“When is the Best Time to Buy a New Car?”

Good timing is important when making any big dollar purchase, especially when it’s a new vehicle. While finding the right opportunity to enter the market is something that car buyers need to watch for, no one can predict the perfect time. Each individual’s unique set of circumstances will determine their best time to buy.

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Here are 5 reasons in today’s marketplace to consider buying a new car:
 
1) Summer is a great time for new car buyers to take advantage of current model year end incentives.  In the fall, dealer’s  inventories and their selection of the better incentivized 2011 models will steadily decline, while lots are restocked with higher priced 2012   models with smaller or no incentives.
2) Buyers can benefit from unusually high trade-in values due to the strong market demand for used vehicles.
3) Great interest rates and attractive lease deals are still available from most new vehicle manufacturers.
4) Supplies of vehicles affected by the disaster in Japan are finally improving  and so are the discounts.
5) New car sales have been sluggish in June and July, therefore, dealers are pricing more aggressively to make up for sales. 
 
Here are 5 additional reasons to consider making that new car purchase now:
  
 1) New vehicles are more fuel efficient than comparable older models which can lower your fuel cost immediately.
2) New vehicles are much safer than comparable older models so why not take enjoy those safety enhancements now?
3) Consider replacing your current vehicle instead of investing in the costly repairs and maintenance items it may need.
4) Trade that older, higher mileage vehicle before a major mechanical failure devalues it completely. 
5) Finally, still the #1 reason to buy a new car now, that new car smell!
 
 

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Are Certified Used Cars Worth Your Consideration?

Certified is a simple term that can take on varying meanings when referring to used vehicles these days. You see, there have always been used cars, but then a shift in perceived quality came from calling them pre-driven. Now the greatest enhancement in the evolution of used car marketing has become Certified Pre-Owned status

Certified Pre-Owned, just the name instills confidence, but the key is being able to separate the hype from it’s actual value and substance. When referring to a manufacturer’s certified program there is an extension of the original vehicle warranty, very much like an extended service contract, giving the next owner a more comprehensive warranty. These coverages do vary greatly from one manufacturer to another, so their worth depends on their terms and price.

The certification process also means that each vehicle must pass certain inspections and standards. This often translates into reconditioning items like brakes and performing required maintenance services. The takeaway here is that some manufacturers require a more comprehensive certification checklist or better warranty coverages which may give their certification greater value. Only doing the homework of a full certified program comparison will determine which of the manufacturer’s programs have more merit. Perks such as new car financing rates, roadside assistance, and free service loaners should also be included in your analysis.
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When shopping for a certified vehicle it’s a good idea to obtain new car pricing of the same model. Often new car incentives can make it a very small difference to purchase a brand new vehicle. Knowing this may even help you in negotiating better pricing on the certified car. In the current market, most Japanese imports have had new car supply shortages, which have inflated the values of their used car counterparts, so shop wisely.

One final thing to remember, any used car seller can claim they are selling you a certified vehicle. Unless it’s a new car dealer offering his own manufacturer’s vehicle brand of used vehicle under their factory certified program, it’s not worth your consideration.

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Helping Consumers Decipher Misleading Auto Advertising

If you want to make some sense of the auto ads in your local newspaper or dealer’s website, here’s a short primer on spotting some often misleading terms. You may also need to break out a powerful magnifying glass as well. I’ll list just a few in this blog to help to demonstrate how these ads can be so deceiving:

An ad reads: Sign & Drive, $0 Down on a new 2011 Infiniti G Series $339 for 24 months. Disclaimer in small print at bottom of page: 10K mi/yr, plus tax, license title & doc fee. The harsh reality here is: You’ll have to sign a 2 year lease, allowing you to drive only 20,000 miles before getting hit with a $.25 charge for each excess mile. The $0 Down misleads because the tax & fees add up to about $4000 you’ll have to pay on delivery. A real $0 Down lease would mean including the taxes & fees in the lease payment, which will boost the advertised payment to over $500 per month. Adjusting the allowed mileage to 15,000 miles a year, which more people typically require, jumps the payment higher still. Choose an extra piece of optional equipment or two to the advertised base model and you can easily wind up with a real world payment of double the advertised $339 per month.

