Many used cars bought from a dealer have been "remarketed"
by James M. Flammang
Making decisions in a matter of seconds isn't easy. Yet, that's what buyers at the nation's wholesale used-car auctions do every day. At the auctions, which normally are open only to dealer representatives, the action is fast and the rewards are risky. Pay too much for a tempting car that's going through the line, and you might not make any money on it. Bid too little and you won't get the car at all, giving your dealership one less vehicle to sell at a profit.
To an uninitiated observer, the ceaseless, rapid-fire cries of the used-car auctioneer sound like gibberish. But to each of the hundreds of buyers attending a typical big auction, those pleas for bids are an endless flow of opportunity.
Buyer Beware?
In the consumer's eyes, auctions still suffer from a serious image problem. The best used car, we've been told repeatedly, is the one that comes directly from a private seller: a one-owner, seldom-driven, nearly spotless vehicle that the owner is willing to part with for a pittance. Cars that went through an auction have been viewed as the dregs of the business—the vehicles that should be avoided at all costs.
Auctions, in effect, were held responsible for the sins committed by unscrupulous used-car dealers, who marketed shoddy products at high prices. That sort of stigma persists today, even though the auction business is booming and its practitioners have been striving for years to change people's perceptions of how auctions work.
Odometer Rollbacks
Although dishonest used-car dealers have not disappeared, their numbers have been diminishing—due in part to policing of the business by the large auction groups. In the mid-1980s, for instance, ADT Automotive—then a top auction chain—played a role in making odometer "rollbacks" a federal crime.
Protecting consumers wasn't their sole reason for wanting to crack down on odometer "spinners." Dealers, too, can be victimized when odometers are set back to display lower figures. If a bidding dealer thinks a car has lower mileage than it actually has, and therefore pays more than the car is worth, potential profit can disappear if the inaccuracy is discovered.
Late in the 1990s, ADT also initiated a program for certifying vehicles that go through the auctions, following the theme of used-car certification programs that had been introduced by many automakers. Vehicles are carefully inspected before sale to dealers, who can then point to that process as a selling point on their retail lots. Certification remained active when ADT Automotive was bought by Manheim Auctions in 2000. Even when full certification is not offered, auctions often offer reconditioning and detailing services.
Manheim and ADESA are the leading auction chains, providing what are called "remarketing" services. In business for 55 years, Manheim alone operates 83 auction facilities in the U.S.
During 2000, new-vehicle sales set a record at 17.4 million units—15.1 million of them sold to private individuals. At the same time, dealers, according to Tom Webb, Mahheim's chief economist, sold 41.7 million used vehicles. Private transactions added another 10.5 million secondhand units to the mix.
Auctions handled nine million of those used vehicles. Nearly half had been consigned by dealers, while two million were consumer-leased vehicles being remarketed after their lease terms ended. The remaining 3 million came directly from manufacturers, offered at sales limited to franchised new-car dealers, or from daily rental companies and fleet organizations.
Of all the vehicles that go off-lease each year, about 62% are remarketed through auctions, according to research by CNW Marketing and Manheim. They wind up in the front lines at both new-car and independent used-car dealerships. During 2000, the National Automobile Dealers Association (NADA) reports that franchised new-car dealers obtained 32% of their used vehicles from an auction, versus 40% that were traded in on a new model and 22% traded on a newer used car. A title search should reveal if the vehicle was ever on the auction block.
Recession-Resistant
Auctions "have increased their acceptance in the marketplace," said Thomas Kontos, vice president of industry relations & analytical services at ADESA Corporation, who considers the business to be "recession-resistant." If the economic downturn continues through 2001, new-car sales are sure to suffer. "During a recession," Kontos explained, "consumers are less likely to sell their vehicles," preferring to hang onto them a while longer. At the same time, though, the demand for secondhand vehicles escalates—and the auctions are happy to comply.
While it always pays to be wary when shopping for a used car, the mere fact that a prospective purchase went through an auction at some point doesn't automatically consign it to the also-ran category. After all, the car could have been returned from lease by your neighbor, then remarketed via an auction. And who knows, you might even be able to buy it for less than your neighbor would have wanted for
Showing posts with label buying a car. Show all posts
Showing posts with label buying a car. Show all posts
Thursday, July 5, 2007
Tuesday, July 3, 2007
Buying A New Car
A new car is second only to a home as the most expensive purchase many consumers make. According to the National Automobile Dealers Association, the average price of a new car sold in the United States is $28,400. That’s why it’s important to know how to make a smart deal.
Buying Your New Car
Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.
Buying Your New Car
Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.
Consider these suggestions:
- Check publications at a library or bookstore, or on the Internet, that discuss new car features and prices. These may provide information on the dealer’s costs for specific models and options.
