At a time when automakers are desperate for every sale, a remarkable number of shoppers are drifting out of the new car market and purchasing a used car instead. In fact, Edmunds.com has determined that approximately 511,000 used cars sold in the past three months would have been new car sales in a more normal economy.
But how do you determine a fair price -- whether you're buying or selling a used car? The market is so volatile that you can't rely on anything from a book, because it would be instantly out of date.
Edmunds created True Market Value pricing for this very purpose. (For a cool tutorial on TMV, please click here.) Here's how you research a used vehicle's TMV price:
1. click the Used Cars tab from anywhere on the site
3. Select the make, year, model and style of the vehicle you would like to appraise
4. Choose whether you are planning to buy or sell the vehicle
5. Indicate the vehicle's color, mileage, options and condition
6. Finally, click "Get Pricing Report" to generate a customized TMV price for the vehicle. This report will provide you with the vehicle's trade-in, private party and dealer retail TMV prices.
TMV pricing is the most accurate reflection of actual transaction prices in your area. For more information, see How We Calculate Used TMV Prices.
Here are a few bullet points for buying a used car:
There are so many ways that a manufacturer can help a dealer to "move" a car that it's almost impossible to keep track of. But two of the main tools are Dealer Cash and Dealer Holdback.
Dealer Cash is money that the manufacturer offers to the dealer to help sweeten the deal for the consumer. The manufacturer might offer this money when the dealer first buys the car, or later, when the dealer sells the car or reaches certain sales targets. Dealer Cash is listed in our Incentives and Rebates, so you can see exactly what's being offered to the dealer. But here's the catch: Dealers aren't required to pass all that cash through to the customer. They may, or the customer may get some or none of it. It all depends on your negotiation.
Dealer Holdback is a percentage of either the MSRP or invoice price of a new vehicle (depending on the manufacturer) that is repaid to the dealer by the manufacturer. The holdback is designed to supplement the dealer's cash flow and indirectly reduce "variable sales expenses" (code words for sales commissions) by artificially elevating the dealership's paper cost. It is dealer holdback, among other factors, that allow dealers to sell a vehicle at invoice price -- or sometimes even below -- and still make some profit.
Our True Market Value vehicle figures incorporate Dealer Cash as one of several types of incentives that can affect the average transaction price for a car. So when you use TMV as your target, you can rest assured that Dealer Cash has been factored into that price.
Dealer Holdback is a "sacred cow" to dealers and something they generally won't budge on (and if you bring it up, you're likely to be met with some scowls), so it is not figured into TMV. Although there are strategies for when to ask for the holdback, we recommend only bringing it up if a dealer starts whining about "not making any money" on a vehicle. Even if they sell the car for invoice price, they will still make a few hundred dollars on the holdback.
There are plenty of fees associated with buying a new or used car -- enough to make you think you should have bought a less expensive vehicle. Which of these fees are mandatory and which can you haggle over? Let's break it down:
Vehicle Registration fee: This one's a no-brainer. Every vehicle must be registered by the state. It covers registration, license plate fees, and title assignment.
Sales Tax: Same as it ever was. At 8%, tax on a $20K car can cost $1,600!
Documentation fee: If the doc fee is regulated in your state, pay it. But in most states it's not, and the dealer could really overcharge you. Try to keep your doc fee at or below $100.
Dealer fee: Often labeled 'dealer prep' or 'shipping' or any of a number of made-up names, this is where you need to be careful.
Advertising fee: If it's listed in the car's invoice, pay it. If not, but the dealer tries to write it into your contract, fight it.
Taxes on Trade-Ins and Rebates: This is a complicated subject and, as usual, it depends on your state law. But a state-by-state breakdown of these taxes, along with more details on all the fees listed above, is in our article, What Fees Should You Pay? Here, as with the price you pay for the metal you'll be driving home, it really pays to do your homework before going to the dealer.
