What is the Best Car to Buy?

Based on my experience both driving and servicing them. I will tell you which cars I like and why.

Choosing a Salesman

Deciding which salesman is right for you

Women Buying Cars

Can a Woman stand up to Today's Car Dealers? I think so.

Just what exactly is an interference engine?

Learn the importance of this engine design and how it affects you.

Take a Break

Have a laugh and watch some funny car ad clips

Showing posts with label buying a used car. Show all posts
Showing posts with label buying a used car. Show all posts

Wednesday, October 26, 2011

Credit Life and Disabillity - Financial Car Buying Tips

  Our heath and just our overall lives are often taken for granted by us. Things we usually don't think about let alone want to think about can happen. Credit life and disability insurances are designed to pay toward your outstanding loan balance on your car in the event you die or are injured and cannot work. Pretty morbid to think about I know. It is a valid product you will be likely be presented with in the finance office at a car dealer.

  Like any insurance it is a blessing when you need it and you have it. When you don't have it and need it you wish you had it. Insurance is something none of us like to pay for but it is a necessary evil. I know what it's like to be severely injured, without health insurance, and unemployed all at the same time. I was just damn lucky at that time in my life I did not have a car payment. If I did have one I would have fallen behind real quick. The next time I have a car loan I will be looking into credit life and disability for sure.

 Like any insurance. You need to shop for the best deal. It is most likely that the best deal on such policies won't be found at a car dealership. Just like with some of the other services I have mentioned that are offered in the finance office. The dealer has placed themselves as a middle man and everyone involved between the dealer and the insurance underwriter needs to get paid. The dealer is more or less an affiliate to the credit life and disability programs offered within that store. I will get some links up for some of the more competitive credit life and disability carriers. Until then this is definitely one to shop around for and if you consider yourself to be financially responsible I highly recommend the product.

Monday, September 26, 2011

An Internet Car Buying Tip - FSBO and long distance buying

  There are times when you may find yourself looking at cars that are being sold on Ebay, Craigslist, or sites like AutoTrader and Cars.com. On all of these types of websites you will find cars that are both for sale by owner and those that are being sold by dealers.

  As an Internet manager I can tell you that I used all of the resources to advertise cars. I would tend to put obscure or high demand but limited supply vehicles on these sites. I liked putting aged units with "blowout prices" and our cheaper stuff on Craigslist. Although I never had much success on Ebay I would list some used cars on there as well as new. Typically upper management would request I list certain vehicles on Ebay. Most being vehicles we desperately needed to get out from underneath of. Like a last years model new car or some bastard pre-owned unit we could not seem to get rid of to save our lives.

  All of these sites are designed to do one thing. Get maximum exposure to the listing. With that said. You can quickly find yourself looking at cars hundreds or even thousands of miles away depending on the search criteria you are allowing yourself. To a dealer these listings serve as both getting maximum exposure to their inventory or simply just to establish contact with any potential buyer who may request information about a certain vehicle. In other words, you may call or email a dealer about an Ebay or Craigslist car to only find you are no longer interested in that unit. There is a good possibility that if that dealer now has your email address or phone number they will still try to find something to sell you. I just want you to expect this if you call or email a store about a vehicle on any of these sites. If they are aggressive they are going to keep you in theirs contacts.

  As an Internet manager I had some folks drive 12 hours to buy a car. Hell, I had even picked up people at the airport who flew in to buy a car. Is there some money to be saved by buying cars this way? In some cases the potential is definitely there. However, it is up to you to cover all of your bases before making such a journey. I personally was very transparent with people when I described vehicles to customers by email or over the phone. I was more than happy to provide any vehicle history reports like Carfax or Autocheck and gave any information I could about a vehicles condition no matter how insignificant it may have seemed. It was important to me that the vehicle was everything I described to them as I didn't want any disappointment or problems when it was time to make the transaction. You are going to have to use some of your own judgement to determine if a dealer is being up front about everything so there isn't any surprises when you arrive. The odds are that any dealer doesn't want any surprises when you arrive either so they will make every effort to ensure the transaction will be smooth. I would also highly recommend getting either faxes or emails about all of the paperwork that will be performed when you arrive. There is also a good chance here that you may be crossing a state line with your new or used vehicle. As I have said in an earlier article I wrote called Buying a Car Out of State & other helpful links . The procedure can vary from state to state when it comes to buying a car out of state. You may or may not have to pay taxes at the point of purchase or not at all. You are going to want to know how registrations and titles will be transferred.  DO NOT hesitate to get all of the details regarding this type of transaction in writing and even talk to a finance manager over the phone and review the details with him.


  It is very important that you weigh out or rationalize any long distance purchases before following through with them. Travel or freight expenses can add up real quick. Personally, I would have to feel I was getting a pretty significant savings to buy a car in such a manner. You won't catch me hopping on planes to save a few hundred bucks. I would also have to ensure that nothing about the purchase was final until I arrived and inspected the vehicle for myself. Even though I myself sold vehicles doing paperwork via FedEx and shipping the vehicle to the customer. My honesty made the transactions good and the customer happy but I am not going to say you are going to find that everywhere.


  I myself have never bought a car off of Ebay. I know enough about and use Ebay enough though that if you arrive to finalize the purchase of a car you won and it isn't up to snuff. You don't have to buy it. Misrepresentation of any item on Ebay is grounds to open any dispute case in their resolution center. If you arrive to find a car listing to be false in any way. Ebay has your back on this. If Ebay does anything well. It's protect their buyers.


  The main things to keep in mind when making such unique purchases is justifying the savings vs. the extra hoops you will be jumping through to get that car back home and into your driveway. Understand the terms of the purchase before making the trip. Above all, ask lots of questions. Whether it be a dealer or private party. Never hesitate to ask a lot of questions and get those answers in writing. If they want to earn your business. Trust me, they will understand and be obliged to provide the information you request. Also, I hope this doesn't happen to anyone but if you get there and it isn't everything they said it was. Don't feel pressured to buy it anyway. At least without some concession on the seller's end such as reducing a price to make things right. Keeping your buying more localized of course is going to avoid all of these woes because it is easier to go see the vehicle and you will be out less travel expense if you do.


  I think there are some good deals to be had out there when it comes to buying long distance. If your model of choice is a car that is a "dime a dozen" though. Stay local. You won't find yourself reaping big savings on mass produced vehicles like Camry, Impala, or Fusion by stepping outside of your area. It may be more beneficial to look outside of your area though if the vehicle you choose is odd and limited in your area or perhaps you are wanting a significantly older car with some unusually low miles for the year. Research is the key here and is the best car buying tip I can give when making a long distance purchase.


  One more thing I want to add is that if you are buying from a private party and need to independently obtain a vehicles history report. Which I HIGHLY recommend. There are two major choices out there and they are Carfax and Autocheck. I dealt with both of them plenty since they have been around. Both are every bit as comprehensive as the other but Autocheck has always been less expensive. If you need to obtain an Autocheck vehicle history report you can get started here. Autocheck is an Experian company which also provides credit reports. Good luck and I hope you find that diamond in the rough!

Monday, September 19, 2011

Service Contracts - What's the Deal? Financial Car Buying Tip

   Ok, on top of the extended warranties, gap insurance, and rustproofing the finance office will try to throw at you you they will likely throw a service contract your way. What the hell is this thing you ask? Well to put it simply it is a maintenance plan bought in bulk. Is this a bonafied product you ask? Absolutely it is. Do you see any links I could benefit from to tell you otherwise? Hell no you don't. If your dealership is offering any service contracts and vehicle maintenance is of importance to you I encourage you to listen to what they have to say. There is a very good possibility it could result in the average oil change costing you $12.


