Car Buying Tips

Just like Any business out there being a smart consumer does pay off. How many times have you bought gas at one station only to drive down the street to find it cheaper? A lot right! Or maybe buying milk at the grocery and as you drive home see it advertised cheaper at the local market or in my area of town UDF. All the major companies pay big money on marketing, in fact we all do. There are some tricks of the trade that you can learn or pick up on to save you money in just about anything you buy. By contacting +consumercarshopping.com we can take all the hassle and worries off your plate and get you a fare deal on your next car purchase. Here are some tips you can use to avoid becoming the victim of common dealer tricks of the trade:

1. Payments

Dealers want to talk payments; you need to talk price. For example, the last dealer I met asked me how much I could afford to pay a month. When I didn't answer, he offered a "great deal" at $385 a month. He never mentioned the total price of the car or the length of the loan.

By focusing on payments and not price, it's easy to trick consumer into thinking they're getting good deals. Steer the conversation to the total price, and let the payments take care of themselves.

 
2. Loans

A dealership can make as much money on the loan as it can on the car, which is something it's not likely to disclose. Instead, the salesman will make it seem that he's doing you a favor by getting you a great interest rate -- or getting you a loan at all.

Don't fall for it. Financing is big business for dealers, and you're not winning a prize when they get you a loan.

Step One in any purchase that requires a loan is to secure financing. Never head to the lot without first shopping for -- and getting preapproved for -- a loan. Use online auto rate searches and talk to banks and credit unions to find the best rate. Then apply and get approved. This serves two functions: You won't overpay for dealer financing, and you'll be ready to pull the trigger when you find the perfect ride.

3. Bait-and-switch advertising
Bait-and-switch gets you in the door by advertising a super deal on a car, but switching you to another, lesser deal when you show up.

Read the fine print before you go to the dealership. If you're not sure, call ahead.

4. High-pressure tactics
The salesman's goal is to close the sale today, and he'll try any number of sales tactics to make it happen. My personal favorite: Insisting the car won't be there tomorrow.

Don't bite. If you feel uncomfortable or unsure of any decision, ask to speak to someone else or just walk away. Keep looking until you find someone you can work with.

5. Extras that add up
Car salesmen work on commission, and the more you pay, the more they make. One way to increase the sale price is by adding on extras, like wheel and tire protection, a warranty extension or rust protection. To help sell you on these, the salesman will break them down to the total price per month. For example, when I bought rust protection, the dealer told me it was a "great service for only $25 a month." I ended up paying $900 over three years for something I didn't understand or even know how to use.

6. Undervalued trade-in

If you're trading in your current car, know its value. These sites can help:

• Edmunds.com
• NADA Guides
• Kelley Blue Book
• MSN Autos

Also, check eBay to see what cars like yours are selling for in your area.

If you're trading in, don't expect any dealer to offer your car's retail value. To get maximum value for your car, sell it yourself.

7. Manufacturer's suggested price
The "manufacturer's suggested price" is often used to make a deal sound better. For example, if the manufacturer's suggested price is $35,000, but the dealer is asking only $32,000, you might think, "Hey! I'm already getting $3,000 off and we haven't even started negotiating."

Sites like KBB.com can tell you what people are actually paying for specific models.

8. Your credit score
When I was buying my first car, the dealer pulled my credit report and told me my credit wasn't that grea,t but that he'd be willing to work with me. I felt a sense of relief, thinking, "At least I'm getting a loan." I later found that my scores were fine and that I could have gotten a better interest rate elsewhere.

You can get your credit scores for a fee at the websites of Equifax, Experian and TransUnion or from myFICO. If you find that your scores are low, improve them before you apply for a loan.

9. Negotiations
Buying a car isn't one big transaction; it is actually three smaller ones: getting financing, pricing the trade-in and buying the car. I didn't realize this when I went to the dealership alone for the first time. Rather than look at each piece, I looked at the total cost and thought, "OK, I can afford this."

Negotiate each part separately to get the best deal.

10. Mechanical issues
Don't take the dealer's word for the condition of a used car. Never buy any car from any source without first taking it to an independent mechanic for an unbiased inspection.

@garyreed +consumercarshopping.com will assist you in all your automotive needs.

Car Advice

A big question that most of us have is when to buy a new car or maybe a slightly used car. A lot of the preference is based on the individual itself,  such as budget,  how often you drive and how much you drive, and then there is the cost of repairs.
If you are spending more than $1200 a year on repairs on your current vehicle it's probably time to replace your car. If you have a vehicle that is getting less than 20 mpg it's probably time to replace your vehicle,  there is 7 passenger vehicle s that are getting up to 30 mpg as well if you have a big family or just need the room.

