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.

  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.

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

Read More

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.

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.

Read More

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.

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.

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.

Read More

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

Enter Edmunds.com

Read More

The Dealership Fleet Manager

  I want to talk briefly about a car dealership's fleet manager. I will go right out on a limb and say that the fleet manager at a car dealership may be one way to cut through some red tape at a car dealership. Sometimes you may be able to find out who this is by looking through a store's website but may be easier to find by making a phone call.

  Who is this guy or gal? Well it is a designated person or persons at a dealership who for the most part sell multiple vehicles to businesses or other elite folks the store has dealt with for many years. The truth is. They can sell to you just as well. It's one of those ask and you shall receive things. I will warn you that the results could vary greatly from store to store. Notice they don't make a big effort to let the public know they exist, and for good reason.

  Will you get a better deal by going through one. Maybe, not by light years though if you do. The truth is if the consumer has done their homework (and most do anymore). They will get just as good of a deal on the sales floor. Whether it is a fleet purchase or not. A dealer can only go so low on a car. New cars are ADVERTISED at or a few hundred above invoice pricing all the time now. With that said. Given all of the invoice figures broadcasted online for the world to see. Most stores have already pulled their pants down on new car prices so you can still expect to buy that new car you want for around invoice just like you would from a fleet manager. I can tell you right now that as a former Internet Manager the competition is so stiff out there anymore that the deals I gave on new cars were every bit as good as a fleet manager. I would not be surprised if the fleet manager and Internet Manager were not the same person at a lot of stores anymore. It would only make sense.

  What you can expect to not get from a fleet manager is world class service. I personally dealt with a fleet manager at one store and he was also our General Manager. He was busy a lot and I could tell the fleet sales were a bittersweet burden to him. Most of which were sold over the phone and when they showed up to get their car it was referred to as a courtesy delivery. At which they were practically thrown the keys and waved goodbye to. Perhaps this is exactly what you want though. My advise. If you want to go this route. Do yourself a favor and know what the hell you want before you stop in or call. This person does not want to pop cars open all day long , let alone show or test drive any.

  I wanted to mention the fleet manager because I was astounded at how many sites claim this is the best way to buy a new car. If you are a construction company and need ten trucks, by all means. NOT as an individual though. I want you to have a look at this informational site I found on buying cars. The gentleman claims to be a former general manager at a car dealership and goes on to say blogs like mine are bunk and the easiest way to buy a car is through the fleet manager. However, he quickly proceeds to tell me to buy his $30 money saving "system" and he will guarantees to save me $5k if I buy it. Ok what? You tell me right out of the gate that the best way to buy a new car is from a feet manager.......but buy your system? You lost me. The guarantee fascinates me as well. How in the hell is anyone going to prove they DIDN'T save $5k? I love how he plays the "role" of the saint as far as car buying tips goes too. If he truly was a general manager then he is obviously trying to replace that six figure income he once had somehow. He has just chosen to do it $30 at a time. Still "sellin'" aren't we? I decided to call him out simply based on the needless ball busting he is throwing my way in his video. Is my blog ad supported? You're damn right it is. The difference is, I GIVE AWAY what he is selling. Running ads on a website is no crime, selling information online that is already free should be. I lost a few minutes of my life listening to all of the incoherent bullshit this guy had to say as he was glancing down looking at his script on his desk and swallowing uncomfortably. I am going to go as far to say he probably was never a general manager anywhere. That's a pretty lucrative position to be in to just leave and try to match the potential earnings from home selling information. I just want you to keep your 30 bucks. All the helpful information you need to save money on a car purchase can be found on my blog or others like mine.

  Just for fun I am going to give you a taste of what things are really like at the dealership. As I mentioned before my General Manager was the fleet manager at one of the stores I worked for. If I wasn't selling a car, I was greeting customers at the door looking for an up. Frequently, people would come in looking for the General Manager and I could just about bet on how he would react to each one. If I were to have went to his office and told him someone was here to see the fleet manager the conversation would go something like this. Cover the kid's eyes. This is going to get ugly. "Who the fuck is it!?" he would say. I usually got a name and would have then said "John Public, he asked for the fleet manager." He would then have probably said "well ok, am I supposed to know this person? Did they say if they had an appointment? I don't know who the fuck they are!" I would have said "They didn't mention it." He then would have said "well I don't have time for this shit, he can sit his ass down and buy a fucking car from a salesman just like everyone else. Tell him to have a seat and I will go out in a minute and say hi." Which he would, and then tell the customer he will take care of them on the numbers and turn him over to a salesman. So there you have it. That is the type of magnificent scenario you can come to expect if you go asking for a fleet manager. People playing hot potato with your ass.


