Nissan Leaf

For the most part Nissan has focused it’s efforts on building more fuel efficient cars as opposed to jumping into the hybrid arena.

Instead Nissan has gone the totally electric development route positioning themselves as electric cars being the cars of the future.

The Nissan Leaf is only the first of what the car company claims will be a entire family of electric cars that will quickly follow… but let’s stay with what is for now.

The Nissan Leaf receives power via a 24 kilowatt-hour battery pack. The pack itself is configured to lay flat beneath the floor space in order to maximize interior roominess.

Cruising range, according to Nissan is 100 miles. 100 miles seems to be a magic marketing number for consumers. Keep in mind as any marketing goes, this 100 mile range is more than likely under ideal conditions and a more conservative estimate would be more in the 70 mile neighborhood.

So what about the recharging capabilities of the Nissan Leaf? A big hurdle with totally electric is recharging and more precisely the fear of running out juice somewhere with no charging stations nearby.

Nissan states that the battery will recharge in four hours via a 220 volt line (the kind your dryer runs on). However, if you want to plug the Leaf into a standard 110 volt outlet like you would have in your garage, you should expect twice that long. The Leaf does come with a quick charge capability that allows for an 80% charge up in less than 30 minuets, but at this time, we’re not quite sure what type of power source that would take.

Without splitting too many mathematical hairs here, early quotes from Nissan on the cost to drive the Leaf was about 4 cents per mile. Compare that to the 13 cents per mile cost for a car that gets 30 miles per gallon (based on 15,000 miles per year).

For those horsepower buffs and numbers crunchers amongst us, the Nissan Leaf’s motor will produce 80 kilowatts (107 horsepower) which is roughly the same as the Honda Fit. The motor gives us 207 pounds/feet torque… which isn’t bad considering a 3.5 liter Altima produces 258. Top speed of the Leaf… about 90mph’s.

With electric cars, it’s all about aerodynamics and energy efficiency. So, when it comes to styling, people will probably either love or hate the lines of the Leaf. For the most part… I see Nissan Versa in the lines… but maybe that’s just my eyes.

What about the price point of the Nissan Leaf?

Nissan has quietly inferred that it would be somewhere around the $30,000 or less range.

Would you buy a car online or just use the massive power of the world wide web to get your best car deal?

If you are thinking that you may step up and buy a car online, you maybe thinking of such great advantages like all the time you’ll save… and the money too!

But let’s take a look at how buying a car online really works.

When you find yourself on an internet car buying portal somewhere along the line you’ll be asked to fill in the information about the car, make, model, etc that you would like to get an online car quote for.

Along with the information you provide for the type of car you’re are looking at online, you’ll need to fill in some basic personal information as well. Once you’ve got this all done, you’ll soon receive all those rock bottom car prices emails from some local or area car dealers.

What you will want to do next is compare the various price sheets that you get from the car dealers and choose the lowest one. If you think that you like this particular dealer price, you can essentially avoid contact with all those wonderful car salesman, by a car — and drive it home — without all the haggling, negotiating, and time spent. If after you spend some time at the dealership and you alternately aren’t comfortable with the price or the way the process is going, you are under no obligation to buy a car there.

Pretty easy. Pretty straightforward.

All in all not a bad way to buy a car online.

So let’s take a minute to examine exactly what goes on for people who want to buy a car online.

The dealerships that e-mail you the various price quotes pay money to a particular website in order to build their contact list. In other words, these car dealers have paid a fee for the privilege of being able to contact you and attempt to earn your business.

Even though you’ll get price quotes from various dealers the lowest price you get may not be the lowest price that you can actually buy that new car for. There may actually be another dealer in your area that would be willing to sell the same car at even a lower price. And this doesn’t even take into consideration the possibility of your trade value — if indeed you are going to be trading your old car in.

Also, let’s not forget that you can rest assured that the salesperson and/or the sales manager at the dealership is going to do their very best to sell you other high profit-making items such as paint protection, floor mats, extended warranties, and even how you finance your purchase of your new car.