  Look. Aside from all of the other bullshit a finance manger could be trying to sell you. A service contract could actually prove to be beneficial to you in the long run. To put it simply it is a designated term of service for a bulk price. Do you intend to give your vehicle all of it's intended maintenance? That's awesome. I wish more people did. If so. By purchasing a service contract with your vehicle you could potentially save a ton of money. You may be presented with various service contracts in the finance office. In most cases they can be justified by an estimation of what each actual visit will cost. If it is justified for you it will likely be a no brainer at that point. They are designed to save you money.......and get your commitment at the point of purchase. There is absolutely nothing wrong with this approach as far as the sales department goes. I just don't want you to disregard it as another "trick" the finance office is trying to sell you. It's a deal and that is the only reason they are trying to sell it to you believe it or not. Look at it as buying your recommended service in bulk. A good deal on an oil change these days is $20 so if they are averaging out better than than that in a service contract......you are getting a deal. I have yet to see a service contract that did not benefit the customer in the long run. That is what they are designed to do. Secure some service work for the dealership and save you some money at the point of purchase. If they din't save you money they wouldn't be a very good sale would they? From what I have ever seen. I can only say these programs are awesome. I will always encourage independant investigation though. See what these plans average out to per service and you may quickly see the value in them.

Credit an Issue? Don't Do this then - Financial Car Buying Tip

    Perhaps credit is an issue for you. We've all been down on our luck before but if you have been making efforts to build your credit score don't blow it now. Now that you have built up or reestablished enough credit to get a loan it's time to do some research and find out which lenders in your area who specialize in not so perfect credit. As Always. I will preach finding your own financing before you go to buy a car. If credit is an issue. Your options are going to be narrow.

  What you are going to want to look for is a lender who specializes in secondary auto credit. Second chance auto credit is what it is referred to as well. Some stores will claim to specialize in second chance credit. While they may. They just simply have a finance Manager working for them with a long established relationship with the secondary lenders in the area. Unfortunately, a second chance credit finance manager can be one of the biggest slimeballs in the business you have ever met. They can be real good at putting you at their mercy real quick. Basically, hurt your feelings about your finances and make you feel damn lucky if you even get a car at all. I witnessed this time and time again and it made me sick. Watching a family who desperately needs a vehicle and has credit issues paying an absolute premium for what they drove out of the lot in. It was disgusting. Disgusting to know that the finance manager just got them approved through a lender they could have just gone to themselves and been approved. Approved for 1,2,3.......hell, who knows how many less interest points than the second chance credit jerk quoted at the dealer. A second chance finance guy usually has little problems in ripping someone's head off with a few extra interest points because he will establish himself as an authority in bad credit and present it as a "this is just the way it is" kind of thing. Profiting off of desperation to put it simply. Don't find yourself being so desperate to get a car that you ignore everything it takes to get there. Such as interest rates and price of the vehicle. My point is here. A second chance credit officer is no more or less of a middle man than any other finance manager. They themselves can't approve shit. They get on the phone with the banks and plead and beg for a low rate they can build some profit for themselves onto just like the others. You can cut this goof out of the deal just as well as a regular finance manager. Save yourself the trouble. You don't want to even meet a second chance finance manager at a dealer. There is a good chance he or she is living high off the hog and they are not your friend.

  I will tell you what I would do though if I had credit issues and I required second chance financing. What you want to find out is who that second chance guy is dealing with. Since these loans are high risk for lenders they will bought through local lenders. I would do some searches for second chance credit in the area I lived and start there. I would make some phone calls and try to assess which ones sound promising and then visit the ones I choose. If you are able to get a pre-approval through any of them. You will then know what you can buy. Once pre-approval has been achieved that lender will give you the criteria your new/used vehicle must meet. Such as the year, miles, price, etc. The car you are buying is that lender's collateral so it is likely there will be some somewhat strict conditions you may have to meet in terms of the vehicle you choose. So let's say. At this point for example. I have been approved for a loan and I have to find a vehicle that is a 2007 or newer with less than 50k miles and I can buy for $15,000. Those are vague conditions but it will be something like that. Now I at least know what types of vehicles I can truly shop. What I wouldn't want to do though is reveal to any dealer that I require second chance financing. Even though I am already pre-approved at this point. Letting the dealer know I am going through second chance financing could potentially kill a lot of negotiating power and just the overall seriousness I am taken with. Once I found a vehicle that may work for me I would then let my salesman know I was ready to work up a deal on it. At this point a good salesman will begin to poke and prod at your finances if he hasn't already. I would kindly let him know I have already made arrangements and I am pre-approved. He may go on to say things like " with whom, may I ask?" or "maybe we should take a look at your credit, maybe we could do better." Replying with something like "no thank you, I am plenty confident in my sources" may get him or her to back off a bit. The reality is this is your business and you don't have to share it with anyone. Keep your finances to yourself. If he wants to make a sale he will play by your rules. You simply want to get a purchase order for the car you want to buy so you can take it back to your lender to see if it meets the conditions they have set for your auto loan. Hopefully, at this point all is well and your lender approves your purchase sending you back to get your car. Now once you go back to the store to go through the finance office the financial cat will be out of the bag and they will know who you are getting your loan through simply because the lienholder will have to be typed on your paperwork somewhere. At this point it's ok if they know this. We've already bypassed the problem areas for someone with bad credit at the dealer. Which are getting hooked in by the second chance finance manager and losing our negotiating power with a salesman.

  Another great car buying tip I can give in terms of credit is DO NOT run around town to 20 different dealers and let them run inquiries on your credit (I don't want you to let a store run your credit period). This WILL drop you credit score. It makes you look like a trigger happy loose canon on paper and lenders don't want to see this. Not running more than a half a dozen inquiries within a month or so shouldn't hurt anything though. Remember that these dealers all get their loans through the same source and people all to often get the misconception that there is something "magical" one store can do for you that another cannot.

  Having bad credit is bad enough. That last thing anyone needs when trying to build their FICO score back up is a car they paid too much for with an inflated interest rate keeping your monthly payment higher than it needs to be. Do some research on second chance credit in your area. Make an educated decision on which ones sound the strongest. Avoid as many multiple credit inquiries in a small time frame as possible. Keep your credit siuation to yourself though the negotiating process and you have done everything you can as a person with bad credit can do to still get a good deal on a car. The main objective here is not to put yourself at the dealer's mercy. Trust me. If they know credit is an issue. They will play off of it if they can.

Sunday, September 18, 2011

Extended Warranties - Financial Car Buying tip

  Contrary to some beliefs. Extended warranties are a valid product and they do basically what they say. They cover items beyond the factory's specified original warranty. Depending on the extra coverage you purchase. An extended warranty may cover more items than the factory warranty and allow you to stay under warranty for a period of time and/or miles beyond the factory warranty's life. They could allow you to do anything from extend a powertrain warranty by a year to extending "bumper to bumper" warranties for years beyond factory conditions.

  Generally speaking. When I sold cars I frequently would inquire on the various costs of these warranties for my own personal knowledge. I can honestly say I never felt anyone was getting their heads ripped off by the dealership for the price of the coverage they were receiving. Like anything else that the Finance Office will be selling though. They do carry a markup and that finance officer is trying to make a commission. For the most part they usually were marking them up around 25%. Warranties they sold for $1600 were costing them around $1200 in just one example. That was also the price I saw most warranties start around. From that point. Upgrading to a Gold or Premium coverage usually only costed hundreds more rather than thousands. Kind of like buying in bulk. The more coverage you buy in the beginning, the better break they give you on the cost. Upgrades can also include things like reducing or eliminating deductibles all together and/or adding roadside assistance and covering rental cars while vehicles are being repaired.

  Extended Warranty cost is gong to vary greatly from brand to brand. The costs are based on the repair trends per vehicle. Some vehicles are of greater financial risks than others and does reflect what the costs of the warranties will be. I have seen the costs on some European brand extended warranties and found them to be astronomical. However, the reality is they can be vary expensive cars to repair and getting someone to just pop the hood and look at it could cost $500. Just one more reason an extended warranty may be something you may want.