  In closing, the fleet manager could be a way for you to get a good deal on a new car. It is no magic bullet though. There is NO magic bullet to buying a car. I don't particularly care for any claims that there is. The information I provide is to merely give an edge. The keyword being edge. Whatever you do. Don't beat a salesman down to nothing and ask for the fleet manager to see what he can do. You may be disappointed to find it's not any better than your salesman's last offer was. Why? Because every one who can sell a car in the building is still pulling their best price from the same place, upper management. Not only that. A move like that is likely to draw up a lot of disgust and get you taken with a grain of salt. The fleet manager is there if you want to go that route, however I do not endorse this for the sake of good service. Walking through the door asking for the fleet manager as a random customer buying one car is going to send out a warning shot and rub everyone wrong real quick in my opinion. If there was anything we hated at the store it was someone coming in acting like a big shot, when they weren't.

Read More

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.

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.

Read More

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.

Read More

How Much Do Car Salesman Earn?

  I suppose "Earn" would be the debatable term right? You want to know how much a car salesman earns? Most likely more than you with half the education. Enough to probably piss you off if you work hard for a living. I used to be a framing carpenter years ago and it kind of even pissed me off a bit when I started selling. There really could not be a higher potential of income for such a business that requires such little education. My first year of selling cars I made 4 times that what I did as a carpenter. I will say between $50k and $100k. Not bad for a 27 year old guy. Not bad at all.

  What if I told you $200k a year wasn't out of the question. Granted there is a small percentage that do this well, at least where I lived. The potential is there though. I had a coworker I used to sell with that made over $25k one month. There are plenty of people that don't make that in a year. Doesn't seem right does it? I agree and that is a big part of why I choose not to do it anymore. Even on the low end it is pretty rare to make less than $50k. If they do they probably won't be selling cars too long. Most veterans you could safely put in a $80-$120k a year bracket.

  Now that you know. Let some other poor sap make your salesman's mortgage payment.

Read More

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. 

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.

Read More

Car Dealership Lingo and Slang

Dealership Slang
I was going to start compiling this list over the next few weeks. However, taking a look at some other similar lists I quickly found myself annoyed by them for the reason that either their lists were missing so much information or it contained terms which were common knowledge or didn't even actually pertain to buying a car. Here is the good stuff.

ACV - Abbreviation for Actual Cash Value. This is the dollar amount your trade-in is actually worth to the store. It does not necessarily mean that it is the same number on the worksheet you are shown for your trade. "I would have had a $3000 profit deal but ACV was $5000 and we had to show him $6000 to put the deal together."

Be-back - Refers to someone who either claims they will be back or did actually come back in after a previous visit to buy a car.   "Yeah, that couple over at that desk are the be-backs I was waiting for."

Bump - Refers to the act of raising an offer OR raising the ACV of a trade. "The customer offered to buy it for $12,500." "Bump him to $12,800 and see if he will do that"  In the instance of the trade "If he says no to that deal I will bump the trade another $300 but that's it"

Buy Bid - Typically sought when there is an issue concerning the ACV of a trade-in. If more ACV is needed and the store making the sale has put as much money into the ACV that they are willing to, they will call other stores that may specialize more in a particular vehicle and get better traffic on them. Thus, willing to own that vehicle for money than the store making the sale is.

Buried - Refers to a customer or the store being upside-down in equity on a car. "We need to just blow that car out of here, we're buried in it" or "I couldn't get get them financed, they're buried in their trade."

Closer- Usually a veteran salesman or manager who is very good at earning a person's trust and getting them to finally sign after much negotiation.

Demo - Short for demonstrate or demonstrator. Refers to either a test drive or the company cars the salesman drive if any.

Dirtbag - Someone with bad credit

F&I - Stands for Finance and Insurance office. This is where the final paperwork and financing is done. This is where they also attempt to up sell on Insurance: extended warranties, GAP, rustproofing and undercoating, etc.

Flopper - Customer who puts up very little of a fight in the negotiating. " Oh man, that guy was a flopper. He was drooling all over that car and had to have it."

