Considering Buying a Salvaged Car?

Probably not.  Very few do, despite them being very excellent deals in many cases.  Then again, thrift stores often sell excellent clothes, but you don't see The Gap going out of business.

For those in the majority who do not want to buy a salvaged car, please read the article about dealers that sell salvaged.  Keep in mind, many cars that are severely damaged make it through the back door and do not have to change from their normal title.

In essence, this article is less about salvaged cars as it is about the dealers that sell them.  It's okay if they tell their customers up front that a lot of their cars are salvaged.  It's the ones who do not mention it until later that the car had been wrecked that worries me.  If the title is clear, they may never tell you.

Car Dealer Forum Open to the Public

Not that it's groundbreaking news, as I don't know of any car dealers forums that aren't open to the public, but I found it very interesting nonetheless.

The main reason is that members can post blog entries directly to the main blog.  There is no moderation needed.  Car Dealer Forum isn't actually a forum.  It's a social network for auto dealers, their employees, and apparenty us as well.

Just for kicks, I joined, commented on an article, and posted a blog posting (which I later deleted because it wasn't very nice).  I didn't make it nice because I wanted to test to see if the moderators would allow it to be posted.  They didn't need to -- it was open for anything.

So, I left it up, got a comment, and after a day, noticed that the post survived.  Ashamed of my harsh remarks, I deleted it.  I will repost some of the articles from here on it someday, but for now, I'm just impressed that they're open for criticism.

The Last Stop is Worth the Most Worry

Car dealers have thrown in the towel.  They've given up.  They know that the chances of making more than holdback on a new car, unless it is a highly sought one, are very slim.

Still, you don't see a whole lot of them closing down.  Most of this can be attributed to more people buying used cars.  Gas prices force change, and more middle and upper middle class families are buying the 3rd car for the adults - a daily driver for the one who normally would be driving the Tahoe or Expedition.

On the other end, literally, dealerships are able to stay open because of their finance departments.  They may be willing to make hundreds on a car in the "front end" through the sale of the vehicle, knowing that they can make thousands in the "back end".

This article car on automotive finance is informative and talks about the things that are worth buying, as well as the things that are not worth it.

Enjoy!

Hybrids: A Brief Rant

One thing that amazes me in the automotive world is the need for people to buy fuel economy vehicles because of rising gas prices.  If people really do the math, they aren't always saving the money that they think they will.

Take a hybrid for example.  A hybrid version of a vehicle costs $3,000 to $4,000 more dollars or more than the standard version.  Let's look at the Honda Civic, for example.  It would take the average someone 3-4 years of driving to save the the extra money that they spent to get the hybrid through the gas mileage.

Not looking at the potential extra maintenance involved, it would only make sense for the less-than-average person who actually keeps their car beyond the standard buying cycle.

Hybrids are nice and convenient for those looking to fill up less and drive more.  For the standard driver, it just doesn't make as much cents (pun intended).

Auto Purchase Advice

Digg and Technorati this Automotive Website
Now Playing: Help the auto dealer honesty cause.

The links for this site to get Dugg and Technoratitizled are in this post.

I try to provide the best, most informative non-generic content possible.  I hope to one day transfer this account to a bigger account and offer my insider's perspective to more people.

If you find anything useful here, please help me promote it using the buttons below.  I can use any help I can get, as this is a hobby now.  Eventually, I would like to save enough money to devote more time to posting every day, but for now, I'm lucky to get a new article out there every week.

 Do your part and help fight the good fight against dishonesty in automotive sales.

 

 

Auto Purchase Advice

Never Take their Word on it
Now Playing: no matter how honest they seem
Topic: Car Buying Advice

For car dealers, it's a granted.  One of the mottos I heard when I sold cars was that "Buyers are liars."  If that's not the pot calling the kettle black, I don't know what is.

This post stems from a personal experience just two weeks ago.  Don't ask me why I didn't think about posting it until now.

As a prudent car buyer, I decided to take my time and look for the best deal possible from an individual selling and older car.  I wanted a high-mile, well maintained vehicle, preferably an import but it really depended on the car and the previous owners.  My budget was $4,000.

I stumbled upon a very attractive, clean, good running 1996 Volvo.  No details so as not to insult the owner in the lottery's chance that they might stumble upon this site.

 Anyway, the Volvo ran great and passed my on-site collision inspection (which will be a future article).  The price was solid and the story was good.

It was a 1-owner who had recently been transferred out of state.  Instead of bringing the car, which was a 3rd vehicle that would have had to be transported, it was left with a relative to sell.  Never been wrecked, highway miles, garage kept, yadayadayada.  Sounded great.

Luckily, prudently, I didn't buy it on the spot.

The vehicle history report told a completely different story.  It wasn't a 1 owner, as it had gone through 2 auto auctions in it's 12 years of life.  Even worse, it had a collision record and frame damage!

 Now, all of these are potentially bad, but had I been told upfront, I might still have bought the car.  Having 3 owners isn't that bad and can even be expected on a high miler.  Collisions happen and minor ones can result in nothing more than a repaired bumper.  Frame damage must be reported by an auto auction if it is off my a fraction of a centimeter.  That can happen with a minor fender bender.

 If I had been told those things, I probably would have offered a little less, but it seemed to check out.  On a $4000 budget, if you can get 60K miles out of a vehicle, you've done well.

The lies left me wondering if the vehicle was ready to fall apart within a month of driving it home.