Similar Ad reads: New 2011 model – Lease for $469/mo. with $4464 due at signing     plus tax, title, license and doc fees. The harsh reality is: When you add in the tax & fees to the $4464 due at signing it will actually require about $8,000 due from you at signing!

An ad reads: O% APR X 72 mos. on every new Nissan! Disclaimer in small print at bottom of page: Not to exceed $10,000. May affect selling price. The harsh reality is: This offer is both ridiculous and worthless. It is not a manufacturer’s offer and strictly a ploy to deceive you. They’ll actually charge you a higher selling price on the vehicle to cover their cost for using their 0% APR offer. The maximum amount you may finance at 0% is limited to $10,000 or less – no thank you! This is absolutely useless, but many consumers only see and retain the 0% APR X 72 months message, only to be disappointed when they try to make a deal at that dealership.
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Dealer’s website ad lists: A 2010 Chrysler Sebring with a sale price of $12,200 listed. Disclaimer next to description of vehicle: WOW! Dont miss this super value! This Sebring is an untitled dealership owned car with extremely low miles! All incentives applied, add for tax, license, title, doc fee, destination and prep. This is a manager’s Year end special that expires on Saturday 01-29-11!!!! DONT MISS OUT ON THIS FANTASTIC PRICE !!!!!! The harsh realities are: 1)”the untitled dealership owned car with extremely low miles” simply means it was used as a demonstrator 2)  factory rebates are already applied to the price, so if you wanted any alternate special rate APR that was offered, the price would be $1500 higher  3) a $700 – $800 destination charge will be added as well as several hundred for dealer prep, raising the advertised price even higher 4) This special price expired on Saturday January 29th, yet it was still listed on Tuesday February 1st, rendering that price meaningless now. Short expiration periods are intentionally created to give the dealer another excuse to try and get more money when you call on that ad.

The common thread in all these ads is that the disclaimers are always in small print, usually buried at the bottom of the ad, but are key in really understanding the offers. They have to be there to make sure the ads comply with regulations, but are not always listed properly.  The “clever” ads are the ones that make consumers believe that their offer is better than the competition.

The take away here is that dealers have one common goal when they advertise, and that is to get consumers to contact or visit their dealerships. People must read all the fine print to avoid being mislead by great sounding offers that inevitably have a catch.  Being on your guard and reading the fine print carefully will help you avoid many of the traps before you respond to these offers.

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Helpful Tips for New & Used Car Buyers – Avoiding the Game Playing

“Buyers are liars” is a commonly used expression in the car business, and unfortunately, it’s a harsh reality. For some reason, so many car shoppers think it’s okay to lie about a price they have from another dealer, the trade-in value they received, or the options on that other dealer’s car, in order to get themselves a better deal. It happens to most car salespeople every day. Decent, honest folks transform into Pinoccio as soon as they step onto the showroom floor.

I suppose there are a number of reasons why people believe it’s acceptable to act this way when it comes to haggling with the dealer. Of course, many believe that all car salesmen are showroom sharks who will say anything necessary to make a sale – so the lying is justifiable. Mainly though, I don’t think people know of any other way to try and get a good deal other than resorting to this deceptive behavior. What they don’t realize is that the pros in the business aren’t easily fooled by these bluffs, and once their lie detectors go off, it’s let the games begin!

The take away here is that if you want to prevent getting put through the grinder trying to get your best deal on a car, then don’t provoke the sales staff with bogus claims and lies. It will not result in anything good and it’s a counterproductive waste of time.  You’ll be much more effective if you’re direct, sincere and respectful, because everyone, even sales people, respond well to that. The entire experience will go much better without adding an unpleasant confrontational dynamic.
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It’s ironic that in a business with such a notorious reputation for shady dealing that so often it’s the customer that initiates the very nonsense that they so wish to avoid. Many books and articles claiming they’ll help you outsmart the dealer only fuel the game playing by using lame fabrications and ploys that don’t work. Don’t go down that road.