The key is (and I stress this throughout my website) when it comes to buying a car; even if you intend to buy a car online, you have got to do your due diligence and your research. Make sure that you simply take things in an organized one step at a time approach and don’t get in a rush to complete the deal. Remember, it’s the dealer or salesperson that has to sell you the car. Don’t let them work you into a frenzy or hurry you through the deal. This is a formula for getting ripped off.

The best place on the net to get reliable car buying information is Edmunds.com.  The information and price quotes you receive are absolutely free and you are under no obligation.

Remember however, once you get to the dealership with your lowest quoted price for buying a car online, doesn’t mean you don’t have the opportunity to further negotiate the price… in fact, you absolutely should continue to negotiate the price.

So, regardless of whether you’re in the market to buy a car now or not, it is most definitely worth your time to begin doing some preliminary car buying research and note taking on the possibilities out there. So when it comes time to get down to the nitty-gritty and you think you want to buy a car online, you will have a lot of the necessary pre-work taken care of.

First of all, I’m not a fan of any of this government spending, involvement, stimulas, or whatever you want to call it. The fact is that government is vastly wasteful and inefficient in anything they run or oversee… infinetly more wasteful with money and resources than a car that gets a bit lower gas mileage.

Just like anything it seems these days… someone comes up with a touchy-feely environmentally friendly high level idea and the next thing you know it becomes law based on a very little holistic view of the what the details should be.

But political thinking aside, this “gas for clunkers” voucher program is not something that most consumers should or I believe will take advantage of (at least to the point of stimulating the auto industry).

This voucher for potentially $4,500 gas for clunkers thing is not going to help most consumers out of their current “gas guzzler”. In fact, for the vast majority of those who take the plunge, they will, in reality, only be increasing their car payments and adding more debt to their lives.

At $1 billion dollars the gas for clunkers tax payer price tag is down from earlier versions that touted a tag of $4 billion.

Regardless, the cash for clunkers / gas for clunkers program at best will be a very mild stimulas to the auto industry at a cost to the taxpayers and potential buyers that is hardly equitable.

The clunkers program is hoping to stimulate car sales by allowing consumers to trade their “gas guzzling” cars and trucks for a voucher from our heavy handed government. The clunkers program certainly destin to become just as efficient the brain trusts that authored and passed this bill.

So all should be comforted with the clunkers program knowing that our government is spending our tax dollars so we can then buy and be taxed once again on the purchase of these more fuel efficient golf carts… cars.

The auto industry has sought such incentives particularly after the deplorable numbers of the past few months of this economy. But then again, this same auto industry has had their head up their ass concerning the future of their business for quite some time.

Isn’t this the same industry that for the past several years has been touting the virtues of such efficient vehicles as the Hummer, Expedition, Suburban, and the likes? They didn’t seem to have any problem spending billions on both the manufacturing and indiscriminate marketing of such ill-fated platforms.

So much so, that now we cry alligator tears for them and offer up a yet another tax payer funded clunkers program to bail out their inability to look into the future of their own industry.

But even with that, the clunkers program is in reality, yet just another strong-armed program from Washington to slice away another freedom of choice. While once again our government tries to manufacture demand for a product rather than allow market forces to run their course.

Quite a lot of information for you to take in and remember.

With that in mind I thought I would give you a crib sheet or review.

For next few articles let’s take a look at some of the must know, must do important highlights.

1. Know your credit score.

Especially if you may have had some problems in the past. Some car dealers and salespeople may tell you that you won’t qualify for competitive rates. Many do this to desensitize you to the higher interest rates that you may have to pay. Although, this may be true if your credit is dinged up; but remember car dealers make nice profits off of people in their finance department by bumping the rate even higher. Don’t be misled. Know your credit score. Here is a good place to start. Equifax

2. Buying a car is NOT a single transaction.

I can assure that the car dealer doesn’t view it this way and nor should you. Financing is one (as mentioned above). The new car and its price is another and your trade-in is yet another.

In essence, you have three deals to negotiate when you hit the dealer’s lot not just one. It does you no good to craft a good deal on the new car then get less for your trade than it’s worth, then top it off by going into the finance office and paying too high of an interest rate. If this happens, you lose and the car dealer wins. You need to be in control of all three areas. Do your research.

