With skyrocketing fuels prices in Australia, car shoppers need to look for fuel efficient cars.
If for example you're shopping for a more fuel-efficient car, you need to get a handle on what poor fuel economy really costs you. And you'll need to take a hard look at what you actually need in a vehicle.If fuel economy is important to you, you'll need to keep it in mind early in your decision process. Once you've settled on a specific make and model, most choices you make will have only a slight effect on fuel economy.You might want to consider a gas-electric hybrid vehicle. If you do, you should make that choice for reasons other than saving money.A hybrid car or SUV will burn considerably less fuel than a non-hybrid version. It shuts down its gasoline engine whenever it stops, making it quieter and more relaxing to drive in city traffic. However, according to various calculations, hybrid cars are not cost effective, on a purely financial basis, because they add more in cost than they save in fuel, even when factoring in federal tax credits.Another option, of course, is to consider whether you could get by with a smaller vehicle to begin with.
More Autos Stories
Other auto articles from CNNMoney.com:
Best High MPG Cars
Drive Slow, Save on Gas
Five bargain rides
Fast and Frugal
Be aware of all your optionsIf you've decided you need an SUV, for example, ask yourself why. If you need the storage flexibility to occasionally haul large items, don't forget that there are other options."Most people I know who drive SUVs use them as large station wagons," said Jack Nerad, editorial director for Kelley Blue Book's KBB.com Website.So why not just buy a station wagon? There are plenty to choose from these days and they generally get better mileage than SUVsIf it's for the sake of getting all-wheel-drive, there are many cars today that offer that as an option. And, if you live in an area where it snows only occasionally, new technology like electronic traction control and stability control offer improved handling and traction in snow without the added weight and complexity of all-wheel-drive.If you still feel you want the flexibility of an SUV, that doesn't have to mean getting a gas-guzzling behemoth. The so-called "crossover" segment of car-based SUVs has expanded enormously in recent years, meaning that you can probably find something with reasonably good fuel economy.Fine tuningIn most cases, choosing different engines and transmissions on the same vehicle will make slight differences in your fuel economy. For example, on vehicles with several different engine options, getting a smaller engine -- a V-6, for example, instead of a V-8 -- will usually get you about two miles per gallon better fuel economy, as estimated by the EPA.Forgoing all-wheel-drive or four-wheel-drive on a car or SUV will gain you about one mile per gallon in fuel economy by EPA estimates.How much money that ultimately means depends on the vehicle and, of course, on fuel prices. If gasoline costs about $3.00 per gallon, a one mile per gallon difference in fuel economy will save you about $90 to $150 a year in fuel costs. The difference in annual fuel cost will be larger for vehicles that get poorer fuel economy, like large SUVs, since that extra mile per gallon will mean more in percentage terms.For some items, like a larger engine or all-wheel-drive, the extra fuel costs will be added to the higher initial cost for the vehicle and higher insurance costs. So, if you can get by with a slightly more fuel-efficient powertrain, it may pay off financially in more ways than just at the gas pump.Consider other costsOn the other hand, some decisions made for the sake of fuel economy can cost you more in other ways. For example, you might save fuel by getting a stickshift transmission rather than an automatic. But, because automatic transmissions have become very efficient, the savings are slight, usually about one mile per gallon, according to EPA estimates.Depending on how you drive, the stickshift may actually be less efficient in real-world driving. If you always rev the engine for maximum power, you're burning more fuel than you would have with an automatic transmission.
Monday, May 19, 2008
HINTS AND TIPS WHEN BUYING A SECONDHAND CAR
What to look out for when buying used cars
This is always a mine field and nothing guarantees success but there are a few things to look out for before parting with your hard earned cash.
Obviously different countries have different rules but I am sure a lot of the following would apply wherever you are located.
PRE-SHOPPING ADVICE
The depreciation of used cars is much less than new cars and, therefore, they are a more cost effective purchase.
Get your finance in place before choosing your car, this saves time as you know exactly which vehicles you can or cannot afford.
Be aware of the current "going rate" of vehicles before purchasing by checking guides available from most newsagents that list the value of most used cars.
Consider all different outlets such as trade-ins at new car dealerships, private sales etc., not just secondhand car dealers. In the U.K., however, the purchaser has more rights and safeguards when purchasing through trade rather than a private sale.
Cars less than three years old which have been driven 10,000 - 15,000 annually are probably the best buys. An average annual mileage is about 10,000, so for a 3 year old car mileage between 25,000 and 35,000 would be reasonable. Anything over this could have been used for business and driven hard.
Small and medium saloons and hatchbacks are easier to maintain and repair than convertibles or luxury cars.
