AutoBidsOnline - Automotive Shopping and Research Blog

More Good News for Consumer Leasing

2010-06-22T12:16:00.000-07:00

Lower payments, shorter trade cycles, improved credit markets and increased sales pressure from the OEM's are all contributing to push vehicle leasing back into the forefront of consumer automotive finance.

Our friend Jennifer Reed of Cherokee Publishing just posted an article "Leasing Opens Back Up as Automakers Seek Higher Sales" that details everything going on in the current auto market.

Just as American car buyers flocked back to "gas guzzlers" when gas prices dropped below $4 per gallon, leasing has always been poised to rebound.

What the article does not touch upon however, is how will the banks respond as OEM's captive finance companies grab more market share through subvented leases?

They would be smart to look at pre-owned leasing. The current wholesale markets are strong and there is virtually no competition - especially from the deep-pocketed OEM's.

Additional leasing resources can be found online at the National Vehicle Leasing Association.

Negotiate At Dealership Or Go To The Dentist?

2010-06-01T08:21:00.000-07:00

Our friends at Auto Remarketing are reporting about a recent Microsoft survey focused on the buying habits, expectations and preferences of Millenials - the newest generational demographic made up of buyers 18-29 years of age.

Respondents were asked a series of questions including their thoughts about making a choice between negotiating at a dealership or going to the dentist.

http://digg.com/d31SgeB

Which do you think they overwhelmingly chose?

Auto Dealer Monthly Profiles Car Leasing Done Right

2010-05-25T13:46:00.000-07:00

Auto Dealer Monthly's latest issue has a nice report how Boch Honda in Attleboro, Mass. is finding vehicle leasing is coming back in a big way.

www.autobidsonline.com/news/boch_honda.pdf

And although I disagree that residuals have to be inordinately high or subvented by the OEM's to have consumer appeal, Boch is still driving shorter trade cycles, increasing customer satisfaction and realizing bigger back end profits through consumer vehicle leasing.

They and other dealers like them should be a part of the NVLA. Does anyone know Ernie Boch or anyone else at their family of dealerships?

Used Car Leasing: Yes, You Can Do It - And It's On The Rise

2010-05-24T14:16:00.000-07:00

Unbeknown to many consumers is that you can actually lease a used car. And when you think about it, the whole idea makes complete sense.

A 1 year old used car has already encountered the dramatic first year of depreciation. In years, two through four, a car depreciates far less and as a result, you get a great 'new' car for about 20-30% of the money.

According to used leasing expert David Ruggles of the Autos And Economics Blog, used car leasing is the way of the future for many consumers. "In a tight economy, car buyers are looking for new ways to drive more car for their money. A 2010 Infiniti G37 Coupe 2dr Sport can be leased at 48 months for about $575 per month. If you leased a 2009 version of the G37, for 36 months, the lease payment would run about $436 per month - a savings of almost 25%."

And as we move toward the second half of 2010, Art Spinella of CNW Research reports there were almost 80,000 used vehicles leased last month.

Here is more from our friends at Cherokee Publishing: CNW Research Reports Positive April Gains for Used Car Leases

Good News Continues for Vehicle Lessors

2010-04-14T06:19:00.000-07:00

We're getting stories almost every day that used vehicle prices are strengthening and this is certainly great news for vehicle lessors.

Today, we get two stories from our friends at Cherokee Publishing / Auto Remarketing Today:

KBB Sees Strong Used Vehicle Values, Demand Continuing

Ford Reports Resale Values Up 23 Percent

We all know strong resale values mean less residual risk to lessors. With the SAAR improving and strong used vehicle values, how long will it take for regional and national banks to get back into vehicle leasing?

Revisiting How To Use Tmv And What Exactly Is It?

2010-03-22T06:08:00.000-07:00

Revisiting How To Use TMV And What Exactly Is It?

A year ago we published a highly regarded article on how to use Kelly Blue Book's TMV in your next new car purchase. Here we, take a look back a year later and update the article with some amazing developments that have occurred in the last twelve months.

Expert Opinions on Toyota

2010-03-05T08:23:00.000-08:00

Dr. Mike Smitka is one of the world-renowned experts on the Japanese automotive business. I met him through David Ruggles who shares the rights to their AutosAndEconomics blog on Google Blogger.

Check out Smitka's latest take on Toyta and let me know what you think!

Pictures from 2010 Dallas Auto Show

2010-03-04T07:09:00.001-08:00

Attended the opening of the 2010 Dallas Car Show. There are some great new rides out there. I hope you enjoy the pictures!

http://www.flickr.com/photos/autobidsonline/sets/72157623428937487/

Vehicle Leasing Rebounds

2010-02-25T07:11:00.001-08:00

Great news on the indirect consumer leasing front. It's been a long way since the crash of July 2008.

Jim Henry reports some green shoots are beginning to show in an article posted at BankRate.com. On the heels of the Toyota debacle, this is certainly great news!

Something's Not Right

2010-02-06T04:38:00.000-08:00

After Toyota's dramatic decision to halt sales on its eight biggest selling models, it announced yesterday that it would begin selling again - provided dealers have enough parts to repair existing customers vehicles first.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100205/RETAIL07/100209917/1290

Surely this is a smart decision for the manufacturer who has blundered its PR management heretofore.

However, a voice in the back of my mind is wondering how a postage-stamp sized metal shim is going to truly fix this problem.

Personally, I've used shims to shore up non-moving things like cabinets, dressers, etc... But an accelerator is a moving part, in a vibrating car that bumps its way down the road.

Am I wrong, or does this seem like the little dutch boy trying to plug the dike with his fingers?

2008 Carver 56 ft SE Voyager - Calista Ann

2010-02-01T05:40:00.001-08:00

OK. This does not technically fall into "Everything Autos" but it is owned by one of my clients in Automotive Leasing.

I had the pleasure of taking her out last summer and she is the bomb. With just 30 hours on the Twin Volvo 675 Diesels, she's as close to new as you can get.

Combine that with a $500k savings off of a comparably equipped new model, and you've got a once in a lifetime opportunity on a truly seaworthy motor-yacht.

Sail the British Virgin Islands, make a trip from the California west coast, down to Cabo, Honduras, Costa Rica and Panama. With this gal can do it in style.

AutoBidsOnline Rising - An Open Letter To New Car Dealers

2010-01-28T14:41:00.001-08:00

Have a look at our new video - let's get the online new car buying craze started!

Seller Beware!

2010-01-25T06:40:00.000-08:00

Long time away from the blogging scene. With the holidays and hunting season in full swing, it's been a busy December and January. Alas, my hunting seasons are mostly over and the corners of my mind are again filled with all things auto retail.

And with that, another disturbing online scam is surfacing as told to me by good friend David Ruggles of the Ruggles Report.

In short, DO NOT trust the validity of any bank cashier's check without first verifying the funds with the distributing bank. With current technology, even a cashier's check is easy to forge and it is YOUR responsibility to verify its validity prior to deposit.

The cashier's check scam can occur with any online sale. However, the inherently high price of a vehicle lends this to remarkable exposure for those wishing to sell cars online.

In the case told to me by Ruggles, members of his Mercedes owners club in Las Vegas, who have posted cars for sale online (i.e. Craig's List, eBay, etc...) have received emails from foreign buyer's saying they saw the car online and it is exactly what they've been looking for. They are willing to pay full price and arrange for transportation.

They state they will send a cashier's check for the amount of purchase plus shipping. All the buyer needs to do is pay the shipping agent upon pick up and deposit the cashier's check in their bank account.

This all seems easy and quite reasonable.

DON'T DO IT! At least without dotting your I's and crossing your T's.

Be very suspicious of someone willing to pay your price in full without ever seeing the vehicle. Be aware of complicated stories about why they are willing to buy the vehicle sight unseen or if they don't make any effort to confirm the car's condition.

Otherwise, you may find yourself without your car and out the money you paid to the shipping company.

North Texas Suzuki Dealership's Better Business Bureau Accreditation Dropped

2009-12-21T11:43:00.000-08:00

Per the local CBS station, Suzuki Cars of McKinney has been dropped by the Better Business Bureau for unethical business practices. A large volume of customer complaints led to a BBB undercover investigation as CBS 11 reports:

http://cbs11tv.com/local/Suzuki.Cars.of.2.1379440.html

It is stories like this that give dealers everywhere a bad name. And it's a shame.

You would think some people would learn they need to do business the right way.

How To Buy Your Next New Car Online And Get Best Possible Price

2009-12-18T09:35:00.000-08:00

A friend just sent me a link to a presentation by a gentleman named Rob Gruhl at the Ignite Conference in Seattle a few years ago.

http://consumerist.com/2009/12/buy-a-new-car-without-getting-ripped-off.html#comments

It's quick, clear and concise and hits on some great points. Very well done.

Selfishly, almost everything he is touches on are the consumer pain points that led to our creation of AutoBidsOnline.com. Watch the video and pay particular attention to the following:

Says Rob: Give yourself a lot of time - two full weekends.
Says ABOL: Screw that. Use online dealer competition to minimize your time.

Says Rob: Get pre-approved for financing from local bank or credit union.
Says ABOL: Absolutely! The dealer may have better financing but you need to have a pre-approved loan (or cash budget) prior to negotiations.

Says Rob: Don't trade in your old car at the dealership.
Says ABOL: Absolutely - if you have the stomach and financial ability to sell privately. However, if you don't want to go through that hassel, at least get a guaranteed buy bid from CarMax and/or AutoTrader. Your local bank or credit union may give you a bid as well. If the dealer will match your best price, then it will be much easier to trade with the dealer. He does the title work and pays off any existing loan. Just make sure you are getting a reasonable deal before trading with the dealer.

Says Rob: Select 3 (or more) different cars to increase your options.
Says ABOL: Absolutely! It is amazing how emotionally attached people get to a car. Dealers use this to their advantage. However, it is equally amazing how quickly the newness wears off that new car and the emotional attachment withers away. There are very likely several cars in your desired class that will provide similar performance. Try to focus on the one that provides you with the best VALUE and you will be way ahead when it comes time to trade in 2-4 years.

Says Rob: Don't buy a car when you test drive.
Says ABOL: ABSOLUTELY!

Says Rob: Call up to 8-10 dealers to get into a competitive bidding situation.
Says ABOL: Screw that. Submit an anonymous buy bids at AutoBidsOnline and let dealers compete to be the first one to meet it.

Says Rob: Get the "drive it off the lot" price.
Says ABOL: Absolutely. We call it the cash price. If I paid you cash out of my wallet today, how much do I need to hand you to get title to the car?

Says Rob: Stick to your guns!
Says ABOL: Absolutely. However, the beauty of ABOL is the consumer's ability to rate the dealer experience.

Says Rob: Say no in the back room.
Says ABOL: Don't ever ENTER the back room. Arrange for delivery of your new car at your local bank branch, home or office.

