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Posts Tagged ‘Car dealers’
10 ways to save on your next new car
"The power is in the hands of the consumer," says Michael Caudill, auto expert and spokesman for NADAGuides.com. A tightening credit market, the need for automakers to move metal, and some sizable government and automaker incentives are making it easier for buyers — who have the money and the credit — to make a deal. While auto experts often caution that a reliable used car gives the buyer the most bang for the buck, that might not be the case today. "New cars with the compelling incentives being offered are, in a lot of ways, a better value," says Jack Nerad, executive editorial director of Kelley Blue Book, in Irvine, Calif. But no one wants to leave any money on the table. So if you’re buying now, here are 10 tips to help drive away with the best deal:
1. Bargain over the Internet
Sure, you show up to test drive the car, but you negotiate price and financing via computer. You can even have the vehicle delivered to your home or office and sign the paperwork there, says Philip Reed, senior consumer advice editor for Edmunds.com. You’ll save three ways. First, most Internet department sales people are salaried and get extra bonuses based on volume rather than commissions based on the sales price, he says. That means they have the incentive to cut you the best price to move cars, he says. The average savings when you deal over the Internet is $1,000 to $2,000, says Reed.
Second, you avoid the dreaded financing and insurance, or F and I, office. This is where buyers can encounter the add-ons and extra fees which threaten to negate whatever great deal they negotiated over the Internet or in the showroom, he says.
Third, you can shop and negotiate during moments when it’s convenient for you. No killing time on a hard plastic chair while your salesman "wrestles" his manager for a better deal.
2. Pit dealers against each other
The object here is to start a bidding war for your business. Once you’ve determined which make and model you want, contact a handful of dealers via the Internet, tell them what you want and when you want to buy. Then ask for their best price, says Jeff Ostroff, chief executive of CarBuyingTips.com. Let them know you’re talking to other dealers and plan to give the sale to whoever cuts you the best deal, he says.
"Think of it as reverse eBay," Ostroff says. "They’re haggling over you."
Do your best to make it a true comparison. "Be very, very specific about the vehicle you want," says Chris Denove, vice president of J.D. Power and Associates in Westlake Village, Calif. "Color choices, options, etc." And be very clear on what that price includes. What you want to avoid is a lot of fees tacked on later. Do you really want to see how low they can go? E-mail 10 different dealers, says Eric Evarts, associate editor for autos at Consumer Reports in Yonkers, N.Y. After 10 quotes on the exact same car, the lowest of the 10 "is the lowest you’re going to get," he says.
3. BYOF (bring your own financing)
Get pre-approved for your auto loan before you start car shopping. Apply to a handful of banks and several credit unions to see who can give you the best rate and terms.
Keep the applications within a 14-day period and all the loan applications will only count as one inquiry, minimizing the impact on your credit. Once you settle on a lender, that pre-approval should be good for about 60 days, giving you plenty of time to select your car and close the deal, Ostroff says.
4. Negotiate the vehicle price first
Car deals have a lot of moving parts these days: the price of the car, the credit for the trade-in, the financing rate and the incentives. "I would try and keep the different transactions separate in my mind," Nerad says. But he admits, "That’s tough to do." To make your best deal, focus on only one part at a time, starting with getting the best price on your new car. Only after you have that in writing do you start talking about incentives which would be subtracted from the negotiated price, or the trade-in, or the financing, says Reed. What you don’t want is the money you saved on one part of the deal added on somewhere else.
5. Realize that everything is negotiable
Many times, add-on fees are preprinted on auto sales contracts, says Ostroff. The not-so-subtle message to buyers: This is a fixed cost and nonnegotiable. Wrong, Ostroff says. In reality, everything is negotiable, and smart buyers know it. Preprinted numbers can be crossed out, or an equal amount can be subtracted elsewhere on the same form.
6. Get educated
"Know what a good deal is," says Carter Myers III, president of Carter Myers Automotive, a Charlottesville, Va.-based dealership group. Manufacturers are offering incentives on more than two-thirds of the vehicles on the market, Reed says. What you need to know are the incentives that manufacturers are giving to buyers or dealers on the car that you want.
You can get some great information on sites like Edmunds.com, ConsumerReports.org, KBB.com, NADAGuides.com, CarBuyingTips.com and JDPower.com. Edmunds has a "true market value" feature that reveals what buyers are paying for the same make and model in their area and nationally. One of the most powerful sources for information on incentives is the automakers own Web sites, says Reed.
"Become an expert in over three weeks or so," he says. "It can save you a lot of money." You can also enter your chosen car model and "incentives" or a similar term into a search engine, Consumer Reports’ Evarts says. Because safety is important as a way to save money on insurance, check out the crash tests and other safety factors at IIHS.org and SaferCar.gov.
7. Time the market
One more way to save: Buy at the end of the model year, Ostroff says. "August through October is usually a really good time to buy if you want to get the current year at a discount," he says. If that doesn’t suit your schedule, you sometimes can get a better deal by buying at the end of the month if the sales staff is trying to make its quota, Ostroff says.
