Hey guys!
Today I'm going to touch on some cars I've owned in the past.
2002 - I received my drivers license in February. With the help of my parents, who contributed 50% of what I saved, I managed to buy a 1994 Impala SS in August with 130,xxx miles on it. This was my first car. Tipping the scales at 4300 lbs. and powered by a Small Block (SB) Chevy 350, LT1 similar to which was available in the Corvette and Camaro of the era, this car had 260hp and 330lb. ft. of torque. She was a great car and introduced me, the hard way, to mechanics and engineering. After 6 months, I had replaced the brakes, tires, exhaust (modified), and a heater line. In 2004 the heater core had leaked and corroded the wiring harness, shorting out the fuel pump and the ECU (Engine Control Unit). $2,400 later the car was running but being in my freshman year of College at NJIT in Newark NJ, this prompted me to look for something more reliable and fuel efficient, AND all wheel drive.
2004 - My family owned a Subaru dealership at the time and my family always had Subaru's. I started searching for a sporty and fun Subaru and naturally an Impreza 2.5RS Coupe entered the picture. I searched for a couple months, found a 2001 RS with 42,000 miles at the time in Black, and went for it. My mother, sister and myself headed to a dealership about 2 hours away, with the Impala, to scope it out. 2 hours later we found ourselves driving home in the Impreza. Mind you I didn't know how to drive a manual transmission and this was my first experience driving stick. I owned this car for about 6 months and decided that it was too small for my fit (6'1"). I sold it with 58,000 miles for more than I paid for it.
2004 - I found myself infatuated with Impala SS's since my first 94'. Naturally I searched in the Northeast Region for a 1996 Impala SS. This car had the floor style shifter and analog gauges (exclusive to the 96'). I found one in Delaware and went down to look at it with my best friend, my sister and my girlfriend at the time. We were able to negotiate a fair price considering the modifications and mileage and I purchased the car the following weekend. The car had an intermittent problem with a hesitation/studder. I got the car home and went over it with a fine tooth comb. Much to my dismay, I found that 3 of the 8 spark plugs were loose! We did spark plugs and the car was perfect. This Impala had the LT4 conversion with a K&N intake and catback exhaust. The car was FAST for a 4300lb. vehicle......this is where I realized that I had a problem. I was in love. Addicted to cars....
As this Impala was in great shape, I had to search for a "beater". Working at the dealership I managed to find myself purchasing a 1987 Subatu XT Coupe for $100. The car was on our used car lot for a few years and I couldn't pass it up. This was my beater. It needed some work here and there, light bulbs, exhaust, heater hoses, but worked out very well for the situation. I ended up selling the Impala making a $5,000 profit. To a football player for the Steelers non the less...
I had my heart set on a 2005 Subaru Impreza WRX STI. White with Gold wheels exactly. I ran the numbers and the car was expensive. I could swing it with a large down payment I had but then came the second factor, INSURANCE. Up until now my mother paid my car insurance. I ran a quote for the STI and fell out of my chair when they told me $6,200 for the year....My dreams were crushed. I himmed and hawwed and ended up buying a brand new 2005 Subaru Legacy GT sedan. It wasn't my first choice but the "responsible" choice.
2005 - Having just acquired this 2005 Legacy (December of 2004), I started searching...and modifying...a few thousand dollars later this Legacy was running a 12.5 sec. 1/4 mi., at the time it was one of fastest recorded in the nation. For those that don't know, a 2004 Corvette would run the 1/4 mi in about 13.0 sec flat. Camaro's of that era would run a 13.4 sec 1/4 mi, and a Mustang GT about 14.0 sec. My AWD 4-door 4 cylinder was a sleeper.....
Tuesday, February 5, 2013
Thursday, April 24, 2008
Employee pricing? Worth it?
Employee pricing was something that came about in 2005. GM, Dodge, and Ford were all advertising employee pricing.
Is it worth it for employee pricing? Well yes and no. For some manufacturers it may be worth it. For others, you may actually be able to negotiate a better deal than what the employee price would be!
The trick here is to find whether employee pricing is easily accessible, and if you can easily obtain a card, certificate, letter, etc, "proof" of the employee pricing.
Sometimes employee pricing is at invoice. If that is the case, you can negotiate a better deal possibly. Otherwise you might as well take the employee price and go on your way.
Is it worth it for employee pricing? Well yes and no. For some manufacturers it may be worth it. For others, you may actually be able to negotiate a better deal than what the employee price would be!