- Shop around to get the best possible price by comparing models and prices in ads and at dealer showrooms. You also may want to contact car-buying services and broker-buying services to make comparisons.
- Plan to negotiate on price. Dealers may be willing to bargain on their profit margin, often between 10 and 20 percent.
Usually, this is the difference between the manufacturer’s suggested retail price (MSRP) and the invoice price.Because the price is a factor in the dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiating the price can save you money.
Consider ordering your new car if you don’t see what you want on the dealer’s lot. This may involve a delay, but cars on the lot may have options you don’t want — and that can raise the price. However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs.
Learning the Terms
Negotiations often have a vocabulary of their own. Here are some terms you may hear when you’re talking price
- .Invoice Price is the manufacturer’s initial charge to the dealer. This usually is higher than the dealer’s final cost because dealers receive rebates, allowances, discounts, and incentive awards. Generally, the invoice price should include freight (also known as destination and delivery). If you’re buying a car based on the invoice price (for example, “at invoice,” “$100 below invoice,” “two percent above invoice”) and if freight is already included, make sure freight isn’t added again to the sales contract.
- Base Price is the cost of the car without options, but includes standard equipment and factory warranty. This price is printed on the Monroney sticker.
- Monroney Sticker Price (MSRP) shows the base price, the manufacturer’s installed options with the manufacturer’s suggested retail price, the manufac-turer’s transportation charge, and the fuel economy (mileage). Affixed to the car window, this label is required by federal law, and may be removed only by the purchaser.
- Dealer Sticker Price, usually on a supplemental sticker, is the Monroney sticker price plus the suggested retail price of dealer-installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and undercoating.
Financing Your New Car
If you decide to finance your car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.
Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it’s sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.
Before you sign a contract to purchase or finance the car, consider the terms of the financing and evaluate whether it is affordable. Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in.
Some dealers and lenders may ask you to buy credit insurance to pay off your loan if you should die or become disabled. Before you buy credit insurance, consider the cost, and whether it’s worthwhile. Check your existing policies to avoid duplicating benefits. Credit insurance is not required by federal law. If your dealer requires you to buy credit insurance for car financing, it must be included in the cost of credit. That is, it must be reflected in the APR. Your state Attorney General also may have requirements about credit insurance. Check with your state Insurance Commissioner or state consumer protection agency.
Trading in Your Old Car
Discuss the possibility of a trade-in only after you’ve negotiated the best possible price for your new car and after you’ve researched the value of your old car. Check the library for reference books or magazines that can tell you how much it is worth. This information may help you get a better price from the dealer. Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.
Considering a Service Contract
Service contracts that you may buy with a new car provide for the repair of certain parts or problems. These contracts are offered by manufacturers, dealers, or independent companies and may or may not provide coverage beyond the manufac-turer’s warranty. Remember that a warranty is included in the price of the car while a service contract costs extra.
Before deciding to purchase a service contract, read it carefully and consider these questions:
- What’s the difference between the coverage under the warranty and the coverage under the service contract?
- What repairs are covered?
- Is routine maintenance covered?
- Who pays for the labor? The parts?
- Who performs the repairs? Can repairs be made elsewhere?
- How long does the service contract last?
- What are the cancellation and refund policies?
To File a Complaint
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a
Thursday, May 24, 2007
Keep Your Old Clunker or Buy a New Car?
It may clang and bang, but your despised old car may be the best bargain around.
By Des Toups
Let's divide the car-buying universe into two camps: those who keep a car until it drops, and those who think a new car will change their lives.
To the first, a round of applause. There's nothing short of the bus that's cheaper than keeping a car until it crumbles into a pile of rust. Almost any car can be nursed to 200,000 miles without endangering your life, and even a new engine is cheaper than all but the cheapest used cars.
To the second, another round of applause, because the 16 million or so new cars they buy every year instantly become used cars soon available at a considerable discount to those in Camp 1. And a moment of silence, because a new car will change their lives in ways they never foresaw on the dealer's lot.
If you're in a drive-until-the-muffler-is-dragging wannabe, read on. We'll look at ways to keep your car on the road longer and realistically weigh the costs of upgrading.
I'd love to keep my old car, but …
It no longer fits my life. You may have taken up gardening in a big way but still own a Corvette. You may feel nervous about taking your '78 Ford on a trip to Colorado. Your little Accord may be a tight squeeze when family comes to town. The answer to all: Rent. Why buy a gas-sucking pickup because you visit Home Depot twice a year or a $30,000 sport-utility because you take the kids skiing for a week at Easter? Even at $100 a weekend, renting is far cheaper than a car payment. Plus you get to drive the very latest without worrying about insurance, license tags, maintenance or depreciation. Or try swapping cars with a friend, returning it gassed-up and clean (with the oil changed, too, if the loan was more than a day or two. You want to be able to ask again next year.).