GENERAL ADVICE WHEN INSPECTING VEHICLES
Check the engine plate on the car corresponds with that given on the registration documents and that it has not been tampered with or changed.
Never buy a car without test driving is yourself. First make sure you are insured to drive it then, if possible, take it on a drive that covers a mixture of conditions i.e. fast motorway driving, slow urban driving, twisting roads and don't forget to check reverse.
BODYWORK
Always inspect the bodywork in good light.
Look for corrosion or rust. Rust is probably the most damaging thing of all on cars over five years old. Surface blisters can be relatively harmless and easily treated but corrosion coming from the inside of the body panels is more serious.
Look for rust at the top and rear of the front wings, along the side sills, below front and rear bumpers and the bottoms of the doors.
Sometimes a rust blemish on the paintwork can indicate more serious corrosion underneath. Press the panel gently with your thumb. If there is a cracking noise it indicates advanced corrosion.
It is usually not worth repairing rust that has perforated the bottom of doors, the bodywork around the front and rear screen rubbers, on trailing edges of bootlids or tailgates and leading edges of bonnets and on rear wing panels. These can only be repaired expensively by specialists and subsequent painting is costly.
Walk around the car and look along the doors and wings from each of the four corners. Any crash repairs will show up if they have not been well done. You will see ripples or a change in the texture of the paint if there is a lot of body filler underneath. Take a small magnet with you, it will be attracted to metal but not to plastic body filler. Look also for variations in the paint colour.
Water stains in the boot, around windows, on carpets and around the sunroof opening may indicate leaks.
STRUCTURAL BODYWORK
Look for rust perforation on inner wings, the bulkhead and any cross members and chassis members visible under the bonnet. If you see any, reject the car.
Beneath the car check side sills, chassis legs, cross members and subframes. Tap suspicious areas with a lightweight hammer, or push hard with your hand to detect the 'give' of weakened metal. Be wary of freshly applied underseal - could be hiding weakened metal.
Check the floorpan for corrosion.
Look at brake pipes, if they are crusted or pitted with rust, these could be dangerous.
Check suspension and steering mounting points for serious corrosion, especially under the bonnet.
COLLISION DAMAGE
A car that has been in a collision can be dangerous, especially if its suspension and/or steering have been damaged. Examine under the bonnet for damage, creasing or replaced inner wings (unsightly welds are a give-away). Also inspect the engine bay forward panels and forward chassis legs for repairs or creases.
When test driving the car the steering should be consistent with no tendency to pull either left or right.
Look under the carpet between the front and back doors for signs of welding or repair in case two halves of different cars have been welded together (cut and shut), which is extremely dangerous.
INSIDE THE CAR
Check the odometer, if the numbers are out of line the mileage may have been altered.
Look to see if the mileage corresponds with the general condition of the car. A worn brake pedal and wear marks on the gear lever indicate a car that might have done more than 60,000 miles. A worn or sagging driver's seat and carpet are other signs of high mileage.
A very low mileage may indicate the car might have been left unused for long periods or used only for short journeys. Both can cause engine problems. A car that has been regularly used and serviced is a better bet.
ENGINE
Have a look at the general state of the engine. A dirty engine and surrounding area suggests that the car hasn't been well looked after and that servicing may have been neglected. Conversely, a sparkling clean engine could have been steam cleaned to disguise problems such as oil leaks etc.
Before starting the engine remove the dipstick and check the colour of the oil. If it is very black the car has probably not been recently, or regularly, serviced. Also check for beige "mayonnaise" on the dipstick, a possible symptom of head gasket leakage.
Check the quantity and colour of coolant. It should be the colour of antifreeze not rusty red. An engine that has been run without antifreeze may have problems.
Listen to the engine starting up from cold. The oil light should go out soon after the engine starts, if it doesn't there may be engine wear.
Heavy rattling or knocking noises shortly after start up could indicate wear of the crankshaft and big-end bearings. Listen for clattering or light knocking noises from the top of the engine which indicate camshaft wear.
Turn on the ignition and open the throttle sharply. Check for black or blue smoke from the exhaust. Blue smoke comes from burning oil and shows engine wear, whereas black smoke is un-burnt fuel and has many possible causes. Check for smooth idling when warm.
When test driving check the engine does not misfire but pulls strongly and cleanly. Check there are no pinking sounds (i.e. metallic rattling sound that occurs when the throttle is open). If the car does misfire and the engine has electronic fuel or ignition control only buy it if the misfire is put right first.
Keep an eye on the temperature gauge or warning light which may indicate overheating.
Finally check for oil leaks.
TRANSMISSION
If the car has a manual gearbox, check the clutch operates smoothly and all gears engage easily. If the gear change stiffens as revs increase the clutch may be worn. Check for clutch slip by driving the car up a hill in top gear.