The trick here is to find whether employee pricing is easily accessible, and if you can easily obtain a card, certificate, letter, etc, "proof" of the employee pricing.
Sometimes employee pricing is at invoice. If that is the case, you can negotiate a better deal possibly. Otherwise you might as well take the employee price and go on your way.
Sunday, April 13, 2008
Dealer vs. Dealer
I'd like to apologize that it's been so long since I last posted. I was sick! Enough though...
Naturally, everyone wants to save money. When it comes to purchasing a new car, we all want the best price. Knowing this, dealers do what they need to account for shoppers and people who pit them against rival dealers. Now what I will discuss goes mostly for dealers who have the same franchise. For example, going to 2 Subaru dealers. This way everything is essentially the same, and whoever would give you the better price, would earn your business.
Online quotes - It's so easy to go onto edmunds.com and send a quote out to the 5 nearest dealers for a price quote on that new car you want. When it comes down to it, dealers are playing games with what they say, to get you through the door. They figure if your sending e-mails to other dealers, so they'll quote the "lowest" price, and when you come through the door things will change. So the price they quote won't include things like DESTINATION (avg. ~$700), Tax's, motor vehicle, prep charges, window etching, etc... To EFFECTIVELY use the internet as a tool in this case, you need to specifically lay out what YOU want. You need to tell them that you want an "OUT THE DOOR" price with all tax's and charges included. What your trying to find is what the total cost would be for you to purchase that specific vehicle. This sets a baseline and lets you know where every dealer stands. For a dealer that quotes a higher price, his price may include destination. Therefore potentially being cheaper than the lowest quoting dealer who's price may have not included destination.
To do this most effectively you want an itemized list of the Out The Door price.
Also keep in mind that until you actually sign the paperwork and the car is in your name, the games aren't over yet. Most dealers are somewhat straightforward when it comes down to things, but some dealers play games and supposedly make "mistakes." It's just another way of boosting their revenue's and earning your business. Some dealers are known to deliver cars without having the customer approved for financing/leasing, calling insurance, etc... They especially do this with people who have less than perfect credit. They let the customer take the car that day, and when they can't get approved for the price settled on, they call them back and tell them they need another $1,000 down, or their is going up $30 per month, or they made a mistake, etc... They do this so that the customer becomes attached to the vehicle, and doesn't want to give it back after they have shown all their friends and family.
All in all start on the internet and narrow down your list of possible dealers. Naturally you probably only want to consider the dealers who have the vehicle that you want, but keep in mind every dealer can order you a vehicle. To be honest, in the almost 5 years I've been selling cars, the most you are really going to save is ~$500. Most of the time it is in the $200-$300 category. Who knows though if you got the best deal, if you were "bumped" in the finance department and ended up paying more anyhow. It may seem like a good idea, but in the end it will most likely create more aggravation than good.
BOTTOM LINE - If your happy at a specific dealership, and they treat you well, it pays to stay. There's more important things in life to waste weeks of negotiation on, and your time and effort, to save a few bucks. And think about it, how much does your time cost?
Naturally, everyone wants to save money. When it comes to purchasing a new car, we all want the best price. Knowing this, dealers do what they need to account for shoppers and people who pit them against rival dealers. Now what I will discuss goes mostly for dealers who have the same franchise. For example, going to 2 Subaru dealers. This way everything is essentially the same, and whoever would give you the better price, would earn your business.
Online quotes - It's so easy to go onto edmunds.com and send a quote out to the 5 nearest dealers for a price quote on that new car you want. When it comes down to it, dealers are playing games with what they say, to get you through the door. They figure if your sending e-mails to other dealers, so they'll quote the "lowest" price, and when you come through the door things will change. So the price they quote won't include things like DESTINATION (avg. ~$700), Tax's, motor vehicle, prep charges, window etching, etc... To EFFECTIVELY use the internet as a tool in this case, you need to specifically lay out what YOU want. You need to tell them that you want an "OUT THE DOOR" price with all tax's and charges included. What your trying to find is what the total cost would be for you to purchase that specific vehicle. This sets a baseline and lets you know where every dealer stands. For a dealer that quotes a higher price, his price may include destination. Therefore potentially being cheaper than the lowest quoting dealer who's price may have not included destination.
To do this most effectively you want an itemized list of the Out The Door price.