8. Shop your trade-in
The dealership selling you a new vehicle isn’t necessarily the one that will offer you the highest price on your old one. If you have the time, take it around to a handful of dealers and see who can offer the best price on a straight sale. And don’t forget the Car Allowance Rebate System, or CARS, popularly known as the "cash for clunkers" program. If you’re trading a vehicle that meets the criteria, you could be eligible for a sizable incentive at purchase time.
9. Think hard about vehicle choice
If you want to get the most for your money, look carefully at the car, not just the deal. Will it serve your needs now and into the future? "In this era of great car deals, it’s important not just to get a great deal on a cheap car but to get a great car," Evarts says. For buyers these days, that means picking "a car you can hang on to," he says. When it comes to choosing a dealer, convenience also can be important, especially if dealer maintenance is part of the equation. So is finding a dealership that makes you comfortable. If you find a dealer that is "convenient, trustworthy and gives good service," it can make smart financial sense to buy there even if that isn’t the rock-bottom price, Myers says. "You’re buying a $30,000 vehicle. Every once in a while, you get one that’s got a problem. You want someone who’s going to go to bat for you."
10. Pull a switch
What if the dealer you prefer doesn’t have the vehicle you need? Many times, dealers can do a swap, says Caudill, who used this strategy to purchase his car from the same dealer he planned to service the car. These days, if you’ve found the right car and the right dealer, says Caudill, "they’ll find a way to make it work.".
10 ways to lower your car insurance bills
If you’re shopping for car insurance, you know there are certain crucial factors influencing your rate that are out of your hands. Such factors include your age, gender and record of prior claims. Despite this, there’s a lot you can do to score a lower rate, and your choices bear more power than you might think. Here are 10 tips guaranteed to help you get the best rate possible on your auto insurance.
1. Get more than one rate quote before you commit
"Company prices are very different, and it pays to shop around. You can easily wind up paying double from one company to the next," says J. Robert Hunter, director of insurance with the Consumer Federation of America, a national watchdog group.
Want to get a sense of who the low-priced carriers are? The National Association of Insurance Carriers offers a map on its Web site that lists each state’s regulators. Click on your state and you’re taken to the state’s Department of Insurance Web site. Its consumer buying guide compares insurance premiums across a range of companies. You’ll also learn how many complaints each company has logged. Surprisingly, you don’t have to sacrifice service quality to score a low premium. "A lot of the lower-priced companies have the best service rates," says Hunter.
There are a host of independent Web sites, like CarInsurance.com, that allow you to comparison-shop by offering online price quotes. These sites can be incredibly useful. However, Hunter warns that these services — which earn their keep by charging carriers a commission on each sale — for various reasons, occasionally fail to include the insurance companies with the lowest rates.
2. Evaluate insurance costs before you buy your vehicle
The year, make and model of your vehicle can have a profound impact on your insurance rate. All else being equal, new, expensive or sporty cars will cost more to insure than older, cheaper and more utilitarian vehicles. But you could find a substantial discrepancy even when comparing the cost to insure similar cars. So if you’ve got a few models on your shortlist, contact your carrier to see what rate each vehicle commands. Doing so could ultimately net you a windfall in savings when the time comes to pay your premium.
3. Go high on deductibles
If you’re willing to give a little with your deductible, you can wind up saving big on your rates. "If you go from a $250 to a $1,000 deductible, you can save between 25 and 40 percent on your policy," says Hunter. You can then set aside a portion of these funds to cover your costs in the event of a claim.
4. Nix collision and/or comprehensive coverage on older cars
If your older car has comp and collision coverage, you might find yourself paying more in insurance than the car is worth. "Take your comp and collision premium and add it up, then multiply it by 10. If your car is worth less than that, don’t buy the coverage," says Hunter. If you’re worried about being left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.
5. Mind your credit score
An increasing number of carriers are considering credit scores when making rate calculations. "Your credit score can be very important in determining your rate," says Hunter. "You can wind up paying up to 50 percent more if you have a bad credit score." Keep your credit score in tip-top shape by paying bills in a timely manner and by regularly checking that there are no items on your history that do not belong to you.
6. Ask about low-mileage discounts
Many carriers offer discounts to policyholders whose annual mileage is lower than the norm. Maybe you have a short commute. Or maybe your participation in the office vanpool results in fewer hours spent in your daily driver. Whatever the case, your low mileage can score you a reduced rate with some companies, so be sure to inquire about available discounts.
7. Ask about group insurance discounts
Oftentimes, insurance companies offer discounts to policyholders who are members of certain organizations or professions, such as veterans, engineers or teachers. Request a list of these groups from your carrier to see if you qualify — you might be pleasantly surprised.