Those repair bills are really adding up. Then do the math. Does the cost of repairs exceed the cost of a new car? A typical new car is $21,000, about $350 a month for five years after 20% down. A rebuilt transmission might run $1,500, a huge outlay in one chunk, but far less than the $4,200 a year you'd spend on new-car payments alone. If you can't afford repairs twice a year, it's unlikely you can afford a new car payment every month. In any case, anybody with a car older than three years should be tucking aside $50 a month for repairs and maintenance. If the gods smile, you'll never use most of it and you'll have a tidy sum to blow on your next car.
I'm nervous driving an older car. Maybe little things are beginning to go: a new thermostat one month, a starter the next. You might simply spend $50 on a AAA membership and carry a cell phone, reminding yourself that even new cars aren't immune to mechanical failure. The upside of frequent breakdowns is that you'll get to know mechanics quite well. Find one you like. Flatter him. Pay your bills on time. And the next time he fixes your car, ask him to take a few minutes to see what else will need repair soon.
The repair costs more than the car is worth. A $1,500 engine rebuild that keeps your '83 Toyota on the road still makes good financial sense. It's at this point, however, that all but the flintiest drivers begin to think about upgrading.
Which brings us to our next question:
Am I ready for a newer car?
Your first step is to do nothing except write a check to yourself in the amount you're thinking you can afford every month. Put aside a car payment every month for three months (long enough for at least one of life's little emergencies to crop up).
To pass the time, make three phone calls: one to your bank, to find out what kind of rates they charge on loans to people with your credit history; one to your insurer, to ask the rates for comprehensive insurance on a model you think you'd like to buy; and one to your local DMV, to see what registration and licensing would cost.
At the end of three months, ask yourself these questions:
How much did it hurt? If you skimped at all on other bills or shorted the amount of the payment, you're not ready.
Would I have enough left over to pay for insurance and licensing fees each year?
Would I pay this much every month for the car that's in my driveway already? Sooner or later, every new car becomes an old car, and you'll feel about the next car just the way you do about your old clunker.
Would I rather have the cash? Our typical car payment, $350, adds up to more than $1,000 in just three short months. Perhaps you'd prefer to get a tan in Mexico and limp along with ol' Betsy another year.
Could I continue to save for another year and simply pay cash? Five grand would buy any of hundreds of reliable used models. Save for two years and you're in new-car territory, if your old car will fetch a few thousand.
If the craving for a shinier car hasn't passed in three months, at least you begin the shopping process with a few months' worth of car payments and a more realistic idea of the hit your wallet will take.
Side note: Never skimp on maintenance
Pay special attention to the things that will cost you a fortune if they break. That means regular oil changes, tire rotations and transmission tune-ups, even if the car is running fine. Timing belts, for example, are spendy at as much as $600, and replacing one for no other reason than that the odometer has turned 90,000 miles might seem wasteful. But let one break and you'll find that repairing bent valves could cost you three times that. Replacing torn CV boots, those plastic housings that keep grime and grit out of the car's constant-velocity joints, costs about a third as much as a CV joint repair. (If your owner's manual is long gone, MSN Autos has a free online service, My Car, that tracks your car's service schedule.)
Des Toups is senior editor at MSN Money in Seattle.
By Des Toups
Let's divide the car-buying universe into two camps: those who keep a car until it drops, and those who think a new car will change their lives.
To the first, a round of applause. There's nothing short of the bus that's cheaper than keeping a car until it crumbles into a pile of rust. Almost any car can be nursed to 200,000 miles without endangering your life, and even a new engine is cheaper than all but the cheapest used cars.
To the second, another round of applause, because the 16 million or so new cars they buy every year instantly become used cars soon available at a considerable discount to those in Camp 1. And a moment of silence, because a new car will change their lives in ways they never foresaw on the dealer's lot.
If you're in a drive-until-the-muffler-is-dragging wannabe, read on. We'll look at ways to keep your car on the road longer and realistically weigh the costs of upgrading.
I'd love to keep my old car, but …
It no longer fits my life. You may have taken up gardening in a big way but still own a Corvette. You may feel nervous about taking your '78 Ford on a trip to Colorado. Your little Accord may be a tight squeeze when family comes to town. The answer to all: Rent. Why buy a gas-sucking pickup because you visit Home Depot twice a year or a $30,000 sport-utility because you take the kids skiing for a week at Easter? Even at $100 a weekend, renting is far cheaper than a car payment. Plus you get to drive the very latest without worrying about insurance, license tags, maintenance or depreciation. Or try swapping cars with a friend, returning it gassed-up and clean (with the oil changed, too, if the loan was more than a day or two. You want to be able to ask again next year.).
