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The Best 13 Step Guide To Buying A Car

August 26th, 2008

…while maintaining total and absolute control over the sales process.

1. Pick the exact make and model of car you want. Don’t let a salesman change your mind.

2. Call around first anonymously and get prices. Tell them you are calling everybody, and the best deal wins. Write down the prices you are given, and note any difference in packages.

3. Pick the dealership you think you want to do business with based on the results of this phone call. Price should not be the decider (demeanor and gut feel should).

4. Go to the dealership you absolutely NEVER want to do business with. Nail down the details on the options — go for “loaded,” then whittle it down to find the approximate prices for each option. Make a detailed list with prices. Mark the options you must have and those can do without.

5. Do your research online and compare your pricing research with others and experts. Set an “ideal price” and an “I can live with it” price for the car you want with all the options you want, and again for the car you want with the minimum options. You now have a low and high figure for the car.

6. Go get cash or a pre-approved car loan for something less than the upper amount. Put the cash or check in a blank sealed envelope. Find out ahead of time how to deal with the pre-approved loan if the negotiated amount is less than the amount on the bank check. You do not want to have to leave the dealership to get a new check for a smaller amount, so try to arrange something in advance for this contingency.

7. Call your insurance carrier and tell them you are buying a new car. Do as much of the paperwork ahead of time as possible and determine the hours they can service you so you can avoid delays or surprises at delivery time. (Any delays benefit the dealer.)

8. Go to the dealer you want to deal with on a weekday, in the morning. Get dropped off or, ideally, have a friend or significant other go with you. (It always helps to have a witness.) Bring a sack lunch and drinks with you. You’re not leaving or letting your attention wander until you have a car.

9. Find the exact car you want. Use your list…this shows you’ve done your homework. Don’t be surprised if your salesman suddenly has to handle an emergency and hands you off to someone else. This is a good sign that you have the upper hand already.

10. Show them the envelope. Tell them you have cash/a pre-approved loan check, and three chances to get it from you if you can drive out by an exact time (by 3 PM is usually good), all paperwork done, taxes paid, and every other fee under the sun taken care of for less than the amount in the envelope. Do not give any hints about the amount, make them name heir price. If it’s way out of sight, don’t say anything. Just laugh and head for the door. They’ll chase you down and give you a much better number. If they don’t, go elsewhere.

11. Read everything. Twice. Have your friend do the same. Line out anything you don’t agree to or doesn’t apply, initial and date this and have the dealer rep do the same. Do not leave any blank spaces. Count the papers and make sure you get copies of all of them. Ask if there are any programs you need to opt out of to avoid being automatically signed up for them. Do whatever is required to opt out.

12. If at any time they give you attitude or BS, walk out. They will chase you down. Tell them they have only one chance left because they gave you attitude. Now they will deal. If they don’t, go elsewhere.

13. Try another city if yours is full of slime balls.

Buying A USED Car: Stay civil, do not let any emotion in. The same technique works for buying a used car, but tell them that you will not talk price until YOUR mechanic looks over the vehicle and gives you a report on it. Watch how much the squirm. 90% of used cars have a defect. Have the mechanic lined up for the time you will be needing the car checked out. NEVER use a mechanic who is near the dealership.Tell your mechanic “check this car like you would if your 16 year old daughter was going to have to drive it to Alaska and back alone.” Go back to the dealer with a list of all defects and an estimate to fix them. Negotiate a price adjustment. In some cases, you may agree to let the dealer do the repairs, BUT specifically put in writing that these repairs will be accepted only after a re-inspection by your mechanic and no crappy used or after-market parts will be used. Figure on devoting at least a month and looking at 200+ cars to find a good used car. Never rush to buy a car. These things take time. Another awesome article from the Consumerist.

 




Hybrids Don’t Have To Be Ugly

October 9th, 2007

Honda Makes Stylish Attempt With Hybrid CR-Z

Hybrids can be muscular and stylish, too. That’s the message Honda hopes to send at this month’s Tokyo auto show with its new gas-electric hybrid sports car CR-Z.  The vehicle has maintained “the essence of the sports car” while still delivering good mileage and less pollution, he said.

Hybrid vehicles tend to be bulkier than sleek sports cars because of the size and complexity of the hybrid systems, which include a battery, motor, engine, converter and other parts. They’re usually not known for their torque, acceleration, handling and innovative design. The CR-Z comes with a new hybrid system developed by Honda whose breakthroughs allowed designers to get around such restrictions to achieve its lean cutting-edge look. The model will be on display at the biannual Tokyo Motor Show, which opens to the public Oct. 27 in the Tokyo suburb of Chiba.




