In 2008, I was going through a rough period in my life. I was recently divorced and without a car. I wasn't sure I could afford a new car, so I went to Wetzel Used Cars (part of a much larger auto group)to look at used cars. I picked outa car, described my situation to the salesmen and bought a 2003 Grand Am. I left there thinking I had gotten a good deal.
In 2010, they sent me a letter telling me I should come and talk to them about trading my car for a new one. I did and was offered $3500 for it in trade. I left there thinking they were crazy.
This past week, I got another letter, but I went to a local Indianapolis dealer. They appraised my car and asked why I owed so much on it. When I told him, he showed me what the car was worth now, in 2008 when I bought it and new. He said I was taken.
I paid roughly $13,000 for the car. In 2008, book value was about $6900. Newthe car was roughly $18,000. I paid $13,000 for a 5 year old car! The Indy dealer offered me the same $3500 though.
The salesmen told me they were going to take care of me and boy did they. Be very wary of buying a car from this dealership. And in case you thought it was just used cars, the car they tried to sell me last summer was a GM Program car. It had 5000+ miles on it and he was willing to take $400 off the sticker price. He said there just wasn't any margin on cars these days.
I am stuck owing $9700 on a car worth $3500. By the time I get it paid for, if it lasts that long, it won't be worth anything.
There are a lot of auto dealers out there. This group owns a number of dealerships in the Richmond Indiana area. It is not a mom and pop operation. Find another place to buy your cars. Hopefully you won't end up in the same position I am in.
Monetary Loss: $6000.