Also keep in mind that until you actually sign the paperwork and the car is in your name, the games aren't over yet. Most dealers are somewhat straightforward when it comes down to things, but some dealers play games and supposedly make "mistakes." It's just another way of boosting their revenue's and earning your business. Some dealers are known to deliver cars without having the customer approved for financing/leasing, calling insurance, etc... They especially do this with people who have less than perfect credit. They let the customer take the car that day, and when they can't get approved for the price settled on, they call them back and tell them they need another $1,000 down, or their is going up $30 per month, or they made a mistake, etc... They do this so that the customer becomes attached to the vehicle, and doesn't want to give it back after they have shown all their friends and family.
All in all start on the internet and narrow down your list of possible dealers. Naturally you probably only want to consider the dealers who have the vehicle that you want, but keep in mind every dealer can order you a vehicle. To be honest, in the almost 5 years I've been selling cars, the most you are really going to save is ~$500. Most of the time it is in the $200-$300 category. Who knows though if you got the best deal, if you were "bumped" in the finance department and ended up paying more anyhow. It may seem like a good idea, but in the end it will most likely create more aggravation than good.
BOTTOM LINE - If your happy at a specific dealership, and they treat you well, it pays to stay. There's more important things in life to waste weeks of negotiation on, and your time and effort, to save a few bucks. And think about it, how much does your time cost?
Tuesday, April 1, 2008
When is the best time to buy that new car?
Most people think that the best time to purchase a car is at the end of the month. And they're 100% right. But there's a few other times that make more sense.
#2 The last week of December, between Christmas and New years, takes up the #2 spot for the best time to buy. Dealerships are coming up on year end, and if they haven't met their goal for the manufacturer, they may want to "give" cars away. Especially when they haven't met their goal, and an additional 10, 20, or 30 cars, could make or break them. So they're more willing to wheel and deal at this time.
#1 The best time to purchase a new car, is right after the new models come out. Leading up to the release of the new vehicles, manufacturers will enroll hefty rebates and incentives to get rid of the remaining inventory. Once the new models hit, the incentives usually get even better! The difficult part is timing it with when the new models come out. For some manufacturers, the 08's just came out. For some, the 09's just hit. And to make it more complicated, each region may have different release dates. Take the all-new Subaru Impreza WRX/STi. The West coast had them around October 2007. The northeast didn't receive them until January of 08. Another downfall is that by the time the new models have hit, what's left on dealers lots are generally the least desirable colors or model packages.
I recommend to folks, to get in a with 2 days left of the month. Do your research and go in ready to make a deal. If it's before the new models are out, but around that time, you can still get the color and package that you want, and life will go on.
Tomorrow we'll discus dealership shopping, and shopping prices from dealer to dealer.
#2 The last week of December, between Christmas and New years, takes up the #2 spot for the best time to buy. Dealerships are coming up on year end, and if they haven't met their goal for the manufacturer, they may want to "give" cars away. Especially when they haven't met their goal, and an additional 10, 20, or 30 cars, could make or break them. So they're more willing to wheel and deal at this time.
#1 The best time to purchase a new car, is right after the new models come out. Leading up to the release of the new vehicles, manufacturers will enroll hefty rebates and incentives to get rid of the remaining inventory. Once the new models hit, the incentives usually get even better! The difficult part is timing it with when the new models come out. For some manufacturers, the 08's just came out. For some, the 09's just hit. And to make it more complicated, each region may have different release dates. Take the all-new Subaru Impreza WRX/STi. The West coast had them around October 2007. The northeast didn't receive them until January of 08. Another downfall is that by the time the new models have hit, what's left on dealers lots are generally the least desirable colors or model packages.
I recommend to folks, to get in a with 2 days left of the month. Do your research and go in ready to make a deal. If it's before the new models are out, but around that time, you can still get the color and package that you want, and life will go on.
Tomorrow we'll discus dealership shopping, and shopping prices from dealer to dealer.
Thursday, March 27, 2008
Useless Dealer fees? Are they legit?
So dealers charge many little fees. I'm sure most of us have been to dealerships before and after the "negotiating" process, were surprised to find that there were some more fees tacked on at the end! Today we'll discuss those little fee's and whether or not their legit and what they are used for.
Doc (documentary fees) - Every dealer charges a documentary fee. The fee is associated with the cost of forms and documents, handling and obtaining motor vehicle, and to pad the dealers profit as well. A typical documentary fee will run anywhere from $99 on the LOW side, all the way up to $500. Maybe more. Most dealers will be in the $149-299 range. Anything more should be justified, and hopefully have a valiant excuse as to why the fee is so high. You may even try to haggle with this fee, but don't expect to get very far.