When driving change down into each gear from a higher speed than normal to test the synchromesh. If the gears baulk or crunch, or if the gearbox whines excessively, gearbox overhaul or replacement are the only solutions.
If the car has automatic transmission check the transmission dipstick for correct fluid level, this is best done with the engine hot and idling. Also smell the dipstick, if it smells burnt steer clear of the car!
This is always a mine field and nothing guarantees success but there are a few things to look out for before parting with your hard earned cash.
Obviously different countries have different rules but I am sure a lot of the following would apply wherever you are located.
PRE-SHOPPING ADVICE
The depreciation of used cars is much less than new cars and, therefore, they are a more cost effective purchase.
Get your finance in place before choosing your car, this saves time as you know exactly which vehicles you can or cannot afford.
Be aware of the current "going rate" of vehicles before purchasing by checking guides available from most newsagents that list the value of most used cars.
Consider all different outlets such as trade-ins at new car dealerships, private sales etc., not just secondhand car dealers. In the U.K., however, the purchaser has more rights and safeguards when purchasing through trade rather than a private sale.
Cars less than three years old which have been driven 10,000 - 15,000 annually are probably the best buys. An average annual mileage is about 10,000, so for a 3 year old car mileage between 25,000 and 35,000 would be reasonable. Anything over this could have been used for business and driven hard.
Small and medium saloons and hatchbacks are easier to maintain and repair than convertibles or luxury cars.
GENERAL ADVICE WHEN INSPECTING VEHICLES
Check the engine plate on the car corresponds with that given on the registration documents and that it has not been tampered with or changed.
Never buy a car without test driving is yourself. First make sure you are insured to drive it then, if possible, take it on a drive that covers a mixture of conditions i.e. fast motorway driving, slow urban driving, twisting roads and don't forget to check reverse.
BODYWORK
Always inspect the bodywork in good light.
Look for corrosion or rust. Rust is probably the most damaging thing of all on cars over five years old. Surface blisters can be relatively harmless and easily treated but corrosion coming from the inside of the body panels is more serious.
Look for rust at the top and rear of the front wings, along the side sills, below front and rear bumpers and the bottoms of the doors.
Sometimes a rust blemish on the paintwork can indicate more serious corrosion underneath. Press the panel gently with your thumb. If there is a cracking noise it indicates advanced corrosion.
It is usually not worth repairing rust that has perforated the bottom of doors, the bodywork around the front and rear screen rubbers, on trailing edges of bootlids or tailgates and leading edges of bonnets and on rear wing panels. These can only be repaired expensively by specialists and subsequent painting is costly.
Walk around the car and look along the doors and wings from each of the four corners. Any crash repairs will show up if they have not been well done. You will see ripples or a change in the texture of the paint if there is a lot of body filler underneath. Take a small magnet with you, it will be attracted to metal but not to plastic body filler. Look also for variations in the paint colour.
Water stains in the boot, around windows, on carpets and around the sunroof opening may indicate leaks.
STRUCTURAL BODYWORK
Look for rust perforation on inner wings, the bulkhead and any cross members and chassis members visible under the bonnet. If you see any, reject the car.
Beneath the car check side sills, chassis legs, cross members and subframes. Tap suspicious areas with a lightweight hammer, or push hard with your hand to detect the 'give' of weakened metal. Be wary of freshly applied underseal - could be hiding weakened metal.
Check the floorpan for corrosion.
Look at brake pipes, if they are crusted or pitted with rust, these could be dangerous.
Check suspension and steering mounting points for serious corrosion, especially under the bonnet.
COLLISION DAMAGE
A car that has been in a collision can be dangerous, especially if its suspension and/or steering have been damaged. Examine under the bonnet for damage, creasing or replaced inner wings (unsightly welds are a give-away). Also inspect the engine bay forward panels and forward chassis legs for repairs or creases.
When test driving the car the steering should be consistent with no tendency to pull either left or right.
Look under the carpet between the front and back doors for signs of welding or repair in case two halves of different cars have been welded together (cut and shut), which is extremely dangerous.
INSIDE THE CAR
Check the odometer, if the numbers are out of line the mileage may have been altered.
Look to see if the mileage corresponds with the general condition of the car. A worn brake pedal and wear marks on the gear lever indicate a car that might have done more than 60,000 miles. A worn or sagging driver's seat and carpet are other signs of high mileage.
A very low mileage may indicate the car might have been left unused for long periods or used only for short journeys. Both can cause engine problems. A car that has been regularly used and serviced is a better bet.
ENGINE
Have a look at the general state of the engine. A dirty engine and surrounding area suggests that the car hasn't been well looked after and that servicing may have been neglected. Conversely, a sparkling clean engine could have been steam cleaned to disguise problems such as oil leaks etc.
