Its official, according to a recent survey lightly used cars are a far better Investment.
Some of Britain's most popular cars can lose almost half their value in the first year of ownership. And after three years, depreciation has wiped away about two thirds of a car's purchase price, according to the survey from price comparison company uSwitch.com. A Ford Focus Style 1.8, for instance, loses 48% of its value in the first year, a futher 10% in the second year and just 7% in third year.
If you look at the depreciation rates for the second and third years, our stock represents a far better investment than a new car.
Can you offer any sort of warranty with the car?
There are generally two types of warranty available, independent insurance backed schemes and dealer`s own schemes. Dealer`s schemes rely on the company remaining in business, 248 motor traders became insolvent in 2007, 319 in 2006. Thats alot of worthless dealer scheme warrantees, you may also have to use the dealer for all service and repair work, not that handy when you traveled 60 miles to buy your car. With insurance backed schemes you are not normally tied to the dealer for service and repair work but they usually have limits as to how much you can claim.
With us you have a choice, we offer our own basic 3 month warranty included with the price of each retail priced vehicle but we also offer a low cost upgrade route to an Auto-Protect warranty.
(Part exchange clearance vehicles have no retail mark-up and do not come with a warranty.)
We have negotiated a quality scheme with one of the country's largest warranty providers.
Why do we not have our own repair facility ?
Because times have moved on from when a chap in overalls with a decent set of spanners and a Haynes manual can carry out repair work to todays computerised, sensor controlled vehicles. On board diagnostics mean unless you have recently invested several thousands of pounds for each manufacturers test equipment and are up to speed on each models current technical information you shouldn`t even be trying to tinker with the oily bits (although many do with varying degrees of success!) . By using a selection of experienced independent specialists you can match the car to the best suited garage. The people who repair a Vauxhall Corsa aren`t necessarily the optimum choice for a Toyota Yaris, Citroen C2 or even a Ford Focus. It also ensures a qualified third party casts their eye over our cars, if you do your own in house repairs the temptation to turn a blind eye every now and again must be strong. As for using one of the "motoring organisations" to "inspect" all the cars on your forecourt; we`ve seen the five minute cursory glance they give our late, low mileage vehicles. I can asure you, its not worth the fee which ultimately gets added to your purchase price, we leave it to the specialists. That said we pride ourselves on our technical knowledge and for a car salesman I wouldn`t make a bad techie !
Will you accept a part exchange on your vehicles?
We are always willing to carry the burden of part exchanges. But when negotiating your purchase please take the following situations into account:
"Unless you allow me £2000 for my car I`m not interested." Otherwise known as the garage down the road offered £500 more syndrome. No two vehicles are ever the same. Keep clear in your mind whether or not each individual car is overpriced, we can all allow huge money for a p/x if we`ve front end loaded the sticker price but don`t kid yourself, you`ve bought an expensive car.
A good example of this is a well known main dealer offer **£1000 minimum part exchange**, roughly translated, this means they've added £1000 to the sticker price of the dealers car less the £50 the scrap yard will give for your old scrapper, it really is that simple. Did you really get a good deal or did they make their standard margin disguised behind a clever sales pitch?
Another good example of this is a well known dealer offer **0% Finance**, roughly translated, this means they will initially ask you for a large down payment lets say 50% of the cars value, you then have to pay the remainder of the balance before a pre-calculated period of time. In reality the interest for the remaining 50% of the car purchase has already been added to the sticker price of the dealers car. Did you really get a good deal on your finance or did they make their standard interest rate disguised behind a clever sales pitch?
"If you knock £500 off the asking price, I'll take it." We are very price conscious, but after Gordon Brown's taken his Vat and we've laid out for preparation costs and warranty, the actual sales margin isnt as large as many imagine. Our aim is to sell cars at the same price the private man would ask for the equivalent vehicle - in some cases less! We have no emotional ties to the cars, whilst Mr private vendor may well think his is the best in the world and still be emotionally scarred from buying those new tyres 3 years ago we see the wider picture and value cars at what they are actually worth.
