Reasons for Buying a Car

Posted Jan 17th, 2007 2:58AM by admin

Besides the obvious reason, transportation, are there any other pressing reasons for buying a car? Perhaps it is a necessity like requiring inexpensive transportation to and from work. Or, maybe you are a “stay at home” Mom or Dad and need a vehicle to haul children around to school and various other activities. Regardless of your reason, make certain that purchasing the car is for a valid purpose and not just because you want to outdo “The Joneses.”

In this guide we will show you some of the pitfalls to avoid as well as information to make your selection much easier. The following are basic reasons you should consider when making that all important car purchase.

Is it a good buy?

The best time period to buy that car you have always dreamed of having is later in the month. Usually, there are numerous rebate programs and bonus offered by month’s end based on a dealer’s monthly sales quotas. The idea is that, sometimes dealers fall short of meeting their sales objectives. If their performance is assessed by the end of the month this can prove to be good news to most car buyers since dealers now have no choice but to sell vehicles at a price that is lower than their norm. They are pressed to make more sales that will count for their monthly sales and that puts you at an advantage as a buyer.

Peace of mind

Sometimes dealers do a song and dance routine just to make that sale. The result is that often car buyers end up with car features they realize later on they do not really need and a price they actually could not afford. You can avoid this potential stress by always remembering to trust your instincts. If ever you feel in doubt, the answer — don’t — do not let yourself be pressured to making that purchase now.

This is a common strategy of car dealers wherein they compel the customer to buy that car, now, this moment, today!

Do not forget that you should always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace.

First Impression

To quote a common cliché, first impressions usually last. Though not always true, when buying cars, you could get many ideas just by observing how car sales people deal with you. Usually, these non-verbal signals are fairly correct enough enabling you to know what to expect from your car purchase.

If at any time you feel that the person selling you the car is not trustworthy or simply do not like him or her, always remember that you have the option to leave. It is advisable that you do not sell yourself too much. Time is precious, especially yours. So do not waste it. You are always free to politely walk away, anytime, anywhere, and in any way you like it. But if there are not many car dealers in your area, you may want to linger for a few moments more and wait until the negotiations you have with your dealer breaks down and you simply have no option but to run off.

The Invoice Price

Another thing to consider when buying a car is the invoice price. Make sure to ask that you see the invoice. If dealers are working their tails off against it, you have enough reason to believe that the car being offered is an unpleasant deal.

Usually, the price on the invoice is the cost the dealer paid the manufacturer for buying the car. This is before any rebates or incentives were included. Once this is known, only then will you have an idea as to how much the dealer could profit from each vehicle sold. Knowing this information could enable one to be more confident then in negotiating the price.

The Manufacturer’s Suggested Retail Price

In layman’s term, this is commonly called the sticker price. This is the price one usually sees in the window of the car that is being sold.

Never ever consider paying the amount stated on the sticker price. This amount is just the starting point to your negotiations with the dealer.

Incentives

There are instances when manufacturers provide the dealers with a little something extra, like money, rebates or a bonus because they are able to sell cars that are either overstocked or undersold. Make sure that before actually purchasing a car, you were able to know if that car you are buying has some dealer incentives attached to it. If so, take off that amount from the car’s purchase price and have yourself a very good deal and hopefully, a very good car as well.

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Do not buy flood damaged cars

Posted Jan 17th, 2007 2:57AM by admin

There are many flood damaged cars being sold on the market. Usually, flood damaged cars, SUVs and trucks are placed in salvage yards. Some though, are made spick and span and put into the car market and they will be up for sale. But the problem is, there really are no tell tale signs of flood damage that would give them away. This is because the cars will be restored so they would look almost like new. The damages caused by the flood would be erased or covered. After the changes, the cars will then be sold to unsuspecting buyers who thinks they are getting a good bargain.

Fact is flood damaged cars are being moved by unscrupulous merchants. Consumers can and should protect themselves against being taken advantage of in the auto market. Luckily, there are several things consumers can do to protect themselves from buying flood damaged cars.