Before starting the engine remove the dipstick and check the colour of the oil. If it is very black the car has probably not been recently, or regularly, serviced. Also check for beige "mayonnaise" on the dipstick, a possible symptom of head gasket leakage.
Check the quantity and colour of coolant. It should be the colour of antifreeze not rusty red. An engine that has been run without antifreeze may have problems.
Listen to the engine starting up from cold. The oil light should go out soon after the engine starts, if it doesn't there may be engine wear.
Heavy rattling or knocking noises shortly after start up could indicate wear of the crankshaft and big-end bearings. Listen for clattering or light knocking noises from the top of the engine which indicate camshaft wear.
Turn on the ignition and open the throttle sharply. Check for black or blue smoke from the exhaust. Blue smoke comes from burning oil and shows engine wear, whereas black smoke is un-burnt fuel and has many possible causes. Check for smooth idling when warm.
When test driving check the engine does not misfire but pulls strongly and cleanly. Check there are no pinking sounds (i.e. metallic rattling sound that occurs when the throttle is open). If the car does misfire and the engine has electronic fuel or ignition control only buy it if the misfire is put right first.
Keep an eye on the temperature gauge or warning light which may indicate overheating.
Finally check for oil leaks.
TRANSMISSION
If the car has a manual gearbox, check the clutch operates smoothly and all gears engage easily. If the gear change stiffens as revs increase the clutch may be worn. Check for clutch slip by driving the car up a hill in top gear.
When driving change down into each gear from a higher speed than normal to test the synchromesh. If the gears baulk or crunch, or if the gearbox whines excessively, gearbox overhaul or replacement are the only solutions.
If the car has automatic transmission check the transmission dipstick for correct fluid level, this is best done with the engine hot and idling. Also smell the dipstick, if it smells burnt steer clear of the car!
Where Car Dealers Make their Money Now
Before the Internet came and ruined everything, it was possible for car dealers to average over $2500 in adjusted gross profit on the sale of a vehicle just in the "front end". "Adjusted" gross profit does not take into account dealer pack, another form of profit that the car dealer institutes to give a base profit for dealer costs. In other words, even in a "break even" deal, the dealership itself still made hundreds or even thousands that was used towards base expenses. The profit over that was truly profit.In today's world, many car dealers do not average in the thousands on their "front end" profits. Some average less than $1000 profit on vehicles that cost $25,000 or more. One may ask how they can stay in business if they are making pennies on the dollar compared to the early 90s.The answer lies in the "back end". First, the definitions: Front end is gross profit on the sale of the vehicle itself, regardless of the payment method. Back end gross refers to money made in the Finance and Insurance department through the sales of various products and through percentages made on the financing of the vehicle.
People Love Cars, But Hate Buying Them
By using resources readily available on the internet, you can totally turn the tables on Car Dealers and finally make your car buying experience easy ... and yes ... even enjoyable. You can actually be the one doling out the novacaine and telling the Dealership to "rinse and spit".
One: Start By Shopping From Home. No salesman is required. You can go to websites such as AutoTrader.com and Cars.com and surf through thousands of new and used cars for sale from the comfort of your own home. Eliminate the high pressure sales pitch and the possible steering towards a vehicle the Dealer needs to sell as opposed to one that suits your needs much better. And in effect, you're pitting one Dealer against another to find the best deal.Two: Know Prices. For used cars, use Kelley Blue Book. While Kelley Blue Book doesn't check actual Dealer prices to determine current values, their mathmatical formulas will give you a ballpark figure which is good to know. Sometimes they're high and sometimes they're low, but overall they are usually pretty close to retail values. And again, having checked actual prices at AutoTrader and other sites, you'll have a firm grasp of what would be an excellent price to pay. Three: Try To Buy Towards The End Of The Month. Yes, most Dealerships have aggressive monthly quotas and the last few days are often "make or break" time. Because certain bonuses and incentives may kick in, they are much more likely to take a "get it off the lot right now" attitude. This can lead to a much more receptive response to your low offer. Four: Phone The Dealer. Don't go there in person ... yet. Pave the way with a phone call. Get a Salesperson on the phone and explain that you will buy their car within 48 hours assuming a mutual agreement is reached. Do the same at 2 or 3 Dealerships and negotiate your price exclusively on the phone. Tell them you don't want to waste your time or theirs but you're a serious buyer fully prepared to purchase. Let them know you're doing the same at several other Dealerships and you're simply going with the best deal. You'll find you come to an agreement in a matter of hours, certainly with 24 hours if you do this just before the month ends. Five: Don't Pay