Sadly we do have to earn a living, but want to part on good terms so you recommend us to others !
Is it worth getting an independent Inspection?
Not everyone has an interest in cars, so leaving the nitty gritty to someone who knows is understandable. But even if you know nothing about mechanics you can still get a fairly good idea of whether or not the vendor is a rogue and that gut feeling is important. Buy from someone you feel knows their stuff and who you feel comfortable with.
One option is to have a third party inspect a vehicle for you but do be aware of the limitations. I inspect cars for people from time to time and I've written a number of buyers guides on specialist marques and basically whether or not the brake pads are low is of little consequence, a few pounds will replace them and you can`t be to within a hundred pounds when valuing a £10,000 motor. Similarly no one can look at an engine and say if it will drop a valve or snap a timing belt in 6 months time. You would be surprised at how much of a £200 inspection is covered in a £35 Mot test. All you really need to know is how does the car compare to others of it`s age and the best people to answer that are people who deal in them all the time, again it comes down to being happy with the vendor. If you want to hedge your bets I think a far better spend of your money is to invest in a decent warranty, then at least if something does go bang you`ve got a chance of getting it fixed for free.
Do you accept credit cards?
All major Credit and Debit cards are accepted, if you want to use a credit card you will need to pay the card companies 2.5% fee, otherwise our feeble margin disappears into credit card fees.
Can you arrange finance?
We have have arranged a very competitive finance package with one of the industries leading automotive finance companies. Check our finance page for more information.
We are able to offer excellent rates on finance, it may come as a suprise to some but we are often able to better the rates offered by the main high street banks.
We can now offer higher risk finance to our customers with problems in their credit history, we work with a couple of finance companies who deal specifically in this type of finance.
Do you buy cars as well as sell?
Funnily enough we do, or we'd have nothing to sell !
We are however very selective when it comes to our cars, our preference is for low mileage cars with service history. We only work in one way, we buy outright, we will not sell the car on your behalf, other cash strapped dealers may but again beware of the consequences if they go out of business and disappear.
We simply cannot value something we haven't seen accurately. If you are comparing dealer's bids then beware, many offer prices they know in their hearts will never be achieved as a hook, only to pick hundreds of pounds worth of "faults" when you get there. Sit down and decide how much you want for your car, that way whilst we can't value something we haven't seen we will have an idea whether or not it's worth arranging to see the vehicle. When deciding how much you want be sensible. You are selling to a dealer. When trying to gauge values don't just pick the 3 most expensive cars, as a buyer you would look at the cheapest cars on offer to gauge values. If you have spent loads of money on the car it probably doesn't add much value, at best it may be an inducement to purchase for the next owner but all cars are different (hence why we can't value something we haven`t seen). Finally do have a quick look at the stock page, you would be amazed how many people phone wanting more for their car than we have got the same thing advertised at !!!
Call us on the phone, don't email photos, we know what the cars look like and we can't tell if the car is good bad or indifferent from the number on the speedometer !!
We're easy to deal with and a lot of the people we buy off later go on to become good customers purchasing from us later on. We do sadly have to earn a living but want to part on good terms so you recommend us to others !
Well I hope thats given you a few answers and something to think about. The views are merely my personal thoughts but given that we do shift a fair amount of metal each year they are probably quite well founded. The bottom line is to trust people and go with your instinct. We view the cars we sell as being part of a large family much of it returning to us when people wish to upgrade or sell. As such we are careful of both selection and preparation, knowing there is a high chance we may see both car and customer again. A high proportion of our business is repeat or recommended. We are very price conscious, our aim is to sell cars at the same price the private man would ask for the equivalent vehicle - in some cases less! We have no emotional ties to the cars, whilst Mr private vendor may well think his is the best in the world and still be emotionally scarred from buying those new tyres 3 years ago we see the wider picture and value cars at what they are actually worth.
Call me with your budget and requirements and we'll do our best to assist.
Managing Director - Globe Car Centre.