The best approach is to do your homework before visiting the showroom. If you want to find the right deal you may have to shop around a bit before you get a sense of the market. There’s no need to initiate a poker match with a dealer that has the car you want by making up stories, always take the high road. If they initiate the game playing, however,  and you’re uncomfortable with how you are treated, the door is always a few steps away. You can always find a better place to buy another vehicle and avoid all of the nonsense.

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The Best time to Buy a Convertible

Convertible, rag top, cabriolet, drop top, roadster, soft top……lots of different names that all mean freedom, sun on your face, wind in your hair, and pure motoring fun. Here in the Midwest, convertible season (generally May – September) is a short but glorious time to enjoy open air cruising. When you factor in the rainy days and blisteringly hot periods during July and August, ideal convertible weather is both a precious and fleeting commodity in our area. As a result, the demand for both new and used convertibles goes through rather dramatic seasonal changes. Used convertible values peak as the warm weather approaches and drop just as quickly in the fall as the days shorten and cool.

Here are some things to consider when looking to buy or sell a convertible in our region:

While new convertible’s values don’t fluctuate, as their seasonal demand increases, so will the profit margins that dealers want to make. Buying in the fall and winter may allow you to spend much less while having more inventory to choose from.

Used convertible’s values drop way down in the fall and winter. Demand is at it’s lowest and dealers must move their convertibles from inventory or sit with them until spring. Stagnant used car inventory ties up their cash, so they are motivated sellers and bargains are ready for the taking. During the off season more people tend to trade in convertibles, creating the best selection and greatest opportunity for those buyers in the market.

Trading your convertible in autumn will yield a lower trade allowance. Dealers are unwilling to offer much at this time for these vehicles because of the small demand. Therefore, if you are considering trading in your convertible, especially if it’s a later model, you may want to wait a few months until the demand returns.

Many used two seater sports cars and roadsters are already experiencing depressed values in this economy because they are often purchased as an extra vehicle to drive in nice weather. Fewer people in the market with the discretionary income to purchase these vehicles will cause these softer prices to suffer even more in the off season.

There are exceptions to every rule, and that’s the case here as well. Limited production roadsters and convertibles may not be impacted by these seasonal changes. Whether new or used, low production models always seem to have enough demand to bolster their prices.

The main point here is to be aware that there is a dramatic seasonal swing in used convertible prices in the Midwest. The differential in peak season and off season price levels is in the thousands of dollars on most late model convertibles. Knowing this can help you buy or sell at the most advantageous time of year.  Likewise, buying a new convertible when it’s out of season can yield you significant savings.

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Ask the Expert: Making Sense of Internet Car Quotes

The internet is now being used by the overwhelming majority of today’s car shoppers as the primary source for obtaining their information. Researching and comparing various models on popular automotive websites provides potential buyers with mostly reliable data.

Almost all of these websites have prominent offers for “Free Dealer Price Quotes” which the web user is encouraged to take advantage of. A tremendous amount of customer leads are generated by these sites as a result.  This is where dealers compete for your business and things are likely to get confusing.

Pricing at this level is commonly quoted at artificially low prices to lure consumers into showrooms. Hard to decipher and buried disclaimers are often attached with extra charges and certain restrictions that raise these prices so quickly that noses bleed.

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Misleading information can result in apples to oranges comparisons and frustrate anyone trying to utilize the internet to find their best price. Unfortunately, as long as dealers vie for business on the internet in this way, it is the consumer that will continue to get the runaround and loads of misinformation.

I’d like to hear from anyone with questions on this topic or would like to comment on their own car shopping experiences.  Hopefully we can spare others from some of the aggravation. Thanks for your interest!

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Beware of Vehicle History Reports

Vehicle History Reports (VHRs) are a useful screening tool for potential used car buyers, unfortunately they have their own sets of issues and limitations. Their accuracy is only as good, or not as good, as the various sources reporting the data where human error is often involved.

