Hi, I’m Aaron Arslan, and I’ve added over 100 cars to the Denver market, refining a streamlined process for purchasing cars, whether for personal use or platforms like Turo. Through our co-hosting management services, we’ve also helped individuals across the United States add vehicles to their local markets. If you're unfamiliar, co-hosting on Turo allows vehicle owners to partner with an experienced host like me to manage the day-to-day operations of renting their cars, creating passive income or offsetting the cost of their vehicle purchases without the hassle of managing rentals themselves.
In this blog post, I’ll share my complete process for buying cars under market value.—whether it’s new or used, from a dealership or private party—so you can make the best decision for your needs.
Pros and Cons: New vs. Used Cars
New Cars:
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Used Cars:
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How to Buy New Cars Under Market Value
Research Market Value: Use tools like Kelley Blue Book (KBB) or CarGurus to determine the car’s market value. Aim to buy below this value if possible.
Review Consumer Reports: Check for reliability data on the vehicle, especially if it’s a newer model.
Calculate ROI (for Turo): If you’re purchasing for Turo, use a rental income calculator to evaluate your potential return on investment.
Find Dealerships: Identify which dealerships have your desired vehicle in stock to start negotiations.
Know the Out-the-Door Price: The out-the-door (OTD) price includes taxes, fees, and everything else. Make sure this aligns with your budget.
Get Pre-Qualified for Financing: Knowing your interest rate upfront helps you understand the true cost of the car.
Negotiate: Contact multiple dealerships, pit them against each other, and never settle until you’ve driven the price as low as possible.
Final Negotiation Tactics: Right before signing, ask for something extra—whether it’s a roof rack or a free lunch. This can be your last chance to get a better deal.
How to Buy Used Cars Under Market Value
Check the Carfax: A Carfax report can reveal if the vehicle has been in accidents, has a salvage title, or has had its mileage tampered with.
Inspect the Vehicle: Look for any signs of wear and tear, such as dents, malfunctioning features, or missing components.
Review Consumer Reports: Used cars come with more risk, so use reliability data to avoid models prone to costly issues.
Get a Pre-Purchase Inspection: Schedule an inspection with a trusted mechanic to uncover any hidden problems.
Negotiation Tips: Be friendly, kind, and punctual. People are more likely to sell to someone they like and trust. Always negotiate in stages: via text, during FaceTime, and in person.
Payment Methods for New and Used Cars
For new cars, payment options include cash, cashier’s checks, car loans, and special financing offers. Look for dealership financing deals to secure low APR rates.
For used cars, you can use cash, wire transfers, or loans from banks or credit unions. However, avoid platforms like PayPal or Venmo due to potential disputes that could delay or void the transaction.
Final Steps Before Purchase
Bill of Sale: Always secure a bill of sale as proof of purchase, ideally notarized to avoid legal issues.
Vehicle Title: Double-check that the title matches the vehicle's VIN number, and ensure there are no issues such as salvage titles.
Refinancing and Creative Financing
If you purchase a car below market value, consider refinancing to pull out equity. You could also explore home equity lines of credit or even crypto wallets (though this carries more risk).
The BRRR Strategy for Car Investors
The BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy is commonly used in real estate but works for car rentals too. Purchase a car that needs work, fix it up, rent it out, and then refinance to pull out your equity—using the cash to buy another car and repeat the process.
Our Experience in Helping You Grow
Through our co-hosting management services, we’ve successfully added cars to cities across the United States, helping individuals create passive income streams or offset the cost of their vehicle purchases. Whether you're looking to grow your Turo fleet or simply need guidance on managing your vehicle for rental, we’re here to help you maximize your investment.
With these strategies, you’re well on your way to making a smart car purchase. Whether you’re looking to expand your fleet through co-hosting on Turo or simply buy a reliable car for personal use, following these steps will give you the upper hand in negotiations and help you get the best deal possible.
Good luck out there in the car market!
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