earned.

 

4. They raised the price of the car they are going to sell because so that they can get a bigger loan for their customers. Enough buyers have requested the dealers to get a higher loan for them. This is why some car prices increased from a few thousand to 10 thousand+. I doubt they raised their price to fish for better deal. It sounds counterproductive.

 

I have been often offered a loan amount larger than the 50% or 60% of the selling price of the car so I am very sure the raise in price is to bend the MAS rules.

 

 

 

 

 

Used cars are expensive because of the brand that you choose.

 

Basic Economics - When demand exceed supply, price level goes up.

 

The truth is that people are still willing to buy those reputable car brand despite the high price. Therefore, the dealers are happy to sell you at a high price.

 

Someone did a calculation and compared that the price of owning a unpopular brand (Fear of higher maintenance cost) was actually still cheaper than a reputable car model with lower maintenance cost.

 

As long as we believe the brand X is more reliable and cheaper to service, we then must prepare to pay more for the car itself.

 

 

 

 

Thanks for sharing. We all know that used car dealers here have already developed into a fine art the economics of maximising profits. Nothing illegal or wrong with that in a free economy. Good for TS to understand better in his car hunt.

[Bigtoothpick]

When I stated that I don't need to take such long repayment period, they raised the price of the car...to make up for the loss in interest earned!

I think it's individual sales person. The KM guy actually discouraged me from taking loan after finding out I could do without. No diff in pricing. He just wanted to simplify paperwork and get the deal done chop-chop. Edited May 2, 2015 by Bigtoothpick