Monster Truck With A Brain

No Driver Needed

OshKosh Truck rolled out a prototype self-driving vehicle that may one day supply soldiers on the battlefield. The 12-ton TerraMax uses on-board computers, GPS, lasers and sophisticated cameras to steer itself around obstacles. It also can be controlled remotely. The Pentagon plans to deploy such vehicles in combat zones to bring supplies to troops without putting convoy drivers at risk. Congress has mandated that 1 in 3 ground combat vehicles be self-driving by 2015.




How Much Should I Sell: 2005 Honda CRV


Question:
What is a decent price on:

Year: 2005Make: Honda CR-V
Model: AWD, 2.4 liter 4 cylinder
Trim: EX: Power windows, locks, remote keyless entry, sunroof/moonroof (power sliding glass from factory), A/C, cruise, AM/FM/Cass/6CD, subwoofer, roofrack, heated mirrors, Automatic Day/night mirror, Fog lights, cloth interior, 5 spd.
Mileage: around 15,000 miles. 
  Queen of the Road:   For a pre-owned 2005 Honda CR-V EX,
Above average condition price is $19,000 with 18,350 miles.
Average condition price is $16,950 with 36,700 miles.
With 15k miles, nothing higher than 20k.
 

Follow Up Comment: Thanks for the quick reply. This is the car I currenty own. I just wanted to see where I stand. I bought it new in 2005 for $20,500 and I have driven by a few dealerships and they have them sitting on the lots with $20,000 and up price tags. I understand that the dealers set their price with room for negotiations.




Mazda’s New Hybrid

October 3rd, 2007

The Mazda Premacy Hydrogen RE Hybrid

Mazda unveiled a new hybrid vehicle on Tuesday that uses hydrogen fuel to power an electric motor. The Japanese automaker said it will be available for leasing in Japan next year. The Mazda Premacy Hydrogen RE Hybrid, shown to reporters ahead of its debut at the Tokyo Motor Show later this month, operates on a rotary engine.

Hydrogen is combined with oxygen from the air to power the vehicle. It emits only water, rather than pollutants that have been attributed to global warming. The new hybrid runs on hydrogen stored in a tank, but it can switch to gas when hydrogen runs out.




The Most Fuel Efficient Cars

October 1st, 2007

Japanese Cars: Leaders In Fuel Efficiency

Honda and Toyota offered car owners the highest average fuel efficiency of the 2007 model year vehicles, the U.S. government reported. The average fuel economy for 2007 vehicles in the U.S. was 20.2 miles per gallon (8.6 kilometers per liter), the same as 2006 vehicles, the Environmental Protection Agency in an annual report that used new testing procedures.

Honda Motor Co. had the highest fuel economy of any manufacturer with 22.9 mpg (9.7 km/liter), a slight decrease compared with its 2006 lineup. Toyota Motor Corp. posted a 22.8 mpg (also 9.7 km/liter) average for its 2007 vehicles compared with 22.4 mpg (9.5 km/liter) the previous year. Toyota’s average was helped by the gas-electric Prius hybrid, which had the highest combined fuel economy of any passenger car with 46.2 mpg (19.6 km/liter).

The figures were calculated for the first time based on test methods devised to reflect driving habits better and provide a more realistic estimate. The new tests led to a 6% decrease in fuel economy averages compared to past estimates using old testing criteria.




The World’s First Full-Hybrid With V8

September 26th, 2007

One of the Most Technologically Dense Cars: Lexus LS 600h L

The Lexus LS 600h L is the world’s first vehicle of any type to be powered by a “full hybrid” V8 powertrain. Full hybrid means the car can be powered by the gas engine only, the electric motor only, or both at the same time. Unlike its gasoline-only cousins, the LS 460 and LS 460 L(a beautiful car), both of which are rear-wheel-driven, the new hybrid limousine is an all-wheel-drive configuration. During normal driving conditions, power is split 40 percent front/60 percent rear. If the road becomes dicey, it is capable of a near 50/50 split.

An all-new dual-stage continuously variable transmission (CVT) with a sequential shift mode allows manual selection of eight different stages of acceleration response. It also features the selectable modes of the company’s conventional models: “power” and “snow” in addition to a “hybrid” mode.

When it rolls into showrooms, the LS 600h L will be one of the most technologically dense cars you can buy. There’s a power rear-ceiling-mounted 3.0 VGA 9-inch entertainment screen. Occupants’ body heat is measured with infrared sensors to adjust the cabin temperature while ceiling climate diffusers gently distributes air movement. The amply sized LS 600h L—provided it has the right options—parks itself. Pull up to a space, select reverse and the car steers automatically into the gap, using sensors and a rear-view camera. All the driver needs to do is modulate the brakes. And if all that isn’t enough for your luxury needs, this hybrid pleasure cruiser also includes a stunning 19-speaker Mark Levinson audio system, voice-activated hard disk drive (HDD) satellite navigation.  Very nice.




