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Benefits of buying a used car from a dealer in MD?
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Benefits of buying a used car from a dealer in MD? - December 15, 2012, 12:29 PM

Hows it going?

I'm currently in the process of shopping for a used car (S2000). I have been researching the private party route so far, but I have seen nice examples of the car I want for sale at dealerships.

The dealership cars are obviously more expensive, but I'm wondering if there are more benefits to buying a car through a dealer besides just peace of mind and convenience. For instance, if I bought from a dealership, I would be trading my car in. I think I remember that there is some loophole on trade ins that allow you to pay less taxes when registering the new car.

I am also considering the fact that if I buy private party, then I have to pay to get the car inspected.

Also, when buying from dealers, isn't there a certain length of time that you have a "warranty/guarantee" that you can bring it back if turns out to be a lemon? ***This rule might be from another state, correct me if I'm wrong.***

Basically, I'm considering buying the car from a dealership IF I can get them to bring the final OTD price to within reasonable range of what I would pay for private party (meaning decent trade-in value, that tax loophole, inspection, etc).

Anybody have any input on pros of going through a dealership vs private party? Any pertinent experiences?

Thanks


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December 15, 2012, 12:39 PM

Wildjester is the manager of an MD Pre-Owned dealership in Maryland. Speak to him.



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December 15, 2012, 01:19 PM

Big advantage is MD state inspection.
MD inspection are very strict compared to a lot of other states.
In Maryland a vehicle only gets inspected when it changes hand.
There is no yearly inspection like many other states.
They know they may only see a vehicle once or twice in its lifetime and want to be as thorough as possible.
I spend an average of $1200 per vehicle on inspections... and most these are with in 5 model years and under 70k miles.
You are also going to get a warranty from the dealer. Even if the dealer sells the vehicle with no warranty... as long as it has less then 120k on it, the inspection items must me backed by the dealer for 30 days and 1000 miles. The state takes inspections very serious and will gladly send a State Police out to inspect any questionable inspection items.


As far as returning a vehicle.
Here's the deal...

There is no return policy on vehicles. The "72 hour window to back out" is a myth. You buy a car... you bought a car. There is not return policy.

A lot of people start talking about lemon law and returning cars... bla bla bla.
There is such thing as a lemon law. The law says that if the dealer can not fix the SAME concern after THREE attempts... you can bring the car back.

So literally the vehicle can have 15 different issues and if the dealer fixes them... it is not a lemon. Although any reputable dealer (like me) would obviously not keep a customer in a vehicle with that kind of service history.


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Last edited by wildjester; December 15, 2012 at 01:26 PM..
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December 15, 2012, 01:28 PM

Quote:
Originally Posted by wildjester View Post
I spend an average of $1200 per vehicle on inspections... and most these are with in 5 model years and under 70k miles..
Ouch. I never knew the cost was that high for a dealer. I was under the assumption, less any major mechanical work which would be discounted at trade-in or known at auction, and used replacement tires, they were spending $400-750 to bring it into inspection compliance.

So much for negotiation headspace.



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December 15, 2012, 01:29 PM

The tax trade credit is not really loop hole, its just how the MVA figures your tax. You ay tax on the difference figure after your trade value is subtracted from the selling price. Depending on what your trade is worth, that may be significant. A $10,000 trade, with save you $600 on your taxes.


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December 15, 2012, 01:30 PM

I can understand how a dealer may spend more on an inspection but my last one cost me $120, including a $20 tip for the guy to pass some things that wouldn't technically pass (not safety related). I think the warranty is more valuable than the cost of inspection but I've only bought one vehicle from a dealer. The rest have been private party and I've never had a problem.


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December 15, 2012, 01:34 PM

Quote:
Originally Posted by Heist View Post
Ouch. I never knew the cost was that high for a dealer. I was under the assumption, less any major mechanical work which would be discounted at trade-in or known at auction, and used replacement tires, they were spending $400-750 to bring it into inspection compliance.

So much for negotiation headspace.
Obviously mom and pop shops can spend a lot less based on cost of labor and aftermarket parts, but when you are paying certified techs to use factory parts... it adds up. Of course I do take all foreseeable inspection and reconditioning costs into consideration when buying/trading a car.


