Can you still get a great deal on a used car?
By Chirag Asaravala

A recent article in NewsWeek discussed the impact online auction houses like eBay are having on America's culture of garage sales. Garage sales of course are the American pastime of selling ones no-longer needed household goods at prices that reflect not the real market value of the item but rather the owners desire to all but avoid throwing the item in the trash.

The article discussed how a new breed of garage sale buyers, and sellers, is changing the face of this old tradition. Many buyers now scope out garage sales with the sole intent to pick up items at garage sale prices which can then be resold on ebay at their much greater real market value. Often times this is hundreds of times higher than the driveway selling price.

Web savvy garage sellers have also caught on to the game. They use ebay pricing as justification for turning their driveways into an Antiques Roadshow. What once was a nominal price scribbled on a scrap of masking tape, has now become a printout of "finished auctions" from ebay, displayed matter-of-factly next to the item. That faded 1960's Star Trek lunch pail which in garage sale economics would sell for a buck tops is now commanding $50. And the seller probably won't throw in that coffee mug with the sale either, since it too is likely worth a few bucks.

The influence of internet commerce extends beyond just garage sales however. We see the same trend developing in the used automobile market. In fact one has to ask if there is even such a thing as a screaming good deal on a vintage car anymore?

We think there are actually opportunities to score a steal on a collectable car, but you just need to know where to look and how to act fast.

Before the web, printed classifieds and orange-and-black 'For Sale' signs were the only options for broadcasting a used auto for sale. While these methods are still in practice, they have greatly diminished, being replaced with online listings instead. In fact many pay-for-placement newspapers and specialty classifieds are blaming their demise and low subscriptions on websites like craigslist.org where sellers can post cars for sale for free.

This is where we still see deals to be had, and here is why. Online classifieds listings like craigslist attract certain kinds of sellers. Mainly the desparate kind. They are the that need to sell their car now, and don't have the patience or interest in achieving the highest possible market price. Such sellers will concentrate on selling in their local market. They don't want to hassle with a potential out-of-state buyer. Local online classifieds, like Craigslist, facilitate this. Secondly they want simplicity. This means no setting up an account, no complicated forms to fill out, and more importantly a cash transaction. ebay represents the exact opposite. You cannot sell your car on ebay until you set up an account, fill out a lengthy form to list the car, and finally, accept the fact that you'll have to use PayPal or wait for the seller to send a check. This doesn't work for the guy who has to get his '72 Torino out of his sideyard by Friday so he can sell the house. He wants you to show up now with cash in hand.

Your best opportunity to score a deal is in a transaction where negotiation is possible. The auction format doesn't enable this as it is a one way street in favor of the seller. The price in an auction can only go up. As a result you really have no leverage as a buyer in an auction sale format. Your only hope is that you do not get outbid, or that there is insufficient interest in the item. In the typical classified format however the tables are reversed. It is all in the buyers favor. The seller lists a price and you can lowball him with the intent to end up somewhere between the asking price and your offer. You can see the vehicle in person and point out flaws and shortcomings as a tactic to knock a few bucks off the price. Finally, you can size up your seller 1 on 1, without the influence of other potential buyers. Since the seller in this situation has no idea when and if another buyer will come along, he is usually inclined to deal with you and complete the sale.

We scanned our local San Francisco, California craigslist and found a few deals around $1000 that are considerably less than the final auction prices on ebay. The images scattered throughout this article are real listings as of April 30, 2006. We are certain you could pick up a new project car for a steal if you get to these sellers first.