Coming Soon To A Dealership Near You

2008 January: Smart Cars Head For The U.S.

The French-built Smarts come rolling off container ships in January. The company says it has already received 30,000 preorders, each involving a $99 deposit. “Americans are begging for this car,” says Smart USA President David C. Schembri. To be more exact, it’s Americans living in cities along both coasts that seem most interested in getting a Smart, which starts at $12,000 and gets about 40 mpg. NEWSWEEK’s Tara Weingarten talked to Schembri about how a Smart might do in a run-in with an SUV, why Consumer Reports hated the Smart, and if Americans are too fat to fit in such a small car. Measurements of a Smart: 8.5 Ft long, 5.5 Ft wide.

What Happens If You Get Hit While Driving A Smart? The safety management system of the Smart is a safety cell, a reinforced steel cage that acts very much like a NASCAR roll cage. You’ll notice that you sit up high, eye-to-eye with other drivers, so this also allows crash energy to be absorbed underneath the car. And there are standard safety features that are usually found only in luxury automobiles, like the electronic stability program, four front airbags, including head and thorax protection, ABS brakes and something called electronic brake-force distribution that helps the car stop fast. This is a tough car,” claims Schembri.

With just two seats, it’s the perfect car for the friendless. And you don’t have to be nice and offer people rides.
Actually, it’s the perfect car for teenagers. What better car to buy for your teenager than one without a back seat? The latest research shows that the biggest reason teens get in accidents is because of distractions from backseat riders. This solves the problem. Hah!

As long as it stays in the city, I’m sure the Smart will do just fine.




A Hobby Made of Gold

September 25th, 2007

Collecting Antique Cars Smells Like Money To Others

Muscle cars (high-performance American cars from the late 1960s and early 1970s) have surged in popularity thanks to the growing number of baby boomers who have always dreamed of driving the cars once owned by their fathers and now have the money to buy them. Just a couple of years ago, you could buy a 1969 Z-28 Camaro in really nice condition for $40,000; now that same car is probably $60,000. Car collecting can be a fun hobby if you have a passion for vintage wheels, but you shouldn’t by any means consider it part of your retirement-saving strategy or even bank on making a profit. That said, assembling the right car portfolio — collectible cars made at least 25 years ago in limited production and good condition — could add to your enjoyment and maybe even your net worth.

If you do decide to start collecting cars, here’s what you need to know:

  • Make sure you know what you’re buying. Start your research with a local car club, then attend a car show or auction and talk to the owners and industry insiders. Learn as much about the car you’re interested in, and don’t forget to ask about maintenance and insurance.
  • The superrich spend millions on rare cars, but you can start a collection with as little as $25,000. You could get a good-quality car for $25,000 or $30,000, replacement parts are plentiful, maintenance is cheap, and you can find a car club to join in pretty much every city.
  • Everything cycles. The market now is bubbling on the upside, particularly in muscle cars and classic sports cars, and there’s going to be a downside. It’s economic truth.
  • Supply and Demand: If you’ve got a six-figure spending budget, you can’t go wrong with a pre-1940 classic. There’s just not that many of them as compared with more modern-day collector cars. The most expensive ones — now fetching millions at auction — are those with “provenance.” The richer a car’s ownership history, especially when garnished with celebrity names or a race history, the higher its value.
  • Don’t expect to see them appreciate as rapidly as, say, muscle cars have appreciated over the past several years. Just because you’re spending $300,000 on a Packard doesn’t mean it’s going to increase any greater in percentage than a Camaro you buy for $60,000.
  • As with stock IPOs, purchasing a car made today that you believe will be the classic of tomorrow is a risky proposition. Just ask the investors who in 1990 bought up new Corvette ZR-1s for $60,000, thinking in five or so years they could sell them for $100,000 or more. That never happened.
  • The best way to protect yourself? Buy cars you love.




Car Buying Decision Speeds Up

September 24th, 2007

Car Consumers Are More Decisive To Which Car To Buy

Ask most garden variety auto industry marketing executives about the “sales funnel” and they will talk to you about a six month process during which a car buyer typically starts the cycle of buying a new car: from the first time they decide that there is a new car in their near future to the time they take delivery. This six-month cycle idea influences the way car advertisers “flight” their ad campaigns in the media, and allocate brand building ads versus retail ads meant to drive people to the dealership.

Google’s automotive practice says their research shows that the sales funnel isn’t six months at all, but more like 1 month. 70% of car buyers start the search for a new car less than a week before they make a purchase. 17% start just two weeks ahead. 19% start a month in advance. That’s almost 70% of the car-buyers starting the process no sooner than a month in advance.