If your driving a vehicle that gets 15mpg and upgrade to a vehicle that gets 30mpg you could save $160 a month in fuel.  (based on driving 15,000 a year)

Merry Christmas

Merry Christmas Everybody! 

How was 2012 for you?

Are you ready for a New Year?

What changes are you going to make?

Happy New Year!

Christmas Car Shopping

A lot of people are probably not thinking of buying a car around Christmas time just because they already have so much other stuff going on, but then again it is usually a really busy time in the car business around this time of the year. The normal things still happen that make people buy a car this time of the year, whether their car finally gives up or breaks down or a car wreck that makes people purchase regardless of the timing. But did you know people are being very smart and waiting all year just to buy a new car this time of the year is a huge part of the business.  Just think about it......the dealership s are ready to clear out old inventory to make room for new, they are also paying taxes and in lot of cases paying interest on their vehicles as well. They are under a strict guide line to move the vehicles and trying to close the year out with a huge month of sales, not to mention it's Christmas time and some times telling them a story helps as well. The manufacture also will throw a lot of incentives out their too. Also business owners need to buy vehicle s to write off on their taxes as well.
Being a good consumer and doing all your research will pay off if you have the time and patients.  Or you can hire a car consultant like myself and take all the worries and frustration off your shoulder and enjoy this time of the year along with your new vehicle that you purchased and saved $10, 000 dollars on.

consumercarshopping.com

Happy Holidays!

Thanks
Gary Reed

Leasing is back! Benefits of Leasing a New Car

Cincinnati Chevrolet Lease Advantages

What if I told you that you only had to pay for less than half of a brand new vehicle? What if I told you that you could have monthly car payments 30%-60% less than if you purchased a brand new car. Now, what if I told you that you would have to lease a new vehicle to receive those 2 unbelievable benefits?

Well…Leasing is back and it is stronger than ever and it is the best way and most cost effective way to acquire a new vehicle. There are no ifs, and  or buts about it.  Many people think leasing is a bad option because they have heard from people that leasing can be costly in many ways. They may argue that they drive a lot of miles, or they have been penalized at the end of a lease for excess wear, tear, or damage done to the vehicle, or people may think leasing is not the way to go because you never own the car.  I, however, may argue that if you drive a lot of miles then leasing is definitely the best option for you.

Lets say you drive a lot of miles…..for example 30,000 miles per year and you are buying a $25,000 car and 3 years down the road you decide you want to trade that car in. Well with 90,000 miles and a 3 year old car the value of that vehicle has probably on average depreciated to about $7000 trade in value…..about 25% of its original value when it was new.  Now if a Financial Adviser told you that you could invest in something and lose 75% of what you put in it over the first 3 years you would think he is the craziest person on Earth. It is 100% inevitable that a car is going to depreciate but when you drive a lot of miles your are rapidly speeding up the depreciation cycle. Leasing takes the depreciation aspect out of the picture for the consumer.

A wise man once said…..You should own what appreciates and you should rent (lease) what depreciates! Now how much better would it be to put 90,000 miles on a vehicle in 3 years and just turn it back in and not have to worry about the depreciation? Another argument against leasing a car is that you never own it….you put all this money towards the car for 2-3 years and then turn it back in and you don’t own anything. I have 2 comebacks to that argument: For one, the majority of people who buy a car come back to trade in their car before it is ever paid off so in essence they rented that car for that period of time. And two, if you bought a car and financed it for 72 months and when you pay that car off (keep in mind you have now paid 100% of that vehicle) and lets say you have put the national average of 15,000 miles/yr on that vehicle it would now be 6 years old and have 90,000 miles on it. In most cases a 6 year old car with 90,000 miles has depreciated about 80% of its original value. So over 6 years your car has depreciated 80% PLUS the maintenance and service that is done to a car once it starts hitting 50,000 miles and up will start adding up the service bills (see Benefit #3 below).

I truly believe in leasing! As a New Car Sales Manager at McCluskey Chevrolet, I truly believe in leasing. My wife and I have leased 4 vehicles, my family leases, my friends lease, the CEO and President of McCluskey Chevrolet leases, the majority of the salespeople lease their vehicles, doctors, lawyers, accountants, CEOs and Presidents of companies lease……….Why?