Imagine this -- you buy a nice used car from what you think is a credible dealer and after you start making payments get hit with an additional loan to pay off. Huh? Turns out this other loan is left over from when the previous owner traded the car into the dealership. How did this mess happen and why is the innocent new owner on the hook for it?
Incentives on new vehicles -- even ones that used to command sticker price and above -- are getting to crazy levels. Why? Dealer lots are still full of new 2008 vehicles that aren't moving (not that the '09s are moving so well, either). In fact, on average, 39% of the cars in lots in December 2008 were that year's models, compared with only 19% for 2007.
The average "days to turn (DTT)" -- the number of days from when a dealer receives a car to when it drives off the lot -- is at a record 86 days for the industry overall. Here's the December DTT for the Big 6. (All names include their subsidiaries except for Ford's Mazda.)
Chrysler Group 124 GM 99 Ford 88 Nissan 83 Honda 59 Toyota 58
Of the above, GM, Nissan, Honda and Toyota are at all-time highs. Toyotas that used to be sold before they even came into the showroom are now sitting on the lot for two months!
What this means to consumers is deals galore. In an unusual reversal of the general rule, it may even be a better deal to get a new car (with incentives on it) than a late-model used car. But the deals aren't limited to '08s; there are some great deals on '09s as well.
Welcome to FAQ Fridays, a new weekly blog feature that answers some of the most frequently asked questions Edmunds readers send in.
First up: Folks want to know why the prices, specs or options on Edmunds might be different from what they see on other automotive sites. Good question! There are several reasons why this might happen, and we'll outline them here. Destination Charges and Other Fees: On our site, we always make it clear when destination charges or other fees are included in a vehicle's price, but to determine this elsewhere you may need to examine the pricing details or window sticker closely.
Vehicle Styles: Most vehicles are available in many different styles, and sometimes this leads to confusion when making comparisons. Styles listed on our site include the vehicle's trim, number of doors, body type, drive type, engine and transmission. For example, here's a style currently available for the 2009 Honda Pilot: EX-L 4dr SUV AWD (3.5L 6cyl 5A).
Sometimes a style contains a Special Identifier (SI) when a manufacturer wants to specify a unique feature. For example, rear entertainment is the SI on the following style of the 2009 Honda Pilot: EX-L 4dr SUV w/Rear Entertainment AWD (3.5L 6cyl 5A).
For many, buying a car is as much an emotional as it is a practical decision. Sometimes we just can't believe the things that push the right buttons for folks when they're looking for wheels -- certain colors, the gold emblem package. Knowing what you like is all well and good, but when it comes to considering a used car, things such as condition, mileage and a solid maintenance history take priority.
So in the interest of helping you keep a clear head and making sure you do everything possible to ensure the used cars you're considering are worth taking a look at, we've created this handy worksheet for you. Use it when you're calling or e-mailing prospects. It's a pre-emptive strike designed to minimize the chances of you wasting time going to see a car, only to discover, for example, that it doesn't have the features you want or is going to need some big repairs. It's also a good idea to bring it along when you examine the car in person; as any lingering questions can be answered at that time.
Dealing with an automaker's finance arm shouldn't be a harrowing experience, but it sometimes is. Recently, J.D. Power came out with their 2008 Consumer Financing Satisfaction Survey, which measures customer satisfaction with new vehicle finance services according to four criteria: application approval process; customer contact; payment/billing process; and provider offering.
The rankings are divided into categories: Luxury loan, luxury lease, non-luxury loan, and non-luxury lease. BMW took both luxury categories, while Hyundai took the non-luxury loan and Ford the non-luxury lease. Interestingly, Honda ranked third (which is still quite good) in three of the four categories.
I noticed that Toyota and Nissan, which I personally found to be a pain to deal with on my own vehicles, were nowhere to be found. Just goes to show you; 27,964 surveyed consumers can't be wrong.
So for now, forget about the dealership experience. What's your experience been with the finance companies? Good, bad or otherwise?
We''ve been hearing a lot about the frozen tundra of credit availability and how folks under 700 FICO need not apply. Well, Phil and I did a little research and got the low down on what's really happening to consumers in search of new wheels.