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December 15, 2012, 01:37 PM

Quote:
Originally Posted by RileysDad View Post
I can understand how a dealer may spend more on an inspection but my last one cost me $120, including a $20 tip for the guy to pass some things that wouldn't technically pass (not safety related). I think the warranty is more valuable than the cost of inspection but I've only bought one vehicle from a dealer. The rest have been private party and I've never had a problem.
Obviously it is all relative to the vehicle you are purchasing. If the previous owner kept up the maintenance, you may not spend anything for inspection. Of course if the car needs 4 tires and brakes all around... you are going to have to spend some money. It all depends on your skill level of evaluating and completely automotive repairs.


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December 15, 2012, 01:52 PM

@wildjester...your thorough responses are welcome and helpful. Two questions...
1. Can you find specific cars or are you limited to your stock inventory? ie. if the OP wants an S2000 could u help him find one and facilitate the sale?
2. With these MD costs I wasn't aware of, is it recommended for a VA resident to limit their search for a new/used car to VA only dealers?

I come from Florida and down there we don't have ANY of these regulations and taxes.

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December 15, 2012, 02:05 PM

@nootherids

I can usually get any car from any DARCARS store. I can also put my feelers out and with a solid commitment find a car and bring it in.

I would not rule out MD cars if you are in VA. The added cost of inspection is not just fluff... it is actual mechanical repairs or reconditioning... so it has actual value. A lot of our buyers are from VA and buy in MD because the inspections are so much more thorough.

For example lets say you bought a car in VA for $800 less then the same car in MD, but the following year you had to spend $800 for tires. Rather then paying the extra $800 for the car with new tires up front, you ended up spending the same money a year later.
This is just a general example, but I hope you see what I am illustrating. The extra expense of the MD Inspection is an actual value based on maintenance you will most likely be paying for at some point.


Everytime you cook up...a little boy gets crushed by a bridge. -JTG40cal



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December 15, 2012, 02:08 PM

Quote:
Originally Posted by wildjester View Post
Big advantage is MD state inspection.
MD inspection are very strict compared to a lot of other states.
In Maryland a vehicle only gets inspected when it changes hand.
There is no yearly inspection like many other states.
They know they may only see a vehicle once or twice in its lifetime and want to be as thorough as possible.
I spend an average of $1200 per vehicle on inspections... and most these are with in 5 model years and under 70k miles.
You are also going to get a warranty from the dealer. Even if the dealer sells the vehicle with no warranty... as long as it has less then 120k on it, the inspection items must me backed by the dealer for 30 days and 1000 miles. The state takes inspections very serious and will gladly send a State Police out to inspect any questionable inspection items.


As far as returning a vehicle.
Here's the deal...

There is no return policy on vehicles. The "72 hour window to back out" is a myth. You buy a car... you bought a car. There is not return policy.

A lot of people start talking about lemon law and returning cars... bla bla bla.
There is such thing as a lemon law. The law says that if the dealer can not fix the SAME concern after THREE attempts... you can bring the car back.

So literally the vehicle can have 15 different issues and if the dealer fixes them... it is not a lemon. Although any reputable dealer (like me) would obviously not keep a customer in a vehicle with that kind of service history.
Thanks for the information.
Quote:
Originally Posted by nootherids View Post
@wildjester...your thorough responses are welcome and helpful. Two questions...
1. Can you find specific cars or are you limited to your stock inventory? ie. if the OP wants an S2000 could u help him find one and facilitate the sale?
2. With these MD costs I wasn't aware of, is it recommended for a VA resident to limit their search for a new/used car to VA only dealers?

I come from Florida and down there we don't have ANY of these regulations and taxes.

Forum Runner FTW!!!
Sub'd for an answer to the first question.


...And Boom Goes the Dynamite!

cbr f3= sold
636= gone
r6= sold
cbr 1k= sold
vino 125= stolen
zuma= yutt uggh
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December 15, 2012, 02:37 PM

Quote:
Originally Posted by wildjester View Post
@nootherids

I can usually get any car from any DARCARS store. I can also put my feelers out and with a solid commitment find a car and bring it in.

I would not rule out MD cars if you are in VA. The added cost of inspection is not just fluff... it is actual mechanical repairs or reconditioning... so it has actual value. A lot of our buyers are from VA and buy in MD because the inspections are so much more thorough.

For example lets say you bought a car in VA for $800 less then the same car in MD, but the following year you had to spend $800 for tires. Rather then paying the extra $800 for the car with new tires up front, you ended up spending the same money a year later.
This is just a general example, but I hope you see what I am illustrating. The extra expense of the MD Inspection is an actual value based on maintenance you will most likely be paying for at some point.
Good info!


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