I sold cars for 43 years. Here are 3 reasons why you should NEVER go into the car business | Episode 16

I sold cars for 43 years. Here are 3 reasons why you should NEVER go into the car business | Episode 16

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Today on the Auto Insider podcast, Ray and Zach discuss what it was like working in the car business for 43 years, and why Ray recommends you don’t start your career selling cars. The limited earnings potential, perception that you’re the “scum of the earth” from your peers, and the time commitment it takes to be a “successful” car salesperson are just a few of the reasons why Ray doesn’t recommend you go into the car business.

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Buying a Repossessed Car: Here’s What You Need to Know

Buying a Repossessed Car: Here’s What You Need to Know

Buying a repossessed car carries a lot of stigma. Why was the vehicle repossessed? Did the previous owner maintain it at all? Am I getting a great deal because it was a repo?

Savvy car buyers who are looking for great deals will inevitably find themselves researching repossessed cars. The thought of spending thousands upon thousands of dollars on sheet metal and a gas pedal is concerning for many shoppers, and buying a repossessed car can sometimes appear to be a more cost effective way to get into a used car.

Today we decided to tackle this topic and share our two cents on what you need to know about buying a repo car. As always, if you prefer to watch instead of read, simply click on the video above. Otherwise, let’s dive right in!

What is a repossessed car?

It goes without saying that life can be tough. We’ve all experienced it before. There are highs and there are lows, and unfortunately for some, the lows can entail not being able to pay their bills. When that happens, repossession is typically right around the corner. Sadly, this happens to millions of Americans each year.

Based on 2019 data, vehicles are repossessed at a rate of nearly 5,500 per day in the United States. That totals more than 2 million repossessions each year.

There are two types of repossessed car; voluntary and involuntary. As a car buyer you won’t know if the vehicle you’re purchasing was a voluntary surrender repossession, or an involuntary repossession. At the end of the day, both are repo cars, which means their former loan holder could not meet their payment obligations to the owner (the bank that gave them the loan).

Carfax reports have been known to show “repossessed” when applicable, however they aren’t 100% accurate, so knowing you are purchasing a previously repossessed car can be tough.

Should I buy a repo car?

Repossessed cars come in all sorts of different conditions. As I always like to say, “no two used cars are the same,” and repo cars are no different. The tricky thing about buying a repossessed car is that you have no clue how well the prior owner took care of the vehicle. That being said, getting your hands on the Carfax, and asking the seller (whether it be a dealer or a bank auction) to review the service history is an absolute must.

The more information you can get on the history of the vehicle the better, and without a doubt you need to get a pre-purchase inspection completed before buying any repossessed car. Just like with buying a used car at the dealership, a pre-purchase inspection will provide you with the peace of mind you need to know you are not spending thousands of dollars on a vehicle that is going to cost you thousands more to simply keep it running.

So should you buy a repo car? At the end of the day it is entirely up to you, however you need to be clear on what you are getting yourself into; a crapshoot. The best thing you can do is treat a repossessed car just like you would any other used car, and get all of the information you can about the vehicle before you sign any paperwork.

How do I know I am buying a repo car?

Sometimes Carfax reports will have an indication that a vehicle has been repossessed, however there is no title designation of “repossessed,” so you’ll never see a title that makes it clear the car was voluntarily or involuntarily repossessed. As well all know, Carfax reports are not 100% accurate, so it’s important to understand that you may never know you are buying a repossessed car, especially if you’re making your purchase at a dealership.

That being said, if you’re purchasing the vehicle directly from your local credit union or bank at a repossessed vehicle auction, then you know what you’re getting into. Websites like RepoFinder exist to help you search free repossessed car listings, however you’ll quickly find that their inventory is limited, and you’ll have better luck researching local options.

What concerns should I have buying a repo car?

Buying a repo car is very similar to buying a normal used car. You should have the same concerns you’d have if the car wasn’t repossessed. Specifically, you need to feel comfortable with the way the car drives and feels. Get a pre-purchase inspection from a trusted mechanic to confirm that the vehicle is in working condition, and that the listed price is fair and reasonable.

Buying a repossessed vehicle presents no different challenges than buying a normal used car. Some people believe that since the vehicle has been repossessed it means the prior driver did not have the means to maintain the vehicle well. There could be some efficacy to this argument, however the opposite also holds some weight: the prior driver probably used it as their daily car, and until financial hardship struck, they most likely took good care of the vehicle, because they needed it to transport them to and from work.

At the end of the day, buying a repossessed vehicle can be a way to get a used car at a slightly cheaper price, however your concerns should still be the same as if you were going directly to the dealer and purchasing a certified pre-owned car.

Will I get a deal if I buy a repossessed car?

Typically repossessed vehicles are auctioned off in an attempt to return the greatest amount of capital to the financial institution that issued the loan. That being said, if you buy a repo car from an auction you’ll be paying the highest price, however that “high bid” at an auction is still most likely going to be less than what it would cost to buy a very similar vehicle directly from a dealer.

The Origin Story of Your Auto Advocate| Episode 15

The Origin Story of Your Auto Advocate| Episode 15

Connect with us on Facebook: https://www.facebook.com/yourautoadvocates

Access Deal School FOR FREE: https://yourautoadvocate.com/deal-school

Stay connected with Ray, Zach, and Your Auto Advocate here: https://www.instagram.com/shefska/ & https://www.instagram.com/yourautoadvocate/https://www.instagram.com/rasisjaz/

Today on the Auto Insider podcast, Zach shares the origin story of Your Auto Advocate. What initially started as Ray’s Car Buying Service in 2017 has transformed into Your Auto Advocate.

Zach shares the story of how Your Auto Advocate came to be, including the unlikely beginnings, and his dad’s initial lack of interest in supporting the business.