  I won't endorse buying such coverage outside of your dealership though for a number of reasons. One reason being. I don't think you will find any better coverage out there for the money on your own. I have seen people get burned buying their own warranties and anything that they thought was covered really wasn't when it came down to using the warranty. Dealerships use reputable companies for extended warranties simply because the store's reputation is at stake. By buying your extended warranty though a dealership you also have a mediator between you and the extended warranty company if there is ever a dispute. The finance officer is going to have a good understanding of the warranty terms and will review these with you upon purchase. Buy a warranty from a third party company and you could find yourself frustrated and trying to take care of matters over the phone rather than just going to the dealership and getting repairs swiftly handled. Buying the warranty at the dealership will also make cancelling the policy later much easier should you ever chose to do so. Yes they can be cancelled at any time and will be pro-rated to you based on the amount of unused coverage.

  Let me give a personal example to help extenuate the value of an extended warranty. A personal friend of mine was very interested in a vehicle we had for sale. A vehicle I personally did not hold a high regard for quality on. I even told her that over and over again. However, she wanted what she wanted and her heart was set on the vehicle. There was no talking her out of it. I told her though. The only way I would sell her that vehicle is if she bought extended coverage because I wanted to keep her as a friend. She was reluctant at first because she was so payment conscious and the warranty was adding $30 a month to her payment. She did finally agree though and for the sake of our friendship I was so glad. As nice of a vehicle as it was. As I predicted. It turned out to be all the mechanical nightmare I thought it would be. Her navigation and A/C compressor took a crap on her in the first year of owning it. If you have any idea what these two repairs cost you will quickly understand the value of one of these warranties. To put it simply. She spent around $2200 on the warranty and had well over $3000 worth of warranty work done. Do the math. The warranty actually saved her money in the end and we stayed friends.

  I wanted to write this short article to alleviate any concerns about buying extended warranties. They are a legitimate product and the only "smoke and mirrors' in them is what it will cost you so don't be shy about dickering on the price of one. Personally, I think they are a great product and I would consider buying one if I were to buy a car. Based on a vehicles reputation for quality though I can say there would definitely be times where I wouldn't be as concerned about buying an extended warranty. If you are someone unlike me though that repairs their own vehicles. The peace of mind you get from these warranties could carry great value to you for the extra $20-$40 a month. Like any type of insurance. We love it when we have it but hate to pay for it when we never seem to need it. If there is a financial car buying tip I can give on extended warranties it's buy them at the dealer and at least give them a consideration.

Tuesday, September 13, 2011

The Interference Engine - What is it and what does it mean for a car owner?

  Something I have and always will take into consideration when considering a vehicle or not is whether or not the particular vehicle uses what they refer to as an interference engine or interference motor. What makes this such a valuable car buying tip is that it can have a great impact on your overall peace of mind as a vehicle owner and has much influence on the potential cost to maintain that vehicle. This is a car buying tip that applies to both new and used cars.

what is an interference engine



  Without getting too technical. Most of us are aware that a car's engine possesses both valves and pistons. When your engine is working properly these parts move in a fashion where these two parts are crossing each others path of motion without collision. A piston moves down after combustion and an exhaust valve immediately opens up and momentarily sits in that "line of fire" that the piston just inhabited to release those exhaust vapors. This works just the same for any intake valve(s) during the engine's intake cycle. This whole process happens in the blink of an eye and the coordinating parts are kept in sync by the timing belt/chain.

  Timing belt or chain maintenance is a major part of a vehicles maintenance. Unfortunately, this is neglected by many consumers. It is easy for us to talk ourselves out of a high dollar maintenance expense. Especially, when everything appears to be working just fine. However, it just is not a part that can be easily visually inspected nor is it a part that really warrants an inspection. They were intended to be changed out in intervals. Manufacturer's recommendations for timing chain/belt intervals will vary but most service departments will likely recommend the 60-70k mile window.

 Both timing belts and chains come with their pros and cons but they both also share the same end result. Failure. Whether you have a timing belt or chain. They both have the potential to fail at some point. Rubber breaks down and cracks. Metal can weaken. Both have the potential to stretch. The heating and cooling of an engine is a rough environment to any type of material regardless of it's strength. Driving around with an aged and worn timing belt or chain runs the risk of breakage or "jumping time". Jumping time is caused by belt or chain stretch and carries the the same risk of catastrophic engine failure with breakage. When an engine jumps time it means the teeth in the belt or vice versa in the case of chain have changed position with the coordinating pulley. Hence, now the motor is not operating in sync with itself. The result being internal collision with many vital and very expensive moving parts.

  The cost to replace a timing belt or chain can range from hundreds of dollars to possibly thousands on some of your upper end luxury imports. The part itself generally isn't terribly expensive. It can just be very labor intensive in some cases to replace. I can promise you though that in the case of an interference motor. The cost to replace and maintain is far less than if it breaks or jumps time. Valves, pistons, water pumps, and lots of labor are what you can expect to pay for in the event of failure.

  I am not saying that buying a vehicle without an interference motor is a free license to procrastinate about your vehicles maintenance. You just are not going to be faced with the financial nightmare of engine overhaul in the event of failure like the interference engine but you will be left equally as stranded on the side of the road.


car buying tips
Knowing if you have a non-interference engine or not can save you a lot of headache later.

  There are still a great number of vehicles that I even like that possess an interference engine under the hood. As a potential owner though. I want to know and so should you. I simply wanted to educate you on a factor that you may never have been aware of that you may possibly want to consider when buying a car. Hell, maybe you're not even in the market for buying a car but now you know for the sake of your own vehicle and it's maintenance.

  I have reason to believe that many people have never changed either their timing belt or chain for the life of their vehicle. After 80k miles or though it is nothing other than pure luck after that point and everytime they start their car is like drawing straws. As a former car salesman I can tell you most folks either never change them when they are supposed to or not at all. In the case of considering a pre-owned vehicle I myself would want to know if the belt or chain had been replaced on an aged vehicle. Interference engine or not. If timing belt or chain service has been performed by a reputable shop. you can find a service sticker located under the hood somewhere usually. Generally on the timing belt cover itself. If it is a used car that had been serviced by the store it is being sold at. They should have service records to whether or not it had been serviced. Don't be afraid to ask a salesman if he can find any record of this. If he wants to sell you the car bad enough. He will find out anything he can. Timing belt/chain service may be a condition of purchase you could use in negotiating if it is found that the service is past due. I have definitely worked timing belt service and other maintenance into a car deal to earn a customer's business.

  Asking a salesman if a particular car has an interference engine or not will likely send him to his service department scrambling for answers. The odds are he will have no idea what you are talking about and salesman hate that. Going into a dealership knowing such information as a consumer will put out the signal that you are somewhat educated and you are not rushing into anything.

  Knowing this technical car buying tip may push you to avoid a vehicle altogether or just make you better aware of things you can expect down the road in terms of cost to own. Along with this article I wanted to pass on a link you may find valuable with a list of interference motors. Good luck buying and now you know.

Interference Engines

Saturday, September 10, 2011

Best Car Picks - Another car buying tip for what it's worth.

  There are a hell of a lot of great cars on the market these days. Not that my opinion is the gospel. I have owned many vehicles over the years though. Both domestic and imports. I have always been one to service my own vehicles. I had as much ability to work in the service center as I did selling on the front lot.