Front-runner - People who like to give others the impression they are wealthy. This goes for both salesman and customers.  "My front-runners over there were ready to sign up on that Lexus as soon as they saw they could afford the payment."

Full pop lease - Highest amount banks will allow on lease based on a percentage of the sticker price. This pretty much a thing of the past. The few who lease anymore have really tightened up on over-allowances.

Get-me-done - Someone with bad credit who's ability to get financed is up in the air. They typically don't care what their payment is and will do just about anything they can to get in the car they want.

Ghost - You have no FICO score and a blank credit report. Unestablished credit.

GM - Abbreviation for General Manager
Green Pea - A rookie salesman. Generally the younger guys/women.

Gross - Refers to the profit a salesman's commission is based on. "I grossed around $4,500 on it so I should have a nice check this month."

Grind - Refers to the effort to close a deal."Yeah he is in the finance office but I had to grind for it."

Head Lopper - More or less taking advantage of someone. A high gross profit deal.

Hold-back (in relevance to invoice) - Overhead cost of new car figured into the invoice. Will cover such cost to the dealer such as floor plans, advertising, and any regional advertising agreements. Dealers seldom get into this very much. "He said he really wanted the car but we were already $200 into hold-back"

Hold-back (in relevance to working a deal) - The act of maintaining profit in the deal. "Boss said I could sell it for $15,000 but I think I am going to try to hold-back on this guy and make some money."

Hawking the lot - Saleman walking or hiding on the lot looking for an "up."   "John is outside hawking the lot"

Lay-down - Same as a flopper

Loaded Payment - Payment presented to customer which can include gap insurance, extended warranties, and service plans. Usually done at the sales desk without customer's knowledge to mentally prepare them for the finance office. "they are in the finance office. I gave them a loaded payment so they will probably buy everything."

Mavin - If you were to look up this term generally you would find it is someone highly skilled in many areas. This for the mostpart holds true here as well. At the dealership it refers to anyone a potential customer brings along who makes a sale difficult for the salesman. Simply put, a know-it-all. Generally they are leary and pessemistic as well as very hard to please. They have been brought along to help the customer but rarely give them any real positive input on anything. They are not even going to be an owner of the car but the purchaser highly values their opinion and chose to bring them along. This is usually a family member like a parent or sibling. Perhaps a boyfriend or girlfriend if it isn't a married couple. It could even be a friend. " I think I could have gotten my customer to say yes an hour ago but that mavin they brought in with them is making this deal hell.

Mini - The minimum commission paid on a car deal where there was not enough profit to pay the salesman an adequate amount based on his commission percentage.

Pack - Similar to a hold-back. I have only seen it referred to used cars though. Calculated cost by the dealer to cover floor plan interest, advertising , etc. This figure is added to the ACV. "ACV was $14,000 but I was working off of $14,500 after pack."

The Point - Typically a high traffic area where a good potential for meeting a new client exsists. Can refer to a corner or front of the building as well. "Where is Jim?" "Out on the point where he usually is."

Pounder - Refers to $1000 in profit. " I got me a nice 4 pounder earlier. I think I might take the rest of the day off."

Spiffs and spins - These can be either dealer or manufacturer incentives to salesman in addition to their commission. Typically used to motivate staff to sell aged inventory.

Squirrels,spooks,etc. - Refer to wishy washy customers who just don't appear to be even know what in the hell they are doing. Could be the guy that is killing time while the wife is at the mall. Could be a guy that stops in once a week and corners a salesman to shoot the shit and doesn't even look at a car. Yes! People like that exist.

T.O. or Turn-over - The term used typically when a poor negotiating salesman hands the deal off to a closer or another salesman or closer.

Unit - 1 piece of inventory. 1 car

Up - Likely to be the most famous of all of the terms. Refers to a potential client. "Hey, who grabbed that up that was out there a minute ago?"

Upside-down - Refers to negative equity in a trade-in. What they owe versus what the ACV is. "We couldn't get them financed. They ended up being six grand upside-down"

Walk - Walking the customer refers to letting one leave after management is confident they have offered the best deal and he customer still refuses to agree. Walking is a good sign they are at the end of their rope. Especially if you have used up a lot of people's time.

Weak Stick - Poorly negotiating salesman. "He's a weak stick. He won't be here long."

