Car Buying Tips - An Insider's Guide

There are three main steps to buying a car – Financing, Research and the Dealership.

 

Step 1: Financing.

 

Before searching for a vehicle, know the amount you want to spend and get approved for an auto loan for that amount. There are several ways to get preapproved: 1) Apply with your financial institution. Banks usually base approval on your FICO score and have higher interest rates. Credit unions usually have better rates, friendlier service and most CUs base approvals on their internal score, which encompasses your FICO, debt ratio, delinquency rate and monthly income. 2) Most dealers have their own financing and usually base approval on your FICO score.

 

In addition, understand your payment parameters since you’re financing a monthly payment. Figure out what your budget allows on a monthly basis and be sure you’re willing to make that payment for at least 4 to 5 years.

 

If you decide to lease the vehicle, the monthly payments will be lower however after the lease term is over, you do not own the car and there is a residual (lump sum) to be paid or finance if you choose to buy the car. In addition, all leases have mileage stipulations and if you go over the mileage limit, you’ll have to pay a per mile penalty.

 

Step 2: Research.

 

Take the time to research the vehicles you have in mind. Factor in your “needs” and “wants”. Don’t assume your vehicle has a feature you need and/or want, check it out for yourself. To research the vehicle’s features, visit the manufacturer’s website. Also check out independent tests and rankings for the vehicle in mind. Well-known sites include Consumer Reports (www.consumerreports.org), Motor Trends (www.motortrend.com) and JD Powers (www.jdpower.com/cc/auto/index/jsp).

 

When researching, you want to know other factors that will affect the price of the car as well as your monthly payments.

• Additional accessories for the car - The more features you want on the vehicle, the higher the purchase price will be.
• Trade-ins - If you trade in your current vehicle with the same dealership you’re purchasing the car from, do not let them know until they have given you a price for the vehicle you’re purchasing. The dealer will try to lower the amount of your trade to make up for the “great” price they’re giving you on your new vehicle.
• New or pre-owned - With some makes, the resell value can be similar to a newer model. Compare prices with a new and used model when looking for a particular car.

 

Step 3: The Dealership.

 

To avoid headaches and the chance of being hassled into a car you don’t want, determine the exact vehicle you want before going to the dealer. This includes knowing the interior/exterior color as well as options and/or features you want. If you’re not willing to settle, don’t! Dealers are able to trade with other dealers for your specific car. Know the invoice price and MSRP, and which one you will be paying for. Dealers will add the salesperson’s commission into this price, so always compare prices with other dealers.

 

When you’re at the dealership, do not feel obligated to finance with the dealer. However, most dealers will still need to approve you with their finance company to ensure you can pay for the car just in case your financial institution decides not to. Some dealers will accept a preapproval letter from your financial institution to avoid preapproving you through their own finance company.

 

When you decide to purchase the car, check the fine print on the purchase order and do not sign unless you are 100% comfortable with the information. Also, get a due bill for outstanding items and do not sign the purchase order unless you’re willing to pay for outstanding debts on the vehicle.

 

For pre-owned vehicles, ask for a car fax report to check for any reported accidents on the vehicle. If the dealer is not willing to provide a car fax report, ask for the vehicle’s VIN (vehicle identification number) and purchase a carfax report at www.carfax.com.

 

Always remember, your biggest bargaining chip is that you can always walk away and start over with another dealer.

 

There is an easier way…

 

Auto Expert is a personal shopper from beginning to end, and everything in between. They will assist you in researching, financing and delivering the vehicle to you. They also deal directly with the management of the dealership, removing the salesperson’s commission.

 

In addition, Auto Expert works with a selection of dealerships throughout Southern California, so their inventory is endless. Another bonus, Auto Expert has separate trade-in vendors who bid on your trade. This allows for a fair appraisal without influencing the purchase price of your new vehicle.

For more information about our service, visit us online at http://www.autoexpertonline.com/ or call us toll free at 1-800-359-4567.