3. Never, never, never negotiate based on a monthly payment.

And never tell the sales person at what monthly payment you’ll be comfortable. NEVER! Focus on the selling price of the car! You are working on getting a good price on the car. If you have done some easy homework and know your what your monthly payments will be based on the amount you finance, you won’t have a problem.

Car Buying Review- Sticker Price next…

Sure buying a car is an emotional experience.

Particularly if you have put a lot of work into your research and you haven’t had much luck finding what you want… then you finally do and you immediately go into a slobbering mess.

O.K. maybe not that bad… but you must remember buying a car is a business transaction. Don’t let your emotions cost you big money in the car buying process.

Aside from the obvious that your emotions can certainly cloud your judgment, they will also give the salesman an edge when dealing with you because now they know that you have fallen in love with a particular vehicle.

Salespeople will indeed use your enthusiasm and emotions to make the sale. That’s a big part of what selling is all about. As a salesperson you look for things that will build momentum toward the sale and you revealing your feelings of amour toward a car will only aid the process.

And this not only applies about what you love about the new car you are test driving and looking at, but it applies to what you dislike or grown tired of about your trade in.

If you talk about all the annoyances of your current car the salesperson will have a good idea about what to show you to keep your emotions high.

Keeping your car negotiating cards close to your vest doesn’t really take any of the research that we have stressed throughout this site, but it does take practice and concentration.

Don’t underestimate the importance of this concept.

If the car salesman knows your hot buttons they will push them! Again and again. But they can’t if they don’t know what they are.

Although difficult, you must do this in order to negotiate your best car deal.

Let’s start with the new car you are looking at.

First and foremost in your new car negotiations you will negotiate from the invoice price up! Never, never, ever, negotiate from the sticker price down. Just don’t! Focus on the selling price of the new car.

Oh, by the way, I am writing under the assumption that you have been a good student to this point and haven’t even started this process without knowing exactly what the numbers are, both on the new and the trade in side of the ledger. If not, call time out Edmunds.com, Automotive.com, and Kelley Blue Book Used Car Guide are of excellent places to start. Once you have done your homework come on back.

Focus on the selling price of the car you are looking at. Don’t worry about the trade at this point. Even if the used car manager is out evaluating your trade as you speak with the salesman. Remember, you already know what a fair price is for your trade in.

Once you make an offer of price for their new car do not allow such tactics as the salesperson telling you something like “I can’t get you that price on this car, but I am pretty sure I can on that car”.

Well, that car isn’t the one you have researched and want. Do not let them switch cars on you. This would be a big mistake.

Stay calm, know your numbers.

Don’t let the sales person walk you around the lot looking at other possibilities that will fit your numbers.

Don’t be ridiculous with your numbers you present. Be realistic.

Sure it may take some work to get them, but don’t take yourself out of the game by offering up something so ridiculously low that you aren’t even taken as a serious car buyer. You have to get their attention.

Ultimately, the best advice I could give you on this process is that after you have done your homework on both your trade in and the new car and you have a target price for both.

You will now have a number known as the trade difference. In other words, the price you are willing to pay for the new, minus the value you want for your trade is the “trade difference”. This number in your mind is extremely important in keeping your rudder straight. Because, no matter what set of numbers the car salesman tosses at you between the new car and your trade, you know the trade difference number is your goal.

For example let’s say you know that if you can get a trade difference of say $15,000 you will be satisfied with the car deal. This means that you will have met your goal getting the prices you want for the new car and your used car you traded. It also means that you have satisfied your budgetary constraints as well.

If you persist, in getting your trade difference goal you may end up a bit higher on the new car price, but also get a higher value on your trade than you thought. Or even vise versa.

For example, if the sales person comes back and asks you… “if I can get you this much more for your trade, can we earn your business?”

Again, take this dollar value and subtract it from the new car price they have penciled in … and then does this meet your trade difference goal?

If not, and you feel that there is still some money left on the new car, but you know they are indeed at a good price on your trade, then encourage the sales person to redirect back at the selling price of the new car and go after that last few hundred dollars that you know is fair.

I know that this is a lot to talk about and in the span of just a couple of short articles; I have talked about hours if not days of work on your part.

But if you want to negotiate your best car deal this is what you must be prepared to do.