Why Are Car Buyers Staying Away from the Dealership?
Can I Get a Car Loan?
How Have Credit Requirements Changed?
Is It a Good Time To Buy a Car?
Car-Buying Tips in Troubled Times
Because automakers are hurting so badly, it might be one of the best times ever to buy car -- just be sure to check our Rebates and Incentives information to make sure you get every manufacturer and dealer incentive coming to you. Yes, it's true: Both auto financing and leasing standards are tougher, but nowhere near impossible to overcome. If your credit's not great, you'll have to pony up more cash up front to make it happen. But the people who are shut out of vehicle financing are likely to be those who truly should be -- because they're bad risks. Call it a market correction.
But what about you personally? Have you found it tougher to buy a car, or do you know people who have? Are you polishing up your credit score? Are you shopping the used car market instead? Or have you taken advantage of the chaos to score a great deal? Let us know!
Dealerships all over the country are getting hit particularly hard by our country's current economic woes. Many consumers are deciding to hold back on buying that new car until they feel more financially secure (or are being forced to do so because of credit issues). In September, new car sales across the industry were down about 23% from what they were in August. It's predicted that many, many dealerships will be forced to close their doors permanently by the end of the year. What does all this have to do with oil changes and tire rotations, you ask? Read on.
Even in this crazy economic climate, most people can get still auto financing. Preparation and knowing what to expect at the dealership can make the difference between getting a car loan (yes, a good one) and not getting one at all. Below are the most common auto financing pitfalls that consumers experience:
#1: Not knowing their credit rating when they apply for an auto loan.
#2: Overspending once they get to the dealership.
#3: Not knowing the current interest rates being offered in the marketplace
#4: Not having approved financing in hand before entering a dealership
#5: Assuming a zero-percent loan will save more money than a cash-back rebate
#6: Falling victim to the F&I officer, who may try to confuse you by "intertwining" different elements of your deal. ("We'll give you an extra-low price on the vehicle, but this interest rate is the best we can do.")
#7: Not reviewing the contract for "extras" that have been thrown in before signing.
#8: Succumbing to pressure and exhaustion by signing the contract, despite confusion, second thoughts, or misgivings.
Most people forget that the price of the car is important, but the financing deal is often moreso. Paying a slightly higher interest rate or extending your payments for a few more months adds up to hundreds, sometimes thousands of dollars more. If you take time to do a little homework, you'll leave the dealership confident that even in these strange economic times, you got a good deal.
It's hard to imagine any good news about credit right now. According to Bloomberg.com, Senate Banking Committee Chairman Christopher Dodd said, ``I was told today you have to have a FICO score of 720 to qualify for a car loan. The effects of this could be huge.''
Huge, indeed. Before you can buy or lease a car, a dealer checks your credit, and if you don't pass the smell test, the rate s/he offers you will be higher... or you might not qualify at all.
We've got lots of information on the importance of your credit score and tips for subprime borrowers. (Is 710 the "new" subprime?) But the bottom line is, not only do you need to know your score, you need to know what's keeping it from being the best it can be. For example, when I refinanced my mortgage, I discoverd that my score was getting dinged for an outstanding payment owed to a book club from five years ago... and I knew nothing about it.
So where's the silver lining? TransUnion, one of the big three credit reporting agencies, got caught giving away too much information about its customers to insurance and credit marketers (read: unsoliticed phone calls and junk mail). As a result of a successful class-action lawsuit, TransUnion now has to provide free, 24-hour credit monitoring to pretty much the entire country. The benefit of this is that you'll be able to see your TransUnion score, what's affecting it, and receive 24-hour credit monitoring (which will help protect you from identity theft, a service not to be underestimated). Whether you get six or nine months free depends on whether you opt to take a little cash that might come your way with the settlement. Personally, I would forego the cash, because it's likely to be pennies or a couple dollars at most. (Analysis on the settlement can be found here.)