The best things a consumer can do to be sure if a car is flood damaged or not is to get the history of the vehicle. You can do this by submitting the vehicle identification number (VIN) of a car to a website which provides vehicle history information. What these websites do is search a nationwide database of car information then gathers research on the car’s title, maintenance record, registration, and odometer. You will instantaneously know if the vehicle has been stolen, has had a troubled past, or has had its odometer rolled back through the report that the website will return. Just a little research on a car’s history will reveal if it has been salvaged, flooded, rebuilt, or is basically a “lemon.”

Prospective car buyers should be aware of flood damaged vehicles being sold on the car market. Why shouldn’t you buy flood damaged cars? Well simply because water leaves a lasting damage. Even if the devices and machines requiring electricity will restore it, it will probably fail sooner or later because mold and mildew aren’t’ easy to remove. And when a car is flood damaged any warranty warrant is voided.

Below are several things you can do to check if a car is flood damaged:

Check for moisture and dirt.
Flood damaged cars usually have moisture trapped and dirt inside the lights. Dampness can also be seen inside the compartment with glovesF, console and trunk so you better inspect these spots. Dirt, which can also be a sign of flood damage, can also accumulate under the hood. Moisture can also accumulate under the seat. Of course, rust is another telltale sign of flood damage.

Smell the car
Mildew can be easily detected by smelling. Mildew often forms on soaked fabrics so sharpen your sense of smell when you’re on the lookout for a new vehicle. Also try to detect other smells that could be caused by flood damage like spilled oil or fuel.

Check if components match
Mismatched component could mean that the component are changed hurriedly after the car has been salvaged from a flood. So try to see if the carpet, seats and stereo components looks too new for the car.

Also try to check if the car has been titled several times from different states, which is usually a hint that its owners are trying to erase the questionable and negative history of the car by looking for spots where disclosing defects is not required or is easily evaded. Cars that are titled several times are usually salvaged or totaled.

Test drive
Of course the best way to check the performance of a car is to take it for a test drive. Check the electrical system including all the lights and the sound system.

Ask an expert
Have an expert mechanic or technician check the car. Have a second opinion if you may. Expert mechanics and car technician can detect flood damaged cars easily than ordinary people.

Remember that in buying a vehicle, never ever take a chance. Buying a damaged vehicle can cost you more than your money. It could also bring serious accident even death. If you suspect that someone is selling you a car that has been flood damaged immediately say no then walk away. The dough you will save in buying a flood damaged car will quickly go away by the headache it will bring.

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Where to Get Great Used Cars

Posted Jan 15th, 2007 6:04AM by admin

A franchised new car dealership is a reliable, if not the only, source for anyone who wants to buy a new car. But to those who prefer buying used or previously owned cars, there are plenty of options and sources one could choose from to be able to make that vehicle purchase the perfect one.

The following are some of the readily as well as easily available resources to consider when buying a used car.

The Used Car Superstore

Imagine it as the Wal-Mart of used cars. There have been numerous used car superstores that have mushroomed for the last five years. These superstores usually have a large inventory of used cars, more or less numbering from four hundred to five hundred vehicles. The cars found in these stores more often than not are late models. The vehicles found in these stores came from auctions that cater specially to car dealers. The good thing about buying from these used car superstores is that the warranty they provide are often equivalent to the warranty coverage provided by dealers who sell new cars. However, it is still best to compare.

New Car Dealer

The logic here is that since new car buyers usually trade in their old cars when they buy a new one, the collection that new car dealerships have are almost always extensive. So used car buyers have a wider range of vehicles to choose from. Also, new car dealerships provide better reconditioning to the used cars traded to them. They are also more reliable source of used cars because their business is more established compared to other used car dealers. Be aware though that sometimes it would take a lot of negotiation on the price of the vehicle to be purchased. They may also attempt to make you buy more cars than what you would actually need.

Used Car Dealers

There are a hundred used car dealerships in every area of the state. Sometimes, they occupy a small section that contains not more than fifteen cars in a lot. Other used car dealerships, usually the more established ones, have a total of one hundred cars in their vicinity. The great thing about buying from used car dealers is that the prices they offer are a lot less than new car dealerships. Also, it is fairly easier to negotiate with them. A little bit of not so good news though, the quality of these cars are usually less than the new ones of course. There are also not many great selections to choose from.