Window Etching - At 90% of dealers, window etching is a joke. It costs less than $15 per car for the actual etching, and another $50 to register the actual etch number. Most dealers will charge $249 for the window etching, and most of the time don't actually pay the fee to implement the contract.
Extended warranties - Ones that are offered and truly backed by the manufacturer are the best ones to go for. These are good at any dealership in the continental United States. They are worth it if the dealer will discount a little off the MSRP. they are transferable, and most of the time you can extend the bumper to bumper warranty for up to 100,000 and possibly 10 years. Especially on todays new more technologically advanced vehicle, it makes sense. Average navigation systems will cost approximately $1500 or more depending on the manufacturer. They are definitely worth the second glance.
Dealers offer pin-striping, simonize applications, and other packages that will earn more profit for the dealership. For instance, a roll of pinstripe costs about $10. Dealers will charge $195. All these packages do something, but create much profit for the dealership.
Be careful of the games dealers may play. Note that these fees are normal and be prepared for them!
Doc (documentary fees) - Every dealer charges a documentary fee. The fee is associated with the cost of forms and documents, handling and obtaining motor vehicle, and to pad the dealers profit as well. A typical documentary fee will run anywhere from $99 on the LOW side, all the way up to $500. Maybe more. Most dealers will be in the $149-299 range. Anything more should be justified, and hopefully have a valiant excuse as to why the fee is so high. You may even try to haggle with this fee, but don't expect to get very far.
Window Etching - At 90% of dealers, window etching is a joke. It costs less than $15 per car for the actual etching, and another $50 to register the actual etch number. Most dealers will charge $249 for the window etching, and most of the time don't actually pay the fee to implement the contract.
Extended warranties - Ones that are offered and truly backed by the manufacturer are the best ones to go for. These are good at any dealership in the continental United States. They are worth it if the dealer will discount a little off the MSRP. they are transferable, and most of the time you can extend the bumper to bumper warranty for up to 100,000 and possibly 10 years. Especially on todays new more technologically advanced vehicle, it makes sense. Average navigation systems will cost approximately $1500 or more depending on the manufacturer. They are definitely worth the second glance.
Dealers offer pin-striping, simonize applications, and other packages that will earn more profit for the dealership. For instance, a roll of pinstripe costs about $10. Dealers will charge $195. All these packages do something, but create much profit for the dealership.
Be careful of the games dealers may play. Note that these fees are normal and be prepared for them!
Wednesday, March 26, 2008
Tips for the BEST deal!
In today's day and age, buying a car can be easier than ever. It can also be harder than ever. Once you settle on a specific vehicle(s), the negotiating begins. The BEST most FOOL PROOF way to get the best deal is as follows:
1) Edmunds.com for invoice vs. TMV pricing. Also do research so that you are informed about any customer AND dealer incentives. Edmund's may not know about these dealer incentives as they had nothing posted for the month of March for "our" dealership. Look at TMV pricing to see what other people are paying.
2) Find the dealerships most recent newspaper ad. Look at the vehicles listed. Where it says dealer discount, KEEP TRACK of this. Make sure there is no "dealership" loyalty incentives. This is a game dealers use and hardly anyone will qualify. It's set up so that only people who have purchased their last 5 vehicles from that dealership qualify, and they must be trading in a vehicle that they purchased in the last 6 months. It's a game.
3) E-mail the dealers in the area. NOTE: over the Internet dealers are not required to include DESTINATION in the price of the vehicle. Invoice pricing reflects destination as being included. ALSO, ask for a specific breakdown of ALL the costs associated with the purchase of the new vehicle. You want an itemized list, and an OTD (Out The Door) price. Tax's, motor vehicle, EVERYTHING included.
4) Now what you need to do is compare dealer to dealer, and possibly visit each dealer. As long as you get a price near invoice, less any incentives, you have done a good job. Keep in mind that dealers will play games and that what may seem like the best deal, could turn out to be a complete phony. Until you actually sign the paperwork in the office and take delivery of the vehicle, your not out of the clear. Some dealers will actually deliver the car and then call you back because there was an "error" on the documentation.
Every dealer is different, and depending on what kind of vehicles they are selling, you may find that they may not be willing to negotiate at all. Just beware for the "highway" dealers. They are notorious for playing games and doing anything to sell you a vehicle.
Note that you should always have insurance, credit approval, and proper documentation for both. Dealers will do "spot" deliveries where they will put you in the car and you will drive away, without any of the formal paperwork completed. Once you drive away in the new car, you'd hate to give it back. If they come back and tell you that you've been approved at a tier 3 rate and your monthly payment goes up $15/month, you may feel obligated to pay the difference. This is just one of the MANY games they may play.