Here is WHY:

1. Lower Monthly Payments- Leasing is based on a Guaranteed Future Value or Residual (what that vehicle will be worth at the end of the lease), you only pay for the portion of the vehicle that you actually use. The average lease residual today is 50% PLUS there are Rebates from the Manufacturer (also called Cap Cost Reduction) up to $3750 to entice consumers to lease. So in essence, on average you are only paying on 40%-45% of that vehicle over your 24-39 month lease.  Monthly lease payments are 30%-60% lower than a purchase loan for the same car and same term.

2. New Car, More Car, More Often- Most leases have a term of 24-48 months. What that means is that since your payments are lower, you get more car for the same money and you get to drive a new vehicle every 2-4 years.

3.  Fewer Maintenance Problems- Lease terms today coincide with the length of the manufacturer’s warranty coverage. So, if something goes wrong with your leased vehicle, it will be covered under warranty.

4. No Trade-In/Used Car Hassles- With leasing, the headaches of trading in or selling a used car are totally eliminated. One of the greatest benefits of leasing is that at the end of your lease term, you have 3 options:  1. Turn the car back in to the dealership and pick out another brand new car! 2. Buy your lease for the residual value. 3. Trade it in….If the used car market is rocking and your leased vehicle is worth more than what your residual value is, trade the car in and use your equity  towards your next lease or purchase or even get cash back!

5. Lower Taxes- When leasing you do not pay taxes on the entire value of the new leased vehicle as you would if you purchased. You are only taxed on the portion of the vehicle you use during the lease. The tax is spread out and paid along with your monthly lease payment instead of being paid all at once upfront.

6. GAP Insurance is Included- Most leases include Gap Insurance in case your leased vehicle is totalled and you still owe more than the vehicle is worth. When you purchase a new vehicle, Gap Insurance is extra , and in most cases can raise your mnthly payment $10-$20 per month.

Save on the Year End models

www.consumercarshopping.com

Black Friday Car Shopping

Will you be shopping for a car on Black Friday?  There are some really great deal's out there right now. For the most part all the 2013 model year car's are out and the dealer wants to move the 2012 model s....plus they want to finish the month strong.
I say it's the perfect time to buy a New car.
consumercarshopping.com

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Car Leases under $200 dollars

Car Lease Offers for Under $200/month

Buick Verano - $199/month, 24 months, $24699 due at signing

Chevrolet Cruze - $179/month, 36 months, $2329 due at signing

Chevrolet Malibu - $199/month, 36 months, $2479 due at signing

Chrysler 200 Sedan - $199/month, 36 months, $2999 due at signing

Dodge Dart - $199/month, 36 months, $2999 due at signing

Fiat 500 POP - $199/month, 42 months, $0 due at signing

Ford Fiesta (2012) - $189/month, 24 months, $1758 due at signing

Ford Fiesta (2013) - $159/month, 24 months, $1679 due at signing

Ford Focus (2012) - $199/month, 24 months, $2018 due at signing

Ford Focus (2013) - $169/month, 24 months, $1884 due at signing

Ford Fusion - $169/month, 24 months, $2428 due at signing

Ford Explorer - $169/month, 24 months, $3139 due at signing

Honda Accord Sedan - $199/month, 36 months, $1999 due at signing

Honda Civic Sedan - $149/month, 36 months, $1999 due at signing, or $200/month, $0 due at signing