  Over the years I have come to favor Japanese imports. Simply because I want my car to do what it is supposed to when I need it to rather than roll around in my gravel driveway working on it. I have owned many Toyota over the years and currently I am Subaru owner. Both Toyota and Subaru are my favorite makes of car. Simply because of their reliability and reputation. I drive a 1996 Subaru SVX with over 140k miles if that says anything. I couldn't ask for a more reliable car for being over 15 years old. Routine maintenance has kept it happy and I think I could drive it another 15 years if I wanted to. I have a high regard for both Nissan and Honda as well. All of the high line import companies make outstanding vehicles as well. Such as Lexus (Toyota), Acura (Honda), and Infinity (Nissan). As far as domestics go though. I have always found Buicks to be a dependable car and have owned a few of them myself over the years. VW has gotten my attention in the last few years even though I have never been a big advocate of European cars simply due to costly repairs and mechanical designs which are a bit more complex and obscure than most in the rest of the world. The Europeans are pioneers when it comes to performance hence the price tag. The most cutting edge technology costs big bucks to design though.
car buying resources
You can't go wrong with a Subaru


  When it comes to cars. First impressions are everything. You know what you like. It has to start there. Some vehicles are better than others in terms of quality but it has to be appealing to you. After all, you and this car may have a relationship for many years. Once you have narrowed it down to a few possibilities it is time to do your research on what people are saying about that car. Consumer Reports or MotorTrend is a great place to get reviews and opinions on new vehicles to help you make an educated decision on which car you should buy. Type some searches into Google as well to find articles by people who own the car you are interested in. Look for any recall information or any reoccurring problems that may plague the vehicle you may be wanting.
  Next to design and my initial feelings about the appearance of a vehicle. Cost to own is the next important thing to me. Not the price tag on the initial purchase. You get what you pay for. Sure you may pay a bit more of a premium for those vehicles that have great reputations. Like with anything though. You get what you pay for. Cost of insurance, cost of maintenance, and fuel economy are just a few things you should be taking into consideration when buying a car especially if you are watching your money. That low payment may look appealing on the lesser model but if you are having to dump a few grand in that car every year to keep it road worthy. In reality, your payment isn't so low. Divide a few grand over 12 months and you quickly see that is a lot of extra money every month. Wouldn't you rather to pay for some extra quality up front knowing that routine maintenance is all you will be investing in later?

  I sold Toyotas through the recall woes they suffered. I will always say to this day that it was blown WAY out of proportion and was nothing more than a media FEAST! Even after the recalls I spoke with many of my customers that said they wouldn't give their car up for anything. Which just further extenuates why you need to hear what owners of the vehicle you are interested in are really saying. Since the bailouts of the domestic manufacturers though. I think there has been a really huge shift in quality. In the last few years I have witnessed an evening of the playing field in terms of quality. I have never been a real huge Ford or Chevy fan over the years but their recent "do or die" situation they were faced with forced them to step things up quite a bit and while their mechanical quality may not be quite there with it's Japanese competitor's. I think it's getting damn close. As far as Mopar goes. I think their styling usually knocks it out of the park. However, mechanically I think they are one of the biggest turds on the planet. Not to mention usually carry some of the worst resale values you will ever find. I recall driving many used Mopar's as a potential trade in and always said the same thing before I got halfway down the road. "Why would you want to own one of these?" Anything from check engine lights, bad steering racks, and pre-maturely worn out suspension are things I would usually notice. I still cannot figure out how a company builds one of the fastest cars on the planet to botch the rest of the line like they do. Hopefully for them and the sake of US production they can pull it together like their other Detroit counterparts but only time will tell. One to stay away from for now in my opinion.

  If I were to walk out the door today I would feel good about buying any Japanese import with the exception being Suzuki (never ever buy a Suzuki car. absolute junk!). I wouldn't be opposed to looking at a new Buick Lucerne or VW Jetta either just to name a few. Korea is sneaking up in the market though as well. Both Kia and Hyundai (same parent company) are some ones to watch even though I think their over all fit, finish, and feel needs to improve a bit. They carry a nice 100k mile/10 year warranty for the first owner though which holds great value in itself.

   My opinions are based on the many new and pre-owned I have had the opportunity to drive and even get under the hood of. I primarily formed opinions on how well the used were holding up after some use. I like to know how well a vehicle is still performing after 50-100k miles and these are the types of facts you should be looking for too. I like to put 200-300k miles on a car without little trouble in doing so. That is why I feel strongly about the vehicles I like. If there is one car buying tip I can give in regards to the type of vehicle you buy is that quality and cost to own go together hand in hand. Just my two cents.

Friday, September 9, 2011

Valuable Car Buying Tip - Don't make a pest of yourself

  If there is one car buying tip that I can give that is going to hold true anywhere it is to not make a pest of yourself. If you have already read through my glossary of car dealership terms. This is where the strokes, yanks, squirrels, and spooks come out to play. Don't put yourself in this category because a good salesman doesn't forget shit! I sure didn't.

  It's no secret that a car salesman is paid on commission. Their time is literally money and that is how they look at it. Now is it okay to go in and work some numbers to go home and sleep on it afterwords? Absolutely. It's when you repeatedly show up on a weekly or monthly basis to expect that "things have changed." At any store I worked at there was always a notorious group of people who did this. I never could understand this demographic of people.  Their customer loyalty is usually terrible. When I say customer loyalty I mean they wouldn't even ask for the salesman they previously worked with. This is just flat out rude and bad etiquette. Unless you had a salesman that was truly a creep. I wouldn't ever recommend doing this. Moves like this will get you remembered by all of the staff very quickly and when you do truly want some help and you are ready to buy they are going to scatter like mice. Now you're thinking "well if they want my business they will help me." Yeah ok, go in with that attitude and let me know where that gets you. You have to remember that those salesman are still your liaison between you and the manager. Salesman are humans with a patience threshold just like anyone else. If you have been in periodically over months and have talked to 3 salesman. I as a salesman would have known there is no money to be made off of this person and I wouldn't want to help them even for the lousy hundred bucks I would get for it. Worse yet, if you had already dealt with someone else the odds are I would be splitting that lousy "mini" deal with another associate. Further taking away any incentive for me to assist them.


No One Likes a Pest

  I am going to give you a real example of one guy that stands out in my mind over the years from selling cars. I was working at the biggest Toyota store in town. Actually one of the higher ranking stores in the Chicago Region. This dude was such a repeat offender that we had all affectionately named him Tacoma Bob. Anytime Tacoma Bob pulled up out front you could expect to hear cracks in the showroom like "oh great, what's this spook want?" I was the first unlucky son of a bitch to work a deal with him. He owned a decent old 4x2 Ford ranger he was real proud of and wanted ungodly money for. He was wanting to trade it in for a new Toyota Tacoma. I spent a few hours with this quirky old fart just to be $4000 away from a car deal in the end. When you are selling a new car at invoice and giving the most for their trade you can there is little hope at this point with a spread like that. The guy was simply unrealistic. However, he would come in every few weeks or few months and yank someone else's chain. Hell if I still had the guys paperwork I would pull the new unlucky salesman aside if he didn't know who this guy was already and warn him about what the guy expected. After Tacoma Bob did this a few times just about every sales associate (about 20 of us) knew who he was and what he was up to. None of us would go talk to him anymore if he came in. We ignored him until he left. If he did snag one of us. We would just say "haven't you been in here before, who were you working with?" Once he finally realized we were onto him. He stopped showing up. Maybe someone else earned his business. To that we could only say "thank God and good riddance!" My point is that even if he did eventually buy he made such a nuisance of himself that we didn't give one shit where he bought a car. My manager didn't care either because he saw it as someone just needlessly tying up his sales staff's time. The old saying that "the customer is always right" loses it's luster if you make a pain in the ass of yourself.

  I wanted to share that story with you because I don't want you to be this person. Chances are that if a store has really taken the time to work some numbers with you and "walks" you in the end. They have put their best foot forward and let you leave with a figure they are comfortable with you shopping them against. Car dealers don't like to let money walk out the door. So if they do, there is likely very little in it for them at this point. The fact is. Deals don't get better over time. If there is a trade-in involved it will only get worse. Trade-ins depreciate by the DAY. You could also lose some factory rebate cash on a new car if you let things spill over into the next month and they take those rebates away. I will say about the only instance where you are going to see things get better on an old car deal is if you are on a new car that sees better incentives down the road or if you have had your eye on an aged pre-owned unit that they desperately need to unload.

