From Wikipedia, the free encyclopedia Used car
Used car
History
In 1898, the Empire State Motor Wagon Company in
Catskill, New York is one of the very first American used
car lots.[1]
The used vehicle market is substantially larger than
other large retail sectors, such as the school and office
products market ($206 billion in estimated annual sales)
and the home improvement market ($291 billion in esti-
mated annual sales).
Used vehicle retailer
The Federal Trade Commission recommends that con-
Small used car lot in the United States. sumers consider a car retailer’s reputation when decid-
ing where to purchase a used car.
Vehicle history reports
In the United States, an estimated 34% of consumers (in
2006) are buying a Vehicle history report for used cars.[2]
Vehicle history reports are one way to check the track
record of any used vehicle. Vehicle history reports pro-
vide customers with a record based on the vehicle’s serial
number (VIN). These reports will indicate items of public
record, such as vehicle title branding, lemon law buy-
backs, odometer fraud, and product recall. The report
may indicate minor/moderate collision damage or im-
proper vehicle maintenance. An attempt to identify vehi-
Typical new car dealership selling used cars outside the show- cles which have been previously owned by hire car rental
room. agencies, police and emergency services or taxi fleets is
also made. Consumers should research vehicles carefully,
car, vehicle, car,
A used car a pre-owned vehicle or a second hand car is as these reporting services only report the information
a vehicle that has previously had one or more retail own- to which they have access.
ers. Used cars are sold through a variety of outlets, in- In some places the government is a provider of vehi-
cluding franchise and independent car dealers, rental car cle history, but this is usually a limited service providing
companies, leasing offices, auctions, and private party information on just one aspect of the history.
sales. Some car retailers offer "no-haggle prices," "certi- Two vehicle history reporting services used to offer
fied" used cars, and extended service plans or warranties. the service for free namely InstaVIN and VinCheck. But
currently customers need to pay to view vehicle reports
Used car industry through InstaVin. VinCheck became part of AutoCheck
and provides very little information for free, and cus-
With annual sales of nearly $370 billion, the used vehicle tomers need to buy a detailed report. Several of the ser-
industry represents almost half of the U.S. auto retail vices, most notably those in the United Kingdom and the
market and is the largest retail segment of the econo- United States, sell reports to dealers and then encourage
my.[citation needed] In 2005, about 44 million used cars were the dealers to display the reports on their Internet sites.
sold in the U.S., which is more than double that of the These reports are paid for by the dealer and then offered
nearly 17 million new cars sold. for free to potential buyers of the vehicle.[citation needed]
In the UK, the DVLA provides information (Car check)
on the registration of vehicles to certain companies for
consumer protection and anti-fraud purposes. Compa-
1
From Wikipedia, the free encyclopedia Used car
nies may add to the reports additional information gath-
ered from police, finance and insurance companies. Car
Laws and regulations
check service is available online for the public and motor
trade. Geographically specific laws
Canada
Used car pricing In Ontario, Canada, new and used vehicle sales are reg-
Used car pricing reports typically produce three forms of ulated by the Ontario Motor Vehicle Industry Council
pricing information. (OMVIC).
• Dealer or Retail Price is the price you should expect
European Union
to pay if buying from a licensed new-car or used-car
dealer — retail price. Used cars have a statutory warranty according to the sys-
• Dealer Trade-in Price or wholesale price is the price tem of laws of the European Union, the so-called "Liabili-
you should expect to receive from a dealer if you ty for defects", which lasts for 12 months.
trade in a car. This is also the price that a dealer will
typically pay for a car at a dealer wholesale auction. See also
• Private-Party Price is the price you should expect to
• Certified Pre-Owned
pay if you were buying from an individual. A private-
• Vehicle history report
party seller is hoping to get more money than they
• Lemon (automobile)
would with a trade-in to a dealer. A private-party
• Import
buyer is hoping to pay less than the dealer retail
• Japanese used vehicle exporting
price.
• Jalopy
The growth of the Internet has fueled the availability of
• Netcars
information on the prices of used cars. This information
• Auto Trader (UK)
was once only available in trade publications that dealers
had access to. There are now numerous sources for used
car pricing. Multiple sources of used car pricing means References
that listed values from different sources may differ. Each
[1] Flammang, James M. (1999). 100 Years of the
pricing guide receiving data from different sources and
American Auto: Millennium Edition. Publications
makes different judgments about that data.
International. ISBN 9780785334842.
Pricing of used cars can be affected by geography. For
[2] "J.D. Power and Associates Reports: Vehicle History
example, convertibles have a higher demand in warmer
Reports Are Becoming Increasingly Important to
climates than in cooler areas. Similarly, pickup trucks
Used-Vehicle Buyers". Theautochannel.com.
may be more in demand in rural than urban settings. The
http://www.theautochannel.com/news/2006/05/
overall condition of the vehicle has a major impact on
10/006250.html. Retrieved 2010-08-15.
pricing. Condition is based on appearances, vehicle his-
[3] "Kelley Blue Book - MSN Autos". Autos.msn.com.
tory, mechanical condition, and mileage. There is much
2010-02-22. http://autos.msn.com/kbb/faq.aspx.
subjectivity in how the condition of a car is evaluated. [3]
Retrieved 2010-08-15.
There are various theories as to how the market de-
[4] McKenzie, Richard B. (2008). Why Popcorn Costs So
termines the prices of used cars sold by private parties,
Much at the Movies: And Other Pricing Puzzles.
especially relative to new cars. One theory suggests that
Copernicus Books. pp. 9–31. ISBN 9780387769998. .
new car dealers are able to put more effort into selling
a car, and can therefore stimulate stronger demand.
Another theory suggests that owners of problematic cars External links
("lemons") are more likely to want to sell their cars than
• Ontario Vehicle Information Package offers Ontario
owners of perfectly functioning vehicles. Therefore,
vehicle registration history
someone buying a used car bears a higher risk of buying
• Saskatchewan Damage Claims History Search
a lemon, and the market price tends to adjust downwards
provides the status of the vehicle (if any) in
to reflect that.[4]
Saskatchewan and its damage claims history in
Saskatchewan since Jan. 1, 1998.
• Vincheck VIN checking in the U.S.
Retrieved from "http://en.wikipedia.org/w/index.php?title=Used_car&oldid=470769413"
2
From Wikipedia, the free encyclopedia Used car
Categories:
• Automobiles
• Reuse
This page was last modified on 11 January 2012 at 10:30. Text is available under the Creative Commons Attribution-
ShareAlike License; additional terms may apply. See Terms of use for details. Wikipedia® is a registered trademark of
the Wikimedia Foundation, Inc., a non-profit organization.Contact us
Privacy policy About Wikipedia Disclaimers
3