Private Owners

The good thing about buying from private owners, the price that they offer are usually reasonable compared to other dealers because this is in accordance with book values. One also would get the opportunity to actually speak with the owner of the vehicle and witness for yourself how the car was cared for or not so cared for. A potential disadvantage of this scenario, however, is that it could be a bit inconvenient driving to the private owner’s place especially if one is considering looking at eight different cars. Basically that would be eight different places, time and appointments. Beware though; private owners who have a stable of used cars to sell may actually be a dealer. Do not be afraid to ask if you could possibly see the title and registration. Start to get suspicious if you see it has only been a few days old.

Car Auctions

The last decade has seen the development of public auctions for vehicles. Originally, auctions like these are reserved primarily for licensed car dealers. Now, even individuals have the opportunity to bid aggressively for used cars. The quality of these cars put up for auction, as well as the selections of vehicles, actually vary from one auction to another. There are those auctions which specialize dealing in late model vehicles while there are others which dedicate themselves to cheaper and less expensive vehicles. The good thing about buying used cars from auctions is that one could conveniently compare prices and cars because they are shown side by side with each other. Also, the prices that they offer are most likely lower than they do dealerships. However, there is not much chance for one to thoroughly inspect the vehicle being auctioned off. And since one is buying from an auction, it is therefore understood that all sales are final. Any car purchased is automatically yours. Plus, the bidding frenzy could take a hold on anyone and there is a great possibility that one could pay way too much than what a vehicle actually costs.

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Dealership scams out there

Posted Jan 15th, 2007 6:03AM by admin

Are you thinking of buying a car but hesitant to approach your local car dealer because you are not sure about the processes of buying a car as well as wary of possible dealership scams? Do you feel that your knowledge about cars and getting great deals is not good enough and you want to learn more about this matter? Then reading these tips will enhance your understanding about dealership scams.

The car dealer and his trade

To have a proper understanding of car dealership scams, you must first have an idea of the car dealers themselves and how they go about their trade selling cars. First of all, the car dealer will not give you a price quotation as much as he possibly can. This is because the tendency of the buyer would be to go to another dealer and the other one will probably offer a lower price thus, the first dealer loses the buyer to the second dealer. To increase their chances of getting you to buy their car, they will try to make you commit to them before they give you the final selling price. On your part, you can do two things: maneuver the dealer into telling you the price quotation or negotiate the terms of the deal with them. If you decided to negotiate with the dealer then be always on the lookout for the following tricks:

Low balling

This is one of the tricks most commonly done by dealers. They will try to convince the buyer that they can provide the lowest possible price for the car thereby prompting the buyer to start negotiations with the dealer. The salesman will probably tell you that you can get the car that you want for a lesser amount but when you are about to enter negotiations, it turns out that you were not promised a lower price after all. It is just an empty promise.

Best price matching

When you tell the dealer that you will try to look around and check other car dealerships, the salesman will ask you to comeback when you get the best possible price and he will offer to match it. By this time, you will probably be too tired and sick of looking around. Chances are that you will take their offer.

Trade in scam

When you have already bought the car, the salesman will try to contact you before your new car is delivered and tell you that the initial pricing of the car was $500 lower and would like to collect the balance from you. If you fall for this, he will get an extra $500 at your expense.

Spraying

What the dealer will do is to pursue you relentlessly until you give up and buy the car. On the other hand, if you decided to buy from another dealer, he will call you and tell you that he could have given you a lower price thus making you upset. To avoid this, you should not hand out your contact number. Some even give wrong contact numbers just to evade very irritating car dealers.

Puppy dog trick

The dealer will allow you to take the car for an overnight or for a whole day, his aim is for you to fall for the car and buy it.

Immediate sale

The dealer will give you a very attractive price but he will also make you believe that this deal can only be made until the end of the day. This will cause you to think too much and in the end, make the mistake of buying the car without checking what other car dealers have to offer.

Extra accessories

The dealer will offer to give you extras like: car mats, window tinting, and other accessories. This aims to stop you from asking for a lower price because of the perceived “extras” that you will be receiving from the dealer. It will slow down the price negotiations and divert your attention away from the price.

All of us want the best deal available and we abhor the notion that someone will take advantage of us through modis operandi like car dealership scams. So before going to the local car dealer, you better have a good idea of what he will be talking about. As they say, only a fool will go to battle unprepared and with no weapons. Your weapon will be knowledge, always remember that.

