Category: Car Buying Tips

By on August 5, 2016

Alarm Valet, Image: Dr. Katherine Nell McNeil/PriusChat

Visiting a dealer’s Finance and Insurance office is usually the last excruciating step when buying a car. The F&I rep will go through an endless stack of documents to finalize the sale while attempting to sell as many pointless add-ons as possible.

Many of us know to avoid add-ons like pin striping, paint protection, and extended warranties since they are either overpriced or valueless — but we may be letting the worst offender of all slip by.

Car alarms seem like sensible choices, especially if they’re offered at a good price, but the alarm that many buy in the F&I office can barely be considered more than a dealer profit device. These alarms are often presented as add-ons to the factory alarm that are supposed to improve on the factory security system, but in reality are usually nothing more than a shock sensor and some hacked wires.

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By on July 13, 2016

Rebecca Lynn Z4

Let’s give a hearty “Welcome back!” to our friend Rebecca, who previously wrote about her Tacoma on these pages. She just picked up this beautiful Z4 from a dealership hundreds of miles away from her home. This is her story on how she did it. 

This journey started in October of 2007 when the lease on my 2005 Z4 3.0 matured, and I had to give the car that I dreamed of, and built on BMW NA’s site for two years, back to the dealership.

Since then I’ve had the recurring dream that I still had that car — it’s just been in storage all this time. I have serious commitment issues with cars, so it dawned on me three years ago that this was the one that got away. Fast forward to April 2016, I’ve saved for this car for a couple of years, and casually checking out the market with the plans to purchase before the end of the year. I happened upon a couple of white ones just outside my price range, and decided it was worth the stretch.

So what was my process?

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By on July 6, 2016

Suckers at the Stock Photo Dealership with a Credit Card

A record 31 percent of all new vehicles sold this year in the U.S. are leased. I spent a good part of my career studying why some people refuse to lease. Much of their resistance stems from bad buzz. Some say it’s because of the stories they heard about ’80s-era open-end leases where owners were responsible for paying the car’s residual value at lease end. (These are the same customers who will not buy a Hyundai today because they produced crappy cars in the ’80s.) Others oppose leasing because they heard about a guy whose cousin’s neighbor had to pay $5,000 in wear and tear or excess mileage charges at lease end. And there are those of you who will brag comment below about how you always pay cash for your cars and don’t understand why other people won’t follow your lead.

This article is not designed to convert such non-believers to leasing. This advice, drawn from my years in the auto finance business, is for buyers who know the basics and benefits of leasing, want some timely tips on how to get the lowest possible payments, and want to pay less money on lease-end charges.

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By on June 27, 2016

damn-wheels-720x574

Note: This story originally appeared on Hooniverse.com. It is republished here with permission.

My mother used to have a very nice 2005 Acura TL. For almost nine years she used that car to commute from her home in Edgewater, NJ to work in the Bronx. Those of you that have not traveled between New Jersey and New York over the George Washington Bridge, and further north over the Cross Bronx Expressway, should know that this may be the worst road in the United States. The bridge converges four highways into one. The traffic jams are constant, as is construction. Someone always breaks down or rear-ends someone else. Due to heavy truck traffic the pavement is extremely wavy. It’s bad, really bad.

The third generation Acura TL came standard with 17-inch wheels wrapped in 235/45-17 tires. The car handled very well right out of the box while retaining a ride that was comfortable. With a 270hp engine, it was a fun car to drive, even with the ever-present torque steer. The problem was that its wheel/tire combination did not resist road imperfections very well. Bubbled-up tires and bent wheels were the norm for my mom and many other TL owners. I did my best to ensure that she always had a good set of wheels and tires on the car, which meant frequent Craigslist searches.

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By on June 6, 2016

20160604_203845

Okay, I admit: I subscribe to the Wall Street Journal. It’s not really for me; Mrs. Baruth works in finance. (Without which, as you pimps and players out there should know, there’s no romance.) Rarely do I read the whole thing. This past Saturday afternoon, however, I broke the pull-cord of my son’s TopKart. Then he ran out of gas for his motorcycle. Which consigned us both to an early afternoon inside the house, because I was too lazy to address either situation.