  The most important points to take from this article are as follows. Deals will not get better over time unless you run into a few of the factors I mentioned in the last paragraph. Salesman will remember your face better than you think. Always ask for the same salesman. Doing otherwise is a blatant form of disrespect at a car dealership. Understand that "walking" a customer is a good sign that a store has done the best they can. Hanging out at car dealerships and not buying cars will gain you notoriety as a stroke and you will only be remembered as a liar and not a buyer. This is a very simple car buying tip anyone can follow. Trust me on this.

Thursday, September 8, 2011

Do Car Salesman Take Advantage of a Woman Buying a Car?

  I wanted to throw out a car buying tip which is tailored to the ladies. Car salesman will try to take advantage of anyone regardless of sex, age, or creed. Personally I think women are every bit as sharp as men. However there are still plenty of salesman out there that would love to get into their naive pockets. I worked with plenty of chauvenist salesman that viewed women as dumb and being an easy target.

  If I was anything as a salesman, it wasn't being one of these jerks. I will be honest in that I have a soft spot for the ladies and usually cushioned things up a bit for them. I was a bit more compassionate than some though and if I was dealing with a woman that was alone it wouldn't take long before I saw my own sister, mother, or grandmother in them. However, you're not always going to get that lucky and find too many people who really give a shit like I did if you are a woman buying a car.

  Like I would say to anyone buying a car. First impressions are everything. Woman or not. If you establish that you're no spring chicken. That is going to set the stage for how everything goes down. In other words. If a woman were to come in and after some questions from a salesman spill her whole life story about how she just got a divorce from a man that used to "take care of this stuff" and has never had to buy a car on her own, she can expect the dumb woman treatment. Trust me. If a woman comes in alone. A salesman is going to try to find out real quick why she is alone. Simply for the fact that if there is a spouse or other involved that is not present at the time he knows he cannot really sell them a car until all of the decision makers are there to do business. Therefore, not spending too much time with her and encouraging her to get the other parties involved to come down. These questions are asked for the salesman to determine what angle he is going to try to work on a customer. So telling him you are widowed or divorced and helpless is only going to make him think "cha ching!" Not throwing a salesman too much of a bone about your background will avoid this. Displaying a sense of confidence an independance upon entering the store will help maintain their respect regardless of sex.

  Perhaps though you are a woman truly all alone in buying a car and prefer some help. There were many instances where I thought I had a couple I was working with to only find out later that they were only friends and that the car was for her. Don't go in there alone if you don't want to. Bring a friend along to help and listen to everything they have to say. Whether it be a man or woman. When people come in as a group I would say it tends to make a salesman feel like he is under the microscope. If he knows he has more than one person to convince he is going to be a bit more cautious in what he says and what he does. Simply to avoid being caught in a lie and losing a deal. Having someone else with you also puts another pair of eyes on the process and they may catch something that you would not have if you were alone.

  Are you a confident and educated woman? If so. You can do this effectively on your own and get a good deal on a car. If this is something that makes you unconfortable and you dread the process as a woman on their own. By all means. Find a friend to go along to monitor the process with you. Alone or not. Your personal level of comfort can be sensed by others and comfort equals confidence. The keyword here is comfort. If you go in with little sense of comfort it is only going to make the whole process seem scary and intimidating.

  I want to share one instance in particular where I was confronted with a woman buying a car alone. She had a professional sense about her. Upon test driving vehicles and working the deal. I wouldn't say she appeared to be cold. Rather she just didn't pour her heart out to me and reveal any more details about herself than she had to. When it came down to working the numbers. This gal was smart. I could start to begin to see she had really done her homework. Needless to say. She beat us down to a real good invoice deal for herself. She played dumb through most of the process is what she did. It turned out she was a local college's bursar. If you don't know what that is. It is the top position in a school's financial department. She was a tax and finacial expert. I actually made friends with her and had her do my taxes last year. My point is. Books can't be judged by covers. In this case she played the roll of the paperback and in the end showed she was truly a hard cover copy. I had a lot of respect for her and we are still friends today.

  Another distinct situation I can recall was a woman who worked for the Social Security Office. She came in with another lady friend even though her friend never said much. No I don't think they were a couple. However this lady was as hard as a coffin nail and more or less let me know that anything with a penis was a low life. She would have made Buelah Ballbricker from the movie "Porky's" proud. I didn't know what had happened to this woman nor did I pry. She was very touch and go and even burned the hell out of me on a survey later. Even though she got an invoice deal from me and I treated her with the utmost respect. She was a total bitch to me through the whole thing. I am not saying to go in acting like a bitch. She just made it very clear that she as not intimidated by me or the process.


 women buying cars
Coach Ballbricker showing her love for man

  Now if you're smokin' hot and your salesman or the general manager wants a shot at a date. This could work entirely in your favor if you're not a dingbat. I have seen some very pretty girls get their ass kissed right out to the curb when buying a car. So if you're a looker. It is most likely you will have everyone's undivided attention and could be to your advantage. You still need to educate yourself on what you are doing though to ensure you are getting treated right. If they hit you up for the date. I say pass. They will break dinner plans left and right. As a car salesman I worked over 50 hours a week and never could keep a girlfirend because of it.


women buying cars
Sex can sell in the showroom. Shake it if you got it.

  In the end. Whether you are alone or not. It is going to boil down to the information you give about yourself and the signals you put out. Your comfort should come first though so it is up to you if want help in buying a car or not.

Wednesday, September 7, 2011

Book Values - Edmunds

  Although it was never one of my favored resources as a salesman I wanted to still give an honest review on it. Probably part of the reason I disliked it so much is because I always felt it was too far in favor of the consumer and sent customers in to me with unrealistic expectations. Ususally it was because they had missed some fine print like omitted destination charges and stuff like that. Edmunds has managed to make quite the name for themselves in the last 5 years or so though. A lot of this has to do with the in depth content Edmunds has on buying a car. I would say their new car buying resources are one of the best as far as quotes on new cars go. I did sometimes use their appraisal tool which I found to be fairly accurate most of the time. When I say accurate I mean what you could realistically expect a dealer to give you for your car. The site is fairly easy to navigate and I am sure you will find it useful if you hve not been there already. Definitey one to consider. Especially on new. I think ther used car search engine is as good as any. Just definitely not as popular as some of the big dogs like Cars.com or Autotrader

Tuesday, September 6, 2011

Bait and Switch - Lost Art? Hell no

  Bait and switch is an age old term most of us have at least heard when it comes to sales. In a literal sense it for the most part tells it all. A store uses a product in their advertising with an enticing price that they either have one of  or never did have any to begin with, and up sells you when you get there. For example : Acme Chevy is running a special in the paper for new $20k Malibus. So you drop your world to head down to the store to only find that the advertised car is a base model no one in the world wants and they are of course out of anyway. So the salesman then says " well since you are here, would you at least like to take a look at a few?" Depending on how annoyed you are at this point you may or may not. Just a heads up if you are going to look at a "price leader" car. This is the kind of shuffling you can expect at the dealership. I cannot tell you how many times I went to my manager with a newspaper ad and said "where is this car?" Only to get a response that we no longer had any or it was the turd on the lot with roll up widows and no radio we had in inventory for 9 months.


how to buy a car
Buying a car should not have to be like this

  This tactic is not simply limited to advertising though. A salesman can do it to you on the lot and on the spot. You tell Mr. Salesman you would like a used Camry for around $15k. So he then looks at his price sheet scratching his head even though chances are he is fully aware of what he is doing. He says he has a few that might work. He may then proceed to show you the two most unflattering examples he has in stock with every intention to disappoint you. Then just as you are about to leave because they are not showing you what you want, your salesman says there is one he forgot all about. "It's a few years older than you are wanting but it has so many more options than the others did, for the same money as the others." After the disappointment you just went through seeing the other cars, this one sounds like a breath of fresh air at this point. You have been made to feel like your expectations may have been too high when you came in so now you are willing to take some concessions on year and miles versus some extra features. Now this late model cherry he is showing you may be a great car and it may even be a great price. There is just a good chance there is a particular reason he wants you to buy THAT car. His paycheck is the reason of course. So if you are ever on the lot and a salesman seems to have an obsession with a particular car it is for the sake of his paycheck and not for the sake of you getting the most for your money usually. If you are ever being switched from new to used, bear in mind that new car commissions are minimal to a salesman these days. I will be perfectly honest in that I hated selling them in the end of my career. I could make 1000% more on a used car all day long.