AutoBidsOnline Car of the Week - 09 Infiniti G37

2009-12-08T05:15:00.000-08:00

2009 Infiniti G37 4dr Sedan x AWD

This week’s AutoBidsOnline spotlight on the best and brightest in the new car market takes a look at the 2009 Infiniti G37 4dr Sedan x AWD. The G37 continues to lead the way with a stunning array of features including ultra-comfortable seats, an elegant interior and very impressive audio systems. This vehicle stands out for offering overall performance at the top of its class.

"The G-Series line has a 3.7L V6 engine paired with an electronically controlled 7-speed transmission," said Jeff Cook, President of AutoBidsOnline.com. “The AWD x model is a great ride, especially for those of who live in cold weather climates.”

“New to the Infiniti lineup in 2009, the G37 packs a whollup with 330 horsepower and 270 lb. feet of torque. It delivers outstanding performance without reducing driver comfort,” says Cook.

Noted industry expert David Ruggles of the Ruggles Report speaks well of the G37’s resale value: “The 36 month residual of 50% is the strongest we’ve looked at thus far in this series. Like many import OEM's, Infiniti does not sabatoge their vehicles resale value with large up front rebates and incentives. Instead, they let the car's value stand on its own. As such, the G37 should hold up well over time and find owners in an excellent value position when it comes time to trade up for their next new car.”

CHROME REVIEW: None Available

DETAILS:
Invoice/MSRP: $33,029 / $35,750

Current TrueCar Good Price: $34,787 ($893 above invoice)
Current Edmunds.com TMV: $34,266

MPG HWY: 25 mpg
MPG City: 17 mpg

CURRENT REBATES & INCENTIVES: None.

WARRANTY: 4 years / 60,000 miles

RESIDUAL OUTLOOK: Excellent

COMPARABLE VEHICLES: Acura TL, BMW 3-Series, Hyundai Genesis

HOW TO GET BEST PRICE: Competitive pressure will always yield the best possible price. If you are looking to get the new Infiniti G37, you would be well served to visit several Infiniti dealers and go armed with as much information as possible.

Our friends at Edmunds.com and TrueCar.com have each performed significant research in stating their thoughts on the real market value of the G37.

However, if you don’t have the time or desire to invest hours in onsite dealer negotiations, you can join AutoBidsOnline.com and set your own price with our new AutoBidIt! feature. It’s all very easy:

Build out the exact car you want.
Determine the price you are willing to pay.
AutoBidIt!

AutoBidsOnline dealers are pre-screened for best of breed business practices and all are committed to straight-forward negotiation and transparent pricing. They will compete to be the first to meet your no-obligation bid as only the first dealer to do so will get your business.

My Take On Fritz Henderson's Sudden Departure

2009-12-04T13:02:00.001-08:00

Check out my latest article detailing the firing of Fritz Henderson at GM.

The spinsters claim he stepped down on his own. I'm not so sure about that. See for yourself and let me know what you think!

Forbes Best and Worst Cars Report

2009-12-01T04:13:00.000-08:00

Our friends at Cherokee publishing just reported on Forbes' Magazine's new study of best and worst new and used cars. Pretty damn interesting.

If you happen to own one of the worst USED cars, you would be well served to look for a new one. And if you are here, there is no better place to get that new car than at AutoBidsOnline.com.

Unfortunatley, if you are in a NEW car, you are probably so far under water that it does not make good financial sense to trade out so early.

However, if you are dying to, I would suggest calling our friends at D&M Leasing in Texas. They specialize in getting the most for your trade-in and can frequently pull people out of their cars earlier than usual. They may very well be able to help you out!

Cool New Website

2009-12-01T04:11:00.000-08:00

I just ran across this. It looks like a goldmine for all you sportsfans: www.mvptones.com. They are creating ringtones from the radio / tv games calls of recent sports events. Pretty cool stuff!

InBiz Radio - Walk In My Shoes

2009-11-23T13:17:00.000-08:00

Had a blast with the radio interview conducted by Mike Whitaker and Gary Owen last week. Check it out at: www.autobidsonline.com/radio.html

NHTSA Flexes Its Muscle

2009-11-18T09:01:00.000-08:00

The National Highway Traffic Safety Administration has recently stepped up its investigations of Ford, Toyota and Honda while seemingly leaving GM and Chrysler alone.

At this point, one cannot say whether this has anything to do with the federal government's new ownership stake in Chrysler and GM but it certainly begs scrutiny.

2010 Honda Odyssey - Car of the Week

2009-11-17T14:04:00.000-08:00

Just had a new article published on ArticlesBase - this one highlights the 2010 Honda Odyssey Touring. Please check it out on the AutoBidsOnline.com News Page and let me know what you think!

Ford Fusion on the Rise

2009-11-13T04:24:00.000-08:00

Ford announced yesterday that sales on its Fusion midsize sedan have already outpaced its previous full year record set in 2007.

This certainly bodes well for the only Detroit OEM not to take a handout from we the taxpayers and I commend them.

Ford has already sold 151, 137 units this year and still has November and December to line its coffers. Sales of the Fusion are up 15 percent from the same period last year.

Would Hate to Be On This List!

2009-11-13T04:15:00.000-08:00

Forbes.com just announced the results of a study that indicates the 10 worst 2009 cars on the road. They looked at Vincentric's 5 year repair cost data on 2009 vehicles and combined that with Consumer Reports' reliability ratings.

The list is certainly non-discriminatory and diverse. If you own an Asian car, you appear to be in good shape. But good luck with your resale value if you own one of these:

VW Touareg

Jaguar XF

Chevy Colorado

Chrysler Sebring Convertible

Chrysler Town & Country

Dodge Grand Caravan

Ford F-250 (crap! I have one but at least it's on a closed end lease!)

GMC Canyon

Lincoln MKS

Mercedes GL450 (shocker of the list)

In all, you can expect to pay more in repairs on these vehicles over a 5 year span than all other vehicles.

However, if you are smart and lease a new or late model vehicle that is always under the OEM warranty, you have little to worry about!

How To Get A Great Deal On The 2010 Mazda CX-7

2009-11-12T04:54:00.000-08:00

This week’s AutoBidsOnline.com spotlight on the latest and greatest in the new car market focuses on the 2010 Mazda CX-7 4dr S Touring 2WD. The CX-7 is one of the best in class in the Crossover segment and a real bargain listing at $26,550.

"Without a doubt, the 2010 Mazda CX-7 4dr S Touring 2WD is currently leading the way against rivals Subaru Tribeca and Chevy Equinox," said Jeff Cook, President of AutoBidsOnline.com.

Noted industry expert David Ruggles of the Ruggles Report suggests, “With a 36 month residual of 48%, the CX-7 maintains reasonable resale value after three years. Based upon an MSRP of $29,800, that equates to just $400 depreciation per month.”

CHROME REVIEW: None Available

DETAILS:
Invoice/MSRP: $24,905.00/$26,550.00
Current True Car Value: $25,052
Current Edmunds TMV: $25,529
MPG HWY: 25 mpg
MPG City: 18 mpg

CURRENT REBATES & INCENTIVES: 0% financing available from Mazda Credit. Regional incentives may vary.

WARRANTY: 3 years / 36,000 miles

RESIDUAL OUTLOOK: Good

COMPARABLE VEHICLES: Chevy Equinox - Subaru Tribeca

HOW TO GET BEST PRICE: Competitive pressure will always yield the best possible price. If you are looking to get the new CX-7, you would be well served to visit as many Mazda dealers as possible and go armed with as much information as possible.

Our friends at Edmunds.com and TrueCar.com have each performed significant research in stating their thoughts on the real market value of the CX-7. Their numbers are a great starting point.

However, if you don’t have the time or desire to invest hours in onsite dealer negotiations, you can join AutoBidsOnline.com and set your own price with our new AutoBidIt! feature. It’s all very easy:

1. Build out the exact car you want.
2. Determine the price you are willing to pay.
3. AutoBidIt!

AutoBids’ dealers are pre-screened for best of breed business practices and all are committed to straight-forward negotiation and transparent pricing. They will compete to be the first to meet your no-obligation bid as only the first dealer to do so will get your business.

Online Activity Reaches Record High With Car Buyers

2009-11-03T10:29:00.000-08:00

For the first time ever, more than 4 out of every 5 car buyers are using the Internet in their shopping experience. In a report just released by Chrome Systems, 86% of those responded to a poll conducted by Zogby International indicate they conduct online research prior to the purchase or lease of a new vehicle.

Manufacturer websites lead the way as 64% say they visit OEM sites while conducting research. However, third party portal sites like AutoBidsOnline.com are garnering increased appeal as well.

This is apparent as 73% say they shop online for convenience and 60% utilize the Internet to save time. Many shoppers also site that shopping online relieves the pressure of negotiating with a salesperson (58%) and also helps to identify the best car for them (50%).

Used Car Prices Remain Strong

2009-11-03T10:24:00.000-08:00

Edmunds.com just released a report confirming what Ruggles and I have been touting for several years. The dramatic pullback in new car leasing has resulted in a shortage of off-lease vehicles entering the auction lanes.

As a result, the decrease in used car supply has strengthened their current values and private owners are finding themselves in a stronger equity position.

Whether this will lead to lenders' return to leasing remains to be seen. However, it bodes well for everyone the current automotive market.

Cash for Clunkers - A Real Bust

2009-10-29T05:53:00.000-07:00

The Wall Street Journal is reporting this morning that CARS was a complete bust costing taxpayers as much as $24k per vehicle sold. They site an Edmunds.com study indicating that only 125k out of the 690k cars sold in the program actually added to SAAR. The rest would have sold anyway.

I don't know about you, but I could use my share of $24k as year end taxes and the holiday shopping season approaches...

How To Buy A New Car After Bankruptcy

2009-10-28T11:06:00.000-07:00

I met with a prominent bankruptcy attorney today to discuss ways AutoBids can assist his clients with purchasing a car after filing Chapter 7 or 13 BK.

"Believe it or not, most of my clients are more worried about losing their car than losing their home," says Rustin Polk, president and founder of 214Bankruptcy.com. “They are typically looking for a vehicle of a certain category – an SUV for families for something more fuel efficient for instance – rather than a specific vehicle. Price and quality are the two most important considerations for my clients, in addition of course to funding.”

As such, I'm pleased to announce that we are creating a long awaited pre-owned section on the website bringing late model, used cars into the AutoBids family of services. Sources of inventory will come from AutoBids dealers and industry partners and we will be working diligently to find sources of loans who are willing to extend credit to the more risky C and D Tiers of the financial markets.

AutoBidsOnline.com New Car Buyer Survey

2009-10-21T05:51:00.000-07:00

We need your help! Tell us about your recent new car buying activity at: www.autobidsonline.com/buyer_survey.html

It is only 11 questions and will take just a few minutes. We'll also make it worth you while by giving away a $250 gift card in a random drawing of all completed surveys on November 11th.

As always, I appreciate everyone's input!

