Why Used Cars Dealers Have The Upper Hand?

In the US, all used car dealerships must follow guidelines set up by the Federal Trade Commission. Issued by them the Used Car Rule contains trade standards and regulations that all used car dealers must follow. In short, if you sell more than 5 cars in a one year period, you must oblige.

The basic responsibility of used car dealerships is to position a buyer's sign that would be adjacent to the vehicle offered for sale that states 'Used car for sale'. It must have a prominent position on or inside the vehicle so the buyer could take a look and immediately notice and use it for the purpose of buying.

At the back of the sign, used car dealers must indicate the complete name and address of the dealership, along with the contact numbers where consumers could call on for possible complaints or any concern in the future. The sign is also called a guide, as it contains all relevant information that the buyer may be interested to know. This way, used car dealers can give confidence to the buyer and at the same time build credibility and reputation for good customer service.

National Automobile Dealers Association clearly stipulates that the information provided to the prospective buyer should include the following: insurance coverage if any, additional warranty cover, duration of valid registration. Also, it is in the dealer's interest to inform the buyer about the presence of any visible and hidden impediments that would have an effect on vehicle buyer's decision. Things like: badly worn out motor, noisy diff, rusty floor, etc. should be brought to his/her attention.

The question: which vehicles are considered to be 'used'? The answer: all that have been titled. It's up to the individual dealership to provide proof of the ownership to the prospective buyer, and help him/her to confirm that the vehicle identification number is listed in the documents correctly.

Nowadays, used car dealers tend to group in chains of dealerships. This is often dictated by the commonality of the make they sell, or for the economical interests. Indeed, used car dealers can better serve customers by exchanging relevant information about the stocks of used vehicles they have. Online presence makes it even easier. Members of a dealership group have their used cars available for sale, listed on one website. There the prospective customer can browse and select his/her favorite unit.

All used car dealers have to be dully licensed by the state authorities, and adhere to the relevant state and federal laws and regulations. All this is apart from the usually coveted membership in their professional organization NADA. Although there may be some paper work involved, and the bureaucracy may feel stifling at times, the benefits to the customers are enormous.

Opinions are divided, whether the used car business is servicing its customers the best it can. Dealers complain that customers are more interested in haggling and tire kicking, than in selecting one of many reliable used vehicles that they keep in stock. Buyers begrudge the fact that they don't really know the full history of the vehicle they are offered for sale. Another gripe is the profit margin that the dealerships are able to achieve. Eventually, it all comes to the equilibrium, as dictated by the market forces. One final word: do your research before you sign the title transfer papers!

Article Source: http://www.christiannotepad.com

Used car dealerships declare to be dedicated to bringing you the best deal possible. Glen Crawford's site UsedCars-Latest.com provides you with the latest tips and advice when contacting used car dealers.
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