Those repair bills are really adding up. Then do the math. Does the cost of repairs exceed the cost of a new car? A typical new car is $21,000, about $350 a month for five years after 20% down. A rebuilt transmission might run $1,500, a huge outlay in one chunk, but far less than the $4,200 a year you'd spend on new-car payments alone. If you can't afford repairs twice a year, it's unlikely you can afford a new car payment every month. In any case, anybody with a car older than three years should be tucking aside $50 a month for repairs and maintenance. If the gods smile, you'll never use most of it and you'll have a tidy sum to blow on your next car.
I'm nervous driving an older car. Maybe little things are beginning to go: a new thermostat one month, a starter the next. You might simply spend $50 on a AAA membership and carry a cell phone, reminding yourself that even new cars aren't immune to mechanical failure. The upside of frequent breakdowns is that you'll get to know mechanics quite well. Find one you like. Flatter him. Pay your bills on time. And the next time he fixes your car, ask him to take a few minutes to see what else will need repair soon.
The repair costs more than the car is worth. A $1,500 engine rebuild that keeps your '83 Toyota on the road still makes good financial sense. It's at this point, however, that all but the flintiest drivers begin to think about upgrading.
Which brings us to our next question:
Am I ready for a newer car?
Your first step is to do nothing except write a check to yourself in the amount you're thinking you can afford every month. Put aside a car payment every month for three months (long enough for at least one of life's little emergencies to crop up).
To pass the time, make three phone calls: one to your bank, to find out what kind of rates they charge on loans to people with your credit history; one to your insurer, to ask the rates for comprehensive insurance on a model you think you'd like to buy; and one to your local DMV, to see what registration and licensing would cost.
At the end of three months, ask yourself these questions:
How much did it hurt? If you skimped at all on other bills or shorted the amount of the payment, you're not ready.
Would I have enough left over to pay for insurance and licensing fees each year?
Would I pay this much every month for the car that's in my driveway already? Sooner or later, every new car becomes an old car, and you'll feel about the next car just the way you do about your old clunker.
Would I rather have the cash? Our typical car payment, $350, adds up to more than $1,000 in just three short months. Perhaps you'd prefer to get a tan in Mexico and limp along with ol' Betsy another year.
Could I continue to save for another year and simply pay cash? Five grand would buy any of hundreds of reliable used models. Save for two years and you're in new-car territory, if your old car will fetch a few thousand.
If the craving for a shinier car hasn't passed in three months, at least you begin the shopping process with a few months' worth of car payments and a more realistic idea of the hit your wallet will take.
Side note: Never skimp on maintenance
Pay special attention to the things that will cost you a fortune if they break. That means regular oil changes, tire rotations and transmission tune-ups, even if the car is running fine. Timing belts, for example, are spendy at as much as $600, and replacing one for no other reason than that the odometer has turned 90,000 miles might seem wasteful. But let one break and you'll find that repairing bent valves could cost you three times that. Replacing torn CV boots, those plastic housings that keep grime and grit out of the car's constant-velocity joints, costs about a third as much as a CV joint repair. (If your owner's manual is long gone, MSN Autos has a free online service, My Car, that tracks your car's service schedule.)
Des Toups is senior editor at MSN Money in Seattle.
20 Ways You Waste Money on Your Car!
Don't spend a nickel without a darned good reason. Bone up, wise up and don't let anyone lead you astray.
By Des Toups
Cars make us irrational. We call them our babies and lovingly wax them every Saturday -- or we turn up the radio to drown out the sound of a dragging muffler. Either mindset will cost you money, sometimes a lot of it.
Walking the line between obsession and neglect means you never spend a nickel without a good reason -- and good reasons can include spending money on something that’s not broken.
Here, then, are 20 ways you waste money on your car.
Premium gas instead of regular. Buy the cheapest gasoline that doesn’t make your car engine knock. All octane does is prevent knock; a grade higher than the maker of your car recommends is not a “treat.”
3,000-mile oil changes. Manufacturers typically suggest 5,000 miles, 7,500 miles or even longer intervals between oil changes (many car markers now include oil-life monitors that tell you when the oil is dirty -- sometimes as long as 15,000 miles.) There may be two recommendations for oil-change intervals: one for normal driving and one for hard use. If you live in a cold climate, take mostly very short trips, tow a trailer or have a high-revving, high-performance engine, use the more aggressive schedule. If you seldom drive your car, go by the calendar rather than your odometer. Twice a year changes are the minimum.
Taking false economies. Better to replace a timing belt on the manufacturer’s schedule than to have it break somewhere in western Nebraska. Better to pop for snow tires than to ride that low-profile rubber right into a tree.
