Shopping at Liquidation Sales
by Steve Cypher on Tuesday, July 7th, 2009The Illinois CPA Society tells us that not everything at auto dealer liquidation sales is a good deal for bad credit car loan shoppers.
The view from ACE
At Auto Credit Express, we realize that in the current economy (pushed along by GM and Chrysler cutting thousands of dealers) there will be quite a few car dealers liquidating their inventories.
As a result, many bad credit car loan buyers may be tempted to take advantage of one of these sales to buy a new or used car. And while a recent article that we came across deals with liquidation sales in general, much of the advice makes sense when it comes to purchasing a vehicle. For the following advice, we have the Illinois CPA Society to thank. We have also edited some of the material that would not pertain to vehicle sales.
Hints on making the most of these sales:
Check the Quality
If you find that the item you purchased at a liquidation sale is damaged, or if it stops working shortly after you buy it, chances are that you will be unable to return the product. Before you purchase, examine each item carefully for any damage. Also find out if there is a warranty on the product, so that you can appeal to the manufacturer if it turns out to be defective.
Double Check those Bargains
Don’t assume that everything you see at a going-out-of-business sale is at bargain basement pricing. Before going to a sale, it’s best to comparison shop at other stores, in catalogs or online to get a sense of the best prices for the items you might buy to make sure you’re getting a good deal. You will be better equipped to decide if the sale items are bargains or hype. Keep in mind that just because a store has lowered its prices doesn’t mean they are the best deal around.
Buy Wisely
In the crush of excitement over rock-bottom prices, it can be hard to resist the temptation to buy products you don’t really need. Remember that getting a great deal on something that doesn’t suit your needs is still a waste of money. To prevent a bad choice, try to avoid impulse picks at these sales. Instead prepare a list of possible purchases in advance and stick to it once you get to the store.
Watch for Outside Goods
Some retailers in distress turn their merchandise over to professional liquidators, who run the going-out-of-business sales for them. These liquidators sometimes ship in outside goods that they are trying to unload and add them to the retailer’s merchandise. They can price these items however they like, which means they are not necessarily bargains. To avoid these items, check the tags to see if they differ from the retailer’s usual tags. If they do, consider carefully the quality and value of what you’re buying.
Try Again Later
If you think the liquidation sales prices are too high, don’t give up altogether. If you really want the item, consider returning to the store in a few days. You may find further reductions as the final closing date draws nearer.
Consult your CPA
We all want to avoid wasteful spending and get the most for our dollar, especially in a bad economy. If you have questions about the best ways to spend your money, be sure to turn to your local CPA. He or she has the answers to the financial questions you and your family are facing.
The Bottom Line
We edited out much of the first paragraph that had to do with returns (usually not possible with a car sale) and buying with plastic to protect yourself (again, not possible with a vehicle purchase). It also mentioned making sure you test your merchandise to make sure it is in working condition – which in the case of a used car means that you should take it to an ASE Certified Master Mechanic for a thorough inspection.
Other than that, the other points certainly address issues that you might face when buying from a car dealer that is going out of business. Again, our thanks to the Illinois CPA Society as well as the American Institute of Certified Public Accountants (AICPA) for their sage advice.
Tags: car loan