The settlement is old news, but now you can register for benefits at a special site set up for the purpose. It's super easy and we strongly recommend you tell all your friends about it. (To make this work, you will need to have an email address.) This service is far beyond the once-yearly credit report that these companies are normally obligated to provide.
The other night a warning light came on in one of our long-term cars. It was late on a Friday night, I was out of town, and I wasn't sure where to turn. Being an Internet junkie, I immediately went online to search for the nearest dealership, and in no time was able to set up an appointment online for the next morning. Sure, I could have just called them the next day, but there was something comforting about being able to secure a spot right then and there.
But before I made my appointment, I had entered my personal information on the dealership site and inadvertently clicked on "get a quote" instead of the "find appointment" button. When I realized what I'd done, I was petrified. "Oh no," I thought, "here it comes. I'm going to be harassed."
As if I haven't had enough problems with my newly-leased 2008 Nissan Altima Hybrid. First the battery died as I tried to leave the car dealer's lot. Then, it died again two days later, requiring that it be towed and the battery replaced.
Now, the headliner -- the cloth that covers the roof interior -- is falling down. I've only had this vehicle one month. What happened to "vehicle quality"? Tomorrow I go to a nearby dealer to get it fixed... the whole headliner might need replacement. I just love hanging around dealership service departments; don't you?
But wait, there's more. The dealer's finance department messed up a date on the original contract, so the leasing company (Nissan Motor Acceptance Corporation) thinks I took possession of the car two weeks before I actually did. Calling the dealership finance manager (twice or three times) to straighten things out (which NMAC told me to do) has been fruitless.
True, the headliner (the cloth that covers inside of the car's roof) is starting to fall away over the left rear seat. I have to give my local Nissan dealership two days notice before I can bring it in to fix it...
Yesterday I continued my story on how I came to choose the 2008 Nissan Altima Hybrid as my new ride, and the deal I got on it. What I didn't have room for, though, was the details on how the car died as I tried to leave the lot.
Yes, after a few hours with the salesman and the finance woman -- during which time I had to do all the paperwork twice because someone screwed up the VIN -- I was finally ready to leave. But my new car was missing floor mats, the navigation manual, and a second key. What's up with that? Well, these things get poached when a car is sitting on the lot for a while... Would I come back at a later date to get those things? Well, what choice did I have at that point?
The car had been gassed and washed (at least on the outside; the inside was still really dusty, as I found later.) But when I pushed the START button to drive it off the lot, nothing happened.
Was my foot on the brake, as required? Yes it was. I tried repeatedly, but no dice. The salesman tried, but again, no dice. He looked concerned. He said, "I don't get it, it was working fine all day." I looked back at him and said, "You know, this isn't supposed to happen, right?"
Right. So they jumped the car, got it started, and the battery continued to charge itself as the car ran. The salesman and I drove around the dealership for a mile or so just to make sure it wouldn't die, then I dropped him off and went home.
All went well for two days. Then, on Wednesday evening, aftering return from an event for Planet Green, the Discovery's Channel's new eco-lifestyle channel (launching June 4), I parked in front of my house and turned the car off. Two minutes later, when I went to take the babysitter home, the car wouldn't start. Dead in the water. I got the babysitter home using the Highlander (which I hadn't yet returned to the Toyota dealership yet), and went to work to figure the damn thing out.
I went through the manual till after midnight, then gave it a rest. In the morning, I prayed for a miracle, but there was nothing. So Thursday, after I returned from work, the Nissan dealership had my new car towed -- towed! -- back to the dealership for repairs. And there it still sits now.
I started looking at regular five-seater vehicles. I spent Sunday testing a ton of cars at Galpin Motors, because 1) they responded to my Edmunds quote request, and 2) they have Volvo, Ford, Saturn, Mazda, and Honda -- as well as five other brands -- all under one roof. My salesman from the Internet department, James K., was a mensch, letting me test drive everything I had my eye on without any pressure. (And no, he didn't know I was from Edmunds until later in the process.) I tried out everything from the small Mazda 3 (because the editors always loved that car, and after driving it, I could see why) to the Mazda CX-7, to the Ford Escape Hybrid, to the Volvo S40. All cars I had liked for one reason or another. The smaller cars on that list I ruled out because the back seat wasn't comfortable for three people.