  Make sure you get the car you set out for. Don't let a salesman pick the car out for you. If they are trying to you can almost bet some bait and switch is going on. You have to stick to your guns on this one. I have seen some pretty brazen salesman literally stuff someone in a car I could tell they were apprehensive about, to only see them come in the next day after a night of sleep with regrets. At that point, I hate to say. It's too late.

Monday, September 5, 2011

Keyword : Auto Sales - Which brings me to my next lesson

  I wanted to do a bit of an experiment. I write this blog and I want to drive traffic to it I will be honest. So, I chose a highly global searched keyword of which I thought may bring the type of reader to my site I desire. One like you who may be interested in buying a car. In this case I chose the keyword(s) "auto sales." I wanted to see who was on top of google for this and what they had to offer. I was surprised to see it was a used car dealership in Ocala Florida. Kudos to them!  Prestige Auto Sales is the store and I want you to check out that link. Auto Sales is a very general term and and while it may not be very beneficial to them to rank so high on a global level , they're still rockin' it.


  Now before I get started I did not write this article to deter anyone from going Prestige Auto Sales AT ALL! I wrote this article based on this store to shamelessly leech on to some of that fantastic SEO they have going for themselves and because they just so happen to be first, and they just so happen to give me something to write about, which is one of the first things I learned about selling someone a car. That is finding "common ground" with the buyer. While there is nothing unethical or even insincere about this tactic. Remember that which it still is, a tactic. You see one of the first things I would look for in the first few minutes in talking with a customer was any little thing I possibly had in common with this person. Whether it be a hobby we shared, a belief we shared, or just something we were both passionate about I could resort back to any time I needed. If it ever turned out we knew the same people, oh man that was one of the best. Connected through friendship can help earn trust quickly. The purpose of this is to side track or slow the customer down and try to gain their trust. Once I discovered any common ground with the customer I would use it to "mow over" or avoid anything I simply didn't want to talk about or reveal too much. For example : Jane and John Doe start asking me a bunch of questions about what their interest rates are going to be when they get into the finance office. I then say I will ask a finance director the next time they walk by and quickly ask about their dogs again to which they so eagerly told me about before since I told them I loved dogs. Jane and John then tell me about their dogs for five minutes and poof, the finance manager is ready for them now. I bought myself five minutes and didn't have to answer their question, leaving everything on the table for the finance manager to do his thing. It really is not a salesman's job to quote any finance rates but I just wanted to give an example of  how common ground can be used to divert a buyers attention. Now let's get back to Prestige Auto Sales and I will explain what they have to do with this example.

  Prestige Auto Sales has a very attractive easy to use website. However, by merely skimming the home page I quickly found that these folks are using the common ground of family values. Pictures of the family to let Central Florida know we are "just like you." This is where we all say "awwwww" and get the warm and fuzzies inside and quickly think "this guy would never screw me over." If the family picture isn't enough, upon further looking through the site you will learn they are NASCAR and NFL followers. Further scroll down the home page though and you will find a video of one of Joel Osteen's sermons. POW! These folks went right for the jugular of Southern marketing! Now if you know anything about the south. God is king. I live in Illinois and visit family in Florida. One thing I know for sure. Church on Sunday is quite a bit more of a necessity to the Southerners. Jesus and God are endlessly displayed on billboards in the south to promote about everything besides a strip club. Then again who knows on that one. I think the use or religion is a pretty low way of promoting a business though. That's just an opinion of mine. However, from a marketing standpoint it is very effective and yes I even hate to say, is probably working well for them. If there is a heaven or hell though I think it would be a sure ticket to the latter of the two.

  So before you have even set foot on this lot. You know that the owner of Prestige Auto Sales is a loving Christian man (we're assuming) with a wife and two girls at home to support. Crap, who wants to haggle with this guy? After all. He looks so nice. He looks like such a great family man. He trusts in God. God......dishonesty.......God.......dishonesty. We have been led to believe the two cannot be found in the same place. That is what makes it such a great gimmick. This guy probably gets little resistance from any of his fellow church goers out of fear of insult on their behalf.

  I personally witnessed the effectiveness of this marketing strategy with a gentleman I used to sell with. He was a middle age man. He had even attended bible college (which he quit to sell cars of all things). He went to church every Sunday and was very active in his church. He even prayed on the phone with his wife every day at 9 AM for a half an hour. Needless to say he repeatedly knocked people's blocks off on pen and paper. He was one of the most successful salesman we had. I always attributed it to his kind, harmless, and even biblical aura. Once you knew what the guy was all about, you didn't want to offend him. You didn't want to hurt his feelings. You didn't want to ever argue with him. My point is it REALLY set the stage for how people acted toward him. I am not a religious person and he even found common ground with ME! Not many people want to argue or debate with a man of God. Heck I even found myself  considering putting on the same act, not that this guy was putting on an act (it just happened to work in his favor), but just never had the balls to go for it.

  The moral of this whole story is to put your blinder's on when it comes to this kind of stuff. It's purpose is psychological warfare and is only meant to give you that feeling inside like they are your buddy. Never mind if your salesman went to school with your uncle. Never mind if you both have a buddy that races motorcycles. Never mind that Christ is both of your saviors. Good deeds don't pay mortgages, profits do. Just don't let them use these tactics to make you feel TOO comfortable. Laugh and joke, just don't let it throw you off of your A game.

  In closing I hope the folks at Prestige are good people and do treat people right. Although I don't believe in selling anything in the name of God. I wanted to make the point that a dealer really holds no discretion when it comes to finding common ground and earning a potential buyer's trust. I don't think using them for my example is any more ruthless than when they posted the Joel Osteen link on their homepage.

Monday, August 1, 2011

Choosing a Salesman

  As I have mentioned before I think that the Internet Sales department is a good way to cut through a lot of red tape but then again maybe you saw his picture online and he looks like an asshole that makes too much money. So you want someone else. 


car buying tips,how to buy a car
Beware of this much "Ice" on any salesman's hand

  A lot of dealerships anymore are going to have a website. Many now will list their roster of employees and may even list a little information about each. Take a look through each one of them. A picture is worth a thousand words. If there is a salesman of the month listed you might want to stay away from him. He didn't get that title by helping to keep the lot look good and lined up that month. You might want to find the "new guy." Chances are the younger, newer guy is more afraid to talk to you then you are to him. In this case he will be just following his manager's lead and it will be more like you just buying a car from a manager. It was the older veterans who usually consistently got high gross profit deals. They're sharp as a tack and are great at tailoring any conversation to earn trust. I worked with one old timer who smoked cigars all day and smelled like a pile of assholes but could sweet talk his way through an interrogation at Guantanamo Bay if he had to. You will find the younger more inexperienced salesman to stumble on their words and make mistakes. They're not as quick to answer back and when they do it comes out as a mouthful of shit. I used to enjoy listening to some of the "green peas" from around the corner and all of the stupid stuff they would say.

  This sounds mean, but you want to try to find the biggest coward they allowed to work there. Every store has one. Research the staff online before heading in if possible and should you choose a salesman, make sure you ask for him when you get there. Otherwise, Mr. salesman of the month will start up a conversation with you that you won't have the heart to stop. If you do walk into the showroom without a salesman. Look for that lazy lump on the computer or playing with his phone. Simply because he likely avoids confrontation or he would be outside on the lot or waiting by the phone like he should be. Any salesman I worked with that were distracted easy from their job were definitely not the best salesman we had. Now the guy on the lot telling you to roll down your window, look out! He's goooooood.