Whacking or dragging the trade - When the number shown to the customer for their trade is less than ACV to add profit to the deal. "The car he was buying had no mark-up so I whacked the trade and made some money anyway."

Window Qualifying - When a salesman pre-judges a potential client as they are just pulling in and getting out of their car. This may be based on what they drove in with, who is with them, physical appearance.

Yanks and Strokes - Pretty self explanitory. This customer might pop in every few weeks or few months and try to rehash an old deal you've already worked with him 3 times.

Read More

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.

Read More

Monthly Payment and the Fine Print

  Especially as an Internet Manager I frequently got a phone call regarding the "$XXX a month" lease or purchase specials. These can be seen on television or in the newspaper ads frequently. I can assure you that if it sounds like an incredible deal, it's probably been hyped up the best it can while covering their legal asses.

  In almost any of these circumstances these payments are contingent on some criteria conveniently listed in tiny print at the bottom of a newspaper ad, quickly flashed at the end of a commercial, or very quickly read by a narrator. This is the part they don't actually want you to read or hear. It's a marketing strategy, simply put. Is it wrong? We'll call it misleading. They just want that payment to jump out at you enough for you to stop down at the dealership, where they just schmooze you through the rest of it from there.

  No fine print you say!? Can this happen? It has and I have seen it happen. It is very easy for a dealership to dismiss it as a typo (as in the case I saw it truly was) and apologize. In the case I witnessed the girl threw a fit in the middle of the showroom and walked out shouting she was going to sue. Well, car dealerships get sued on a regular basis and usually have a pretty fantastic legal team. Blow it off and take your business elsewhere if this should happen to you. Otherwise, it just won't be worth your trouble in the end.

  In most all cases if it looks like a great payment or lease special the terms listed to get to that payment will almost always include some sort of theoretical amount of money as a down payment, excludes tax, and your credit is impeccable. This is not to say that the special is not good by no means though. They're just painting a scenario to get to that payment. A scenario most people can't do. The reality is most consumers do not want to pay any out of pocket at signing. While it is a very smart thing to do, it just isn't any fun and it kind of takes that "good deal" feeling away from the whole process to most people I think.

  The lesson? There is nothing magical in the car business that let's you buy $20K plus cars for $200 a month without some hitch. Look for those terms! Make a call to the dealership if you need them clarified. The last thing you need is going for a ride in a car you decided you love, to only find out that you need to cough up $5000 to get the payment you thought you would.

Read More

The "Folder"

 With technology being readily available and more affordable than ever. I started seeing more consumers coming in over the years with what I call the "folder." It's your ammunition. Your knowledge and all of the research you have been doing. I have also watched this type of buyer develop a stigma. Hell, I'm not going to lie. My shoulders would drop if I saw one coming my way.
 Look, when you hop out of your car with a folder packed with all that stuff you might as well be waving your middle finger in the air at everyone shouting "you're not going to make any money on me!" We would all mumble "aw shit" and scatter like mice. Does it mean you won't get a good deal? No, not at all. I don't think you'll get as good of service though. I will say what else I have seen though is a customer get themselves lost in their so well prepared folder that they talked themselves out of a good deal. Rather than bringing along every single print out you felt may be useful, compile the things that really matter and keep it in your pocket. Pull it out later after you have worked some numbers.
 Unless you already are dead set on a car you want to keep that salesman giddy and helpfull. Most of all hopeful. Present yourself as a proffessional car buyer, and you have killed their hope right out of the gate and they just want to get it overwith. Some of the smartest consumers I ever had played dumb through most of the process.

Read More

Is What I do wrong?

 Interestingly enough in the short time this blog has been up. I have received a surprising number of hate mail about what I am doing here. Obviously, from some gentleman and women who work in the industry. I don't respond to them. It's just starting a war neither of us will win.

 So is it wrong that I do this? Not so long as free speech is still a right. I mean selling cars isn't exactly the most honest days work you can find out there itself. You ultimately make the most money on how crafty and dishonest you can be. The truth is that this blog is no different than writing a "how to" on installing a toilet or installing a stereo in your car. They are taking money out of someone's pocket somewhere down the line. You won't see the Plumber's Union or BestBuy employees threatening people online who write and sell these how tos though.