So why not get the Mazda CX-7? I love the way Mazdas drive (the "zoom-zoom" ads are actually true). But SUVs are generally more expensive than sedans of the same size and get poorer fuel economy. In California, gas prices are already well over $4 / gallon. And prices are only going to go up. While it's true that hybrids don't yet make financial sense for most people (because the price premium for the hybrid usually outweighs the money saved on gas), that changes as gas prices rise. And besides, I'm even "greener" now than I used to be, and my husband and I really like the idea of less pollution / great fuel economy.
I started thinking: "family" sedan (for the rear seat) + great gas mileage + driving dynamics + style. Right there, that limited my list. I probably should have tested the Honda Accord -- but I was in overwhelm mode, and the Internet manager at the dealership needed his salesman back.
A few weeks ago, I asked for feedback on my next new car. Well, so much has changed since then, and I finally (finally!) made a decision over the Memorial Day Weekend: A 2008 Nissan Altima Hybrid.
Ward's Dealer Business, an industry publiciation, recently published a good article on women-owned dealerships. Here's an excerpt:
"Women bring a different approach and style to something that has been a man's world," [Deborah Dorman, president of ENYCAR, Inc., the Eastern New York Coalition of Automotive Retailers] says. "And what they bring helps the industry to prosper because of some of the old traditional methods and styles commonly used in auto retailing today are not effective for today's workforce."
Few women dealers woke up one morning and decided to buy a dealership. Most women dealers became dealers because their fathers were dealers before them or their husbands were...
Time to take your car in for service? Before you call to make an appointment, check out this super useful tool we have on Edmunds.com. I was recently reminded of its existence in the Tips & Advice section after one of our editors posted about taking our long-term Hyundai Veracruz in for service this week. I wish I had known of its existence before I took my car to the dealer the last time (which was before I worked here)...
Even if you're not working on Wall Street or an employee of one of the four airlines that failed in 2008, chances are you're feeling the pain of the slow economy. Gas prices up, unemployment up, spending money down. Sounds like a lousy time to buy some wheels...
Nowadays when you hear the word "subprime," you think of the housing market. But subprime simply means that your credit isn't ideal, and it affects every loan you want to take out, including car loans.
What to do? You can get a car loan with bad credit; you just have to try a little harder...
2008 Hyundai Azera... practically identical to the 2007, but you can get great deals on all remaining 2007 makes and models.
A little while ago, my brother ran over a stop sign. He made the mistake of trying to go back and forth to loosen it from the undercarriage of his old Buick...
The best part of the Lexus booth was their spa loft. Sure, I loved the look of the LF-A Roadster concept, the one with a V10 engine capable of 500 plus horsepower and a top speed of over 200 mph. All very nice.
But, after checking out their vehicles and hybrid technology, I couldn’t stop myself from floating up a cascade of white steps to an aromatherapy infused loft based in soothing music and scents of aromatherapy...
You've probably seen Edmunds' CarSpace -- where consumers can discuss any automotive-related topic from shopping for cars to the specifics of makes and models. Now, the people in charge of CarSpace (the Community team) has just launched a new service to answer all your questions. Appropriately called Edmunds' Answers, it's a social question and answer system where any member can ask an automotive question. Members of the community, including Edmunds employees, can answer these questions...
It never ceases to amaze me how many car ads there are this time of year. It feels as though 50 percent of all TV advertising is for cars. There are a lot of deals to be had now -- 0% financing, lease specials, etc...
The automotive business is one place where a woman's skill set (compassion, communication, creativity, organizational skills and multitasking) is appreciated. Got your interest? Read on...
Last year, a free event hosted by the Greater New York Automobile Dealers Association (GNYADA) was dubbed "Chocolate, Cars and Careers" to entice more women to attend...