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Auto Financing Scams

Posted Jan 14th, 2007 5:38AM by admin

Car dealers are often portrayed as predators just waiting for an unsuspecting customer to come along. This is because many people believe that they are always on the prowl for unsuspecting buyers that are not very knowledgeable about cars. This can be unfair because we can argue that there are car dealers out there who would not cheat just to get an extra profit.

How do you tell the difference?

To avoid becoming a victim of sneaky car dealers, look at the following auto financing scams.

Yoyo scam

You will be allowed by the dealer to bring the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan. He will tell you to set up a new financing scheme through him which, of course, will be at a higher cost and this will also entail a very high profit on the dealer’s part.

Be wary of this trick and avoid it at all costs if you detect it. If you have a bad credit standing, don’t have your financing done by the dealer and make arrangements for your own financing. If you ever do avail of the dealer’s financing, you should never drive the car back to your home immediately. Wait for at least 24 hours just to make sure that the processing of your financing scheme has been completed already. By allowing 1 whole day to pass by, you are assured that the dealer cannot use this scam on you.

Window etching trick

Window etching is a very common scam. What the dealer will do is to offer to etch the VIN number of your car onto the window of the car for a price. Basically, the price ranges from as low as $300 to as high as $1,000. Some buyers think that they did a good job by being able to talk down the price to a few hundred dollars, but unfortunately for them, a few hundred dollars is still a good amount of money. The best way to avoid this kind of scam is for you to buy an etching kit that you can do on your own. This is available in most auto shops and costs around $20. See how much they profit from you!

Preparation fees

For preparing your car, the dealer will often add an additional preparation fee to your bill. Just to conduct a test drive, replace fuses, or take the car’s plastic cover off will have your bill increasing by at least $500! If you visit other shops, you can get the information that these add on costs are already included in the MSRP as set by the manufacturer. Some dealers automatically add it to the buyer’s order to make it look mandatory. To take care of this scam, you can ask the dealer to classify it as credit (it should be identical to the amount of the preparation fee) on the following line. If the dealer does not agree to this, you can just simply walk away from the dealership.

Market adjustment

The dealer will convince you that the vehicle you want is selling like hot cakes and very popular. In order to sell you the vehicle, they will do some “market adjustments” amounting to a few thousand dollars. This is usually indicated by a tag near the MSRP tag set by the manufacturer. Even if the car you want is very popular and is very much in demand, if it is in stock you should not be tempted because getting a “popular” car is not worth it if you have to pay a few thousand dollars more. You should never pay more than the MSRP set by the manufacturers. If you do, then you are allowing others to take advantage of you.

Warranty extension

Although this type of scam is old already, it is still being used and there are many who fall for this trick. What happens in this kind of scam is that when you make a loan for the car, the dealer will tell you that you are required to purchase an extended warranty because it is one of the conditions of the bank. There is a simple way of avoiding this scam. Ask the dealer to specify clearly in writing that the extended warranty is required for the loan to be approved. The dealer will most probably find a way to have it excluded. If he persists in including the extended warranty, do not do business with this guy and go to other dealerships.

These are some of the most common auto financing scams that are utilized by some car dealers. Always keep these in mind if you are going to buy a car. If you or a friend were treated fairly by a dealer in the past, consider using the same dealership again. It’s a good indication that they do care about their customers and aren’t just looking for a “fast buck.”

Think very carefully and do not buy on impulse. Good luck to you and go get that car!

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When Buying Used Car is Not a Good Idea

Posted Jan 14th, 2007 5:37AM by admin

Looking for the cheapest car through buying used cars is a smart practice. However, when the buyer is truly saving and is on a tight budget, buying a used car should not be immediately decided upon and should take a lot of deliberation. This is to avoid throwing away your hard-earned money.

Therefore, for people who already know something about buying used cars but wish to know when not to buy them, here are some pointers that may help people in their decision-making:

1. Buyers should be wary of buying used cars from owners that do not have complete and pertinent documents.

This could mean a lot of negative things and the buyer is the only one who will be at the losing end. Documents are crucial especially if the car is second hand. It is the only solid guarantee that a buyer can get hold of when buying used cars.

If this is the case, then, the buyer might as well not pursue the deal.

2. Buyers should consider their budget

If the reason why the buyer is opting to purchase a used car is the budget, then it should be the same reason why the buyer should be careful and meticulous in choosing a used car.