Using the dealer’s maintenance schedule instead of the factory’s. Of course he thinks you should have a major tune-up every 30,000 miles. Most of the tasks that we generally think of under the heading of “tune-up” are now handled electronically. Stick to the manufacturer’s schedule unless your car is not running well. If your engine doesn't "miss" -- skip a beat or make other odd noises -- don’t change the spark plugs or wires until the manufacturer says so.
Using a dealer for major services. Independent shops almost always will do the same work much cheaper. Call around, owner’s manual in hand, to find out, mindful that the quality of the work is more of a question mark. Some dealers may tell you using outside garages violates the car’s warranty. This is a lie.
Using a dealer for oil changes. Dealers sometimes run dirt-cheap specials, but otherwise you’ll usually find changes cheaper elsewhere. If you’re using an independent shop for the first time, you might inconspicuously mark your old oil filter to make sure it has indeed been changed. And don’t let them talk you into new wiper blades, new air filters or high-priced synthetic oil, unless your car is one of the few high-performance machines built for it.
Not replacing your air filter and wiper blades yourself. Buy them on sale at a discount auto-parts store rather than having a garage or dealer replace them. Replacement is simple for either part, a 5-minute job. A good schedule for new air filters is every other oil change in a dusty climate; elsewhere at least once every 20,000 miles. Treat yourself to new wipers (it’s easiest to buy the whole blade, not the refill) once a year.
Going to any old repair shop. At the very least, make sure it’s ASE-certified (a good housekeeping seal of approval from the nonprofit National Institute for Automotive Service Excellence). From there, look for a well-kept shop with someone who’s willing to answer all your questions. Estimates must include a provision that no extra work will be done without your approval. Drive your car to make sure the problem is fixed before you pay. Pay with a credit card in case there’s a dispute later. Be courteous and pay attention. A good mechanic is hard to find.
Changing your antifreeze every winter. Change it only when a hydrometer suggests it will no longer withstand temperatures 30 degrees below the coldest your area sees in winter. Your dealer or oil-change shop should be happy to check it for free. Every two years is about right. But you also should keep your cooling system happy by running the air conditioner every few weeks in winter to keep it lubricated, checking for puddles underneath the car and replacing belts and hoses before they dry and crack.
Replacing tires when you should be replacing shocks. If your tires are wearing unevenly or peculiarly, your car may be out of alignment or your shocks or struts worn out.
Letting a brake squeal turn into a brake job. Squeal doesn’t necessarily mean you need new rotors or pads; mostly, it’s just annoying. Your first check -- you can probably see your front brakes through the wheels on your car -- is to look at the thickness of the pads. Pads thicker than a quarter-inch are probably fine. If your brakes emit a constant, high-pitched whine and the pads are thinner than a quarter-inch, replace them. If your car shimmies or you feel grinding through the pedal, then your brake rotors need to be turned or replaced.
Not complaining when your warranty claim is rejected. Check Alldata and the National Highway Transportation Safety Administration (NHTSA) to see if a technical service bulletin (TSB) has been issued about the component in question. Manufacturers often will repair known defects outside the warranty period (sometimes called a secret warranty). It helps if you’ve done your homework and haven’t been a jerk.
Not keeping records. A logbook of every repair done to your car can help you decide if something’s seriously out of whack. Didn’t I just buy new brake pads? With a log and an envelope stuffed with receipts, you’ll know who did the work and when, and whether or not there’s a warranty on the repair. And a service logbook helps at resale time, too.
Buying an extended warranty. Most manufacturers allow you to wait until just before the regular warranty expires to decide. By then you should know whether your car is troublesome enough to require the extended warranty. Most of them aren’t worth the price.
Overinsuring. Never skimp on liability, but why buy collision and comprehensive insurance on a junker you can probably afford to replace? Add your deductible to your yearly bill for collision and comprehensive coverage, then compare that total with the wholesale value of the car. If it’s more than half, reconsider.
Assuming the problem is major. If your car is overheating but you don’t see a busted hose or lots of steam, it might be the $5 thermostat, not your radiator. Or it may be that ominous “check engine” light itself that’s failed, not your alternator.
Not changing the fuel filter. Have it replaced as a part of your maintenance -- every two years or according to the manufacturer’s schedule -- rather than when it becomes clogged with grit, leaving you at the mercy of the nearest garage.
Not knowing how to change a tire. Have you even looked at your spare? Make sure it’s up to snuff and all the parts of your jack are there. Changing a flat yourself is not only cheaper, it’s faster, too.
Not keeping your tires properly inflated. Check them once a month; otherwise, you’re wasting gasoline, risking a blowout and wearing them out more quickly.
Car washes. Ten bucks for long lines and gray water? Nothing shows you care like doing it yourself.
