| Limousine Digest Online Article |
Who's Selling That Car? Understanding
Used Car Dealers
— By Warren Meyers
Limousine operators often consider buying used vehicles in spring to accommodate the wedding and prom influx of business. There are many avenues you can pursue to purchase a used vehicle. While some are on the up and up and you will be happy with your purchase, other sources may not work as well. It is important to know whom you are dealing with — not just the person, but what that person represents.
There are hundreds of people selling used limousines all vying for your attention. They simply take an ad out in the classified section and they wait for you to call. How do you know that these people are legit? My late father and I have over 45 years of combined experience selling pre-owned limousines. I have seen just about every scam out there and heard of some that you just wouldn’t believe. You work too hard for your money to get taken by someone who has only his own best interest only at heart.
Before you buy, there are things you need to know. Limousine dealers are licensed in their state to sell limousines, and they must be bonded and have insurance. Some states require dealers to go through a course of study and then be tested prior to getting their dealer’s license. In California, where I operate, a dealer must have a minimum of a $15,000 bond and a dealer’s license. If a legitimate dealer in the state of California were to sell you a limousine and then take off and never deliver, you would have remedy to get your money back through the state because the dealer held a bond indemnification card. That doesn’t stop others from trying to sell vehicles without a dealer’s license. There are those who, for a fee, broker vehicles. In this situation, though, you run the risk of not knowing with whom you are really dealing. Often brokers never see the vehicle — they receive photos from the seller and pedal the vehicle to as many people as they can in hopes of getting it sold so they can collect a “bird dog” fee. When working with a broker, you may not have any recourse to get your funds back if the deal goes sour; I highly recommend doing your research before dealing with a broker or avoid them altogether. There are plenty of vehicles out there, so you may have a better experience dealing with the owner of the vehicle or with a legitimate licensed dealer.
Before you buy, ask for the dealer’s license number and verify with the state that they are indeed a licensed dealer. This little bit of legwork can save you aggravation in the long run. However, checking the license is not enough. Reputable dealers won’t hesitate to give you references of satisfied customers. Ask the dealer for them, and then call and ask very pointed questions. I suggest the following:
- What was your experience like in
dealing with this person?
- Did the vehicle you receive meet
your expectations?
- Was the transaction handled in a
timely and professional manner?
- Do you know anyone else that I
could talk to that has worked with
this dealer? (This question will feed
your pipeline of references that may
not be totally controlled or scripted
by the dealer.)
Also ask others in the industry if they have dealt with this dealer. A red flag should go up if no one has ever heard of this person. If these questions are answered correctly and you have checked the license, ask the dealer the right questions before you buy:
- Who currently holds the title and
how will the transfer take place?
- What is the actual condition of the
vehicle — does it have any
cosmetic problems?
- Has it been in any accidents?
- Was it garage kept?
- Was smoking allowed in the
vehicle?
- Can I see the maintenance records
for the vehicle?
I service every vehicle I take in prior to putting it up for sale. I want to be certain that what I am telling potential buyers about the vehicle is the best information there is. I also fill the gas tank upon delivery. Not everyone will do these things, but you have a right to know and ask the right questions prior to buying the vehicle. I also recommend running a vehicle history report on the vehicle, such as the services available through CarFax (www.carfax.com). This will tell you if the vehicle has been in any accidents that you might not have been told about.
Once you have done all of these things you can be certain that you are dealing with a legitimate seller who has disclosed all of the information on the vehicle. Don’t forget to check the value of the vehicle in the NADA Guide (www.nada.com) and other sources so that you know if you are paying fair market price or getting taken to the cleaners. Used vehicles can be a good solid investment if you do the legwork up front. LD