Tricks of the "Trade" - Trade-in that is

  I want to share with you a few tactics I used over the years and some that I saw my fellow associates use as well in regards to devaluing someone's trade-in. I have already mentioned the used car trade-in in various entries so far but I want to go over a few situations you may be presented with in regards to your trade-in value.

  Dealers usually do a damn fine job of emphazing why their car is the best one you will find like it and your trade-in, well just isn't worth quite what you thought it was. This is done for obvious reasons, profit. The less they can convince you your trade is worth, the more money they will make whether it is on the deal where they take it in on trade or whether it's the deal where they resell your trade. They want to own your vehicle for as much as possible, put as little money in it as possible, and sell it for as much as possible. That is the nature of the beast, and a hungry beast it is.

  I am not proud of any of this by any means but here are some things to watch for. Frequently, before I would even approach a customer about their trade-in value. I would build myself a little arsenal of information to back my numbers up. I would sneak off to another office and use the computer to compare book values. I would use KBB.com or NADA.com, and sometimes even Edmunds appraisal tool. The object was to find one if not more that were in my favor or at least close enough for me to use. Generally actual trade-in values were probably closer to NADA or Edmunds figure. KBB is usually inflated so I liked using those for the car I was selling. I would then print of some relevant help from one of these valid sources and head over to my customer with a deal worksheet with some figures. After I would knock them out of their chair with what I thought their trade was worth, I would simply act surpised and pull out my printouts and go on about how I thought we were being more than fair. I would show my printouts and go on about how often the values were updated and how NADA was the preferred source of financial institutions so it has to be right. Even after all of this it still was not uncommon for me to get resistance. We would then get into the actual condition of their vehicle and perhaps how strong the market was on their vehicle. I would sometimes tell them their particular car was not selling well, even though it was a flat out lie. If their vehicle needed some things I would begin itemizing it and putting a dollar amount on them just to make things sound worse than they were. Terrible, I know. I would even ask a bunch of questions to get them to second guess their trade. Such as. If it had been rustproofed? Had it been smoked in? Were they the only owner? Did it have factory warranty left? Anything to convince them I might have a hard time reselling their car and I didn't want it that bad. The fact is none of these really have an impact on your trade-in value. With the exception maybe of the smoking if it's really nasty. These are just things to make you feel like your trade could be worth less. Miles, make, model, equipment, condition, and year about cover it.

  Know the condition of your vehicle. Most used vehicles fall into the average category if everything works as it should and there is no signifiigant issues anywhere on the car. The excellent category is based closely on "mint" and most cars won't fit this criteria. Then there is usually fair and poor which is when you are getting into issues such as rust and features not working properly or not at all. With that said as long as you are reasonable with yourself about the actual condition of your car don't let someone tell you otherwise. They list the criteria that has to be met for each category for both you and your salesman to see. This means to also not let your salesman tell you his car is in excellent condition when it isn't.

car buying tips
They're all worth something


  Make sure your salesman is always comparing apple to apples. All to often I would choose the sources which favored the trade and the selling vehicle whether they were the same or not. I would just wait to see if they called me out on it and worry about it then. In which case I would usually just play dumb and go from there. What I mean is if your salesman is using KBB to justfy trade, be sure he uses KBB to justify his car too. Double check any equipment he may have "forgotten" to select when getting his online bid for your car too.

  They will ding you for cars that are out of season too so expect that. My best advise for this is to trade it at the best time of year for that particular type of vehicle. Cleanliness shouldn't be a big factor either. I didn't ever play that card much though myself. Lot's of people worry they don't get as much if their car is filthy or not. The fact is that if an hourly kid washing cars out back has to spend an extra two hours to prepare your car for the lot, is peanuts to them. They know how well a car will clean up by looking at it so don't think this would ever impact a number by even hundreds of dollars.

  Tires are a big deal though.We could quickly devalue a trade if it needed tires. They cost lots of money, even to a dealer. So if you need tires you can expect this. Most car dealers can put new tires on most cars for less than $300-$400 if they have a good source. Upwards of $500- $600 if its an SUV. Just don't let them tell you they need to spend $800-$1000 on tires to get your vehicle road ready because they will most likely try.

  They may tell you they think something catostophic may be getting ready to happen to scare you out of it. Just remember, they're salesman, not mechanics. If they did get a mechanic to look at something on it, remember, that mechanic is a form of salesman. If they take that car in on trade, he want's that job. If you run into any of these situations then you may want to have someone you know and trust look at your car to verify this. Just make sure you tell your mechanic you are planning to trade it in so he doesn't work up a bill of shit you don't really need. Wrenching on cars is where they make their money, not on advise. So you need to let them know what your intentions are.

  The main thing is to watch out for anything done to devalue your trade-in. They are going to be very biased so just make sure they are playing fair. If they are giving you a song and a dance, chances are that is all that it is.

Friday, July 29, 2011

Payment Terms and Equity

  Maybe the last time you went in to trade your vehicle at the car dealership you were sent out with some disappointment. You discovered your car wasn't worth what you thought it was. Worse yet, it wasn't worth what you owed! More often than not this was an obstacle I had to overcome on at least a weekly basis.

  All to often when we originally purchase our vehicles we tend to be attracted to the lowest payment possible. Generally, unless you put money down. This can only be achieved by stretching the term of the loan out to the limit of what banks will do on a certain vehicle. Because of  better warranties and increased reliability and longevity of a car's life nowadays, 84 months has become more available to more people than ever before.
  That is seven years of your life you will be paying for this vehicle. Sure the payment might look pretty sweet but it isn't doing you any favors in the long run. Go up in term, you go up in rate. You go up in rate, you pay more interest. Pay more interest, and you are paying less on the principal balance of the loan. Thus, losing equity. To put it simply. Equity is what it's really worth vs what you owe. You will almost never stay equitable in a vehicle with a 6 or 7 year loan. I really want to say never there but I just threw the almost in there to cover my butt. The truth is there is a good chance you will not stay equitable in a 5 year loan unless you at least pay your tax, title, and license at sign-up. In any of these long term loans you will not see any equity return until the last year or two. Even then, it won't be anything staggering.

  The car market can be pretty wishy washy. Fuel prices can greatly influence the market and so can some bad press. If you have any of these prolonged term loans and you find the market on your vehicle has fallen a year or two after you signed. You will almost certainly be heartbroken. How can you prevent this from happening? Well, you probably won't like this answer. Money down and shorter terms. I have no problem with 5 year loans, they are very common. Just at least pay your fees up front. All too often people roll this right into the loan and when they find out they are $2000 upside down on their car later they're pissed. Uncle Sam got that money. Your dealership didn't get it. It is not part of the price of the car, just remember that.


  While most people cannot do this, or they don't really want to I should say. Put some money down and take out no more than a 5 year loan. 36 and 48 month terms I highly recommend. In the case of these your payment may be higher but you will remain equitable even without putting money down. 72 and 84 months is a long time to pay on a piece of metal folks. Don't let the things you own, own you.

  On the other hand maybe equity is not a concern for you. If you have no intentions of trading the vehice before you pay it off or you know you will be keeping the vehicle for the duration of the loan then I say go for it.This is a difficult thing for anyone to truly foresee going into an extended length loan term though. Just bear in mind you are going to pay a significant more amount of interest in the long run.

Tuesday, July 26, 2011

The Car Buying Services

  I had the pleasure of dealing with a few of these services over the years. Services of which play the role of the "good guy" when it comes to you buying your next car. From a marketing perspective it's absolutely brilliant. I mean, directly playing off of the general public hatred toward car dealerships and the sleazy stigma of a dealer? Pure poetry but it's also not very nice and really just throws them right into the same bag as the car dealer. I think you could really debate the legitimacy of such a service because in the end you are still going on the same thing, some other guy's word.

  In my opinion you are just adding a second salesman to the deal. Now TWO guys wanna get paid instead of one. Generally I believe there is a flat fee for these services and one in particular told me he got paid $500 per sale for the service. I can also say that in most all circumstances they seemed quick to form an "alliance" with me once they were sure I had what they needed.