Dealer Fees. Explain that you won't pay Dealer Fees of any kind. You'll pay the vehicle price plus tax and tag only. We see Dealers who routinely add on $200 to $1,200 in extra fees on every car they sell, new or used. "Prep Fees", "Destination Charges", "Processing Fees" and all sorts of crazy things. These are nonsense add-ons and pure profit for the Dealers. Even those Dealers with smaller fees of $195 to $500 are padding their wallets at your expense. Don't fall for it when they say, "Everyone has to pay them".Six: Ask For More Information. When buying a used car, ask that the car's CarFax or AutoCheck History Report be emailed or faxed to you. Any reputable Dealer will provide it at their own expense, so there's no reason for you to have to shell out for it. You want to make sure from the outset that this is not a vehicle that's been in a serious accident, flood damaged, designated as a Lemon and so forth. Also ask that pictures of any dents, dings, scratches and blemishes be emailed to you. Ask if they've had the car mechanically inspected and if so, get a copy of the report. If not, why not?Seven: Now Go To The Dealership. Okay, you've come to a very advantageous price agreement and everything about the vehicle appears excellent. Now it's almost time to close your deal. Go drive the car and kick the tires. Make sure you enjoy the drive and the vehicle is indeed in as good condition as you were led to believe ... at least as far as you can tell. If everything looks good, put a deposit ($100 to $500 should be sufficient) to hold the car, contingent on it passing a third party Mechanical Inspection. Eight: Get An Independent Mechanical Inspection. Not everything gets reported on CarFax. Nor is a car in excellent condition just because it appears to drive well. It's very important to have the vehicle independently inspected on your own. What if there's frame damage? What if there are signs the transmission is about to go? There are large national companies such as SmartInspections.com (find others by googling "car inspection", "auto inspection", etc.) that will go right to the Dealer and inspect it for you, normally in the $100 range ... and well worth it to protect your investment. If a Dealer won't allow it, run in the opposite direction as fast as you can.Nine: Always Be Willing To Walk Away. Hey, there's lot of cars out there. Unless everything goes just the way you want, walk away from the deal. It's got to be a great car at a great price or simply don't buy it. Don't get emotionally attached to the car. The Dealer will not want to lose the sale. They will sense from your attitude that you mean business and it's extremely likely they will do what they have to to get that car off the lot. There's nothing a Dealer hates more than a "close but no cigar" ending, especially when they know you've left to go someplace else to buy the very same day.Ten: The Only One Getting Root Canal Was The Dealer. Assuming the inspection was favorable, you're ready to buy the car (if the inspection found some minor problems, ask them to have them fixed prior to delivery ... at their expense, of course). When you're satisfied, make an appointment to come in and do the paperwork. Explain that you have an appointment across town and you'll need to be in and out in 20 minutes. Otherwise, you won't be able to finalize things for a few days. Again, they need this sale this month, not next. They'll have you flying through the process to make it happen. You've been in control during the entire process. You've called every shot and got exactly what you want. In fact, when you walk into the Sales Manager's office to do the closing, say, "Open wide. This won't hurt a bit".
One: Start By Shopping From Home. No salesman is required. You can go to websites such as AutoTrader.com and Cars.com and surf through thousands of new and used cars for sale from the comfort of your own home. Eliminate the high pressure sales pitch and the possible steering towards a vehicle the Dealer needs to sell as opposed to one that suits your needs much better. And in effect, you're pitting one Dealer against another to find the best deal.Two: Know Prices. For used cars, use Kelley Blue Book. While Kelley Blue Book doesn't check actual Dealer prices to determine current values, their mathmatical formulas will give you a ballpark figure which is good to know. Sometimes they're high and sometimes they're low, but overall they are usually pretty close to retail values. And again, having checked actual prices at AutoTrader and other sites, you'll have a firm grasp of what would be an excellent price to pay. Three: Try To Buy Towards The End Of The Month. Yes, most Dealerships have aggressive monthly quotas and the last few days are often "make or break" time. Because certain bonuses and incentives may kick in, they are much more likely to take a "get it off the lot right now" attitude. This can lead to a much more receptive response to your low offer. Four: Phone The Dealer. Don't go there in person ... yet. Pave the way with a phone call. Get a Salesperson on the phone and explain that you will buy their car within 48 hours assuming a mutual agreement is reached. Do the same at 2 or 3 Dealerships and negotiate your price exclusively on the phone. Tell them you don't want to waste your time or theirs but you're a serious buyer fully prepared to purchase. Let them know you're doing the same at several other Dealerships and you're simply going with the best deal. You'll find you come to an agreement in a matter of