 It's a dirty business. I had never worked in such a cut throat atmosphere in my life both internally and externally with the customer. I learned to live with it for a while but after a while it began to eat at my conscience. I left wanting to fight some fire with some fire. I suppose that is what happens when you give the person in the building with the most computer skills the secrets to the trade and send him out with a bad taste in his mouth. The car business is full of more ass kissers I have ever seen at any job. I am going to be quite honest to say my mouth has gotten me in more shit more than I can remember when I sold cars. I rarely ever held back and said what was wanted to be heard over what needed to be said. There was nothing I enjoyed more than outwitting a high school drop out I worked under and watching the look on his face as he second guessed himself and the rationale he was trying to present to me. I can't stand people who stumbled into the good life and that is a majority of who worked in the car business. It is one of the few industries where you can easily make a 6 figure income without a college education let alone a high school diploma. You get some years under your belt and about any of them will hire you. I didn't grow up like that. I was raised to earn my money, not swindle people out of it.

 My conscience couldn't be more clear about what I am doing. Car sales is a field I am quite knowledgeable on and so is IT and computers. I am merely taking advantage of my knowledge and skills and applying them to free speech and enterprise. This blog is not going to put even the slightest dent in the industry's paycheck as a whole. We just might be taking a few boats and other toys out of a few driveways.

Read More

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.

Read More

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.

Read More

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.

• Tax By State
• Auto Loan Calculator
• NADA (Financial institutions use to determine loan amounts)
• Kelly Blue Book (generally more inflated than NADA)
• Fuel Economy
• Edmunds Appraisal Tool (only thing about Edmunds that was realistic to me. I think the rest of it is garbage)
• AutoTrader
• Cars.com
• Craigslist (private party and dealer cars. I often displayed signifigantly lower prices online as an internet manager)
• Carfax
• Autocheck  (every bit as good as Carfax and cheaper however these are free if the dealer is signed up either at the store or on their site)
• Crash ratings
• DMV

Read More

To Trade or Not to Trade... That is the Question

 Dealers frequently use what is called The Black Book when determining the trade value of your vehicle. Or at least reference it I should say. The Black Book is a little pocket book about the size of a calculator and is a weekly publication that dealers frequently subscribe to. Chances are if you look around in a used car manager or general manager's office you may spot one of these tucked away on the desk somewhere. Nowadays in addition to that they will also reference such sources online such as Manheim.com or Ove.com . These are auction sites that the dealers have access to so they can see what vehicles like yours are currently bringing at these mysterious auctions you seem to always be hearing about.

 Let me start off by saying you will most likely NEVER get what you really want for your trade in at a dealership. They may be able to "show" you what you are wanting for your trade in if they have you locked in on the right car. Which is one with a substantial markup that is capable of absorbing some of that money you want for your trade. There is a good chance the salesman will even use the word "show" when he is discussing your trade in value. Which since I don't sell cars anymore looking back, I was an idiot to ever say it. Let me explain. When a salesman first appraises your car he is going to typically fill out what is called an appraisal form or ACV form. This form is not meant for your eyes to see after the car has been appraised. The salesman may go over it with you in regards to equipment and any of your personal information they may want to put on it such as names and contact info but after that, you'll probably never see it again. ACV is always going to be abbreviated on any form that refers to it but if that store has any brains they wouldn't put it on any paperwork at all the customer sees. The last store I worked for did but most people don't know what it means or they just assume it doesn't have anything to do with the sales figures. ACV stands for "actual cash value." The number to which your car is actually worth to that store and the actual dollar amount that it will hit the books for after the sale.

Is it time to trade in that car?

