Steve (not Lang) writes:
My wife has a 2013 Prius with a total of 36,000 allowable miles over the 36 month lease through June 2016. The problem is she now drives more and is already at 37,500+ miles! At 0.25 cents per mile, it will add up quickly.
Should we just plan on buying the Prius from Toyota for 16,400 at the end of the lease term? Or should we take a negative equity hit today, cash out and buy a 2015/2016 Honda Accord Sport/EX? We could be looking at $4,000 in lease payment to roll into a new deal to get out of Prius. We kind of learned our lesson to not do a lease since now she drives a lot. (Read More…)
Going to visit a dealer on a rainy day or the third Sunday after a holiday might not help you get a better deal on a used car, but tracking how long it’s been sitting on the lot may work in your favor. Aged inventory takes up valuable lot space while interest adds up every day motivating most dealers to drop the price to sell it quickly.
Most cars arrive on a dealer lot arrive from wholesale auctions or customer trade-in and are paid out from dealer funds or by a loan through floorplan financing. As with most loans, interest and fees are paid until the loan is satisfied for the floorplan. Each day of interest cuts into the potential profit for a vehicle so dealers try to move inventory as quickly as possible.
At virtually every other automotive outlet for whom I’ve worked, the communication between writer and reader has been a one-way street. I give advice. The reader listens. Whether the reader acts on that advice is completely unknown. Also, the reader never gives advice to the writer.
Thankfully, TTAC is different and the Best & Brightest will drop a nugget of information in the comments that I can use not only in my professional life, but in my personal life as well.
And it’s on this advice that I drove 2 1/2 hours to Moncton to drive a 2015 Dodge Charger R/T Road and Track.
The prospect of buying a salvage titled car for almost half the price of one of its clean titled counterparts is tempting for many potential car buyers, but increasingly it’s becoming a losing proposition. I have bought and reconditioned a few dozen salvage cars (I currently own three). As I am getting ready to embark on a new car buying adventure, I sat back to look at the math for my current daily driver.
I purchased my 2005 Cadillac STS from an insurance auction a few years ago for about $3,400. After it arrived, I spent another $2,300 to repair it and get it back on the road. I went through the receipts a few months ago and wrote up a summary of the costs. It worked out to be a great deal for me at the time but now that I am getting ready to replace it, I decided to take a look back and see if I actually saved any money in the long run.
Rather than begin in media res, let’s recap:
I sold my first Porsche 911 (a “993” as they call it, which means it was built sometime from 1995 to 1998 and was the last version of the 911 to feature air-cooling; mine was a 1996) to a nice guy in Minnesota.
The very next day, my second Porsche 911 (a “997,” which means it was built between 2005 and 2012 and was intended to fix the ugly looks and perceived dubious build quality of its immediate forebear — the “996” 911, which was the all-new car that succeeded the above-mentioned 993; my 997 was a 2007 example of the hardcore GT3 variant) met its end after a teenaged driver failed to yield immediately in front of me, resulting in a collision.
With no means of transportation beyond the shared mobility lifestyle or MARTA, it was time to start shopping for another car. I didn’t really have a defined budget, so I considered cars across a fairly wide price range.
Price is the deciding factor in many new car purchases, so it’s no surprise that dealerships do all they can to advertise the lowest number possible. While the internet has given consumers a lot of power when it comes to purchasing a new car, many consumers still fall for age-old pricing tricks.
One of the easiest ways to reel people into a dealership is to set up an advertisement for a decently optioned popular car at a sale price significantly lower than MSRP. This advertisement will usually be the lowest in the geographic area and would cause a loss for the dealership if sold. The way that deceptive dealers get around honoring the advertised price is by specifying a single stock number that qualifies and then asking a friend or relative to put a deposit on that specific vehicle as soon as the advertisement goes up online or in print.
Every automotive enthusiast has an opinion when it comes to car buying and many are quick to point to an orphan car for a good deal. While some orphan cars are a bargain for their genre, maintaining some of them can be an exercise in futility. Internet commenters and forum aficionados are quick to defend their recommendations and point to some parts law that supposedly forces manufacturers to provide parts for 10 or 20 years after they kill a model, but no such law exists. While there are laws like the Magnuson-Moss Warranty Act that provide some protection in certain situations, it’s nowhere near the 10-year mark.
We just had a fight.
Scratch that. We were still having a fight. This was just the tense calm between volleys of verbal mortar fire. I won’t even tell you what we were fighting about. The subject was so stupid it would make my girlfriend and I both look like utter idiots — like those times when you shout at a character in a TV show to grow up and “just say you’re sorry already!”
Instead of doing what any rational human would do, I figured my only chance of peace was to escape the waves of relationship-drama ordnance. I grabbed the keys to this week’s Charger along with my vaporizer and fled the front line to regroup and regain my sanity.
Car buyers are tired of the dog and pony show that goes along with trying to negotiate for a new car and are quickly turning to car buying services like TrueCar as a way to get transparency into the pricing process.
While places like TrueCar will save you a little money compared to just walking in to a dealer off the street, they won’t get you the absolute best price and will do it at the cost of your privacy. TrueCar makes money by charging dealers $299 to $399 per lead once a customer that was referred from them makes a purchase. They gather data from various automotive data aggregators along with vehicle registration and tax sources and perform analysis on it in order to establish an average price paid.
One of the requirements for affiliated dealers is to give them access to their Dealership Management System (DMS) or to manually transmit vehicle sales data to a supported third-party vendor. A DMS is a management system that dealers use to manage customers and vehicles that contains information such as pricing for vehicles bought and sold along with customer details like names, addresses, and social security numbers.
I am completely at a loss to think of another sport that tests man and machine as much as motorsport. Maybe bobsledding? Nah, scratch that.
Automakers have a history of testing their latest and greatest at road courses, ovals and street circuits all over the world. Some of the best technological innovations have come directly from racing. But, is that still the case? Is racing still the test bed it used to be for what we see on our cars a decade from now? And does it still help automakers capture the hearts and minds of the car-buying public?