hours, certainly with 24 hours if you do this just before the month ends. Five: Don't Pay Dealer Fees. Explain that you won't pay Dealer Fees of any kind. You'll pay the vehicle price plus tax and tag only. We see Dealers who routinely add on $200 to $1,200 in extra fees on every car they sell, new or used. "Prep Fees", "Destination Charges", "Processing Fees" and all sorts of crazy things. These are nonsense add-ons and pure profit for the Dealers. Even those Dealers with smaller fees of $195 to $500 are padding their wallets at your expense. Don't fall for it when they say, "Everyone has to pay them".Six: Ask For More Information. When buying a used car, ask that the car's CarFax or AutoCheck History Report be emailed or faxed to you. Any reputable Dealer will provide it at their own expense, so there's no reason for you to have to shell out for it. You want to make sure from the outset that this is not a vehicle that's been in a serious accident, flood damaged, designated as a Lemon and so forth. Also ask that pictures of any dents, dings, scratches and blemishes be emailed to you. Ask if they've had the car mechanically inspected and if so, get a copy of the report. If not, why not?Seven: Now Go To The Dealership. Okay, you've come to a very advantageous price agreement and everything about the vehicle appears excellent. Now it's almost time to close your deal. Go drive the car and kick the tires. Make sure you enjoy the drive and the vehicle is indeed in as good condition as you were led to believe ... at least as far as you can tell. If everything looks good, put a deposit ($100 to $500 should be sufficient) to hold the car, contingent on it passing a third party Mechanical Inspection. Eight: Get An Independent Mechanical Inspection. Not everything gets reported on CarFax. Nor is a car in excellent condition just because it appears to drive well. It's very important to have the vehicle independently inspected on your own. What if there's frame damage? What if there are signs the transmission is about to go? There are large national companies such as SmartInspections.com (find others by googling "car inspection", "auto inspection", etc.) that will go right to the Dealer and inspect it for you, normally in the $100 range ... and well worth it to protect your investment. If a Dealer won't allow it, run in the opposite direction as fast as you can.Nine: Always Be Willing To Walk Away. Hey, there's lot of cars out there. Unless everything goes just the way you want, walk away from the deal. It's got to be a great car at a great price or simply don't buy it. Don't get emotionally attached to the car. The Dealer will not want to lose the sale. They will sense from your attitude that you mean business and it's extremely likely they will do what they have to to get that car off the lot. There's nothing a Dealer hates more than a "close but no cigar" ending, especially when they know you've left to go someplace else to buy the very same day.Ten: The Only One Getting Root Canal Was The Dealer. Assuming the inspection was favorable, you're ready to buy the car (if the inspection found some minor problems, ask them to have them fixed prior to delivery ... at their expense, of course). When you're satisfied, make an appointment to come in and do the paperwork. Explain that you have an appointment across town and you'll need to be in and out in 20 minutes. Otherwise, you won't be able to finalize things for a few days. Again, they need this sale this month, not next. They'll have you flying through the process to make it happen. You've been in control during the entire process. You've called every shot and got exactly what you want. In fact, when you walk into the Sales Manager's office to do the closing, say, "Open wide. This won't hurt a bit".
"Get Dealers To Hand You The Absolute Best Deal On
Okay, this is really good and works like a charm. And it's incredibly easy ... taking less than two minutes of your time. Sound too good to be true? Well, it's not and smart new car buyers are doing it all the time. You can even test it out yourself even if you're not interested in buying a car right now as a sort of "dry run" for when the time is right for you. Bear with me for a few paragraphs because I need to explain the background for this technique first. It's based on a free service we've all probably seen before. Then we're going to add a simple, but incredibly effective, "twist" that turns seasoned Car Dealerships into jello ... and gets you the best possible purchase price.
This Is How It Works Without The Twist:It's very likely that you've seen "new car quote" services on the big automotive sites such as Automotive.com, Cars.com, Edmunds.com and many others. You know, "Tell us what new car you want to purchase and you will receive competitive quotes from multiple area Dealers" ... or something along these lines. That's all fine and dandy. Dealers want your business and know you're getting offers from their competitors. They don't want to lose the sale so they give you a very good price in order to be the winner. Theoretically, what then happens is the car buyer looks at the bids, goes to the Dealership who won the competition, does the paperwork and drives home in their new car. By itself, this is a very legitimate way of getting a "good" deal ... much better than shopping at a Dealership and hoping you can negotiate something good. Afterall, it's good to have Dealers competing for your business. But we're not interested in "good". We're interested in "great" ... or even "crazy".