Hence, if the car needs a lot of maintenance, repairs, and other modifications, it is best not to buy that used car.

3. If the buyer is not comfortable after test-driving the car, then, it is best not to buy it.

There are instances wherein some people tend to opt for used cars because of the model of the car being sold. It is their dream car and there is no other way they can purchase them but to buy them second hand.

However, if the buyer was not comfortable with the car after test-driving it, then, it would be better not to pursue the deal, even if it means the world to the buyer to have that car.

The bottom line is that buying used cars should never be the sole alternative to people who cannot afford to buy new ones. This means that people should value the process of choosing a used car like what they would do when they buy a new car.

After all, it is their money that will be put to risk that is why it is extremely important to consider all the factors in order to have the best buy ever.

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When Buying A Used Car from Its Owner, Beware of the Owner Bearing Offers!

Posted Jan 13th, 2007 5:30AM by admin

Getting started with used cars does not require a mortgage or a student loan, but it is not free either. Buying used cars costs money. That is why it is extremely important to know all the possible factors that might lead the buyer into buying a used car that is suspect.

In reality, it is easy for the buyer to get carried away by convincing sales pitches, special offers, fantastic deals, magnificent bundles, freebies, and the like. However, it would take a really smart buyer to get the best deal when it comes to used cars.

Hence, it is equally important to know the basic factors that need to be considered before the buyer decides on a particular used car, especially if the car will be bought directly from the owner.

Here are some tips that might help those who are planning to buy a used car from its owner.

1. When buying cars from the owner, the buyer should ask the seller for the “vehicle registration document” or the so-called V5. Through this document, the buyer will be able to know the full details of the car’s ownership like the name of the owner, the address, and other identity details.

2. If in case the V5 is with the Driver and Vehicle Licensing Agency or the DVLA, as told by the owner, the buyer should verify the reason. If it is due to recording purposes where the change of ownership shall be recorded, the seller should have a green slip that is to be presented to the buyer in exchange of the V5.

3. It is best for the buyer to ask the seller to see the insurance policy for the vehicle. If the seller cannot produce the document, it would be better not to buy the used car because there is a high probability that he is not the real owner or that there is something fraudulent with the transaction.

4. It is important to check if the identification details stipulated in the V5 is the same as that written in the driver’s license. The address and the name should be the same on the two most important documents. Other wise, it would be better not to pursue on buying the car if there is doubt on the details.

These things should never be taken for granted because if any of the conditions mentioned is present, there is a great chance that the car is stolen. Therefore, it’s better not to take any risk.

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Things to Avoid When Buying Used Cars

Posted Jan 13th, 2007 5:29AM by admin

Nowadays, life can be pretty hard. Everything is increasing with prices escalating out of site! This makes us all targets of potential scams and frauds.

With all these swindlers and scammers lurking just about anywhere, it is best to always be on guard and to know the things to be avoided in order to prevent the probability of being a victim of frauds and swindles.

Consequently, people who are buying used cars should also be aware of the different fraudulent activities being employed by unscrupulous people in order to have the best buy of used cars.

Moreover, people who are aware that the cars they have bought are stolen, chances are, they will be held liable.

Here are some things to avoid when buying used cars:

1. Used car buyers should avoid any transactions that are “too good to be true.” This will only make the matter worst if the buyer will believe that the deal is the best-used car deal ever.

2. Buyers should avoid buying used cars from sellers that do not provide a permanent address or the actual place of work of the phone number given.

3. It is important for a buyer to check on the VIN or the vehicle identification number plate. It must be securely fastened onto the used car’s dashboard, with no rivets that are loosened.

Loosened rivets would mean that the VIN plate does not fit or it has been previously removed.

4. Also, the buyer should also avoid buying used cars that have VIN plates that are touched up, its paint is newly retouched, and the numbers look as if they are not the original “factory numbers.”

VIN plates can be easily swapped by a thief and use those that are taken from a destroyed vehicle.

5. As much as possible, it would be better to avoid buying a used car that is freshly painted. There are instances wherein the stolen car’s identity is being changed through changing its paint color.

6. Used car buyers should avoid buying cars from a seller that cannot present the car’s “insurance policy.” This could mean that the car is stolen or the seller is not the true owner of the car.