Honda Civic Hybrid - $199/month, 36 months, $2799 due at signing

Hyundai Accent (2012) - $169/month, 36 months, $1699 due at signing

Hyundai Accent (2013) - $169/month, 36 months, $1899 due at signing

Hyundai Elantra Touring - $199/month, 36 months, $2199 due at signing

Hyundai Elantra - $179/month, 36 months, $1999 due at signing

Hyundai Elantra Coupe - $189/month, 36 months, $2299 due at signing

Hyundai Elantra GT - $199/month, 36 months, $2499 due at signing

Hyundai Sonata - $199/month, 36 months, $1999 due at signing

Hyundai Veloster (2012) - $179/month, 36 months, $1999 due at signing

Hyundai Veloster (2013) - $179/month, 36 months, $2299 due at signing

Jeep Patriot - $199/month, 39 months, $2499 due at signing

Kia Rio LX (2012) - $169/month, 39 months, $1999 due at signing

Kia Forte LX (2013) - $169/month, 39 months, $1999 due at signing

Kia Forte Koup EX (2013) - $179/month, 39 months, $1999 due at signing

Kia Optima (2013) - $199/month, 39 months, $2399 due at signing

Kia Soul (2013) - $179/month, 39 months, $1999 due at signing

Mazda Mazda3 4-door - $189/month, 36 months, $1999 due at signing

Mazda Mazda3 5-door - $199/month, 36 months, $1999 due at signing

Mini Cooper Hardtop - $199/month, 36 months, $2220 due at signing

Mitsubishi Lancer ES - $189/month, 24 months, $2388 due at signing

Mitsubishi Lancer SE - $189/month, 24 months, $2399 due at signing

Mitsubishi Lancer Sportback - $199/month, 24 months, $2398 due at signing

Nissan Versa Hatchback - $189/month, 39 months, $1999 due at signing

Nissan Sentra - $179/month, 39 months, $1999 due at signing

Nissan Altima - $199/month, 24 months, $2599 due at signing

Scion iQ - $99/month, 36 months, $1969 due at signing (expires 1/7/2013)

Scion tC - $189/month, 36 months, $1999 due at signing (expires 1/7/2013)

Scion xB - $179/month, 36 months, $1999 due at signing (expires 1/7/2013)

Scion xD - $159/month, 36 months, $1999 due at signing (expires 1/7/2013)

Smart Car Pure Coupe - $99/month, 36 months, $1393 due at signing

Smart Car Passion Coupe - $139/month, 36 months, $1433 due at signing

Smart Car Passion Cabriolet - $199/month, 36 months, $1493 due at signing

Subaru Legacy - $199/month, 42 months, $1999 due at signing

Subaru Impreza - $179/month, 42 months, $1979 due at signing

Suzuki Kizashi - $199/month, 42 months, $2498 due at signing

Suzuki SX4 Sedan - $169/month, 42 months, $2924 due at signing

Suzuki SX4 Crossover - $179/month, 42 months, $2830 due at signing

Suzuki Grand Vitara MT - $199/month, 42 months, $3262 due at signing

Toyota Camry SE - $199/month, 24 months, $2839 due at signing

Toyota Corolla LE - $159/month, 39 months, $2558 due at signing

Toyota RAV4 - $189/month, 39 months, $2588 due at signing

Volkswagen Jetta - $189/month, 42 months, $0 due at signing

Lease vs Buy

Buying and Leasing are Different

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it or how long you keep it. Monthly payments are higher than for leasing. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit score. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale or trade value.

When you lease, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Leasing is a form of financing and is not the same as renting. You have a choice of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract — for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value. You may be charged a lease-end disposition fee.

Car Consultant

Are you ready to take on a professional car salesmen?  Probably not, allow me to assist you in finding your next vehicle and save you time and money.

Contact us:
consumercarshopping.com

Get the Best Price on your next New Car

What the dealers don't want you to know

The key to getting the lowest price on a new car is to know how much negotiating room you have.
ConsumerCarShopper.com empower you with the information you need to negotiate the best deal on your next car.

We show you:

• The dealer's true cost...the Bottom Line Price
• How much others have paid
• Vehicle price negotiability
• Used car buying, selling and trade-in prices

Dos & Don'ts Car Shopping

Dos & don'ts

What to keep in mind

Don’t negotiate around a monthly payment. This gives a salesperson too much room to manipulate figures to the dealer’s advantage, especially if you have a trade-in or are financing through the dealer. Instead, negotiate one thing at a time. Nail down the final new-car price before discussing the trade-in value or financing terms.

Don’t  buy unnecessary extras, such as corrosion protection, paint sealant, fabric protection, and window etching of the vehicle ID number (VIN). You usually don’t need these services or can get them for less money later. Sometimes, VIN etching is pre-printed on the sales contract. But if you don’t want it, simply cross it out, decline to pay for it, and have them recalculate the total.

Don’t purchase an extended warranty on a car with a good reliability record. In a 2008 CR survey, 65 percent of respondents said they spent much more for the contract than they got back in savings on repairs.

Do bring a calculator if you’re financing to verify that the terms match the amount you’ve agreed to finance. Dealers can pad the monthly payment to add extras into the contract, sometimes without the buyer even knowing he or she has paid for them.

Don’t drive the car home before the financial paperwork is completed. That can result in so-called “yo-yo” or “spot” delivery, when the dealer calls the buyer back, claiming the financing fell through, to get him or her to sign new paperwork at less favorable terms.

Do   be prepared to walk out if the salesperson tries to raise a price you negotiated by e-mail or phone, or if you feel uncomfortable with the negotiations or treatment. Sometimes, your willingness to leave the showroom is your most effective negotiating tool. 

