Here is an inside look as to how dealers buy the inventory of cars that are on their lot. Most dealers are honest, contrary to what many people think. Unfortunately, it is the small percentage of dealers in the USA who cut corners and give the automotive industry a black eye. We own Vehicles Inc in the picture above and we have always have tried to help our customers get the best deal they can on the car they want to buy. We have been in business a number of years and have gained valuable information that we are happy to pass on to the consumer.

So if you wanted to know how dealers buy cars, here are your answers.

The most common way is that of the industry auctions held by Manheim Auto Auction. Those auctions are for dealers only and no retail customers are allowed into the auction. It is strictly forbidden to bring retail customers into the auction and any dealer caught violating this rule is subject to banishment from the auction. The reason is that, retail customers actually drive up the wholesale prices and cause the used car market to be inflated, so it really is harmful for the consumer.

Another way dealers buy cars are through wholesalers and public auctions, although public auctions will not offer the same quality of cars that are found at public auctions. Cars at public auctions generally have higher mileages and would not sell for as much money at dealer auctions.

A third way dealers buy cars is from rental car companies that are selling their inventory off as they approach the factory mileage warranty limits.

And now for the bonus part of this article. Here is the secret of how to buy cars and not get cheated.

You have walked onto "Slick Sammy's" lot in the search of a dependable vehicle that will never let you down for a fair price.

Here is some advice that will save you thousands of dollars and countless hours of grief sitting in the waiting room of your local service department while your mint condition jalopie is on life support.

If you want to know how to buy a car like a dealer, all you need to do is to contact an automobile broker who would work for you just as a real estate broker works for someone looking to buy or sell a home.

You can google automobile broker and come up with all kinds of options.

Another option is to go to a car dealer and ask to speak to the owner of the dealership and deal direct, thus cutting out the salesman, the finance and insurance salesperson, and the general sales manager, all of whom get a percentage of the markup on the car you buy.

Ask the owner if you can deal direct, if and only if, you know the car you want to buy that is on the lot. Do your research and find out how much the retail of the car is as well as the loan value. The closest you can buy towards the actual loan value of the car, the better the chance you will have of getting the best deal on the car.

Next, treat the transaction like any business deal you may have. Keep to the facts, and write every thing that is said on a notepad so that there can not be an mis-interpetations. Make sure that you have the salesman, the general manager, and the owner initial your notes so that there are no misconceptions in the future in case Slick Sammy the salesman is fired, quits, or retires due to his financial success.

And here are some "red flags" to look for:

1.) Never buy a car that has been represented to you "as is". "AS IS" means that you are buying the car and once your money leaves your hands, you have bought yourself the automobile industry's equivalent to a thoroughbred horse that is ready for the glue factory in that "she" will be wonderful to look at, but that is just about all. She will never run again like she did in that race for the roses and to think she will win a triple crown is like thinking you have just bought a mint condition car.

2.) Never buy a car that is not eligible for an extended warranty unless you have $4000 in savings to cover repairs of either an engine or transmission.

3.) If you are driving a mechanically sound car, do not go into debt buying any car unless you have a cushion of about $5000 in the bank.

4.) Always arrange to have an independent third party inspection performed on the car you are about to buy, or get permission to test drive the car to a franchise dealer so that the service manager can examine the car for you. So, if you are buying a Ford Mustang from a used car dealer, test drive the car to any new Ford Dealership so they can inspect the car for you.

5.) Never buy a car over 115,000 miles. Ideally, warranty companies offer comprehensive warranties for cars less than 80,000 miles for a reason. So, try to keep the mileage under 80,000 miles.

So, hopefully you can find a good deal on a used car. The rule of thumb is to try to buy a car that is under the factory warranty mileage limits so that you are able to have the car serviced by a factory dealership to cover any repairs under the factory warranty.

We hope that this article has helped you and we will be happy to assist you in any car purchase you are considering in the future free of charge.

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