By Des Toups
Cars make us irrational. We call them our babies and lovingly wax them every Saturday -- or we turn up the radio to drown out the sound of a dragging muffler. Either mindset will cost you money, sometimes a lot of it.
Walking the line between obsession and neglect means you never spend a nickel without a good reason -- and good reasons can include spending money on something that’s not broken.
Here, then, are 20 ways you waste money on your car.
Premium gas instead of regular. Buy the cheapest gasoline that doesn’t make your car engine knock. All octane does is prevent knock; a grade higher than the maker of your car recommends is not a “treat.”
3,000-mile oil changes. Manufacturers typically suggest 5,000 miles, 7,500 miles or even longer intervals between oil changes (many car markers now include oil-life monitors that tell you when the oil is dirty -- sometimes as long as 15,000 miles.) There may be two recommendations for oil-change intervals: one for normal driving and one for hard use. If you live in a cold climate, take mostly very short trips, tow a trailer or have a high-revving, high-performance engine, use the more aggressive schedule. If you seldom drive your car, go by the calendar rather than your odometer. Twice a year changes are the minimum.
Taking false economies. Better to replace a timing belt on the manufacturer’s schedule than to have it break somewhere in western Nebraska. Better to pop for snow tires than to ride that low-profile rubber right into a tree.
Using the dealer’s maintenance schedule instead of the factory’s. Of course he thinks you should have a major tune-up every 30,000 miles. Most of the tasks that we generally think of under the heading of “tune-up” are now handled electronically. Stick to the manufacturer’s schedule unless your car is not running well. If your engine doesn't "miss" -- skip a beat or make other odd noises -- don’t change the spark plugs or wires until the manufacturer says so.
Using a dealer for major services. Independent shops almost always will do the same work much cheaper. Call around, owner’s manual in hand, to find out, mindful that the quality of the work is more of a question mark. Some dealers may tell you using outside garages violates the car’s warranty. This is a lie.
Using a dealer for oil changes. Dealers sometimes run dirt-cheap specials, but otherwise you’ll usually find changes cheaper elsewhere. If you’re using an independent shop for the first time, you might inconspicuously mark your old oil filter to make sure it has indeed been changed. And don’t let them talk you into new wiper blades, new air filters or high-priced synthetic oil, unless your car is one of the few high-performance machines built for it.
Not replacing your air filter and wiper blades yourself. Buy them on sale at a discount auto-parts store rather than having a garage or dealer replace them. Replacement is simple for either part, a 5-minute job. A good schedule for new air filters is every other oil change in a dusty climate; elsewhere at least once every 20,000 miles. Treat yourself to new wipers (it’s easiest to buy the whole blade, not the refill) once a year.
Going to any old repair shop. At the very least, make sure it’s ASE-certified (a good housekeeping seal of approval from the nonprofit National Institute for Automotive Service Excellence). From there, look for a well-kept shop with someone who’s willing to answer all your questions. Estimates must include a provision that no extra work will be done without your approval. Drive your car to make sure the problem is fixed before you pay. Pay with a credit card in case there’s a dispute later. Be courteous and pay attention. A good mechanic is hard to find.
Changing your antifreeze every winter. Change it only when a hydrometer suggests it will no longer withstand temperatures 30 degrees below the coldest your area sees in winter. Your dealer or oil-change shop should be happy to check it for free. Every two years is about right. But you also should keep your cooling system happy by running the air conditioner every few weeks in winter to keep it lubricated, checking for puddles underneath the car and replacing belts and hoses before they dry and crack.
Replacing tires when you should be replacing shocks. If your tires are wearing unevenly or peculiarly, your car may be out of alignment or your shocks or struts worn out.
Letting a brake squeal turn into a brake job. Squeal doesn’t necessarily mean you need new rotors or pads; mostly, it’s just annoying. Your first check -- you can probably see your front brakes through the wheels on your car -- is to look at the thickness of the pads. Pads thicker than a quarter-inch are probably fine. If your brakes emit a constant, high-pitched whine and the pads are thinner than a quarter-inch, replace them. If your car shimmies or you feel grinding through the pedal, then your brake rotors need to be turned or replaced.
Not complaining when your warranty claim is rejected. Check Alldata and the National Highway Transportation Safety Administration (NHTSA) to see if a technical service bulletin (TSB) has been issued about the component in question. Manufacturers often will repair known defects outside the warranty period (sometimes called a secret warranty). It helps if you’ve done your homework and haven’t been a jerk.
Not keeping records. A logbook of every repair done to your car can help you decide if something’s seriously out of whack. Didn’t I just buy new brake pads? With a log and an envelope stuffed with receipts, you’ll know who did the work and when, and whether or not there’s a warranty on the repair. And a service logbook helps at resale time, too.