2010 Motor Trend Car of the Year

2009-10-21T05:43:00.000-07:00

On the heels of winning the COY award in 2009 with the Forester, Subaru takes top honors again this year with the Outback. This is the first time the OEM has won the award two years in a row.

Starting at $23k, the Outback packs a 256hp punch with its 3.6L Boxer engine yet still maintains high levels of fuel efficiency, value and a roomy interior.

Read more from our friends at AutoRemarketingToday: http://www.autoremarketing.com/ar/news/story.html?id=10268

Take A Wild Guess Who's Behind This One

2009-10-13T04:55:00.000-07:00

Barney The Pimp and some so-called consumer protection groups are calling for yet another layer of bureaucracy to "oversee" dealer assisted financing on new and used car loans.

Just what we need - more bureaupunks, creating yet another layer of bureaucracy. If this passes, we'll be blessed with one more inefficient, unaccountable waste of our tax payer dollars – all in the name of “protecting” the consumer.

Here’s a novel idea – learn the meaning of Caveat Emptor people. Read your contracts and quit blaming your laziness on someone else. It's not the federal government's job to ensure you don't buy something you don't need and it's not the federal government's job to keep you from paying more than you should.

The dumbing down of our society continues to evolve at a rapid pace - and we're letting it all take place right before our very eyes.

https://home.autonews.com/clickshare/readLink.do?CSAuthKey=kfh_Szi2T0U-o42EVmwPFYo-0

McCaig Named New COO

2009-10-06T06:33:00.000-07:00

Thrilled to have industry veteran Shannon McCaig on board as AutoBidsOnline.com's new Chief Operating Officer. Here's the announcement in AutoRemarketingToday: http://www.autoremarketing.com/ar/news/story.html?id=10179

Are Used Truck Prices Finally Starting to Soften?

2009-09-29T05:43:00.000-07:00

Our friends at Black Book are starting to see some softening in the red hot pre-owned truck market. They are not sounding the alarm just yet but today voiced concern that a slowdown may be on the horizon.

This is important as Black Book has editors strategically placed throughout the country. Each monitors wholesale vehicle auctions and update values in 14 truck and 10 car segments daily. Each day, these values are compiled, reviewed and adjusted, making Black Book the most accurate and responsive wholesale data source in the market.

“I’ve traveled to Atlanta and met with their editors and executive management,” says noted industry expert David Ruggles of the Ruggles Report. “Without a doubt, they are on top of the wholesale market unlike anyone else.”

Auto dealers with a high supply of late model, pre-owned trucks may be well served to hold off on purchases until the market shakes out and get aggressive with their sales, pricing and advertising to move these units off their lots.

As indicated above, there is no cause for alarm - yet. But you don't want to find yourself holding the bag.

Read the full article at: http://www.autoremarketing.com/ar/news/story.html?id=10139

Life Truly is Stranger Than Fiction

2009-09-17T08:48:00.000-07:00

The Coconut Telegraph has been rumbling about this for a week or so, but Chrysler’s announcement today they are re-entering leasing borders on the sublime.

Just 13 months after they led the mass exodus from consumer vehicle leasing, they announced today leases are again available on all 2010 Chrysler, Dodge and Jeep vehicles.

Our friends at AutoRemarketingToday have the complete story at: http://www.autoremarketing.com/ar/news/story.html?id=10082. However, here are a few observations:

This is great news for leasing in general.
Here’s hoping they FINALLY learn from the past and don’t get aggressive on residuals OR rebates. Unfortunately, I’m not going to hold my breath.
GMAC is underwriting the program. I realize GMAC took over Chrysler Financial earlier this year, but I still look at it and say, “WTF? Over.”
In the wake of the announcement, they also stated they are now offering 72 month 0 percent financing or $4,500 rebates on select 2009’s. Again, “WTF???” If you're going to get back into leasing, get back into it!

Lastly, the article included a comment that almost caused me to fall out of my chair. GMAC stated leasing is “generally for customers who prefer to rotate vehicles more often and do not like dealing with trading-in or resale. In fact, GMAC states that this option is for customers 'not purely driven by a lower payment.'"

BING-O!

All too often dealers look at leasing a course of last resort. Can't get the customer into the car they want with a traditional loan? Then let's put them in a lease!

Horsefeathers.

If more dealers would take the stance that a lease is THE vehicle to put consumers in the right car, for the right payment on a SHORTER term, we would all be in much better shape.

The consumer gets a vehicle that makes sense for their budget and their driving habits, the dealer can make an honest profit and get the customer back in three years rather than five (or more) and everyone wins. CSI goes up and the dealers get more referrals.

How dealers and banks can continue to pursue 72 and 84 month plus loans just floors me.

Nevertheless, those of us who hang our hat in the leasing marketplace welcome you back Chrysler. Here’s hoping the banks that followed you out so quickly, take your lead and jump back in too.

Latest Buy Bid at AutoBidsOnline

2009-09-09T07:17:00.001-07:00

If you are a Honda Dealer in the Houston Metro area, please consider the following. This prospect has paid $19.99 to submit their bid so they are serious about buying today! Contact me at jcook@autobidsonline.com if you are interested.

2010 Honda Odyssey 4dr Wgn Touring w/RES & Navi

Exterior Color : not specified / Interior Color : not specified
Options( TAFFETA WHITE, STANDARD PAINT, IVORY, SEAT TRIM)

MSRP - $40,755.00
Dest - $710.00
Total MSRP - $41,465.00
Invoice - $36,902.60
Dest - $710.00
Total Invoice - $37,612.60
Bid - $37,500.00
StyleID - 318967
VehicleID - 821

How To Make A Great Deal On A New ¾ Ton Truck

2009-08-20T08:50:00.001-07:00

Now may be one of the best times ever to make a killer deal on a new truck or SUV. CARS has had a tremendous impact on US auto sales and one of the byproducts is a growing supply of trucks and SUV's sitting on dealer lots.

How To Make A Great Deal On A New ¾ Ton Truck

Cash for Clunkers in Real Numbers

2009-08-18T05:56:00.000-07:00

As of last Friday, there have been 358,000 clunkers submitted to the federal government by dealers. With 4 out of 5 applications being rejected and a $4000 average being fronted by dealers, there is $1.146 Billion hanging in limbo. That's billion with a capital "B"!

It remains to be seen just how many applications will actually get approved but this could be crippling for an already struggling US dealer base.

Be Careful Who You Mess With

2009-08-13T14:02:00.001-07:00

It amazes me how some auto dealers still play the game this way. Certainly there is an art to the sale, but the guys at this Dallas area dealership are probably wishing they dealt in a more straight forward and transparent manner.

An up comes in ready to buy. He and his wife are dead set on buying a new car and looking to do a Cash for Clunkers trade. They've done their research and know their vehicle qualifies for $4,500 under the government's CARS program.

The dealer decides to milk it for all it's worth and ties them up in the old sales manager's office back and forth. After a hour and a half, the customer gets pissed and walks. The dealer gets nothing but a really poor review from a noted columnist.

Now why on earth would you make a lay down so difficult? Especially these days!

Work the deal but for Godsakes, make it work!

The world of car sales is changing at warp speed. Those that get it stand to win and those that don't are going to get left behind quickly.

Just remember, each prospect deserves to be treated with respect - regardless if they come in with a chip on their shoulder or not. After all, they might just be a noted columnist...

http://frontburner.dmagazine.com/2009/08/12/new-car-dealer-con-game-involves-cash-for-clunkers/#more-24458

The Long Term Effects of Cash for Clunkers

2009-08-05T16:40:00.000-07:00

Just posted an article about the unintended consequences of Cash for Clunkers / CARS. It's been a short-term boon for franchised new car dealers but will it last and will it come at the expense of others?

http://www.articlesbase.com/automotive-articles/cash-for-clunkers-long-term-effects-1097970.html

July's Most Popular Online Searches

2009-08-04T05:11:00.000-07:00

Last month's most popular vehicle searches at AutoBidsOnline reflect consumers' desire to take advantage of Cash for Clunkers / CARS:

2010 Ford Fusion 4dr Sdn Hybrid FWD (City: 36, Hwy: 41)
2009 Toyota Camry 4dr Sdn I4 Auto (SE) (City: 21, Hwy: 31)
2010 Honda Odyssey 4dr Wgn EX (City: 16, Hwy: 23)
2009 Toyota Yaris 5dr HB Auto (GS) (City: 29, Hwy: 35)
2008 Chevrolet Corvette 2dr Cpe (City: 16, Hwy: 26)

source: www.autobidsonline.com July Search Results

Cash For Clunkers - Scary Thoughts for Dealers

2009-07-30T07:32:00.000-07:00

I just saw an interview with a Dodge dealer in Michigan City. Like many franchised auto dealers, he has already taken in a larger number of "clunker" trades - 13 as of this morning. The report indicated there are many other dealers who have already traded for 30 or more.

Do you see the problem yet? There are plenty with the latest Congressional brainchild - but this particular problem is in the math.

Congress has allotted the CARS program one billion dollars to reimburse dealers for qualified trades. At an average of $4,000 per trade, that is a cap of 250,000 vehicles that will be eligible for reimbursement.

And while current averages are not yet known, assume for a minute our Michigan dealer’s 13 clunker trades represents the national average. If that is the case, multiplied by 20,000 franchised dealers, we are already 10,000 vehicles OVER the amount the program is scheduled to fund!

We still don't know how long it is going to take the dealers to get reimbursed. The window of "opportunity" here, if you can call it that, is huge.

So just how many dealers are already sitting on crap cars with $4,500 ACV's? There could be thousands.

How's that for scary?

In the end, Congress will probably just print more money but who knows for sure. They haven't gone out of their way to protect wrongfully terminated Chrysler and GM dealers.

Cash for Clunkers / CARS continues to be a mess.

I cannot wait for government run health care.

Welcome Back GM

2009-07-30T06:36:00.000-07:00

GM's announcement yesterday that they will get back into consumer vehicle leasing is great news. Even if it is only available on their luxury lines, it should spur action with the other captive finance companies and hopefully create a spark with independent banks.

Wells Fargo, Huntington and Fifth Third are three independent banks with a long history of vehicle leasing. Along with virtually everyone else, they suddenly exited the market about this time last year with a rash reaction to $4 / gallon gasoline and Chrysler, GM and Ford's mass exodus out of all or most of their previous leasing program.

The market is in desperate need for new lease funding sources - particularly with late model pre-owned. Unfortunately, most banks' risk managers have unfounded fear about pre-owned leasing (POL).

If they would think about it, a 36 month pre-owned lease on a 1YO vehicle poses LESS residual risk than the same vehicle leased a year ago for 48 months. Both vehicles will come off lease at the same time but the pre-owned lease encountered most of its depreciation under different ownership.

There used to be some legitimate concerns about existing equipment on a pre-owned vehicle - or lack thereof. However, Chrome Data and other vehicle configurators are mitigating much if not all of that risk.