This Is How It Works WITH The Twist:In order to get the quotes (I'll tell you where in a moment), you're going to have to submit your email address and phone number. Don't worry about giving your phone number. This is a part of this strategy that pays off in a big way, as you will see. But make your "contact preference" email. You've invested less than 2 minutes of your time (probably about 30 seconds, actually). It's been free and you are under absolutely no obligation of any kind. So, let's say you now have 3 or 4 bids. The prices already look good to you based on the new car prices you've seen on Autotrader and so forth. But now, you take this a step further. Why should you accept ANY of these bids? There's no reason to even go with the lowest bidder. Why? Because you can easily make them go still lower. Here's how: You'll likely receive follow-up phone calls from the Dealerships. They'll say something like,
"So we gave you an incredible price. When would you like to come in for delivery?"
Your response, nomatter how low the bid, should always be,
"Sorry, while I really want to buy this car, I'm afraid your bid takes you out of the running. If you want to make another offer today, I'll look at it."
Say this (or email it if you don't get a phone call) to every bidder. Trust me, they WANT this sale and you'll now get a new round of even lower offers. If a Dealer says there's no way any other Dealer can be underselling his price and he wants to see the lower offer in writing, don't play his game. Instead say,
"Look it. I'm pretty happy with the price I've been given. Put yourself in my place. If I give it to you, you'll undercut it by $50 and then I have to go back to him and he'll undercut you by $50 and it turns into a real pain for me. All I can tell you is that if you want to send me another offer, I'll definitely consider it. It's up to you".
You'll either get another offer, or the Dealer will drop out. And when a Dealer drops out, you know you were really getting their best price ... the strategy was working. The last Dealer standing gets the sale. And believe me, it will be at an outstanding price following this process.
This Is How It Works Without The Twist:It's very likely that you've seen "new car quote" services on the big automotive sites such as Automotive.com, Cars.com, Edmunds.com and many others. You know, "Tell us what new car you want to purchase and you will receive competitive quotes from multiple area Dealers" ... or something along these lines. That's all fine and dandy. Dealers want your business and know you're getting offers from their competitors. They don't want to lose the sale so they give you a very good price in order to be the winner. Theoretically, what then happens is the car buyer looks at the bids, goes to the Dealership who won the competition, does the paperwork and drives home in their new car. By itself, this is a very legitimate way of getting a "good" deal ... much better than shopping at a Dealership and hoping you can negotiate something good. Afterall, it's good to have Dealers competing for your business. But we're not interested in "good". We're interested in "great" ... or even "crazy".
This Is How It Works WITH The Twist:In order to get the quotes (I'll tell you where in a moment), you're going to have to submit your email address and phone number. Don't worry about giving your phone number. This is a part of this strategy that pays off in a big way, as you will see. But make your "contact preference" email. You've invested less than 2 minutes of your time (probably about 30 seconds, actually). It's been free and you are under absolutely no obligation of any kind. So, let's say you now have 3 or 4 bids. The prices already look good to you based on the new car prices you've seen on Autotrader and so forth. But now, you take this a step further. Why should you accept ANY of these bids? There's no reason to even go with the lowest bidder. Why? Because you can easily make them go still lower. Here's how: You'll likely receive follow-up phone calls from the Dealerships. They'll say something like,
"So we gave you an incredible price. When would you like to come in for delivery?"
Your response, nomatter how low the bid, should always be,
"Sorry, while I really want to buy this car, I'm afraid your bid takes you out of the running. If you want to make another offer today, I'll look at it."
Say this (or email it if you don't get a phone call) to every bidder. Trust me, they WANT this sale and you'll now get a new round of even lower offers. If a Dealer says there's no way any other Dealer can be underselling his price and he wants to see the lower offer in writing, don't play his game. Instead say,
"Look it. I'm pretty happy with the price I've been given. Put yourself in my place. If I give it to you, you'll undercut it by $50 and then I have to go back to him and he'll undercut you by $50 and it turns into a real pain for me. All I can tell you is that if you want to send me another offer, I'll definitely consider it. It's up to you".
You'll either get another offer, or the Dealer will drop out. And when a Dealer drops out, you know you were really getting their best price ... the strategy was working. The last Dealer standing gets the sale. And believe me, it will be at an outstanding price following this process.
Thursday, April 17, 2008
The 2007 International Car of the Year Awards
For 11 years now, Road & Travel Magazine has bestowed its own brand of awards on the new year's crop of cars and trucks. Called ICOTY, for International Car of the Year, these awards draw a rich crop of industry heavyweights to a gala black-tie-suggested celebration on the Saturday night before press previews begin for Detroit's North American International Auto Show. With its overtones of the Academy Awards, this event has become a coveted ticket and the unofficial kickoff of the Detroit show.