Buying an extended warranty. Most manufacturers allow you to wait until just before the regular warranty expires to decide. By then you should know whether your car is troublesome enough to require the extended warranty. Most of them aren’t worth the price.
Overinsuring. Never skimp on liability, but why buy collision and comprehensive insurance on a junker you can probably afford to replace? Add your deductible to your yearly bill for collision and comprehensive coverage, then compare that total with the wholesale value of the car. If it’s more than half, reconsider.
Assuming the problem is major. If your car is overheating but you don’t see a busted hose or lots of steam, it might be the $5 thermostat, not your radiator. Or it may be that ominous “check engine” light itself that’s failed, not your alternator.
Not changing the fuel filter. Have it replaced as a part of your maintenance -- every two years or according to the manufacturer’s schedule -- rather than when it becomes clogged with grit, leaving you at the mercy of the nearest garage.
Not knowing how to change a tire. Have you even looked at your spare? Make sure it’s up to snuff and all the parts of your jack are there. Changing a flat yourself is not only cheaper, it’s faster, too.
Not keeping your tires properly inflated. Check them once a month; otherwise, you’re wasting gasoline, risking a blowout and wearing them out more quickly.
Car washes. Ten bucks for long lines and gray water? Nothing shows you care like doing it yourself.
Tuesday, May 15, 2007
When Haggling Pays Off
Since you can't avoid the car salesperson's negotiating ploys, your only defense is to recognize what he's doing. You then have the chance to use some of those tactics yourself -- becoming the fisherman instead of the fish.
It's called haggling. How well you do it could be the key factor in determining the price you agree to pay for your new car.Here are some tactics you can use when negotiating a deal:
Invoke higher authority. In this tactic, the buyer and seller arrive at a tentative agreement, then one party has to get someone to OK the deal. Anyone who has haggled with a car salesperson is familiar with this tactic: You arrive at a price, then the salesperson has to get the sales manager's approval. Buyers can use this tactic, too. The wife can say she loves the car, but apologetically explains to the salesman that her husband won't budge unless the price is reduced. Or vice versa.
Never say yes to the first proposal. The first price the dealer tosses out in a negotiation will almost never be the best offer. So reject it out of hand. What's the worst that can happen? He won't budge and you go to another dealer.
Make sure to flinch. The most common tactical mistake that consumers make is to remain calm in the face of a proposal. It's better to flinch -- to appear shocked and surprised by an "outrageous" offer, even if it's not really unreasonable. You might think a stoic demeanor looks professional, but in the haggling business, it will cost you.
Squeeze your opponent: You say, 'I'm sorry, but you'll have to do better than that.' Then you shut up. Too many people just can't stay quiet; they blink and fill in the silence with words that drain all the power out of their rejection. Keep quiet. Chances are that you'll get a more reasonable offer.
Never offer to split the difference in price. Always wait for the other side to split the difference; it gives your opponent a feeling of winning and, if you split the difference again, it'll be in your favor.
Save a small concession. Hold back something you're willing to give up at the end so the other side can feel the satisfaction of winning something.
You might not feel comfortable using these tactics, but the experts say they'll be used on you.
It's called haggling. How well you do it could be the key factor in determining the price you agree to pay for your new car.Here are some tactics you can use when negotiating a deal:
Invoke higher authority. In this tactic, the buyer and seller arrive at a tentative agreement, then one party has to get someone to OK the deal. Anyone who has haggled with a car salesperson is familiar with this tactic: You arrive at a price, then the salesperson has to get the sales manager's approval. Buyers can use this tactic, too. The wife can say she loves the car, but apologetically explains to the salesman that her husband won't budge unless the price is reduced. Or vice versa.
Never say yes to the first proposal. The first price the dealer tosses out in a negotiation will almost never be the best offer. So reject it out of hand. What's the worst that can happen? He won't budge and you go to another dealer.
Make sure to flinch. The most common tactical mistake that consumers make is to remain calm in the face of a proposal. It's better to flinch -- to appear shocked and surprised by an "outrageous" offer, even if it's not really unreasonable. You might think a stoic demeanor looks professional, but in the haggling business, it will cost you.
Squeeze your opponent: You say, 'I'm sorry, but you'll have to do better than that.' Then you shut up. Too many people just can't stay quiet; they blink and fill in the silence with words that drain all the power out of their rejection. Keep quiet. Chances are that you'll get a more reasonable offer.
Never offer to split the difference in price. Always wait for the other side to split the difference; it gives your opponent a feeling of winning and, if you split the difference again, it'll be in your favor.
Save a small concession. Hold back something you're willing to give up at the end so the other side can feel the satisfaction of winning something.
You might not feel comfortable using these tactics, but the experts say they'll be used on you.
Biggest Mistakes Car Buyers Can Make
Yep, getting a new set of wheels is one of those wonderful sources of high-octane excitement -- but don't get too revved up.