 So what does ACV have to do with your car deal. It is very simple actually. I am going to use some theoretical numbers and explain this very easily. Lets say you are buying a $25,000 car. In this case we are going to say its used. We will say they own that car for $21,500 . $3,500 markup. You have a trade in that you would be happy getting $12,000 for. However, you did your research and you also think you can buy the car you are wanting for $23,500. So you want $12,000 for yours and want to pay no more than $23,500 for theirs. Salesman then appraises your car and he sits down with the figures. He's gonna low-ball you to test the waters. He may say something like "We're going to show you $10,500 for your trade and we will knock $500 off the car. That what you were thinking?" You say "No , not even close." He then says "Well, what were you hoping for? Is it the price of the car? Is it the trade?" This is where you laugh and say "both." This is where the chess game begins. What you are not seeing at this point is the ACV of your car. Now I wouldn't suggest ever saying "so what's my ACV?" They will just think you're a jerk and be cynical towards you for it most likely. You can keep your eye open or listen for it though and keep is as a silver bullet for later if things don't go as planned. By all rights your ACV card may say $11,000. In this case he is holding back on you. Some guys are incredible at holding back on trade, some rarely if ever do it. They are usually the good guys in the biz. Lets say that your car is worth $11,000 ACV. Based on the numbers he gave you, all he did is discount the car to look like a sweetheart and charged you the discount out of your actual trade in value. That $3,500 markup is still on the table. "What could we do to earn your business today?" he then says. You then say "Well I was hoping for $12,000 for mine and I have seen the same car you are selling for $23,500." He will likely then give you the old "Let me see what I can do" and go to his manager for rehashing.  This time he comes back with "The manager said he would put $500 more into your car and sell the car for $24,000 , he's really just trying to put this deal together." Ok so we're getting close. They are truly giving you what ACV (even though you don't know what ACV is) and you are within $500 of where you want to be on the car you are purchasing. However, with the numbers we are using there is still $2,500 on the table. Pretty typical used car profit really. Now I cannot tell you what they are going to own a certain car for. That is impossible. Is it wrong for them to make a profit? Absolutely not. Is it wrong for them to make big profits for overpricing cars and "dragging" (industry term) trades. Hell yes. In this case, with the numbers given you are $1,500 from where you truly want to be. On a five year loan that could be about $30 a month. At this point if you play your cards right. There is probably a good shot you could still get what you want. Most dealers will do a $1000 deal just to roll a unit. Sometimes less if it is an aged unit they are paying interest on and they just want the damn thing gone. If there are tumbleweeds blowing through the showroom that day that can be a big factor too. You just have to decide how much hardball you want to play. They can still "show" you that $12,000 for your trade. It just means they are getting a profit of only $1,500 when selling the car for $24,000 with an ACV of $11,000.

  I want to clear up a bit of what I think is a misconception about trading cars in. At least depending on what state you are in. I heard people say to me a lot in regards to trades "well, my neighbor said he would give me $15,000 for my car and you are only giving me $14,500." Now bear in mind, I sold in Illinois. Which means at a rate of 6.25% you won't pay that tax on the $14,500 going toward your purchase. This is a tax savings of $906.25. So at this point you are actually, in theory getting $406.25 more for your car than Joe down the street wants to give you. People overlook this all to often and it can usually be to a persons benefit to trade if it is worth a substantial amount and the tax savings is high. There are a few states that do not offer trade credit. At this time I know what they are but this post will be up for years and that could change so see if your state offers it before you head in. Also, same thing with tax in general. Some states don't collect on car deals period so please do your research on this.

  Does that car of yours need some work? Maybye you cracked a bumper skin at the supermarket or you have not gotten around to change that pesky 02 sensor keeping your check engine light on. Check to see what the dealer will give you for it and see how much they are penalizing your vehicle before you go dumping a bunch of money into it. All dealers will take any mechanical or superficial repairs into consideration when taking your vehicle on trade. Dealers have their resources for making all of these repairs. Internally within the store or not. In the end they get repairs made for as little money out of their pocket as they can. Don't rack your brain over small issues with your trade-in. There is a good chance that dealer can bring it up to par cheaper than you or I could go have it done for. Just don't put $3000 into your car to see a higher return when you trade it in. It most likely will not happen this way.
 The best I can say is do your research on NADA.com and KBB.com and decide before you go in what you are willing to pay for their car or receive for your trade. Averages between the two are reasonable expectations from what I saw over the years. Also, remember these salesman low-ball you. So when they ask what you want for your car, HIGH-ball them! If you really want $12,000, say $12,500 or $13,000. Low-ball them on their car too. Sure maybe they will chuckle or perhaps you may offend them a bit. Salesman have pretty tough skin so it isn't likely. The bottom line is it doesn't hurt to ask. They make their big money on people who don't ask. The absolute worst that is going to happen is they will say no. If the money is there and they want the deal, they'll do it. Period. Below is a list of general pointers that I hope you also find helpful. Also, if I lost you in the figures at all on this lay it out on some paper to perhaps help you to understand it better. Gosh, I LOVE giving this stuff away. Please pass it on.