Of course you know that there's more to test-driving a used car than listening to its radio while driving. Well, in case you didn't know that, you might want to check out our newest top 10 article, Top 10 Tips on How To Test-Drive Used Cars. A professional race driver offers his tips on how to figure out if a used car is a safe, reliable value by just showing you what to look out for and how to drive it.
Although we haven't formally announced it yet, Edmunds.com now gives the low-down on your local car dealers. It's called (appropriately) Dealer Ratings and Reviews. Just type in a make and your zip code, and voila, you can read dealership details, sales reviews, even services review!..
Saturn, long a brand favored by women because of it's no-haggle pricing and friendly dealership experience, is adding the cherry on top of it's consumer-friendly cake. With the new "Test Drive at Home" program, a Saturn dealer can now bring a new Saturn to your home or office so that you can test drive it from there. As a nice little bonus, the salesperson may even:
* Prepare specific routes to replicate your daily drive cycle * Allow you to use the test drive to complete routine errands * Pre-selecting music to match the your preferences
As part of the program, Saturn also offering a 24/7 chat feature with Saturn representatives on Saturn.com...
Forbes.com has an entertaining and enlightening article on the biggest lies car dealers tell. It starts off with a longish apology of sorts for the working stiffs who sell cars -- how a few bad apples can spoil an otherwise honorable business for everybody. After all, it says, they lie no more often than other people:
It may not be more dishonest, but it is more harmful, as a tube of toothpaste or a cup of coffee won't set you back too much, but a bad deal on a car can cost hundreds or thousands more than it should.
It also states that people actually like the bargaining process...
We always advise consumers who belong to a credit union to check out their union's rates on vehicle financing -- usually they're really good, better than most banks. But members of many credit unions in California, Oregon, and Washington now have another advantage: If they go through their credit union to buy a used car through AutoLand, they get a free "buy back" policy for five days or 500 miles. That means if a consumer is unhappy with the car, the dealer will buy it back anytime during that period. AutoLand, which services hundreds of credit unions, is also extending it's limited warranty on pre-owned cars to five months or 5,000...
Bad news for used car buyers: You have to be extra careful that the car you want to buy wasn't flood damaged in hurricane Katrina.
New study by Experian, which provides vehicle history data, found that thousands of cars have been retitled by unscrupulous dealers who bring the cars across state lines for "title washing." That means the cars title won't say "Salvage" or "Flooded" like flood-damaged cars should. About half the cars that are brought across state lines are given clean titles. Experian estimates about 7,000 cars are on the loose that could have real safety problems with their electrical systems, brakes, etc...
This week's Business Week magazine has a great article, Death of the Car Salesman, discussing how tough selling cars has become. Here's an excerpt describing the "old" days versus nowadays:
Excerpt: Since buyers didn't know what cars really cost, dealers could pad them with all kinds of options and keep thousands of dollars in markup. Unscrupulous salesmen did just about anything to close a deal. One trick was to say the dealer had misplaced the keys to the trade-in...
Here's the first "green" car dealership -- the 53,000-square-foot two-story Pat Lobb Toyota
in McKinney, Texas. The dealership has a car wash and an irrigation system that uses recycled water and a heating system that runs in part on waste oil from oil changes. Bike racks and preferred parking for vanpools encourage car shoppers to "walk the walk."
It's not surprising that this is a Toyota dealership, given Toyota's leadership position in the hybrid market...
A few weeks ago, my friend and her husband took a weekend road trip in their 2003 Volkswagen Jetta wagon. Thanks to traffic and being stuck behind a new Hummer H2 with no mud flaps, their trip culminated with a giant crack across their windshield from a stray rock.
My friend called their local Volkswagen dealer to inquire about having the windshield replaced. Her call was transferred through multiple departments before someone could assist her. To her disappointment, the service department insisted that she go into the dealership in person to order the replacement windshield before they would allow her to make an installation appointment. They also refused to schedule the appointment until the windshield was paid for in full. It seemed like a pretty big hassle for such a simple fix. The cost of the OEM windshield was about $250. Annoyed by the process, she decided to look elsewhere before pursuing things further with the dealership.