 

Other car choices comparable to recent Toyota model recalls

Recent recall news surrounding Toyota – Floor Mat Entrapment recall on 9 models last September, Accelerator Pedal recall on 11 models in January and Brake Issues for the 2010 Prius model in February – could cause consumers to be reluctant to purchase a Toyota until these issues are resolved. Hopefully, Toyota can rebuild their reputation (fast) and remain a top competitor for economical vehicles.
However, if you’re in the market to purchase a vehicle and were contemplating on buying a Toyota, don’t discount their competitors. Almost all automakers have cars in the same class. In this article, we’ll focus on the popular Toyota Camry and Corolla with similar models.

Camry competitors include:

Honda Accord
Nissan Altima
Ford Fusion
Chevy Malibu
Mazda 6

Corolla competitors include:

Honda Civic
Nissan Sentra
Ford Focus
Chevy Cobalt
Mazda 3

All of the models listed above offer similar features, options, and safety standards. The American competitors like Ford and Chevy have made marked improvements over the last few years and often offer cash rebates and great financing rates. In fact, the Ford Fusion won Motor Trend’s Car of the Year! And, the Ford Fusion hybrid is the most fuel-efficient full size sedan.

In addition, many automakers offer brake-override systems according to a recent Wall Street Journal article and these models include some of the ones listed above. Unfortunately, Toyota didn’t offer brake-override systems,

which is a system built into most of their cars that cuts off a car's acceleration if the driver is hitting both the gas and brake at the same time.  The computer system—known in the industry as "Smart Pedal" —tells the engine to disregard the accelerator if both the brake and gas pedal are pushed while the vehicle is moving.

Nissan Motor Co. and General Motor Co., including the four-cylinder Chevy Malibu, both offer the brake-override system.

Ford Motor Co. is employing the technology on its Fiesta subcompact car, which will be introduced in the U.S. later this year. Ford plans to roll the feature out to its other vehicles although a timetable hasn't been disclosed.

Toyota's Plan to Fix Accelerator Pedals on Recalled Vehicles

From the Toyota Newsroom, TORRANCE, Calif., February 1, 2010:

Toyota Motor Sales (TMS) U.S.A., Inc., today announced it will begin fixing accelerator pedals in recalled Toyota Division vehicles this week. Toyota’s engineers have developed and rigorously tested a solution that involves reinforcing the pedal assembly in a manner that eliminates the excess friction that has caused the pedals to stick in rare instances. In addition, Toyota has developed an effective solution for vehicles in production.

Parts to reinforce the pedals are already being shipped for use by dealers, and dealer training is under way. Many Toyota dealers will work extended hours to complete the recall campaign as quickly and conveniently as possible, some even staying open 24 hours a day. The company has also taken the unprecedented action of stopping production of affected vehicles for the week of February 1.

“Nothing is more important to us than the safety and reliability of the vehicles our customers drive,” said Jim Lentz, president and Chief Operating Officer, TMS. “We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can – as fast as we can – to make things right. Stopping production is never an easy decision, but we are 100% confident it was the right decision. We know what’s causing the sticking accelerator pedals, and we know what we have to do to fix it. We also know it is most important to fix this problem in the cars on the road.”

Lentz added: “We are focused on making this recall as simple and trouble-free as possible, and will work day and night with our dealers to fix recalled vehicles quickly. We want to demonstrate that our commitment to safety is as high as ever and that our commitment to our customers is unwavering.”

On January 21, Toyota announced its intention to recall approximately 2.3 million select Toyota Division vehicles equipped with a specific pedal assembly and suspended sales of the eight models involved in the recall on January 26.

Toyota vehicles affected by the recall include:

• Certain 2009-2010 RAV4

• Certain 2009-2010 Corolla

• 2009-2010 Matrix

• 2005-2010 Avalon

• Certain 2007-2010 Camry

• Certain 2010 Highlander

• 2007-2010 Tundra

• 2008-2010 Sequoia


No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser, Highlander hybrids and certain Camry models, including Camry hybrids, all of which remain for sale.