I just don't get the banks' negative views on POL.

Regardless, GM's re-entry into the leasing market is good news. Here's hoping they learn from past mistakes and resist setting unrealistically high residuals.

More Insight on the CARS Debacle

2009-07-28T08:21:00.000-07:00

Here's a good video report from JJ's AutoFinanceNews.net: http://autofinancenews.net/video/video/show?id=2192375%3AVideo%3A20602&xgs=1

CARS Mess Has Only Just Begun

2009-07-28T05:34:00.000-07:00

As my grandfather would say, "The Federal Government could f*ck up a wet dream."

In their infinite wisdom, the EPA increased the combined MPG on certain vehicles last Friday. What impact did this have on buyers looking to take advantage of the CARS / Cash for Clunkers program?

Plenty as our buddies at Auto Remarketing Today reveal at: http://www.autoremarketing.com/ar/news/story.html?id=9804

How To Get Best Price For Your Next New Car

2009-07-26T08:17:00.000-07:00

Massive rebates are coming into the market on the heels of the government's Cash for Clunkers (or CARS program). With dealers literally starving for new sales, now may very well be historic times for the new car shopper.

As you set about buying your next new car, you are probably wondering the best way to establish the true market value and secure the best possible price.

Edmunds.com has done very well with their True Market Value figures or TMV. There is also a new site www.truecar.com that can help as well.

Regardless, true market value pricing is important to know so you can set realistic expectations about how much your new car is really worth.

Set your price at AutoBidsOnline.com and let dealers compete to meet it. Compared to requesting a "free" quote, you can quickly see how AutoBids delivers much more competitive pricing than other car buying sites.

When dealers respond to your buy bid, you control the negotiation and spend zero time playing the dealer sales game. By knowing the true value of your car, you take the uncertainty out of the deal.

You may think that dealers will shy away from these offers, assuming that they can make more money selling to someone else. Of course, dealers are in the business to make money, so they are not likely to accept offers that equate to a loss for their dealership. But money is money. Even if you are only offering a small profit for your dealer based on the price you want to buy at, a speedy transaction is often well worth consideration for the dealer.

Additionally, AutoBids dealers know you are serious about buying now. They too grow tired of online tire-kickers much as you grow tired of all the dealership "games".

Our dealers are willing at competitive prices because they are assured of a quick turn. AutoBids deals require considerably less time than the traditional type of sale. When a dealer doesn’t need to spend time selling to you, their workload is significantly reduced.

So spend the time necessary to determine the true market value of your next car but submit it as a buy bid at AutoBidsOnline.com. You'll save a ton of time and get a great deal too.

Cash for Clunkers Set To Disappoint - BIG TIME.

2009-07-22T05:07:00.000-07:00

And it's going to be a real pain for all involved. Why you ask? Afterall, there is great anticipation of the program's official launch on Friday 7/24 and there is plenty of information on the web explaining how it will work.

Yet most consumers believe they are going to get some kind of voucher they can use when they trade in their "clunker".

Unfortunately, this is a big misconception. The program is only going to benefit those whose trade-in value is worth less than $4,500 (or $3,500 in some cases). Far less in reality.

I want to repeat that.

Unless your trade is worth LESS than your tax credit, Cash for Clunkers (or CARS as it is now officially called) won't add up to anything more than a hill of beans.

I had my "aha" moment last night talking with well known auto industry expert David Ruggles of AutosAndEconomics.

According to Ruggles, you've got to look at the program from a dealer's perspective to truly understand it.

When a dealer takes a trade, he bases the trade-in credit for what he can resell it for to another pre-owned buyer. Most who qualify for the program are not thinking about this very important aspect of the business. And unless we get the word out, the dealer is going to take the blame.

Here's a simple example that Ruggles posed that made it crystal clear:

Let's say you have a 2000 Dodge Caravan that qualifies for CARS and has a trade-in value of $4,500. You go to the dealer expecting to get $4,500 for your trade PLUS your handy little $4,500 "voucher" from the government. You'll get $9,000 for your trade, right?

WRONG.

The dealer cannot resell your Caravan and recoup the $4,500 you wanted him to give you for your trade. This is because CARS requires the dealer to SCRAP your Caravan.

So the typical customer goes to the dealer thinking he's going to get $9,000 for his trade when in reality he's only going to get $4,500. Most customers are going to be really pissed and blame the dealer when it's not the dealer's fault at all.

The only real beneficiaries of the program are going to be those who truly have a "clunker" that has no significant market value.

Given the state of the current economy, Cash for Clunkers is generating a buzz that I've never quite seen before. Consumers and dealers are all chomping at the bit to take advantage of it but few really understand how its going to work.

Expect Big Improvement In July's Used Car Market

2009-07-21T04:17:00.000-07:00

According to AutoRemarketing Today and highly regarded and CNW Research, July is going to be a great month for pre-owned vehicle sales.

What is the cause? Would you believe it has much to do with the fallout of the Chrysler and GM bankruptcies?

According to company president Art Spinella, "The surge in independent sales can be traced to franchised dealership closures. Some of the smaller General Motors and Chrysler stores have reconfigured themselves as used-car outlets."

Read more

Toyota In Trouble?

2009-07-14T19:39:00.000-07:00

Great stuff from Dr. Mike Smitka at AutosAndEconomics: http://autosandeconomics.blogspot.com/2009/07/toyota-and-general-motors.html.

A great read full of compelling original thought.

Well done Dr. Mike.

Strong Wholesale Values Foretell Brighter Days Ahead

2009-07-14T07:21:00.000-07:00

Ricky Beggs, managing editor of Black Book, just reported that all 10 used car segments have shown increased wholesale values for the second time in the last three weeks. And as a whole, cars have been up 6 weeks in a row and trucks have been up 8 in a row.

What does this mean for new car buyer? Quite simply, your trade is worth more today than it was two months ago and you likely have additional room to negotiate a better deal on your next new car.

BB's findings could be a sign of an overall strengthening across both the new and used car markets, but Beggs did not speculate. I think it is the result of more value conscious shoppers eschewing the premium on the purchase price of a new car and turning to the perceived value of late model pre-owned.

Yet many 2008 used cars now cost almost as much to buy as their 2009 counterparts. When that is the case, why on earth would you buy the 08 model?

Additionally, there are a large number of buyers who just do not want to put up with the headache associated with purchasing a used car no matter what the cost. In their minds, the additional security and warranty is worth the additional investment in a new car.

Lastly, it is important to note, there continue to be massive rebates and incentives available on new cars that are just not there for used. $4,000 cash back or 0% financing on 09 Chevy Avalanches and $2,000 cash or 1.9% financing on 2010 Toyota Tundras are just two examples.

Some Possible Protection for Terminated Dealers

2009-07-09T07:00:00.000-07:00

This of note from Automotive News. One thing most people do not understand, dealers are the manufacturer's (OEM's) ONLY customers. OEM's by law cannot sell directly to consumers and all dealers pay the SAME amount to purchase a vehicle from their OEM.

Tell me how the reduction of dealers is making Chrysler or GM any additional profit?

Those who contend dealers are a cost center for the OEM's fail to acknowledge the manufacturers pass on virtually EVERY cost associated with supporting the dealer TO THE DEALER. Each month, dealers are assessed for their portion of consumer marketing, sales training, computer software and other systems support.

Dealers are reimbursed for warranty work they provide on behalf of the OEM. But does anyone think a reduction in dealers is going to lead to a reduction in warranty repairs? Of course not. And even if it did, the OEM would be hurt in the long run.

Many of the dealer terminations are nothing more than the OEM using BK law to rid themselves of dealers who do not cow-tow to their parent company's beck and call.

Neil Roland Automotive News July 8, 2009 - 2:44 pm ET WASHINGTON -- Terminated dealerships would be restored to their status before General Motors and Chrysler LLC filed for bankruptcy this spring, under legislation that passed a House committee last night. But the measure could face procedural hurdles.

A provision of the fiscal 2010 financial services spending bill would require GM and Chrysler to work through state courts rather than U.S. Bankruptcy Court if the automakers wanted to continue with the terminations, said Rep. Steven LaTourette, R-Ohio. LaTourette sponsored the dealer amendment that passed the House Appropriations Committee by voice vote last night.

He said federal funding to GM and Chrysler would be cut off if they didn't abide by the provisions of the bill."

Car companies have used bankruptcy to run roughshod over state bankruptcy laws," LaTourette said in an interview.

State laws are more protective of dealer rights than are Chapter 11 bankruptcy provisions. GM filed for Chapter 11 bankruptcy June 1 and is poised to emerge with its most profitable assets and $50 billion in government financing as early as tomorrow.

GM opposes the House bill."Such legislation, if passed, would put our long-term viability at risk," GM spokesman Greg Martin said in an e-mail. "We've taken extraordinary efforts, from product planning to manufacturing to labor agreements, to reinvent the company, and we need a dealer network to match. This legislation seeks to overturn the Bankruptcy Court's decision after the fact to protect a single stakeholder among so many that have been called to sacrifice during our restructuring."

A Chrysler spokesmen did not immediately respond to requests for comment.GM has announced plans to terminate about 2,400 of its 6,000 dealerships. Chrysler has terminated about a quarter of its dealerships -- 789.

The spending bill, with the dealer amendment, is supposed to go to the House floor next Wednesday, LaTourette said. But at that time, the amendment could be subject to lawmaker attempts to excise it. Policy changes such as the dealer provision are not supposed to be included in spending bills, LaTourette said.Some lawmakers will ask the House Rules Committee early next week to issue a rule to protect the bill from so-called "point of order" challenges that would spike the dealer provision, he said.

The Future of Leasing

2009-06-26T07:54:00.000-07:00

Here is my response to Marcie Belle's post at AutoFinanceNews.net:

Marcie - If there’s one component of finance that’s gotten hammered hard in the past year, it’s leasing. Like lenders, lessors have tightened underwriting across the board. What makes things more difficult is the fact that so many lessors have curtailed their businesses or exited the market altogether.

In a nutshell: Fewer providers are offering leases, and of those that remain, qualification standards are tough.

Technically, it would seem that leasing would be a popular option these days, with car buyers seeking the lowest possible monthly payments. But because lessors have reined in residual value estimates, monthly payments are not that much cheaper than loan payments. Put simply: Leasing has lost its edge.

In its heyday, leasing commanded about a third of the financing market. These days, I wouldn’t be surprised if the ratio were closer to 10%.

Will leasing ever rebound? Sure, when the memory of residual value losses fades. For now, though, with financiers scrambling to survive the current new-vehicle-sales nosedive, leasing will remain elusive.

Jeff - The future of leasing is really about closed-end consumer leasing and it should be bright!

Everyone believes that today's lower residuals are such a negative. ALG and RVI have pulled way back and the typical reaction is that a consumer will never go for a lease when the payments are not artificially low. That is far from the case - IF the dealer knows how to sell a lease properly. And that's a very big "if" because not many do.

