Key Principles for Buying and Selling Cars

1. Never buy a car over four years old. It will not resell

like you want it to.

2. Do not buy a car with more than 60,000 miles on it.

3. Try to buy a vehicle that still has the factory warranty.

4. Never buy from a dealer.

5. Never buy a car with a salvage title. Always run a

CARFAX report. You want to avoid cars that have had

accidents.

 

You can use the AutoTrader to find your new vehicle

and use kbb.com to find out the vehicle’s value. For

me to consider a vehicle, it must be priced at least $1,000

below the private party value. I usually get a car priced

$1,500 below value and offer $500 below that. But you

need to check and see if the car has been in any accidents.

Do some homework before you buy.

There are a few other things to think about that will

add up if you are not paying attention. Check the tires.

Also you do not want a car that is leaking fluid or makes

weird noises while driving down the freeway. Be sure to

ask when the brakes were last done. If you are mechanically

challenged, you need to pay somebody to take a look at the

car to make sure it is in good shape. A hundred-dollar-investment

to a mechanic could save you thousands of dollars.

On the same day that I buy the vehicle, I put it in

the AutoTrader, priced $250 below book value, and drive

it until it sells. Normally, when I sell the vehicle, I make

$500-$1,500. This is a great way to not lose $11,000 a

year and millions over your lifetime. I spend around four

hours every three to six months when I sell the vehicle and

the same when I am finding a new one and it saves me

a lot of money.

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