• Best times to put a good deal together are when business is slow. Store owners hate to have a "no sale" day. If you are the only one there you are in the spotlight and that manager is hungry for a deal no matter how small.
• If you cannot reach an agreement in regards to trade, this will blow their mind. Ask them if they call other stores for "buy bids." Car dealerships have relationships with each other and another store that carries "your model" of car may put more into the ACV. In this case the store you are buying from is still taking your car in on trade but they have another store lined up to buy it for the "buy bid" amount. The fact that you know what a "buy bid" is will send  warning shot over the store that this isn't your first rodeo. Chances are they may just cave in and step it up on your car even if they do get "buy bids" from other stores.
• That car you have had your eye on has been there for months. Ask for a carfax and make sure people aren't afraid of it for some reason. Dealers usually don't want cars on their lot for more than 60 days especially when they are floor planned. Floor planned is when the dealer's bank owns the car and they pay interest on them everyday. Trading in towards an "aged unit" could get you a really good deal.
• Last days of the month or even last day of the year could get stores to step it up on trade. Dealers live by the month and they want as many units on the books as possible at the end of those months.
• Trades are seasonal. Don't trade in your convertibles in the winter. They will bring below book values. Same with 4X4 bringing all the money with a foot of snow on the ground. You get the picture.
• They're just cars. Unless it is something really rare that is bringing good money. Don't let anyone push you into a deal that doesn't feel good. There are plenty of Camrys, Tauruses, and Impalas to go around.

Read More

Why I would do this and what is my background?

This is going to be a bit of a side project I have been wanting to do for quite sometime. It is a product of my 5 years in the auto sales industry. I paid a lot of attention to the inner workings of a car dealership over the years I did it. Fortunately, I now work at home and I am happily self employed. In ecommerce actually. Which made me highly consider compiling all of my knowledge into an ebook I could easily sell for some profit. Then I got to thinking. I make plenty of money doing what I do without having to profit from an ebook on the subject. Besides, I quickly decided there was NO FRIGGIN WAY I could cover it all in an Ebook and keep a readers attention. You pick out the segments that matter to you! Plus I just thought it would be fun to give people what they really want for once and that's FREE ! The worst part of it is most people in the market for a car will likely not even stumble on this blog. Instead they will buy some guide of insider tips from some dildo that said he went undercover in the car biz for 3 months so he can pass all the secrets onto you. To that I say, you couldn't insult a man who did this for a living for 5 years any better. It's bigger than that people. You can get the gist of it in 3 months but to really see it all took me years. What people don't realize is that when you and the salesman are playing mental chess together. The salesman then turns around and goes to play mental chess with his manager. Management likes to keep you in the dark about as much as they can in the business. Let me say that they had NO idea how much attention to detail I paid. Everyone in a dealership has a hidden agenda. Little did they know, I left with my own. My only mission is to take a dollar out of every salesman, general manager, and store owner's pocket and make sure it stays in yours where it belongs.

 I left the car business on my own will. I made great money. I could just about buy whatever I wanted when I wanted it. After time though the egos and the politics wore on me. I am a pretty laid back modest guy. Coming from a background where I was raised to work for an honest living. My conscience was getting the better of me toward the end of my car sales career. I began feeling very solitary amongst my colleagues. I wasn't ever one to go have drinks with the guys after work. To me they were pompous asses I would never be friends with outside of the workplace. What ultimately made my decision to leave was an altercation with my last general manager. I was simply defending a customers trade-in value which in my opinion was very unreasonably low. Wasn't even a matter of opinion really, I researched it myself to back my argument. He then retorted with a beat red face and a vein popping out of his forehead screaming "you should have applied for my job then if you don't like it." All I could picture myself at that moment doing was knocking his front teeth out and seeing his fat ass sprawled on the floor in front of me. However, the better part of me simply remained calm. I quietly went back out to thank my last customers for coming in and said goodbye to them. I went to my office and collected my things. I was asked by another manager to sleep on it but I said I just couldn't deal with this kind of atmosphere anymore. The nature of the business didn't suit my personality. Which is compassionate and non-conformist. Plus a guy like me just belongs in his blue jeans and tee shirt.

 So what I will be doing from time to time is choosing an area I would like to cover or expose about the car sales biz and give some people some ammunition the next time they go into the car dealership. So if you could. Do yourself a favor and any others you may know that may be in the market for a car in the future and bookmark or subscribe to my blog. If you have a specific request about a particular aspect I have yet to comment on . By all means, drop me a line. Enjoy before they find me and put my head on a stick!

Read More