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Sell to Carvana: My Honest Review

Sell to Carvana: My Honest Review

It goes without saying that buying a car is a painful process. What about selling a car? When it comes time to say goodbye to your current set of wheels you have plenty of options; sell to Carvana, sell to CarMax, sell to a private party. The list goes on and on.

Recently, I went through the process of selling my 2017 Volvo S90 to Carvana, and the process was unlike any other car dealership experience I have ever had before. (I mean that in a good way). Going through the “sell to Carvana” process was simple, smooth, and financially, the right choice for me.

We documented the process on our YouTube channel (the video above), but I wanted to go in more detail about the process, what went well, how it works, and more. Let’s dive in!

How much does Carvana pay?

Carvana pays top dollar for their used cars. Why? Because they’re a HUGE publicly traded company that needs to impress investors with constant growth. The only way they can grow is to sell more cars, and the only way they can sell more cars is to buy more inventory. Because of this, Carvana is willing to pay top dollar for used cars.

Obviously Carvana (and all the other digital retailers) buy inventory from wholesale auctions, however, when you buy a car from the auction there are a lot of associated fees (buyers fees, transportation, and more). Because of this, companies like Carvana are happy to pay a premium to people like you and me because they don’t have to worry about all of the other costs associated with buying an auction car.

Why not CarMax or Vroom?

It’s simple … Carvana made the highest offer for my Volvo S90. Your mileage may vary (pun intended). It was very interesting, after we posted the video on YouTube we received a lot of comments from people that told us they received higher offers for their cars from CarMax, Vroom, and AutoLenders (a New Jersey specific company).

Some commenters even shared stories about selling their cars privately and getting thousands of dollars more than what Carvana offered.

What does all this mean?

If you’re looking for the highest offer possible, you’ll need to do some work to get quotes from each of the various companies (Carvana, Vroom, CarMax), as well as test the waters of selling privately. Keep in mind that selling privately requires a lot more work, and part of the benefit of selling to Carvana (or a similar company) is to avoid all that hassle and headache.

Did they change the offer when you got there?

No! It’s important to understand that your Carvana offer is good for seven days and one thousand miles. I took advantage of both of those parameters when I sold my car to Carvana. I actually sold my car to Carvana five days after my offer “expired,” but this was okay because their online scheduling tool only had availability at that time. That was one of the surprising aspects of my sell to Carvana experience, they were so incredibly flexible.

We interviewed the Senior Director of Sell To Carvana on the Auto Insider Podcast: Should You Sell Your Car to Carvana, Automotive Refinance, and More, With Nicholas Hinrichsen

You communicate via text message with your rep and they’re very accommodating to any changes you need to make. For example, I was originally scheduled to have my car picked up by Carvana in New Jersey, I then realized it would be advantageous for me to drive the car back to Maryland (to move some things), and when I asked Carvana if the offer would change if I drove back to Maryland their answer was simple, “as long as the odometer is within 1,000 miles of the photo you took, you’ll be fine.”

Not only did Carvana not change their offer, they were very accommodating to all of the changes I made during the process.

How long does the offer last?

When you sell to Carvana your offer is good for 7 days or 1,000 miles. This is the most generous policy that I am aware of. CarMax offers a 7 day, 500 mile policy, while Vroom offers a 2 day and 250 mile policy.

How long does it take?

Selling a car to Carvana takes less than an hour (and that includes the work you need to do online before you drop your car off, or they pick it up from you). Filling out the online form is quick and easy. Dropping the vehicle off at Carvana takes no more than 20 minutes. Carvana even pays for your Uber/Lyft ride back to a location of your choice.

Did Carvana inspect the car?

Sort of, but not really. I was surprised at the fact that Carvana did not inspect my car when I dropped it off. I thought they would do a slightly more in depth inspection upon my arrival, but the reality was they didn’t.

Their staff person walked around my car with an iPad and took some photos, and that was about it.

Text messages you receive from Carvana repeatedly remind you that your car needs to be in running and driving condition, specifically the battery can’t be dead, nor can the tires be in non working condition. Aside from that, there’s no real inspection or requirements for what condition the vehicle needs to be in.

Thinking of buying a used car? You might enjoy this guide: Buying a Car on Craigslist? Here Are 4 Things You Need to Do First.

How do they handle negative equity?

If you owe more on your car than it is worth, you’ll be asked to get a bank check for the amount of the difference between their offer price and the amount remaining on your loan. You’ll upload an image of this check to Carvana and bring it with you when you ultimately sell the vehicle.

So there you have it. If you’re thinking about selling your car, this is what you need to know about the sell to Carvana experience. Let us know in the comments below where you prefer to sell your vehicles.

The Origin Story of Your Auto Advocate| Episode 15

Want to buy a used car? So does everyone else.| Episode 14

Connect with us on Facebook: https://www.facebook.com/yourautoadvocates

Access Deal School FOR FREE: https://yourautoadvocate.com/deal-school

Stay connected with Ray, Zach, and Your Auto Advocate here: https://www.instagram.com/shefska/ & https://www.instagram.com/yourautoadvocate/https://www.instagram.com/rasisjaz/

Today on the Auto Insider podcast, Ray and Zach discuss the latest trends in the used car market. Wholesale prices have seemingly hit the “peak” and are on their way back down. We’ve seen back to back weeks of decreased wholesale used car prices.

BlackBook, one of the industry authorities on used vehicles has reported that the quality of inventory for sale at the auction has deteriorated. Wholesale used car supply is running so low that dealer’s are unable to keep their lots full enough to sell to retail customers.

The New York Times recently published an article titled, “Want to buy a used car? So does everyone else.” Ray and Zach discuss this as well.

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