This year, Road & Travel Editor in Chief-turned-Executive Producer Courtney Caldwell put on her usual lavish show (which WWJ, the local CBS affiliate, taped for airing during NAIAS public days). The ICOTY Awards recognize 10 vehicles for model-year 2007, placing a special emphasis on the emotional connection they create with their owners: International Car of the Year, International Truck of the Year, Most Compatible (minivan), Most Resourceful (SUV), Most Dependable (sedan), Most Spirited (entry-level car), Most Athletic (pickup truck), Most Versatile (crossover), Most Sex Appeal (sports car) and Most Respected (luxury car). There is also the Heart String Award, which goes to the most emotionally compelling car commercial (won by the "Father and Son" Ford Mustang spot), and the Lifetime Achievement Award, which went to longtime automotive journalist and ace spy photographer, Jim Dunne.
The judging panel for the ICOTY Awards is a distinguished group of a dozen automotive journalists from a wide variety of outlets, including the venerable David E. Davis, Jr., Inside Line columnist Ken Gross, and even yours truly, editorial director here at Edmunds.com. Ms. Caldwell was even gracious enough to let me get up on stage and co-host the awards ceremony with her. It was a grand evening.
This year, Road & Travel Editor in Chief-turned-Executive Producer Courtney Caldwell put on her usual lavish show (which WWJ, the local CBS affiliate, taped for airing during NAIAS public days). The ICOTY Awards recognize 10 vehicles for model-year 2007, placing a special emphasis on the emotional connection they create with their owners: International Car of the Year, International Truck of the Year, Most Compatible (minivan), Most Resourceful (SUV), Most Dependable (sedan), Most Spirited (entry-level car), Most Athletic (pickup truck), Most Versatile (crossover), Most Sex Appeal (sports car) and Most Respected (luxury car). There is also the Heart String Award, which goes to the most emotionally compelling car commercial (won by the "Father and Son" Ford Mustang spot), and the Lifetime Achievement Award, which went to longtime automotive journalist and ace spy photographer, Jim Dunne.
The judging panel for the ICOTY Awards is a distinguished group of a dozen automotive journalists from a wide variety of outlets, including the venerable David E. Davis, Jr., Inside Line columnist Ken Gross, and even yours truly, editorial director here at Edmunds.com. Ms. Caldwell was even gracious enough to let me get up on stage and co-host the awards ceremony with her. It was a grand evening.
How to Get a Used Car Bargain
When you go car shopping, the first question you are likely to run into is this: Should you buy a new or a used car?New cars are a shock to your budget, but they will probably be trouble-free for several years.Used cars cost less, but how can you be certain you're not buying someone else's problems?Here at Edmunds, we spend much of our time dispensing advice on new car buying. But there is a huge used car market.
In 2006, for example, an estimated 44 million used cars will be sold as compared to an estimated 17 million new cars. While the average sale price of a used car is estimated at about $13,900, the average price of a new car is estimated at roughly $27,800.It's often said that there is a steep decline in the car's value in just the first year of the car's life — from 20 to 30 percent. In other words, that car that was worth $21,800 when it was new can be purchased only a year later for as little as $15,260.
That's a savings between $4,360 and $6,540. This is proof that the consumer pays dearly for that new car smell.You might be thinking that all of this sounds good in theory. But what's happening in the real world? Well, we decided to find out.A Test CaseEdmunds editors Phil Reed and John DiPietro decided they would be guinea pigs in the used car buying process. Phil actually needed a car to replace the one he just sold. So he decided to get the best car he could for between $11,000 and $13,000.True, there are new cars that could be purchased in this price range. But by buying used, Phil felt he could get "more" car for less money. By purchasing a used car, he would be able to get a loaded mid-size model instead of a new, stripped "econobox." Besides that, buying a used car that was still under factory warranty could offset much of the uncertainty of buying a used car.
In 2006, for example, an estimated 44 million used cars will be sold as compared to an estimated 17 million new cars. While the average sale price of a used car is estimated at about $13,900, the average price of a new car is estimated at roughly $27,800.It's often said that there is a steep decline in the car's value in just the first year of the car's life — from 20 to 30 percent. In other words, that car that was worth $21,800 when it was new can be purchased only a year later for as little as $15,260.
That's a savings between $4,360 and $6,540. This is proof that the consumer pays dearly for that new car smell.You might be thinking that all of this sounds good in theory. But what's happening in the real world? Well, we decided to find out.A Test CaseEdmunds editors Phil Reed and John DiPietro decided they would be guinea pigs in the used car buying process. Phil actually needed a car to replace the one he just sold. So he decided to get the best car he could for between $11,000 and $13,000.True, there are new cars that could be purchased in this price range. But by buying used, Phil felt he could get "more" car for less money. By purchasing a used car, he would be able to get a loaded mid-size model instead of a new, stripped "econobox." Besides that, buying a used car that was still under factory warranty could offset much of the uncertainty of buying a used car.
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