Next time we'll discuss dealer fee's...such as Doc (documentary fees), window etching, that "appearance" package, extended warranties, and other fee's associated with additional revenue earning practices that dealers use.
1) Edmunds.com for invoice vs. TMV pricing. Also do research so that you are informed about any customer AND dealer incentives. Edmund's may not know about these dealer incentives as they had nothing posted for the month of March for "our" dealership. Look at TMV pricing to see what other people are paying.
2) Find the dealerships most recent newspaper ad. Look at the vehicles listed. Where it says dealer discount, KEEP TRACK of this. Make sure there is no "dealership" loyalty incentives. This is a game dealers use and hardly anyone will qualify. It's set up so that only people who have purchased their last 5 vehicles from that dealership qualify, and they must be trading in a vehicle that they purchased in the last 6 months. It's a game.
3) E-mail the dealers in the area. NOTE: over the Internet dealers are not required to include DESTINATION in the price of the vehicle. Invoice pricing reflects destination as being included. ALSO, ask for a specific breakdown of ALL the costs associated with the purchase of the new vehicle. You want an itemized list, and an OTD (Out The Door) price. Tax's, motor vehicle, EVERYTHING included.
4) Now what you need to do is compare dealer to dealer, and possibly visit each dealer. As long as you get a price near invoice, less any incentives, you have done a good job. Keep in mind that dealers will play games and that what may seem like the best deal, could turn out to be a complete phony. Until you actually sign the paperwork in the office and take delivery of the vehicle, your not out of the clear. Some dealers will actually deliver the car and then call you back because there was an "error" on the documentation.
Every dealer is different, and depending on what kind of vehicles they are selling, you may find that they may not be willing to negotiate at all. Just beware for the "highway" dealers. They are notorious for playing games and doing anything to sell you a vehicle.
Note that you should always have insurance, credit approval, and proper documentation for both. Dealers will do "spot" deliveries where they will put you in the car and you will drive away, without any of the formal paperwork completed. Once you drive away in the new car, you'd hate to give it back. If they come back and tell you that you've been approved at a tier 3 rate and your monthly payment goes up $15/month, you may feel obligated to pay the difference. This is just one of the MANY games they may play.
Next time we'll discuss dealer fee's...such as Doc (documentary fees), window etching, that "appearance" package, extended warranties, and other fee's associated with additional revenue earning practices that dealers use.
Tuesday, March 25, 2008
Invoice pricing?
What is invoice pricing? In a sentence, invoice pricing is a posted amount that the dealership purchases the vehicle from the manufacturer for. As many of you may or may not know, the dealer does receive back incentives from the manufacturer, in the form of holdback. Now most dealers don't mention anything about holdback, and if you mention it to them they look at you with a starry eyed, deer in the headlights, face. In reality dealers will get back approximately 2% of MSRP. Do the math, 2% of $20,000(MSRP), is $400. So theoretically if that dealer sells the vehicle for the invoice price, they will make a $400 profit. Some manufacturers may give back approximately 4%. (Subaru).
The one issue with holdback is that dealers will not see this money for a time period after the sale of the vehicle. It depends on the manufacturer. In general I would say it may take up to 3 months to get this money back. So any money below invoice, won't be seen for as long as 3 months after the vehicle is sold.
In reality, Invoice for most FOREIGN car manufacturers, is approximately $1,000 less than MSRP. Edmunds.com is rather close when giving out the invoice pricing on vehicles. Although in the 4 years I have been working that people bring me Edmunds, there have always been some price discrepencies. Any deal at about invoice is an exceptional deal. Minus the available rebates of course. On some newer more exclusive vehicles, dealers may be more reluctant to discount off of MSRP. It's all a balance between suply and demand.
For any questions, feel free to post!
The one issue with holdback is that dealers will not see this money for a time period after the sale of the vehicle. It depends on the manufacturer. In general I would say it may take up to 3 months to get this money back. So any money below invoice, won't be seen for as long as 3 months after the vehicle is sold.
In reality, Invoice for most FOREIGN car manufacturers, is approximately $1,000 less than MSRP. Edmunds.com is rather close when giving out the invoice pricing on vehicles. Although in the 4 years I have been working that people bring me Edmunds, there have always been some price discrepencies. Any deal at about invoice is an exceptional deal. Minus the available rebates of course. On some newer more exclusive vehicles, dealers may be more reluctant to discount off of MSRP. It's all a balance between suply and demand.
For any questions, feel free to post!
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