When residuals are high, a blind dog can sell a lease. But this short-term gain has proven to be a loser for everyone at lease end. Lenders lose at termination, dealers lose a now distrusting customer and the customer looks at his next car's higher lease payment and eschews the lease for a 72 or 84 month retail payment.

Where is the logic in that? And why is it that consumer leasing companies like D&M Leasing in DFW are still leasing 500+ cars per month?

The few leasing lenders that remain would be well served to re-educate their dealers on how a more realistic residual is GREAT for the consumer. Those that are not in the game today have a perfect opportunity to get back in, with realistic residual values and unprecedented opportunity.

Too often we forget that the real value of leasing occurs at end of term. Lenders are scared to death of lease returns but today’s ultra-conservative residuals mitigate that risk. Not entirely but we are certainly much better protected than years past.

And even with higher payments, the lessee has valuable options at termination. He can sell it for a profit, turn it in, re-lease it (if there are any lenders out there who understand the value of POL) or buy it out right. If he “owns” the car on a 72 month installment contract, he’s going to be driving the car much longer than most consumers would like or he’s going to take a real bath when he gets sick of it in 3-4 years.

Leasing has never been right for everyone but it is certainly a great option for those who do not drive the wheels off their cars.

The real question is, are there any lenders out there who still get it and are they willing to re-train the dealers who are missing the boat?

First Published Article

2009-06-17T11:56:00.000-07:00

This was just posted in Automotive Remarketing Today Online: http://www.autoremarketing.com/ar/news/story.html?id=9613

Thank you Jenna Reed and everyone at Cherokee Publishing!

New Online Auto Marketplace Reaches Landmark

June 17, 2009

DALLAS — AutoBidsOnline.com, a recently launched new-car research and buying Web site, announced Wednesday that it hit a major traffic milestone earlier this month.

Less than 40 days after its debut, the site celebrated its 1,000th unique visitor on June 4.

"Even in the worst auto market in generations, there are still more than 10 million consumers who will buy a new car this year," pointed out Jeff Cook, co-founder and company president. Cook and his team are also the founders of CyberCalc, a proprietary leasing software application for franchised dealers, credit unions and independent lessors.

"We launched the site in the wake of the Chrysler and GM bankruptcies, yet still managed to beat our wildest expectations," he continued. "Our research indicates consumers remain interested in buying new cars but have grown wary of the traditional dealer sell."

Basically, parent company DJ Automotive Information Services — which developed CyberCalc — has started a new online auto sales community. It is composed of AutoBidsOnline.com — which allows consumers to access pricing, rating and reviews — and BuyerBidsOline.com, a site where dealers receive online leads.

And in less than two months since introducing AutoBidsOnline.com, Cook said he has already received positive responses from dealers and leasing companies.

"Dealers are literally inundated with unqualified leads from other online lead generation sources. The other sites encourage consumers to request a ‘free' dealer quote," Cook commented. "They then sell the consumer's contact information to a number of dealers who compete with each other just to get the customer on the lot.

"Even the best Internet departments close fewer than one in 10 traditional Internet leads. Most do not approach one in 20," Cook shared. "Online tire-kickers, teenagers and otherwise mildly interested shoppers make up the bulk of the current generation of online leads.

"AutoBidsOnline.com was designed to make the buying process more pleasant for the consumer while providing seriously interested buying leads to the dealer," he added.

One leasing company, in particular, applauded AutoBidsOnline.com for its efficient services.

"This is set to turn new car sales on its ear," stated Mike Hernandez, president of D&M Auto Leasing in Grand Prairie, Texas. "We sell and lease more than 6,000 cars a year and have been troubled by the poor quality and inefficiency associated with traditional online leads.

"These guys have developed a way to bring buyers and sellers together with their cost-effective, efficient and easy-to-use Web sites," he concluded.

Follow AutoBidsOnline On FaceBook

2009-06-15T14:45:00.001-07:00

I'm happy to report we are now a member of the FaceBook Community.

If you've been following our BLOG, you know AutoBidsOnline is our latest creation and is set to revolutionize the way people buy their next new car.

Heretofore, if you were in the market for a new car, you could research prices, options, rebates and comparisons on sites like Edmunds.com, KBB.com and Cars.com.

But each of those sites is designed to get you to request a "Free" quote. To do this, they capture your personal contact information and then sell it to a number of dealers in your geographic area. In the end, it is hardly “free”.

If you are one of the ones who have already done this, you know your email inbox is quickly flooded with automated responses and solicitations to get you on to the lot. And even if you selected "email" as your preferred method of contact, dealers still call anyway. They cannot be sure their email made it through your SPAM filter. Trust me, this all becomes annoying very quickly.

Take it a step further and you will learn dealers almost never give you an actual quote. And in the rare case you do find a dealer who will, you can bet it is not their best offer.

After years of research, we designed AutoBidsOnline to overcome all of this. We keep your data completely private and allow you to set your own price. We then send dealers the vehicle you are looking for, with all of the colors and options you’ve selected. The dealers are incented to respond quickly and aggressively because they have to compete to win your bid.

Why? Quite simply because the first dealer to accept your price is the only one who will get your lead. And per our license agreement, they must have the exact vehicle in stock or have previously arranged for a dealer trade. You’ve now got your purchase price set without any haggling and without setting foot on a single dealer’s lot.

We are truly excited about the launch of AutoBids. In fact, June 12th marked the first month of the program’s release and we’ve already had 944 unique visitors in our first 30 days.

If you’re in the market for your next new car, we’d love for you to try us out. If you are not, please keep us in mind for your next purchase experience and be sure to tell your friends. We’ll save you a lot of money and make your next car buying experience an absolute breeze!

Many thanks,

Jeff Cook
President
AutoBidsOnline.com

Why Are Dealers Intrigued By AutoBidsOnline.com?

2009-05-14T07:16:00.001-07:00

“Sunday! Sunday! Sunday!” “This weekend ONLY!” “If you can find a better deal anywhere, well… we’ll just give it to ya!” You believe that right? Studies show consumers have grown weary of this type of hyperbole and are turning to the Internet as a way to purchase their next new vehicle.

And with that, pricing pressure has caused savvy dealers to rethink their approach.

If you have not considered it yet, you should. The days of the fat new car deal are numbered - at least on the front end. For the affluent, the Internet has made the price of new cars a virtual commodity. Even the 580-680 buyer is armed with web-based information and the tightening credit markets have resulted in fewer opportunities to get these prospects bought.

To win on the net, you need to separate the wheat from the chaff. Locate the serious buyers and get to them quickly.

Yet traditional methods of online lead generation involve a tremendous number of bogus leads. Even the BEST internet departments close less than 10% of online leads and most don’t come close to that!

The real dilemma is how to make the most of the market when national sales volume has fallen by almost 50%. By far, the Internet is the most cost effective way to reach the largest number of serious buyers and your best way to win in today’s economy.

So how do you do it?

A growing number of dealers are turning away from the big lead generators. Most are engaged in some level of Search Engine Marketing and Optimization (SEM / SEO), some are creating micro-sites and a few are participating in social networking sites like Facebook and Twitter. Yet that is simply not enough.

Look at it from a buyer’s perspective. How different is your website from your competitors’ down the street? Do you really offer a unique proposition? Odds are, probably not.

Most dealer sites today include detailed inventory with pictures and even video. Yet consumers have indicated they all still “look the same.” They want to find the exact car they are looking for and find it quickly. The thought of hitting dealer website after dealer website, looking at thousands of cars in online inventory is no more appealing than traveling to visit 5-10 dealer lots in their general vicinity.

Like it or not, the Internet has greatly diminished the traditional sales opportunities of the local franchise. Buyers will still come to the lot for a test drive and are fortunately still loyal in their service and warranty repair needs. Yet most are using the Internet to look at dealers all across the country in an attempt to find the best possible price. In fact, they could not care less WHERE they buy their new vehicle – they just want the best deal.

So the question before you today is – are you ready to take the next step? Are you willing to allow your Internet Department to negotiate the price of a new car online? Probably not when online leads involve large numbers of teenagers and online tire-kickers.

But would your thinking change if the online prospect paid a fee to submit a serious “Buy Bid” – rather than simply “Requesting a Quote?” After all, have you ever used PriceLine to purchase an airline ticket?

Find the serious online buyers and win their business on the front end. Your sales staff will spend less time chasing down bogus leads and your dealership will generate more gross through volume and an increased focus on Pre-owned, Parts & Service and F&I.

Jeff Cook is President and Co-Founder of CyberCalc.com and BuyerBidsOnline.com. He presently serves as a Director on both the Texas State and National Boards of the National Vehicle Leasing Association and is based in Dallas, Texas.

The Single Best Way To Save Cash On A New Car: Stir the Competition

2009-04-24T07:54:00.000-07:00

We all know competition breeds lower prices but how can you use the internet to get the most out of your next new car purchase?

First you need to be aware of what is out there. Cars.com, AutoTrader, KBB, Edmunds, Manufacturer sites, Dealer sites - it can all be a little overwhelming.

When it comes to getting a great deal, kick out the Manufacturer sites. They provide a great starting point but do little for negotiation other than pointing you to your local dealer.

The Dealer sites are a hodge-podge collection of designs whose goal is to get you on the lot. After all, Dealers excel at selling face-to-face and there are very valid reasons why the buying public has such negative connotations of their local car dealer.

And then there are the "Informational" sites. Some of these provide actual inventory, some contain dealer advertisements. Yet they all provide access to pricing and allow you to "Get a Quote."

But there is a very real drawback to these sites - they are working an angle that is not necessarily in the consumer’s best interest. In addition to advertising revenue, they make their money selling consumer contact information to large numbers of dealers.

Under this model, the dealers can then contact you to “Give" you a quote.

Sounds good, right? Not when you really think about it.

Many of these dealers begin to send you voluminous emails and repeatedly call you (even when you indicate email is your preference). The goal of their online strategy is exactly the same as their more traditional radio & television advertising - THEY WANT TO GET YOU ON THE LOT!

And while there are some dealers who will actually give you a quote via email, these are far more the exception than the rule.

BUT EVEN THEN, you can still bet that the quote they give you is not their best offer.

Does this strategy sound good now?

Enter the newest way to shop for your next new car - AutoBidsOnline.com. AutoBids simplifies the negotiation process and works in the best interest of both the consumer and the dealer.

“How can they do that?”, you might ask.

First you have to look at it from the dealers’ perspective. For the last several years, dealers’ internet departments have been flooded with the online quote requests described above. Yet many of these requests are from nothing more than online tire-kickers or even 10 year old kids fooling around on the net. At best, dealers can only expect to make a deal with 8-9% of all online quote requests. Most are in the 2-3% range.

Imagine you are a car salesman whose livlihood depends on closing these type of leads. It's pretty troubling. And none of this is setting well with dealers who are struggling just to stay afloat. In fact, there is a growing trend of dealers dropping third-party internet leads altogether.