I suggested she call around to some of the mobile glass replacement companies. Most of these companies use OEM replacement glass and will come to your home or office to do the installation. After shopping around she selected a company called The Glass Doctor to handle the job. She called on Tuesday and the new windshield was installed Wednesday afternoon at her office. No upfront payment was required, and for $310 the installed windshield looked brand new.
For repairs that are not covered by your vehicle's warranty, it may pay to shop around. You may find you can get the same part installed for less money and if nothing else, a lot less hassle. One word of caution on mobile repair services if you work in an office building and park in an underground parking structure, check with building management before scheduling the service to ensure they are okay with the repair work happening on site...
When you are trading in your old car at the dealership, wash it! Clean out your personal items! If it is really dirty inside, get it detailed! I bought a new car last night and traded in my old one...
Capital One's new "Gender Rules of the Road" survey says that 77 percent of women plan to bring a man along for their next vehicle purchase, two percent more than last year's survey.
Here's a quote from the press release: "While 85 percent of women feel that they were treated fairly during their most recent car purchase, the study findings suggest that women are most likely to bring men to make their purchases as a means to better-manage the financial aspects of the transaction. (Nearly seven out of 10 women feel they are at a greater disadvantage then men when it comes to buying a car.) In fact, 70 percent of women continue to find the financial aspects of the car-buying process the most difficult, indicating that their greatest challenge is obtaining a good deal on price."
A new survey of more than 9,800 women by CarMax indicates that dealerships have done very little in the last year to make the car-buying experience better for women. Almost a quarter of female car-buyers felt the transaction was too lengthy and complicated.
No big surprises here. The car-buying process IS too lengthy and complicated for both men and women alike...
Marv Ingram, Lexus National Certified Pre-Owned Fleet Manager, will field any and all questions you may have about buying a certified used car in tonight's free chat in the Edmunds.com forums from 9-10 PM Eastern Time, 6-7 Pacific Time. Registration is not required.
Elder is a trailblazer in the automotive industry. She arrived from Mexico as a child and spoke no English. She was then a shy housewife for many years, until at age 52, her husband died...
The overwhelming majority of people buying cars don't understand vehicle financing, which is why it's so easy for dealers to take advantage of them. Now a new study indicates that minorities are hit hardest of all (see chart) by unscrupulous dealers. A Detroit News article details the study's findings; they're eye-opening. Taking advantage of minorities in this way is nothing short of racism. Not surprisingly, dealers organizations defend the practice, which allows them to split profits with lenders.
Turns out people are happy with certified used cars. Consumer Reports published their survey of 7,000 people, more than half of which bought a certified used vehicle. CR found that vehicles backed by manufacturer programs are newer and less troublesome than
those backed by dealerships only.
Mercedes-Benz stopped providing on-the-house scheduled maintenance during the 2005 model year. Now Jaguar is stopping for 2006. For me this takes away one of the major perks of buying a luxury-brand car -- not having to pay for oil changes during your car's basic warranty period. Sounds small, but even basic service for a premium-brand car is expensive if you go to the dealer -- take it from someone with an 8-year-old Saab...
Kudos to Australia's Drive.com
for its article about gender discrimination at the car dealer. While
not exactly unexpected, the real-life stories of women who are car-shopping are
quite eye-opening. The Land Down Under is reputed to be a few decades
behind the States in terms of gender relations. But the themes (being
ignored on the lot, not being shown the requested model, assumptions of
inability to understand cars or pay for them, etc.) are quite
famliar...
A few days ago, the New York Times featured an article by George P. Blumberg, entitled, To Sell a Car That Women Love, It Helps If Women Sell It. Among
other things, it illustrates what women have been complaining about
(and dealers denying) all along: That they are often treated poorly
when they walk into a dealership full of salemen. It also talks
about the interaction of male buyers with female salespeople...