8. Ask about all other discounts
Some carriers offer discounts to policyholders whose vehicles bear certain safety features, like anti-theft devices or motorized seatbelts. Others give reduced rates to senior citizens, and to students whose grades meet certain requirements. "Many carriers offer discounts. Ask for them when you’re shopping," says Hunter.
However, Hunter offers one caveat: "Some of the companies that offer the highest discounts have the highest rates, so don’t get too focused on discounts. Some high-priced companies offer high discounts, but at the end of the day you’re still paying more."
9. Avoid lapses in coverage
Even a brief lapse in coverage can disqualify you from receiving discounts. "They use lapses in coverage to increase your premium," says Hunter. Pay your insurance bills on time. And if you’re switching carriers, make sure not to quit your previous carrier until the new coverage takes effect.
10. Think twice about paying in installments
Most carriers charge an administration fee to pay in installments. One carrier surveyed levied a $10 charge per installment to those who opted to break up their bill. The solution? Pay your premium up front, if at all possible.
Of course, this charge is more significant for those with small premiums. If you’ve got a king-sized premium and feel you’d get a better rate of return by investing your funds elsewhere instead of paying up front, then the installment route will probably best suit your needs.
10 ways to steal a car and how to defend against them
Lists come out every year detailing the most stolen cars and, with that, what steps one can take to deter car thieves. Yet, a car is stolen in the United States every 24 seconds according to the Insurance Information Institute. Auto theft continues to thrive despite those lists and regardless of new anti-theft technology that emerges with every new model year.
What else can you do besides not drive the most stolen car in America and equip your car with anti-theft protection? We’re going to give you the unique opportunity to look inside the mind of the car thief and learn how he steals cars. With the help of police auto theft experts and auto theft professionals, we’ve compiled this list of some of the ways thieves steal cars followed by suggestions of how to stop them from doing it to you.
We have no intention of providing new information to the wrong people and simply want to educate the good guys.
We haven’t disclosed anything that car thieves don’t already know and we have left out specific details to avoid making this a "how-to." Knowing the insider tricks of auto thieves will motivate you to take the necessary precautions to defend your vehicle.
1. Bump against the car to check for a car alarm
Since it seems like everything from a loud Harley to a rumbling garbage truck can set off a car alarm, people have been conditioned to tune them out. Instead of a motion-sensitive car alarm, use one that has a pager that will notify you as soon as your alarm is activated.
2. Break the window or jimmy the lock to gain entry into a locked car
Don’t tempt car thieves. Keep valuables out of plain sight. Take them with you or store them in the trunk. Also, if you have a stereo with a removable face plate, take it with you instead of tucking it away in the glove box.
3. Cut the steering wheel itself if there’s a steering wheel lock
Instead of locking just your steering wheel, "lock" your car’s ability to go by using a starter disable switch and putting it in a place where only you can get to it.
4. Look for exposed wiring that can be cut or for the central unit of the car alarm to deactivate it
Instead of going to a big retail chain store, have your car alarm installed by a professional car alarm installer, preferably a reasonably shady one. Unlike retail chain employees, these experts know what it takes to make your car elusive to crooks.
5. Look for car alarm decals to figure out which method to use to eliminate the alarm
Never display stickers that advertise what sort of car alarm you have, or audio system for that matter. Consider using a hood lock cable so the thief can’t get to your battery or car alarm mechanism.
6. Jump into an unattended running car while the owner is at the ATM, dropping off videos, etc
Never leave your keys in the ignition even for a quick errand. Car theft is a crime of opportunity, so don’t make it easy for them to grab yours.
7. Look for the car’s title, registration or anything with a home address on it
Keep your registration and insurance information with you and never leave personal information in your car.
8. Stake out sporting events, movie theaters and shopping center parking lots for the car of your choice since they offer the largest variety of cars in one area
Whenever possible, park in lots and garages that have security and/or parking lot attendants. If not, don’t park in the farthest corner of the lot but rather near the entrance of these facilities to insure the most foot traffic (and the most potential witnesses). Also, opt for paying the extra couple of dollars for the monitored parking lot instead of using the free parking on the less-trafficked side streets.
9. Find the second set of keys the owner "hid" in the car
Don’t leave spare keys in your car or in a magnetic box attached to the underside of your car. Thieves know where all the "hiding places" are.
10. Copy specific vehicle information and take it to the manufacturer to get a replacement key made
Instead of VIN etching the major parts of your vehicle, which doesn’t turn most thieves off, drop your business card into the doors through the window slots to identify your car as yours.
Even though auto theft is a crime of opportunity, if a crook really wants your car, he’ll do whatever it takes to get it regardless of steering wheel locks or car alarms. But with the above knowledge, you can slow him down, make your car inconvenient to him and, hopefully, discourage him from attempting to steal your vehicle. Layering your car with anti-theft protection, especially if it’s at the top of the most stolen vehicles list, is a good start. But, as with anything that is of value to you, the most important protection you can give your car is to take a proactive approach to security when you leave it unattended.