  They are supposed to get a car for you at a price you wouldn't be able too, right? Really all they are doing is playing the good cop and since this is a car negotiating service it is very easy for them to find out truly what that customer can afford and where they want to be. They automatically have the buyers trust so the buyer pours their heart out to them on how much they can really afford. If the negotiator sees he may not be able to satisfy the expectations once again he is trusted so it is easier for him to educate and "bump" the buyers expectations. Basically they get given answers from the buyer that I had to pry for and more or less share that with someone like me over the phone when the negotiating happened. Then based on research you or I could find we would feel each other out and ultimately work up a deal. I almost always felt like the people could have gotten a just as good if not better deal had they just came in and did it themselves. The deals were never bad but they were never amazing either.

  The point is if it's a good deal you are after. You are just adding a middle man and paying for it. If you do your research well, there is no tool available to them that isn't to you. They still have to negotiate too and it's more likely they will pal up with the store to make their life easier. Just remember there is nothing magical about these negotiators and they are people just like you and me.

  On the other hand. Maybe you don't seek them to save you money. Maybe you work 3rd shift or you are just a very busy person. Perhaps just the general confrontation conflicts with your personality. Maybe you don't even know what you need to buy a car, think of it like having an attorney to guide you through the process. Just remember, prosecutors and attorneys have lunch and sometimes went to school together. I cannot completely take it away from them though. I did some searches and Cartelligent looks very professional and also aid in locating if there is something in particular you cannot find. I am not posting a link because while I do not endorse them, that is just an example of one. I just wanted to point out that I never saw anyone get any spectacular savings using one, and that's excluding what they paid to have the negotiating done.

  Bottom line. Wanna save money......don't waste your money here. If you are one to pay for convenience it makes perfect sense.

Monday, July 25, 2011

How Can I Get the Best Interest Rates?

 Make sure you pay your bills and keep your credit score up where it should be for starters. That is the intention of a credit score. To let the world know if you pay back the money you borrow thus rewarding those who do.

 Nearly any car dealership has financing available and every single one of them is going to insist that they can get you the best rates in town. While a particular store may have more leverage than others in reference to getting those approved because of their relationship with certain lenders. The fact is banks and other finance institutions can do what they can do. Some finance institutions specialize more in auto finance than others.

 So where can you find the bast rates? Now I don't have some spectacular link that will whisk you away to the best rates on the planet. This blog is about transparancy and it just doesn't work that way. Quite honestly, it was very seldom that any finance institutions could top what the local credit unions offered. Most banks cannot compete with the auto interest rates of your local credit unions. More than likely your car dealership has a relationship with them and they can handle the paperwork for that credit union. Saving you the hassle of going to that credit union and getting approved and then going to the dealership from there. Just be sure the dealership is quoting you the rates currently offered by that credit union. In most cases they will because credit unions post their member rates online anymore for the world to see. Online is a great place to compare credit union member rates and you can research this before you go in so you know what your rate should be given you have adequate credit. If credit is good for you. You can probably do much better than big lenders like Chase or Wells Fargo if you keep your borrowing local.

 Now of course if there is a manufacturer's special interest rate offered that is going to obviously be an exception to this rule. In the case of standard interest rates though. Credit unions are almost always going to prevail.

Saturday, July 23, 2011

Easy Way to Cut Through Some Red Tape at a Car Dealer

In the age of information technology we now live in the Internet Sales industry has absolutely blown up for car dealers. Sites like YouTube, social networking sites like Facebook and Twitter , and free classified listings such as Craigslist are making it easier for stores to reach a larger audience than ever before. I myself held this position at one of the stores I worked for and to be honest the amount of inquiries I had to deal with on certain days was quite staggering. It was an extremely fast paced job and for that simple reason I usually had to just "put my best foot forward" when I received an inquiry and just hope. Not to mention that if they were contacting me about a vehicle I had it was fairly safe to assume they were doing the same thing with other stores. As a result of this I very seldom jacked with or tried to play games with anyone on the price of the car if they asked. This was especially true on the new cars. Dealers own new cars for the same money and getting price quotes online for a new car quickly turns into a battle between stores of which one is going to take a $50 deal. It is probably the best way to pit stores against each other on new cars. Now I would often get questioned by upper management when I needed our "best price" on whether or not they were coming in. It took some haggling on my part usually with my manager but I usually got the job done. After all, if the Internet manager cannot give you a reason to physically come in. There is no chance they are going to sell you a car. You will also frequently find that the price you see on a dealership's website may be different than the number coming out of the salesman's mouth out on the lot. Salesman generally carry a price sheet where the sale price is listed for every car but if he is a real savvy salesman he may quote you a number $1,000 or possibly more over that. If he is good at this. I can assure you his manager absolutely loves him.

 So what have we learned? Deal with an Internet Manager at a high volume store and he is going to likely going to give you his best shot first or at least close to it. He is short on time and his time is money. He knows how much competition he is up against and wants any deal he can get. No matter how small.

Cash as a Negotiator

 From time to time I would get the buyer who was say something like "see if your manager will take (dollar amount) cash?" Maybe you heard dad or grandpa say this way back in the day but it isn't even worth mentioning these days. Before the days of technology we now live in. Where money has just become another number in a hard drive. Throwing the word "cash" into an offer was definitely a negotiating tactic for the buyer. However, because of wire transfer of funds it is likely that if you were to finance that the store will see their money in the bank as fast if not faster than if you paid cash. Let alone they would rather not even count out $25,000 and have it in the building. To be quite honest, the impact "cash" had in negotiating a car deal is the opposite of what it used to be. Dealers make quite a bit on the "back end" (interest rate profit, extended warranties,etc) and they would RATHER hear you are financing. Finance officers who figure your rates make profit off of the interest points they add above the "buy rate" (their "cost" of the rate) of your loan. For example. They phone into the bank you are financing through and "massage" the loan officer into a nice low buy rate they can add a rate point or two to make themselves a nice little profit and keep things looking good on paper for you while still making that financial institution some good money too.

 Is it fair to say the "cash" offer never works anymore. Not at all. It would all depend on where you are buying from. If you are at a small, shady, one man operation corner lot and the owner is ready to go have a drink after work on a Friday afternoon. "Cash" may perk that guy's ears but even the smallest of stores still make their money on financing as well. As far as a private purchase goes. It means everything for obvious reasons. The megastore that makes millions a year off of interest could care less.

 So the moral of the story is "cash" = less potential profit on the back end of the deal . With this said. Throwing them a bone during the negotiating of the price of the car that you may (even though you really aren't) be financing could make them ease up on the price of the car a bit in hopes of making money off of you on the back end. I have worked plenty of deals where my manager dropped his pants on the price of the car more than he normally would because we knew they were finacing. Using this outdated tactic is most likely to just make you sound as if you have not bought a car for 30 years.

Buying A Car Out of State and Other Helpful Links

 I wanted to do a short segment on out of state car buying and include a few more links that were very useful to me over the years I sold cars. First off, buying a car out of state and the sales tax on the auto purchase you pay obviously varies from state to state and since it would be far too difficult for me to keep this blog up to date on that. I am going to instead include a link to Bankrate's tax by state page. There are a few states that do not collect tax at all on a vehicle purchase and then you run into the issue of the tax agreements between states. There were many states we did not collect tax for and the customer was responsible for them when they returned to there state. So that is also another issue you need to research before making the trip. Usually dealers have a list of these but you would probably be surprised how readily available it isn't. The Bankrate tax by state page is very helpful and if you read carefully they link to the state's main tax sites. Some are more difficult to find than others but it is all there. As far as licensing goes. If you are without plates you will likely be put on a drive away sticker from the state you are puchasing which gives you time to get your vehicle to get to your home state and get it registered. Otherwise, transfer is generally not an issue and is done from State websites. In general, aside from your taxes and reg. Nothing is much different. Enjoy these links. I have no doubt you will find them helpful.