Further, Camry, RAV4, Corolla and Highlander vehicles with Vehicle Identification Numbers (VIN) that begin with "J" are not affected by the accelerator pedal recall.

In the event that a driver experiences an accelerator pedal that sticks in a partial open throttle position or returns slowly to idle position, the vehicle can be controlled with firm and steady application of the brakes. The brakes should not be pumped repeatedly because it could deplete vacuum assist, requiring stronger brake pedal pressure. The vehicle should be driven to the nearest safe location, the engine shut off and a Toyota dealer contacted for assistance.

Detailed information and answers to questions about issues related to this recall are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331.

The Costliest Car Buying Mistakes

Let’s face it, buying a car whether new or used is a huge endeavor and should not be taken lightly. Auto Expert recommends that buying a car should involve research, research, research. On a recent post on our blog, Tips to Buying a Car, we explain how you should research 1) your credit 2) the car(s) that interest you and 3) the dealership and their tactics. According to Yahoo’s article, The Costliest Car Buying Mistakes, there are 8 common misconceptions when buying a car that can cost you a pretty penny. Here’s what they had to say:


1. Confusing Wants with Needs – Having a convertible is a nice feature to have, especially with SoCal’s famous weather. However, if you have a family of 4 (especially if that includes two small children), is that practical? Convertibles are considered luxury, so not only are going to pay more, but it might cost you convenience and cause you hassle when reality hits.

2. Test Driving the Wrong Trim – According to Yahoo’s article, “Be wary of dealers who give you the highest trim level of a car to test drive and then proceed to sell you a trim that better fits your budget. Car shoppers who fall for this trick usually end up sorely disappointed with the car's performance and features. To avoid making this mistake, test drive the exact trim you plan to buy before signing any papers.”

3. Sacrificing Reliability with Appeal – Don’t judge a book by its cover, so just because a car looks good, it doesn’t necessarily mean it performs well. Check out Consumer Reports and reviews on J.D. Powers to see how your car rates.

4. Not Know What Others Paid – You wouldn’t (or shouldn’t) buy a house without knowing what other neighbors paid for a house similar to yours. Same holds true with cars. Research what others are paying for your car of interest to see if your price is similar.

5. Underestimating Your Trade-In – Always research the value of your trade. Two good sources are Kelley Blue Book or NADA Guides. The dealer will almost always lower the amount of your trade to provide you with the “awesome” deal they’re giving you on your new vehicle. Nothing is done until the paperwork is signed, so if the dealer is not willing to give you the fair value of your trade, find another dealer who can. A side note, the best amount you’ll receive for your trade-in is if you sell it yourself, private party. However, are you willing to go through that hassle?

6. Buying Options You Don’t Need – All base models are just that - base, plain, economical - which means it’s less expensive. The more options you want on your vehicle, the higher trim your vehicle will become, which means more money. For example, if you want navigation, you’ll probably get a higher trim that comes with leather interior, sun roof, and many other options.

7. Not Cross-Shopping Deals – According to the article, one of the costliest mistakes car shoppers can make is forgetting to cross-shop car deals just as they would competing vehicles -- though doing so can help save them bundles. Take, for example, the similarly-priced Nissan Versa and Chevrolet Aveo. Recently, the Aveo was offered with zero-percent financing for up to 72 months. Nissan, on the other hand, was only offering 1.9 percent financing for up to 60 months plus $500 cash on the Versa. At first glance, the Aveo appears to be the better deal. However, a simple crunching of the numbers reveals that the Versa’s monthly payment would actually turn out to be a bit less than the Aveo -- assuming an equal down payment of course. Don’t let carefully-crafted sales promotions mislead you into thinking that you’re getting the best deal around. Be meticulous in comparing car deals for competing vehicles, and remember that these deals change monthly.”

8. Only Thinking in Terms of Monthly Payments – Remember, you’re paying interest and fees over the life of a loan, so you’re usually paying a couple thousand more when financing your vehicle. You should calculate the interest and fees when determining the price of your vehicle so you understand the “full” amount of what you’re paying for.