Now take a look at the AutoBids model from the consumer’s perspective. Unlike the other "Informational" sites, AutoBidsOnline charges its members a nominal one-time fee to keep their data private. Instead of "Getting a Quote," AutoBids members can "Set Their Price."

Dealers can then either accept the bid as-is, make a counter-offer or suggest another vehicle that may better fit the consumer’s needs. Either way, the dealer knows the consumer is a serious buyer and can be confident he stands a good chance of making a deal.

As you can now see, AutoBidsOnline greatly simplifies the car buying process. It creates a competitive environment that leads to a great deal for the consumer. And while the dealer may lose a slight amount of margin, his people are more productive, he has a much happier customer and he is free to turn his attention to the more profitable aspects of his business.

Lease Your Way Out Of Debt

2009-04-23T06:52:00.001-07:00

It amazes me how so-called educated and informed writers still cannot see the forest for the trees.

I read yet another article in today's Dallas Morning News talking about how "many auto finance companies stopped offering (leasing)."

While this is true, you can still lease almost every new vehicle on the market and most pre-owneds three years old or less. That's right. You can lease pre-owned vehicles too!

In today's tightening economy, many are looking to free up cash to keep up with monthly bills. And while shunning your car payment completely makes sense for some, it is simply not practical for many.

So if you are going to have a car payment, why not look at a lease? Here is just one example:

A $30,000 new Altima with a 2.9% APR will cost you $662.70 per month. Compared to a similarly priced used car at 7.0% and its $718.38 payment, this is seemingly a no-brainer.

However, when you look at a 3 year lease, your payment of $513.32 is 23% less.

If you are the kind of driver who is always trading your car before you pay it off, you should really look at a lease.

Use the savings to pay down your higher-interest debt and enjoy a new car every three years to boot.

Now THAT is a no-brainer!

NOTES: For more information on great lease deals, look to our friends at D&M Leasing (www.dmautoleasing.com). Based in Texas, they lease hundreds of vehicles a month to customers throughout the US.

The Best Time Ever?

2009-04-15T06:34:00.000-07:00

Quick question: Is now the right time to buy a car?

On this, 2009’s tax day, the national economy is a mess and most question the logic of making a major purchase.

Yet now might very well be the best time ever to buy a new car – IF you can obtain financing.

Most analysts are pointing to the fact there are fabulous deals in this buyer's market. So long as you know where to look and you have a reasonably good and steady financial set up, you can find a great deal on just about anything you want.

The volatility of gas prices and the struggling economy have caused sales to fall and they have fallen faster than automakers have been able to cut production. The result is that dealers are left with burgeoning inventory and they are quite eager to sell.

Estimates for new vehicle sales are still way off compared to recent history. This is noted as the worst rate since World War II but it has a very positive side as well.

In the current market, most anyone can find what they want with a bit of patience. Dealers lots are overflowing with vehicles they’ve been floor-planning for 100’s of days. In fact, the only type of vehicles they are likely to run out of any time soon are pickups and large SUVs which were shunned so quickly in the face of $4 / gallon gasoline.

Certainly, GM and Chrysler are facing financial difficulties serious enough to threaten their very existence. Ford and the others are not far behind. However, you can still find a good deal on a car that will retain its value for many years, allowing you to make a successful sale or trade-in when you decide to get your next new car. You should also look at leasing which will eliminate this risk altogether.

You can make the most of the current climate with AutoBidsOnline.com. Select your vehicle down to the last option and name your price. Dealers who are hungry to make additional sales will compete for your businesss.

By reaching out to dealers through AutoBidsOnline, you dramatically minimize the legwork involved in the deal process and dramatically decrease the risks you face as a potential car buyer.

With AutoBidsOnline, you make it easier for dealers to come to you with the best offers, eliminating the need to reveal personal information.

If you need a new car, there are many reasons to buy now.. Make the most of a true buyer’s market by finding great deals at AutoBidsOnline.

The Best New Cars In 2009 And 2010

2009-04-14T06:22:00.000-07:00

Some of the best new cars and trucks are listed below to give you an idea of what to look out for if you are considering buying a new car in 2009.

These vehicles are either completely new, completely redesigned, or significantly changed to stand out in the current market. If you are seriously considering a new car, those listed here might well rank among your top choices.

Acura
2009 Acura RL
2009 Acura RL
2009 Acura TL
2009 Acura TSX

Audi
2009 Audi A4
2009 Audi Q7
2009 Audi TT

Bentley
2009 Bentley Brooklands

BMW
2009 BMW 3 Series
2009 BMW X5

Cadillac
2009 Cadillac Escalade Hybrid
2009 Cadillac CTS-V

Chevrolet
2009 Chevrolet Corvette
2009 Chevrolet Traverse

Dodge
2009 Dodge Challenger
2009 Dodge Journey
2009 Dodge Ram Pickup 1500
2009 Dodge Durango

Ford
2009 Ford Flex
2009 Ford F-150
2010 Ford Fusion Hybrid
2010 Ford Mustang
2009 Ford Taurus

Honda
2009 Honda Fit
2009 Honda Pilot
2010 Honda Insight

HUMMER
2009 Hummer H3T

Hyundai
2009 Hyundai Genesis
2009 Hyundai Sonata

Infiniti
2009 Infiniti FX35
2009 Infiniti FX50

Jaguar
2009 Jaguar XF

Kia
2009 Kia Borrego

Lincoln
2009 Lincoln MKS

Mazda
2009 Mazda 6

Mitsubishi
2009 Mitsubishi Lancer

Nissan
2009 Nissan GT-R
2009 Nissan Maxima
2009 Nissan Murano

Pontiac
2009 Pontiac G8
2009 Pontiac Solstice
2009 Pontiac Vibe

Porsche
2009 Porsche 911

Subaru
2009 Subaru Forester

Toyota
2009 Toyota Corolla
2009 Toyota Matrix
2009 Toyota Venza
2009 Toyota Yaris

Volkswagen
2009 Volkswagen Routan
2009 Volkswagen Tiguan
2009 Volkswagen CC

Volvo
2010 Volvo XC60

Spend some time at AutoBidsOnline.com and see if any of these cars meet your needs and wants. If you find a car you want, see if you can get pre-approved at a local bank or credit union and submit an anonymous “Buy Bid” to the ABOL Dealer Network.

Dealers will compete in a Reverse Auction to accept your bid ensuring you receive a timely response and the most competitive price possible.

How To Find The Best Car For You

2009-04-13T07:51:00.000-07:00

Finding the right car can seem like quite a daunting process but it need not be. In reality, there are a few simple, quick, and easy steps to follow. Stick with them and you will end up with the best possible car for you and your money.

Step 1: Decide what kind of car you need. Start by examining your needs rather than your wants. Think about how you are going to use your car:

· How many people do you need to transport?
· What kind of driving do you need to do most often?
· How long is your commute?
· Manual or automatic transmission?
· Four-wheel or all-wheel drive?
· What safety features do you need and want?
· Do you need cargo-carrying capacity?
· Do you need to tow anything?
· Do you have a garage or parking area to fit your car?

Step 2: Determine how much you can afford and secure third-party financing. A good rule of thumb is your car payment should not exceed 20 percent of your monthly income.

Step 3: Seriously consider leasing! Keep in mind that a lease requires little or no money up front. It also offers lower monthly payments – most times as much as 40-50%! The obvious downside is that when the lease ends, you will not have a car at the end of it but if you trade your car every 3-5 years, this becomes a moot point. And yes, you can lease a pre-owned car too.

Step 4: Use the internet to research all vehicles in your desired class. There are numerous products and deals in each vehicle segment and designs, features and functions are changing at a rapid pace. Spend time online to compare them all and don’t give in to familiarity and frustration.

Step 5: Test drive if you like. Most people will not buy a car without test driving it first. However, this is not mandatory! You are already protected by Lemon Laws in most states and the quality and drivability of vehicles across the board are better than ever. Take advantage of online reviews and learn from others. Why spend your valuable time traveling to multiple dealerhsips only to endure “buy-it-now” pressure from each of them?

Step 6: Determine your vehicle’s options. Once you have selected your desired vehicle, take a good look at the option packages. Don’t settle for a vehicle that may have extraneous and unneeded options just because a dealer has it in inventory. Spend the time to find the EXACT car you are looking for!

Step 7: Use AutoBidsOnline.com to post the details of the car you want to buy and how much you are willing to pay for it. Let the dealers find the exact car you are looking for and really compete for your business.

Is This a Good Time To Buy a Car?

2009-04-10T07:10:00.000-07:00

In the current economic climate, there is a lot of speculation about the logic of buying a new car. After all, the economy is considered to be so unstable it is doubtful whether there are any good deals out there. It’s also questionable whether anyone but the seriously wealthy can afford to sign off on a major purchase at this time.

The interesting truth, however, is that we are not being entirely honest about the real issue. We are all asking whether we can get a good deal on a new car when in fact we are mostly wondering whether we can find the means to purchase a car in an affordable way. If you cannot get approved for a good car loan, it can be extremely costly to buy a new car. That is, unless you are well prepared.

The best outcome for a new car purchase is of course approval for a car loan with favorable terms.

This is easier said than done because of the uncertain economic climate. Auto repossessions have increased by ten percent along with car loan delinquencies, which are also on the rise.

The good news is that the problems of the housing market, setting the trend for economic troubles, do not necessarily translate directly to car loans. The collapsing of the housing market has definitely caused problems in the automotive sector but several significant differences between home mortgages and automotive financing mean that the problems do not exactly correlate.

Perfect credit is still perfect credit when it comes to auto financing. Anyone with stellar credit should have little trouble getting approval.

Those with less than perfect credit may not be rejected entirely, but they will find themselves receiving a response that they will need to come up with more of a down payment.

It is particularly important to have a budget and know what you can afford. You also need to know your credit score, scrutinizing the details to ensure that everything is accurate.

One of the best ways to combat the changes to the market is to get pre-approved for a car loan through a bank or credit union even if dealership financing is something that you want to consider. Anything you can do to put yourself in a stronger negotiating position as a "cash buyer" will help you.

Although the credit market is reasonably tight and car sales are low, waned consumer confidence is not going to last. The economy is always cyclical and just like anything else, defined by ups and downs. Consumers are going to need to borrow more responsibly and live within their means but there are still some great car deals out there!

Navigating the Trade-In Process

2009-04-08T07:58:00.000-07:00

When planning your next car purchase, take some extra time to evaluate the trade-in process. This is the Achilles’ Heel for many buyers as they neglect to take into account everything involved in the trade.

One key is staying focused. Do not be dazzled by your new car, or your dream of getting that new car. Think about your trade-in and do not let its significance disappear as you negotiate with the dealer. They are in business to make money – just make sure they don’t make it all on you!

First you should consider selling it yourself. This will most always yield a higher return. However, many of today’s new car buyers just don’t have the time, energy or desire to do this effectively.