As a car buyer’s advocate and consultant I always recommend that my clients check the VHR on any car we consider. It’s a cost effective way to eliminate any rebuilt, salvage titled, major damaged, stolen, flood, lemon history or odometer rollback vehicles right from the start. Simply avoiding these vehicles is my main purpose for using any VHR. Some companies also provide the added benefit of title guaranties and other protections in the event that they missed reporting something major on a car you bought after purchasing their report.

Sometimes though, a VHR may reflect negatively on a perfectly good vehicle that has not been branded in any of the above categories. For instance, an accident showing on the VHR may have only involved refinishing a bumper damaged in a minor fender bender. That doesn’t make it a bad vehicle. Or maybe the emission testing facility incorrectly entered the mileage as 74,000 instead of the actual 47,000. I recently saw the DMV erroneously input the mileage at 331,000 miles on a car’s title while it actually had 31,000! These mistakes create odometer conflicts that show on VHRs. While discrepancies can often be cleared up with proper documentation submitted to the VHR company, in most cases it can mean a lot of trouble for the owner of that vehicle who usually finds things out when going to sell or trade their vehicle. In the case of an accident report there is no way of knowing it’s severity without a professional inspection of the vehicle, but you might as well paint a Scarlet Letter A for accident on it’s hood.

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Unfortunately, any accident report on a VHR is negatively impacting the wholesale used vehicle value to a much greater degree than ever before in many dealer’s eyes. This is due to the growing popularity and usage of VHRs as well as the weight that they carry from the cautious consumer’s view.  An accident blemish on the VHR actually discourages many new car dealers from keeping that trade in on the lot because once people see the VHR they will usually pass on that vehicle. Any accident check mark on your own vehicle’s VHR will lower your trade-in value when the time comes. Keep that in mind before you submit a claim to your insurance company the next time you swipe the side of your car on the garage.

Vehicle History Reports are still a useful screening tool, but until they provide better reporting and more detailed information records, consumers should beware not to completely rely on their accuracy.

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Avoiding buyer’s remorse – Five helpful tips for new and used car buyers from Better Auto Buying

Car buying is largely an emotion driven experience for most of us whether we are aware of it or not. It’s easy to become intoxicated with that new car smell as soon we set foot in the dealer’s showroom or see the display of shiny used vehicles glimmering under the bright lights.

Unfortunately, too many people fall prey to their emotions and impulsively make poor buying decisions, falling in love at first sight with the wrong vehicles.

As a former new car dealer for over 30 years, I’ve seen many folks suffer needlessly from buyer’s remorse, and I would like to share a few tips for buyers to think about the next time they need to buy a vehicle. Some careful deliberation can help you select the right vehicle and prevent regret.

Before heading out onto the dealer lots,  here’s five tips to help you avoid buyer’s remorse:

1 – Establish your priorities. Make a list of features and options that are essential requirements for the main driver(s) of this vehicle. Don’t settle for less, even if it means choosing that one year old low mileage vehicle with everything you want it to have versus a new one without it.  You’ll be happier by getting everything you wanted in the long run.

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3 – Ignore the advertising hype. Don’t decide to buy a vehicle simply because it has the most incentives. In the current market most popular new vehicles have either rebates or financing incentives. Making a vehicle selection with the right features that you’ll enjoy driving day-in and day-out for the next several years is definitely more important to your overall satisfaction than saving a few extra dollars on something less desireable.  In general, vehicles with smaller incentives tend to hold their value better because they’re in higher demand, offsetting those few extra dollars you may save up front.

4 – Read reviews of vehicles written by their current owners. Incorporate this important element into your vehicle research. People who have been driving the vehicles that you are considering buying can provide some valuable insight into what the ownership experience is like.  You can find these on many automotive websites such as MSN Autos or Edmunds.

5 – Allocate time for shopping only. Consider your purpose on the initial visit to any dealership as solely fact finding. Make a deliberate decision that you are not going to buy anything at this point. You are there to see and touch the vehicles, obtain information and perhaps test drive the models you may be considering. Allow plenty of time so you don’t feel rushed.  Taking a one step at a time approach will help you from buying impulsively.


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