AAA offers "Tipsy Tow" on NYE

For all you party-goers planning to go out this New Year's Eve, the Auto Club of Southern California is offering it's free "Tipsy Tow" during the New Year's holiday.  The service will be available from 6pm on Thursday New Year's Eve through 11:59pm Friday night, New Year's Day.  

According to the Auto Club's website,

Motorists, bartenders, restaurant managers, party hosts or passengers of a drinking driver may call 1-800-400-4AAA (4222) for a free tow home up to seven miles. Callers simply tell the Auto Club operators, “I need a Tipsy Tow,” to receive the ride home for themselves and their vehicle.

The website didn't specify members only.  From the looks of it, this service is available to the public within the So Cal counties they serve.  However, there are restrictions

The service excludes rides for passengers, is restricted to a one-way, one-time ride for the driver and the destination is limited to the driver’s residence. Reservations are not accepted. Drivers can expect to pay the rate charged by the tow truck contractor for rides farther than seven miles.

The Auto Club provides the Tipsy Tow service as part of its “You Drink. You Drive. You Lose.” campaign and also supports several other sober driver programs. The Auto Club advises that motorists can avoid DUI arrests or worse by keeping these safety tips in mind:

• At social events, designate non-drinking drivers who can get everyone home safely.
• Call a friend or family member for a ride home if you’ve been drinking.
• Keep a cab company telephone number in your wallet so you can call for a ride home.
• As party host, try to be aware of whether some guests are drinking too much. Offer non-alcoholic drinks and plenty of food. Provide a gift to guests who volunteer to be designated drivers.
• Take car keys away from friends and relatives who have had too much to drink.  

Tips To Buying A Car

Don't be fooled, know what you're getting into before buying your next car.

Tips To Buying A Car

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Drive Safe.ly

Tara, one of our operations employees, was sitting at her desk when her cell phone started talking out loud in a women’s voice. All of us in the office were curious to know what it was. She said it was her new app she downloaded for her Blackberry, called DriveSafe.ly. Tara downloaded this free app to read her texts and emails while she drives, but she forgot to turn it off when she came into work. I’m glad she didn’t, because it got me curious as to what it was.

According to the designer’s website

DriveSafe.ly is a mobile application that reads text (SMS) messages and emails aloud in real time and automatically responds without drivers touching the mobile phone.

DriveSafe.ly is a free application that is available to Blackberry and Android users and will soon be available to Window Mobile and iPhone users.  According to Consumer Reports, it's a simple program that works well.

[It]reads text messages and e-mails aloud as they are received, either through the phone’s speaker or through a Bluetooth connection. It sends an automatic response to alert the sender that the recipient is driving...The free version features a female voice reading up to 25 words, though there may be verbal ads included. It does recognize common abbreviations such as “BTW” and “LOL”.

It’s really simple to download and allows you to adjust the settings. According to Berry Review,

you can edit the Auto response [to] create a custom response. Drivesafe.ly does not require anyone to use the auto response or any of the options on there but some come set by default so make sure you explore through all the settings.

You can also upgrade to DriveSafe.ly Pro, for only a $13.95 one-time cost.  The premium version allows up to 500 words and a few customization options, including changing the voices.

Like with any new tool, DriveSafe.ly has its pros, cons and room for improvement. According to Android Guys App Review,

CONS:
• Icon in status bar should indicate if the app is active or not
• Must have an internet connection to work

PROS:
• Let you hear messages without looking at your phone
• Good natural voices
• Understand acronyms and dates
• Auto reply to sender to let then know you’ve heard the message

ROOM FOR IMPROVEMENT:
• Missing an option to automatically repeat the message
• Option to deactivate automatically (timed or by geolocation)

For Tara’s review, she gives it a thumbs up.   Distracted Driving laws are becoming more stringent, so DriveSafe.ly or any other text reading tool available is something to really consider. Read more about these laws in our posts Texting While Driving and Don’t Text and Drive.