If selling it outright is not for you, spend an hour to get an actual appraisal for your trade. If you have a local CarMax, take it in and get a guaranteed appraisal from them. It’s painless. In fact, their prices are often higher than BlackBook trade values or what your dealer may be willing to pay.

If you don’t have a CarMax nearby, check with your local bank or credit union. Many of these institutions will offer an appraisal if you ask.

Take these appraisals with you and use them in your dealer negotiation. Also be sure to spend the roughly $100 necessary to fully detail your vehicle. A clean car will always bring more money.

The next thing is to keep in mind that many trade-ins offer a high source of profit for a dealership – but certainly not all of them. Keep this in mind as you shop your trade-in. Not every dealer will offer the same price for a particular car. Some won’t give you the top dollar because they have other similar cars or no demand for the make and model in your local market.

Nevertheless, emphasize you expect full credit for your trade-in. Write down the figure before you begin negotiations and stick to it.

Lastly, you need to be realistic throughout the trade-in process. Be firm about the value for your trade but keep in mind the dealer costs of accepting your trade. They incur very real expenses as a result of this process. They will need to insure, inspect, repair, service and detail your car to make it ready for resale.

In addition, they are not only accepting the resale risk of your car, they are also risking a no-sale. If the dealer cannot sell your vehicle in roughly 45 days, he will incur transportation, additional detailing, and auction fees. All of these weigh heavily on the actual profit a dealer will make on your trade.

Knowing what your vehicle is worth going into the negotiation is certainly important. However, recognizing the dealer’s risk in the transaction will help ensure you get the best deal possible.

Leasing Versus Buying: What Should You Do About Your Next New Car?

2009-04-07T12:47:00.000-07:00

When you’re looking for your next new car, consider your lease versus buy options.

Leasing is often thought of in negative terms but for many, it is far from it!

Do you frequently trade in your car every three or four years? Are you interested in driving more car for less money? Do you neglect to service your car as it gets older, or worse, find yourself cash-strapped and not able to afford the increased maintenance required by older cars?

If you answered yes to any of the above, you should consider leasing!

After all, unless you pay cash for your car, you never really own it until you pay it off. The bank does. And with car prices rising, installment loans are being written for longer terms - often times as many as 72 or even 84 months.

Study the amortization schedules on these lengthy loans and you will see that it can be as much as five years or more before you are no longer “upside-down.”

“But I can’t lease, I drive too many miles,” is something I often hear from friends. Yet the fact of the matter is the impact of how many miles you drive per year is the same whether you lease, pay cash or use traditional finance. You will still be upside-down for approximately 60 months. If you choose to trade out of your car before then, you will take a hit on your trade-in value – regardless of your method of finance.

Lease Assumption is another option to consider. Sites like SwapALease.com put potential buyers with lease “sellers.” You can often pick up a near-new, previously leased vehicle with 8-36 months remaining on the original lease for pennies on the dollar.

Not interested in driving someone else’s car? Try an independent leasing company like D&M Leasing in Texas (www.dmautoleasing.com). D&M specializes in finding any make, any model and any style car for thousands of customers across the country. They leverage their buying power to provide customers with affordable leases without ever setting foot on a dealer’s lot. They can even arrange multiple test drives on the same day so you can compare similar vehicles at the same time!

Next to “buying” and trading a new vehicle every three to four years, leasing is often the more cost-effective option. In many cases, you can save as much as 40-50% off of a comparable installment loan.

When you are considering the “purchase” of your next new car, check out D&M and SwapALease. You’ll be glad you did!

Why You Should Hunt for Your Auto Loan Online…And Have It Ready Before You Start Shopping!

2009-04-07T08:07:00.000-07:00

The advantages of getting your next auto loan online are pretty impressive. First of all, it can save you a lot of time. You can research your purchase and the interest rates for car loans online, which takes a lot less time than traveling from car dealer to car dealer to get the same information.

Another advantage is you can generally get the lowest auto loan rates from online lenders. Many online loan companies offer a means of comparing automobile loan rates from many loan company's websites.

With online auto loans, you generally do not have to pay any sort of processing or application.

Online auto loans also give you the chance to research what type of car you want to buy. You can find a good price for your chosen make and model, and review interest rates before you even consider approaching a dealer. You can almost always get a better deal when you have the facts and figures relevant to your situation.

Keep in mind another time saving tip: you should only have to fill out one loan application to apply for your auto loan online. You can send a single loan application to multiple dealers in no time at all and receive responses in no time.

You should, of course, take your time to review every response you receive, no matter how appealing it looks at first glance. Do not let anyone rush you at any stage of the car buying process, particularly at this crucial point.

Your auto loan (or lease) is absolutely crucial to whether or not you secure a good deal. Lose focus here and you will regret it. At least, your pocket book will.

By getting an auto loan online, you not only minimize the amount of time and effort required to get through the details, you also dramatically increase your chances of securing the best deal.

The College Grad’s Guide to Car Buying

2009-04-07T07:57:00.000-07:00

Deals and incentives are available for many car buyers. Although there are many problems when you’re trying to buy your first car as a recent college graduate (i.e. you’ve only just got a job and you’ve got tons of student loans), it can be difficult to find a good deal unless you know where to look.

Fortunately, there are tons of special incentives for recent college graduates. Most automakers offer incentive programs for college grads. The little known specials are rarely advertised. Nevertheless, applied properly, they can lead to big savings on new cars.

Since most incentives aimed at college graduates can usually be combined with other incentives, they can be particularly beneficial.

Among the top deals for college graduates start with one or two packages for which full-time college students are also eligible.

In the past, Ford has offered a discount of $500 on select models of Ford, Lincoln and Mercury models. Toyota/Scion has offered a similar discount of $400 against the purchase of select Toyotas and Scions. The Toyota/Scion package even included one year of free roadside assistance.

Generally, students or recent graduates are eligible for these deals. It is necessary to provide proof of graduation or student status to qualify for the discounts.

Although the top vehicles and the best incentives vary from year to year, the top deals from 2007 to 2008 are quite representative.

The top ten deals for 2007 and 2008 were as follows:

1. 2007 Suzuki SX4 priced at $14,999.
2. 2006 Mitsubishi Lancer Evolution priced a t $28,679.
3. 2008 Scion xB priced at $15,650.
4. 2007 Kia Rio priced at $10,770.
5. 2007 Ford Escape Hybrid priced at $25,075.
6. 2007 Nissan Versa priced at $12,550.
7. 2007 Mitsubishi Outlander priced at $21,370.
8. 2008 Scion tC priced at $15,300.
9. 2007 Ford Mustang priced at $19,250.
10. 2007 Suzuki Grand Vitara priced at $19,379

Anyone who is still in college or who has recently graduated should specifically research deals for college graduates and students when it comes to auto loans. Since college is particularly expensive, it is definitely advantageous to be able to save any money you can on the purchase of a car. With student debts, the last thing you want is to increase what you owe. That said, college graduates and even many students need cars. Most college graduates need to have an attractive car to fit with a new job.

Searching for a car online at AutoBidsOnline, you should be sure to specify that you are interested in receiving information about any incentives for which you qualify based on your status as a recent college graduate or your status as a student.

You should also ask about financing in relation to any such incentives since many packages require you to use a particular organization for financing any auto loan if you want to qualify for any related discount.

Timing Is Everything: How to Find A Good Deal for Your Next Car

2009-04-03T05:56:00.000-07:00

There are many things to think about when you are looking for a new car. One of them, believe it or not, is timing. Of course, many buyers spend a lot of time figuring out every angle to their purchase. They do ask themselves whether it’s the right time to buy a car. Unfortunately, too many buyers concentrate on reviewing their own circumstances to determine the right time for a car purchase.

If you dig around a bit, you’ll find tons of information about times and dates for new car purchases. Did you know that some people even suggest there are optimum days for buying new cars?

Don’t get carried away, but look into it and you’ll realize there’s a lot of truth to the timing issue. At certain times of the year, month, week, and yes, even at certain times of the day, the buyer has the advantage. Why? There are always peaks.

First of all, there’s predictive market value – different from the actual market value which is the average price everyone is paying for a given type of car. Rather, the predictive market value is a forecasted value. It indicates the likely pricing for your selected vehicle. As a tool, it is a good way to assess and predict the current climate of your vehicle.

Next to market value there’s rainy days, holidays, 15 minutes before closing, early in the week, and end of the month.

Rainy days can be good days to shop because there are few other buyers on the lot. This theory maintains that salesmen will want to offer good discounts just to get some business. The upshot is the dealer will know you are a serious buyer and be more willing to deal.

Holiday periods are also seen as a good time to buy. Business can be pretty slow so to a certain extent it is possible to get a good deal around the holidays. On the other hand, dealers are well aware when the holidays are approaching and they do cut back on inventory.

15 Minutes Before Closing is a timing concept tried out by many aspiring savvy buyers. The general theory is that if a person heads to the dealership just fifteen minutes before closing, sales staff will be desperate to go home. On that basis, they will avoid the crazy back and forth system. In reality, they won’t be all that desperate to go home; they will simply keep you behind after class.

Overall, your best bet for timing a purchase is to avoid the busiest times. Avoid the weekends because dealers have tons of customers. At the beginning of the week, you have a much better opportunity to get the attention of dealers. The end of the month is another good time to try and get a good deal on a new car.

How to Find The Best Deal

2009-04-01T08:46:00.000-07:00

New car buyers are often uneasy. There is a nagging fear they will be had when they finally sit down to negotiate with their local dealer.

The first step to getting a great deal is to know what your new car is worth - and there are plenty of automotive research websites that will tell you. In the end however, you still have to sit down and negotiate with the dealer and play their same old dealer games.

Fortunately a new website has come online that will help turn the tables in your favor. At AutoBidsOnline.com, you can get invoice pricing, MSRP, rebates and other incentives for virtually any make and model car. But unlike the other sites, AutoBidsOnline is designed to keep your personal contact information completely private.

The other sites? Their goal is to capture your information and sell it to as many dealers as possible. How does that sound?

But perhaps the best thing about AutoBidsOnline is it will allow you to negotiate the price of your next new car completely online.

Once you have decided which trim style, options and color best meet your needs, you can submit an anonymous Buy Bid which will be distributed to the AutoBidsOnline Dealer Network.

In what is essentially a Reverse Auction, dealers compete to accept your bid. They may of course counter your bid but they are incented to accept your offer as quickly as possible because if they don’t, someone else might.

On the other sites, you enter your personal information in addition to the specifications of the car you want. This information is then sold to their dealer network and you start to receive phone calls and automated emails trying to get you to come to multiple dealerships.

You already know the car you want, you already know what it is worth, why waste your time going to the dealership?

Of course, you will also likely need financing. If so, check out all of your options ahead of time. Contact your local banks and credit unions. Call an independent leasing company like D&M Leasing in Texas. Shop around for the best terms and the best rates.