Compare Pricing

Get quotes

Get competing price quotes

One of the most effective ways to get a low price is to have dealers compete for your business. This can be done by e-mailing or calling several in your area or in neighboring towns. Tell them the exact model, trim level, and options you want and ask for their lowest out-the-door price. The more quotes you get, the better. Make sure you’ve done a thorough test drive before initiating negotiations.

You could also go to car-buying websites and submit a request for a dealer quote. But be prepared to be on the contact list for several dealers for a while. Consumer Reports provides free dealer quotes through its Build & Buy service, which is available to subscribers of Consumer Reports magazine or website, ShopSmart subscribers, and buyers of CR’s New Car Price Reports. Benefits with this are that you remain anonymous until you choose a dealer to work with and dealers in the network must maintain a high level of customer satisfaction. Of course, you aren’t obligated to buy a car.

Focus on the price. Don’t discuss trade-in or financing terms at this point. Tell them you are just looking for a competitive price on a new car and will work with the dealer that treats you the best. You can tell them you’d be willing to put down a credit-card deposit over the phone if they can meet your target price; never e-mail your number. Some salespeople will try and get you to come to their showroom to discuss pricing. But many are now savvy enough to work with you electronically, which saves time for both you and them.

Play "match the price." If you want to whittle the price down further, recontact some dealers and ask whether they can beat a competitor’s price. This can be particularly useful if you prefer one dealership, because of location or personal rapport, but another dealer has given you a lower price. If you settle on a price, have the dealer send you a detailed pricing breakdown; you’ll need this when you go to the dealership to close the deal.

Set a target price

The price

Set a target price

Before negotiating with a dealership, you should have an idea of what a good price is for a particular model. This can range from a figure that’s close to the full manufacturer’s suggested retail price for a hot new model to thousands below MSRP for a slow-selling model. 

It helps to know the dealer’s cost. You can estimate this by finding the invoice price and subtracting any dealer rebates or holdbacks from it. The invoice price can be found in printed pricing guides or on car-pricing websites. Some sites also list dealer rebates and holdbacks, but it may take a little searching.Consumer Reports’ New Car Price Reports do the math for you with CR’s Bottom Line Price, which is a good place to begin your negotiations. Try to pay as little above that figure as possible. 

CR’s Price Reports also now show you the average price that buyers are paying for a model.

Red flag

Are the quotes apples to apples? Sometimes the dealer won’t have the exact vehicle you’re looking for and will give you a price on a different version without telling you. If there’s a question, ask for copies of the window sticker.

Your Trade-in

The trade-in

Find your trade-in value

A common dealer tactic is to give you a token discount on a new car, and then make up for it by giving you less for your trade-in. You can avoid this by knowing the value of your current car before you go shopping. This depends on its age, mileage, condition, trim level, options, and your area.

To get an idea of your car’s worth, check its “book value” in printed pricing guides or at used-car-pricing websites, such as Kelley Blue Book and the National Automobile Dealers Association. Focus on the wholesale or trade-in value; the retail value is what you would pay for the car at a dealership.

To help, Consumer Reports offers Used Car Price Reports for $12, which give you the initial value of a model and walk you through the process of adjusting the value according to options, mileage, and condition.

To get a better fix on your car’s worth, check car-buying websites and local classified and dealer ads for models similar to yours. But keep in mind these are asking prices, not what people are paying.

Get an appraisal. If you want a rock-solid figure to use for comparison in your negotiations, take your car to the used-car department of several dealers or used-car lots and ask what they would give you  in a straight-up sale.

Of course, you can always sell the car yourself; you’ll usually get more money than by trading-in, but probably less than the highest asking prices you found. But if you need the money for a down payment, you’ll have to sell your old car before buying a new one. Trading in can also lower the sales tax you’ll pay on the new car.

Watch the details at the Car Dealership

Car Dealerships

Watch the details at the dealership

This can be the most stressful part of the process, because the dealership staff could try to make up for a low price on the new car by making you pay more in other areas. That’s why you need to come in prepared and ready to maintain control.

By the time that you go to the dealership to buy the car, you should have:

• Identified the model, trim level, and options that you want.
• Completed a test drive and walk-around, so you’re familiar with vehicle.
• Been pre-approved for a loan or, if you will be financing through the dealer, know what competitive interest rates are in your area.
• Researched the value of your trade-in, if appropriate.
• Gotten an idea for what a good price is for the vehicle you want.
• Gathered several quotes from various dealers, and settled on one that looks the most promising.