Car-buying is, or should be, a calculated decision. It's a major purchase. So, before you go cuckoo for that coupe or raving for that roadster, consider these mistakes car buyers can make.
1.Buying the wrong vehicle: Sure, those SUVs look big and cool, and dealers are dealing. But do you need one to drive the mile and a half to bingo every Sunday? Is that racy red sports car really the best choice for your family-of-five-kids-and-growing?
2.Showing emotions in the showroom: If you fall in love with a car, be sure not to overreact and get too anxious. Give yourself some time to sit back and make sure it's the car for you. In short, don't let your heart rule your head -- it can lead to aching in both body parts. Also, keep a grasp on reality. If you can afford $20,000 and the object of your affection lists for $30,000, you might be able to negotiate it down to, say, $27,000, but there's no way you're going to be able to buy it for $20,000.
3.Choosing a dealer by location: No, dealers are not all the same, not even for the same exact makes and models. Ask around. Learn from friends' experiences. Also, determine your dealer's CSI (Customer Satisfaction Index), which is a ranking generally maintained by individual automakers for the dealerships that sell their vehicles. Ford, for example, gives out what's called the Blue Oval Award to dealers with a top ranking. The CSI is a reflection of how well an individual dealer satisfies its customers both in terms of sales and service. Ask your salesman about the dealership's awards. If he balks, you should walk. You can also check a dealership's complaint record with the Better Business Bureau.
4. Talking trade-in too early: This is another easy trap to fall into because dealers love to play the trade-in game. Don't let them muddy the waters. Negotiate a satisfactory price for the new car, and then bring up your trade-in. Another thought: If you bring in your old car full of trash and covered in mud, the appraiser will rightly assume you don't put much value on it yourself.
5. Going it alone when you need a helping hand: If hassles give you headaches and negotiations make you nauseated, turn it over to an auto broker or a service such as the AAA Endorsed Auto Buying Program, which nets members special pricing through authorized dealers.
6. Forgetting that it ain't over 'til it's over: Or, in the case of car buying, it ain't over 'til the business manager sings. You may think you bought your car once the sales manager shakes your hand and tells you what a great deal you got. But beware the business office, often called the finance and insurance office. Dealers often make as much money in this room as they do on the showroom floor. Insurance, dealer add-ons, extra fees and interest rate changes are among the common ploys you could get clobbered with on your way out the door.
Car-buying is, or should be, a calculated decision. It's a major purchase. So, before you go cuckoo for that coupe or raving for that roadster, consider these mistakes car buyers can make.
1.Buying the wrong vehicle: Sure, those SUVs look big and cool, and dealers are dealing. But do you need one to drive the mile and a half to bingo every Sunday? Is that racy red sports car really the best choice for your family-of-five-kids-and-growing?
2.Showing emotions in the showroom: If you fall in love with a car, be sure not to overreact and get too anxious. Give yourself some time to sit back and make sure it's the car for you. In short, don't let your heart rule your head -- it can lead to aching in both body parts. Also, keep a grasp on reality. If you can afford $20,000 and the object of your affection lists for $30,000, you might be able to negotiate it down to, say, $27,000, but there's no way you're going to be able to buy it for $20,000.
3.Choosing a dealer by location: No, dealers are not all the same, not even for the same exact makes and models. Ask around. Learn from friends' experiences. Also, determine your dealer's CSI (Customer Satisfaction Index), which is a ranking generally maintained by individual automakers for the dealerships that sell their vehicles. Ford, for example, gives out what's called the Blue Oval Award to dealers with a top ranking. The CSI is a reflection of how well an individual dealer satisfies its customers both in terms of sales and service. Ask your salesman about the dealership's awards. If he balks, you should walk. You can also check a dealership's complaint record with the Better Business Bureau.
4. Talking trade-in too early: This is another easy trap to fall into because dealers love to play the trade-in game. Don't let them muddy the waters. Negotiate a satisfactory price for the new car, and then bring up your trade-in. Another thought: If you bring in your old car full of trash and covered in mud, the appraiser will rightly assume you don't put much value on it yourself.
5. Going it alone when you need a helping hand: If hassles give you headaches and negotiations make you nauseated, turn it over to an auto broker or a service such as the AAA Endorsed Auto Buying Program, which nets members special pricing through authorized dealers.
6. Forgetting that it ain't over 'til it's over: Or, in the case of car buying, it ain't over 'til the business manager sings. You may think you bought your car once the sales manager shakes your hand and tells you what a great deal you got. But beware the business office, often called the finance and insurance office. Dealers often make as much money in this room as they do on the showroom floor. Insurance, dealer add-ons, extra fees and interest rate changes are among the common ploys you could get clobbered with on your way out the door.
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