Lastly, you should have a realistic idea about the value of your trade. You will likely come out ahead if you choose to sell it yourself but you should always take it to CarMax for their free, no-pressure appraisal.

If you decide to trade it directly with your dealer, you should honestly assess its condition. Owners tend to think their vehicle is Extra Clean when it is likely just Average. Depending on your vehicle, this can be as much as a $2,000 difference.

Finally, you should be aware of the costs a dealer may incur after your trade. Reconditioning it for sale sometimes includes replacing the tires an oil change and a tune-up. It almost always includes a complete detail. And if the dealer cannot sell it on his used car lot? He must pay to send it to auction and assume the risk it may be worth less 60 days from now.

The bottom line is get your ducks in a row. Know what your new car is really worth, arrange for financing that meets your needs and credit and try to sell your trade to CarMax or a private party.

Do all of these things ahead of time and you will certainly find that you have gotten a great deal.

Luxury Shoppers on Web Want Instant Info

2009-04-01T08:18:00.000-07:00

I read with great interest an article in

Automotive News

about the online shopping habits of Luxury shoppers. However, I do not believe these trends are restricted solely to luxury buyers.

Rather, consumers in every segment are looking for innovative ways to shop online. The previously accepted lead generation campaigns of Cars, Trader, KBB and Edmunds are dying on the vine because the model is not working for the dealers and consumers do not want to be hassled online. In fact, customers’ impressions of online follow up techniques are not dissimilar to their shopping experiences on the lot. Outside of test drives, most do not want to ever set foot on the lot until they take delivery of their new car.

Obviously, this is a difficult time for dealers and the growth of public information is only compounding their challenges. Dealers need to accept the new car market has become amazingly

efficient

and vehicles are now virtual commodities. When combined with the exponential growth of social networking, pre-sale reputation has become just as important as new car profits. Savvy dealers are taking advantage of this and making up for lost profit in volume and by shifting profit growth to F&I, Pre-Owned and Parts & Service.

See full

Article

Here

Do's and Don'ts of Auto Finance

2009-03-31T12:01:00.000-07:00

Paying for Your New Car: The Do’s and Don’ts of Auto Financing

It’s a sad truth but auto loans can go wrong. When it happens, it’s often the result of a problem during contract preparation in the finance and insurance (F&I) office.

Car buyers need to know what typically goes wrong with auto financing and how these problems can be avoided.

Many consumers have a lot of information about the cars that they want to buy. The problem is that they don’t necessarily have the right information. The F&I element is absolutely crucial.

Typically, a dealer’s first basis for negotiation is ascertain your monthly payment. “So, about how much a month can you afford?” Or, “How much can you spend a month?” Once a dealer knows your payment ceiling, he can often pad a deal in rate. After all, a dealership is a for-profit entity.

To move through the F&I part of a deal, you can cut out the principle problem by going to the dealership with financing in hand. You can proceed as a "cash buyer" if you have the financing in place. When you are a “cash buyer”, all you need to negotiate is the total price of the car. When you’re negotiating for the price of the car only, salesmen are at a disadvantage because they can only really obscure the total cost of a vehicle if you are a "monthly payment" buyer.

You can get independent car financing from banks, credit unions, online lenders or independent leasing companies.

One of the big mistakes of prospective car buyers, most do not know their credit rating when they apply for an auto loan. Because credit is so important, it is crucial to make sure that your credit report is in the best shape possible before shopping for a car.

Another big mistake made by buyers involves the budget. Far too many people overlook their budget. You should set a sensible price range for the car you want to buy and stick with it. Monthly car payments and related expenses generally should not exceed about 20 percent of your monthly net income.

Research the current interest rates in the marketplace. Compare rates online. Look at leasing! Particularly if you are the kind of driver who gets a new car every 3-4 years.

Most consumers approach dealers without their financing organized. When they finally reach the finance department, they are worn out and in no position to stay on track, scrutinizing the details of the contract they are about to sign. It’s very common for people to agree to buy things they didn't plan to, simply because they are worn out.
To manage the sudden appearance of extra fees, question everything. Dealers are known to add extra fees.

The way to manage dealers and avoid financial mistakes is to be prepared. Do your research and be ready to stand your ground when the dealers come to you.

At AutoBidsOnline you can overcome a great deal of these issues. You can gather all of the information you need and submit a buy bid to our dealer network anonymously. Dealers are incented to accept your offer – quickly! Because if they do not, there is a good chance another dealer will.

Only when your buy bid has been accepted will a dealer know who you are. You can then stroll into the dealership, with financing already in place a get your new car – quickly, efficiently and cost effectively!

How to Work the Numbers

2009-03-05T11:58:00.000-08:00

How Does A Dealer Work The Numbers: What You Need to Know to Stay On Top

Even when you are set to purchase your next car online, you need to understand numbers to get the best deal possible results.

Traditionally, the process for getting to the best deal on your new car has been determined by the way your dealer establishes numbers on a worksheet. Generally, there is a four-square worksheet used to determine ballpark pricing.

The worksheet dealers use covers everything from monthly payments to trade-in prices.

You need to understand the significance of all of the four squares. Knowing how they fit together, you can get a good handle on negotiating a fair price.

The trade-in is often the first square on the dealer’s worksheet. It refers to the credit they will afford you for your old car. Although dealers generally want you to put down as much as possible, the figure is negotiable. It may not even be required at all if you choose to lease.

The second square refers to the purchase price of the dealer's car, which is the sales price of the car plus fees - sales tax, title, licensing and destination fees. If you have already negotiated your price with AutoBidsOnline, all you need to ensure is you are not paying any extraneous or unnecessary fees.

Finally, you have to factor in the down payment and the monthly payments. Your down payment will figure out how much cash you have to pay up front. Remember, do not use cash to make your down payment under any circumstances! Use a credit card instead. That way you can be sure to get your money back should something go south.

The monthly payments are your fourth square for negotiating. Most care salesmen try to get you to focus on this number, the low monthly payments. You need to scrutinize this number most particularly to factor in how long it is going to take you to pay off the total amount and what exactly that total amount consists of.

Do not get trapped by the four-squares! You might consider selling your old car rather than trading it in. This could save you a lot of money. Another option is to think about securing outside auto financing before you even go near a dealership. This can help you maintain maximum control of the deal, particularly when you are having the dealers come to you online.

By taking advantage of these few suggestions and by knowing how dealers are going to be playing the game, you can get a great deal. But do not, under any circumstances, play the monthly payment game! Instead you focus your negotiations and car search on finding cars that are priced right and the payments will take care of themselves.

Talk the Talk

2009-03-05T11:52:00.000-08:00

How to Sound Like A Car Salesman and Walk Away With Your Dream Car

Car dealers have a pretty bad reputation. The good news is that you can manage them with a few strategic moves. Imagine yourself walking on to a car dealership. You see a few salesmen hovering around. “Who’s up?” you say, and everyone jumps to attention.

All the salesmen are watching you, wondering now whether you are an experienced salesman. You find as you go about the dealership, test driving and reviewing your options for financing, that you are treated with considerable respect. The dealers are wearing kid gloves and it shows.

You have no problem walking away and transferring all of the information you learned to AutoBidsOnline, placing an offer for competitively priced cars that meet your exact needs.

No matter your method for buying a car – searching online or offline – dealers will treat you differently if you present yourself as someone who knows the game. Even auto mechanics will pay attention to you if you drop a few keywords of car salesman lingo.

You shouldn’t exactly be trying to trick people. You’re goal should never be to present yourself as something you are not. On the other hand, you can communicate indirectly and do enough to imply your level of knowledge.

So what words can you drop in conversation? You can start by pointing out that you may be a “be-back”, the type of customer who leaves a lot only when they have made a promise to return.”Bumping” is the process of raising an offer and you can drop this around. “I’m not interested in “bumping” my budget.

You might like to say “I’m interested in getting the info from F&I”. F&I is the finance and insurance office, the place in the dealership that most papers are signed.

Ask for the “first pencil”, which is the opening offer used by the sales manager. It will be written in pencil on what is called the “four-square worksheet”, used to establish the base price, the selling price, trade-in value and monthly payment for the car.

Here are keywords used by dealers that you need to listen out for. The first is the term, “full pop deal”. This is used to describe a vehicle financed at 110 percent of the sticker price, which his the highest price allowed by most banks.

The second is a “home run”, which refers to instances when a salesman is able to take advantage of a customer and squeeze out a profit on every element of a deal.

Then we have the “mini”, “packing payments”, “pounders”, and “ripping people’s heads off”.

The mini refers to the commission on a deal where the car is sold at the invoice price.

Packing payment is what happens when the dealer is able to add extra profits to the cost of a car. The pounder is a deal with a $1,000 profit, and finally, if a sales man “rips your head off”, it’s not a good thing because it means that they have taken you to the cleaners and charged you the maximum on everything.

So do your homework, incorporate the right language into your communication and by all means, never be a “laydown”!

In The Market For A New Family Car?

2009-03-04T10:20:00.000-08:00

Family cars are not necessarily the most glamorous vehicles out there, but if you have children, you need the cargo room and the extra safety features.

Of all the family vehicles out there, it’s hatchbacks and wagons that have a couple of things going for them. Many offer lots of cargo room while remaining relatively compact. More good news is the pricing. With the growing strains on the economy tightening consumer budgets, the faithful family cars are now available at affordable pricing. If you’re looking for a budget new car, a hatchback or wagon may very well be the best choice for you.

Based on the manufacturer’s suggested retail pricing, the top ten most affordable hatchbacks and wagons of 2009 include the 2009 Hyundai Accent GS Hatchback at $9,970, the 2009 Chevrolet Aveo 5 LS Hatchback at $11,965, the 2009 Smart Fortwo Pure Hatchback at $11,990, the 2009 Toyota Yaris Hatchback at $12,205, the 2009 Nissan Versa 1.8 S Hatchback at $13,110, the 2009 Kia Rio 5 LX Wagon at $13,325, the 2009 Pontiac G3 Hatchback at $14,335, the 2009 Honda Fit Hatchback at $14,550, the 2009 Scion xD Hatchback at $14,650, and finally, the 2009 Scion xB Hatchback at $15,750.

When you need an affordable family vehicle to start off the New Year, these top ten picks offer a good starting point. Based on the invoice cost, you can also establish a basis for understanding what you might expect to pay for these types of cars. You can make a determination whether a new family car is affordable and whether the value for money is strong enough to justify the purchase.

As ever, when looking for a new car, you need to make a list of the top features you want. Think about how you are going to be using the car, where you will be driving, who will be driving, and how often it is going to be used.

The advantage to the types of family cars mentioned above is that they are tough and durable. They can survive regular, everyday usage, they are hardy in terms of the work they can do (good cargo storage, good miles to gallons ratio), and they are relatively safe as cars go.

You may want to research specific safety features for children when you plan on purchasing a family car with will be regularly used by your children, particularly young children. The principle detail, however, is that you have options and they may be more affordable than you think.