Seller Beware!

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.

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

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.

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

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

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%).

How To Buy A New Car After Bankruptcy

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.

Take A Wild Guess Who's Behind This One

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

Latest Buy Bid at AutoBidsOnline

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

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

Welcome Back GM

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

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

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

Cash for Clunkers Set To Disappoint - BIG TIME.

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.

Strong Wholesale Values Foretell Brighter Days Ahead

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.

First Published Article

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.