 In the end, I bought a 1994 Camry with 151K miles, truly immaculately kept, second owner who bought it from a friend after 7500 miles.  The person I bought it from was retired now and just bought a brand new Camry.  And yes, the vehicle history confirmed the story.

I paid $2800, which is above the book value, but with this kind of find, you have to throw the books out.  I should be able to get at least 100K more quality miles out of it by changing the oil, pumping the gas, and keeping an eye on the timing belt in about 50K more miles.  I consider it a steal.

Auto Purchase Advice

Dealer vs. Individual
Now Playing: Where to Find a Used Car

There is a ton of information out there about scams and deceit that happens when buying a used car from a dealership. There are definite pitfalls to buying from an individual as well. When it comes down to it, the real question is, "How hard are you willing to work for a good deal?"

Conventional thinking is that it is easier to buy a vehicle off of an individual than it is from a dealership. Fewer hoops, fewer lies, cheaper and less hassle -- or is it?

Many car dealers are slowly, surely, and finally starting to become more truthful in their dealings with customers. It isn't because they ever really wanted to. The information on the Internet in this highly competitive market have forced auto dealerships to "come clean" in many aspects of their dealings.

Car sellers, on the other hand, are still as up and down as ever. There are many people who are honest and straightforward with selling their vehicle, just by nature. Still, there are those who are taking advantage of the Internet and the wealth of resources available to make great money selling as an individual.

Many "individual" sellers actually have a dealer's license because they are selling more than the limit of cars that an individual can sell in a year. These licenses are not cheap.

With that said, please erase any ideas that car dealers all lie and most individuals do not. Honesty must be judged on a case by case basis, so that is no longer part of the general equation.

Advantages and Disadantages

Selection: There is no competition. It is easier to find a vehicle by searching dealerhship inventories than it is from individuals.

Price: Normally, it is less expensive to buy from a individual. With no commission, no "dealer pack", and no advertising costs, an individual can sell their car for less (but be careful, as "can" does not mean "will").

Condition: Most reputable car dealers will inspect their vehicles before selling them. Many smaller dealers and some individuals will "bandaid" fix items such as adding freon to the a/c, adding "No-Smoke" to the engine, etc.

Trading: Few individuals are willing to give money or value for a traded vehicle. In otherwords, if you have a car, you can trade it at the dealership when you buy. Buying a car from an individual adds the extra step of selling your old car.

Buying Experience: Very few people look forward to dealing with a car dealership, regardless of how good they are at customer service. It is an ordeal almost without exception. Individuals are normally a handshake, count the money, sign the title, and another handshake.

Post Buying Experience: There are many horror stories on both sides for this one. Dealers can be reluctant to fix a car that was sold "As-Is", while individuals are often hard to track down, plus getting them to fix something, either through asking or through the legal system, is almost impossible.

Conclusion

It seems like a pretty even comparison. In the end, it all comes down to time and patience. If you have the time to sift through the bad, check vehicles out thoroughly, and wait for that perfect deal, buying from an individual may be the best bet. If you need a car this week, don't dismiss individuals, but be wary. A car dealer may be your only real option.

***

This car buying advice article is brought to you by Auto Dealer Websites, a builder and designer of automotive websites.

You can read more car buying tips at Car Buyers Guide. There are also more articles and websites similar to this one at Car Buying Advice.

Enjoy, and happy car buying!

Car Buying is 90% Research
Mood:  bright
Now Playing: Car Buying is 90% Research
Thanks in large part to the Internet, buying a car in today's world is best when th buyer does most of their research before ever going to the dealership. The tools that are at our fingertips make it possible to get every bit of information necessary to know about the car, negotiate the deal, secure financing, and have the vehicle and paperwork ready when we arrive at the dealership. In many cases, the dealership will even bring the car and paperwork to us. Information About the Car Almost all car dealers put their entire used car inventory online as well as either a real version, a virtual version, or both versions of their new car inventories. An example is New Jersey Chevrolet Dealers. Lots of pictures of their cars and trucks, detailed lists of equipment, and most importantly, a Vehicle Identification Number. Using the VIN, customers can get a Carfax Report. The vehicle history report does a decent job of determining if the vehicle has been wrecked, how many owners it's had, if it was a lease or rental. It'll look for major repairs, odomoter triggers, and flood damage, plus pages of other potentially useful information. Customers can also compare prices at Kelley Blue Book for both new and used vehicles. There are also vehicle reviews, quotes, and other information. Make an Offer on a Car Many automotive dealerships like Portland Honda Dealers, Longview Texas Honda Dealers, and Los Angeles Nissan Dealers have a "Build Your Car, Name Your Price" feature. When buying a new car, this gives the customer a tool to build a vehicle to their exact spcifications, find out the dealer's price, and make an offer on it. For used cars, it's a bit easier. Find the car in inventory, send an email, make an offer. Most dealerships are starting to be willing (reluctantly) to do this. Secure Financing Many Auto Dealer Websites have providers that allow them to put an interactive credit application on their website. An example is the 30-Second Credit Application at Johnson City Honda. With it, the data a customer gives is sent digitally across the Internet to an internet manager who can pull the credit and start securing the financing for their customers. Last Steps Once you've chosen a vehicle, negotiated the deal, and secured the financing, it's now time to go to the dealership. Take a good test drive, sign the paperwork, and move on down the road. A few hours of research can make for a much shorter experience at the dealership. Where would you rather be: at home surfing or talking to a car saleperson for hours?

Auto Purchase Advice