Imagine my surprise to find an advertisement for an independent leasing agent in the last of the Saturday sections, back among the lifestyle articles and the usual Dan Neil attempt to sound like a more fey version of Oscar Wilde. Those members of the B&B who were born prior to the release of “Appetite For Destruction” will remember that stand-alone leasing shops were once very big business. They bought their cars from franchised dealers, often well after they’d obtained the customer’s signature on their own paperwork, and they relentlessly cross-shopped banks for rate and residual deals.

Often, these firms focused exclusively on members of the professional class; the big hitter in central Ohio during the ’80s was un-self-consciously titled “Physicians Leasing Co.” They were largely driven from the field by the beginning of this century by aggressive captive finance providers like BMW Financial. The tendency on the part of most banks to view the end-of-lease termination process as an additional and very lucrative profit center, a tendency that became more exaggerated as the prime rate fell and banking profits sank accordingly, didn’t help their business model one bit.

Nevertheless, here we are, in $THE_CURRENT_YEAR, with a manufacturer-agnostic leasing company advertising in the WSJ. So let’s see what the deals are, and what lessons we can learn from looking at them.

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By on June 3, 2016

Spending hours or days negotiating for a vehicle can be a taxing experience, so reaching an agreeable price feels like a big accomplishment for car shoppers. It seems reasonable to let your guard down and relax as you enter the F&I office to finish up the paperwork, but that can lead to a big mistake.

The finance manager or clerk will start going over the paperwork, representing the car as sold and financed while showing you a specific rate. You skim through the mountain of paperwork and quickly sign all of the forms so you can drive off in your new car.

At this point, most people are brimming with excitement — they show off the car to their friends and family and share pictures on social media — but that jubilation can quickly be deflated with a call from the dealer telling you that the financing has fallen through and you don’t own the car after all. Read More >

By on May 19, 2016

2016 Volkswagen Golf R Lapiz blue

$26,415.

$36,470.

$43,395.

The jumps in price from the four-door Volkswagen Golf GTI to the Volkswagen Golf R to the Audi S3, three closely related cars, are not insignificant. Yet in spite of the dollar differences, or perhaps because of the dollar differences, the trio inevitably undergoes the value proposition comparison, as if “value” is the reason 460 buyers per month spend around $40,000 on a Volkswagen hatchback.

I’ve now been privileged to spend a week with each car. Sadly, a Lapiz Blue 2016 Volkswagen Golf R just left my driveway to make room for, as fate would have it, a 2016 Toyota Prius.

And I have no trouble making the case for the Golf R as the fast VeeDub to own. Read More >

By on April 26, 2016

Mark's Saturn Astra, Image: © 2016 Mark Stevenson/The Truth About Cars

Over the weekend and earlier this week, my girlfriend and I negotiated over and agreed to purchase a new car. No, it isn’t that.

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By on March 11, 2016

Salesman With Customer

Carfax has become so commonplace that it’s now standard practice for many car buyers to ask for it when shopping for a used car. Its database has grown over the years to the point that it now claims to to have the most comprehensive vehicle history database in North America.

The reports include such valuable information as title brands, accident history, and even service history for some vehicles, but it has some limitations that unscrupulous dealers are using to their advantage. The missing data allows these dealers to represent damaged cars as clean and use the Carfax report to support those claims.

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By on February 19, 2016

New Suckers At The Stock Photo Dealership

The Internet brings transparency to the car buying process and allows us to search the whole country for our favorite car. While shopping for a WRX a few months ago, I got quotes from dealers as far as 1,500 miles away. I ended up skipping the local dealers and travelling to a dealer 80 miles away in order to get the best price.

Leaving your immediate geographical area can be beneficial in many instances, especially if you can find a more competitive market that’s reasonably close. Unscrupulous dealers have caught on to geographical buyers who are only looking for the lowest price. These dealers combine geography and psychology in order to dupe buyers to come in and often get rewarded for their shameless behavior by making the sale.

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