It is extremely important for the buyers to take note of these things before buying a used car. An ounce of prevention really is worth a pound of cure!

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5 Practical Ways to Check a Used Car

Posted Jan 12th, 2007 11:15AM by admin

Since its inception, the market of used cars has suddenly escalated at an unprecedented rate for the past few years. In fact, surveys show that the number of people who buy used cars is almost tripled when compared to the number of people who buy new cars.

That is why many people are enticed to buy used cars because it is gradually becoming a trend in the car buying industry.

However, it does not necessarily mean that buyers will just take the process of selecting used cars for granted. Hence, it is important to take note of the ways to check the car prior to the closure of the deal.

Therefore, for people who wish to know the different ways on checking the condition of the used car, here are some pointers:

1. Test drive

There is no better way to check the condition of the car than to do a test drive. In this way, the buyer will be able to know the actual condition of the car and its parts like the brakes, accelerator, etc.

Also, the buyer will be able to detect at once if there are some “clunks” and rattles on the used car, even if the test drive is just a short trip.

2. Personal inspection

Aside from test-driving, it is also important for the buyer to personally inspect the details of the body make-up and its condition.

In this manner, the buyer will be able to identify any signs of rusts and damages, the condition of the tires, oil leaks, etc.

3. Mileage check

Usually, an average user or driver will consume 12,000 to 15,000 miles in a year. In this way, the buyer will be able to know the approximate age of the car by looking at its mileage.

4. Mechanic check

Another way of checking the condition of a used car prior to its purchase is to seek the help of a mechanic. This may cost the buyer some charges but the money would surely be spent for a good cause. The mechanic is the best person who could instantly assess technically and professionally the condition of a certain car.

5. CARFAX Report

Knowing the history of the car is also one of the best ways to know the real condition of the car. Hence, it is important for the buyer to seek the help of CARFAX report in order to know the full details of the used car’s history.

Take the proper steps and research your purchase. Doing so will guarantee a happy car buying experience.

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Tips on buying warranty for used cars

Posted Jan 12th, 2007 11:14AM by admin

Used car buyers need to get their money’s worth as soon as their purchase has been confirmed. New or not, cars should have warranties. It is a right, not a privilege.

The following are tips to better your chances of getting the best warranty for your money. Know what you are buying

Some people who avail themselves of auto warranty coverage usually have a notion that they are purchasing a special shield that protects their vehicle from unnecessary wear and tear. Though this is true, this idea is primarily bound to a contract that the buyer should read prior to signing anything. There are instances when consumers buy a used car then expect the warranty company to get their cars back in shape for them. Buyers then unnecessarily file a complaint and get angry once their request is denied simply because their understanding of the conditions that constitute the warranty differs from what the warranty company has explicitly stated on their contract. It is advisable therefore to read in order to avoid uncalled for weeping.

See through the “lies.”

Do not believe when auto warranty companies claim that their warranty can not be refunded. One hundred percent of extended car warranties are refundable within thirty days provided no claims have been made. If in any instance you feel that you were in some way forced to purchase or getl a Ford, Hyundai or Honda warranty that you didn’t want, do not hesitate to get your money back.

Sift through their trashing

If a warranty company has a good enough standing, it does not need to trash the competition or badmouth the other company’s warranty contract. You need to see them point out their own warranty company merits, offers and packages and not the competitor’s “worthless” clauses in order to make a sale. Though it is a competitive world out there, the only way to stand out is to offer excellent and ethical service. In this case, action speaks louder than words.

Avoid buying auto warranty from you dealer

Though it is extremely convenient to do so, the effects are short-term. The price car dealers’ offer for extended auto warranty, believe it or not, is usually two to three times higher than the normal rate. Plus, their contracts have far too many limitations and unfair clauses that buying warranties from first-rate warranty companies that provide better service for half the price, is a clearer and – should be - the only option.

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Reasons for Buying a Car

Do not buy flood damaged cars

Where to Get Great Used Cars

Dealership scams out there

Auto Financing Scams

When Buying Used Car is Not a Good Idea

When Buying A Used Car from Its Owner, Beware of the Owner Bearing Offers!

Things to Avoid When Buying Used Cars

5 Practical Ways to Check a Used Car

Tips on buying warranty for used cars