Economics and process in the used auto "market" induces an incentive to market anything any way possible. Reputable or not, all dealers are subject to the worst case when dealing with used autos.
All dealers pay X for used cars on the wholesale lot. They then ATTEMPT to sell them at 5X to 6X. That is how the money is made. Even if the buyer talk down to 3x, good money is made.
Now, take any auto, get it for salvage cost (NOT INSURANCE TOTALED COST) which is usually less than $100 if in running shape. Spend $200 to "clean it up" then sell it on the wholesale market for $1000 to 2000, or for $5000 to $6000 retail if it is popular and in demand.
The dealer you buy it from may be reputable by his say so. Who he bought the auto from may not be. He may have bought it from some other dealer in the wholesale market who is not as honest as he says he is.
If the dealer is not the honest type, by opening up the cover in front of the dealer, you will have given the unknown dealer another area to "clean up" before he puts the auto on the market.
For those of you who wonder where I get my figures for the wholesale to retail markup, check with your bank and compare the difference between the Blue Book and the Black book values of the same auto. The Black book values are about two to two and one-half times the wholesale selling price.
At this time due to the various Gulf Coast disasters, any auto anywhere in the country is to be suspect unless you can verify the previous owner ( by actually talking with them) never was in the storms.
Duane
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