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.
Wednesday, April 8, 2009
Tuesday, April 7, 2009
Leasing Versus Buying: What Should You Do About Your Next New Car?
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!
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!
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.
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
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.
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.
Friday, April 3, 2009
Timing Is Everything: How to Find A Good Deal for Your Next Car
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.
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.
Wednesday, April 1, 2009
How to Find The Best Deal
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.
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
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.
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
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.
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