Remember stay calm, cool, and collected during all parts of negotiating car prices. And most of all, know a fair price for the selling price of the new car and a fair price for your trade, so you will then know the trade difference number. Then it will be up to the car salesman and the car dealer to get to that number.

Negotiating car prices at the dealership is difficult (and time consuming) at best.

As you may recall, for our purposes here we have discussed that there are basically three distinct areas of putting together your car deal successfully… (for you not the dealer).

These three areas are the new car price, the price you want for your trade in, and the subsequent new car financing.

Don’t ever forget during your car buying process that each of these areas of the car dealer that you will come in contact with (new car department, used car department, finance department) are all businesses within a business.

Each of these departments has their own manager; each manager is responsible for their profit and sales numbers. Each manager either collectively or individually can be under a good bit of pressure to improve their numbers (sales and/or profit).

Keeping these negotiating points separate during the car buying process is very difficult and most people don’t.

Aside from knowing exactly what you’re doing, it takes a great deal of patience, and persistent on the part of the buyer. Most buyers get lazy and just want to finish up and get out. Which they will do… buy paying more for their car than they should have.

It may sound simple in theory, but to do this successfully you will have to do a lot of haggling in each area of the deal.

Don’t take no as an answer from the car salesman. They are trained day in and day out how to react to and handle objections from the buyer. They make a living on not giving up so you shouldn’t either. Remember without you, there is no deal for dealer. You have the power.

Do not let your emotions get the better of you.

Don’t let the salesperson get the better of you and frustrate you into a poor or hasty decision. If you feel your frustration meter being pegged out then take a break or leave all together.

The sales people have to be there… you don’t. Believe me; their time is valuable to them. And the more time they have invested in you, the more they are going to want to negotiate a car deal on your behalf. Even a mini profit deal for them is better than none.

Up next let’s talk more about the process of keeping all your car negotiating pieces separate and how you can optimize your deal.

Next Mistake Negotiating Prices (continued)

Wrong!

Car dealer financing and what goes on in a dealership’s F&I (finance and insurance) department was a no brainer for me when thinking about some of the most common mistakes people when it comes to car buying.

A dealer’s F&I department can be a wonderful source of profit for the dealership.

But, let’s back up one second. For some reason, there is a great many people that don’t consider the financing or the cost thereof, part of the cost of ownership puzzle, or part of getting a good car deal.

If you don’t… then do, or you’ll make many a car dealer very happy to see you coming.

I guess it’s because you don’t actually ‘see’ this money leaving your checking account each month. After all, it is hidden inside your car payment.

Take a look at the impact of interest rates and what you’ll be forking over, over the length of your car loan. And it you are car financing with bad credit on your side, the financial implication can be very hefty.

Take a moment to do this. Go to our monthly payment calculator and just to give yourself a wake up call…

plug in a $20,000 loan for a car for 5 years at a modest 4% interest rate. You’ll note that your payment comes to $368.33. Now change the interest rate to 8% and you’ll see your monthly payment change to $405.53.

A difference of only $37.20 month. Hey, that’s only one night less a month to go out. Right?

Well, take your 37.20 times your 60 month loan and the difference between the two interest rates is a hefty $2232.00!

Shop your interest rate! Let me say that again. Shop your interest rate!

Start by getting (and knowing) your credit score. A great resource that you may be familiar with is Equifax Credit Report.

Even if you have some difficult credit, shop your interest rates. Sure, they’ll probably be higher, but there is not reason for them to not be competitive relatively speaking. Automotive.com and 1800AutoYes.com are very good resources.

Here’s the part about car dealer financing and what I am constantly amazed at when discussing this with people.

Many people don’t realize that when they get quoted and interest rate from a car dealer’s F&I person, they are being quoted an interest rate with a point or two… or three added onto what the dealer can actually get the money for.

That’s right.

Even you of immaculate credit ratings. If the dealer can get you to sign the financing contract at 8% and they can get the money for 6% they have just made a very nice dime on your ignorance, laziness, or whatever.

And the numbers used here don’t matter… just pick a rate. If I loan you money at ‘x’ interest rate when I can get the money for ‘x’ minus ‘y’ interest rate, then I am going to make some money on financing you!

Knowing how much you qualify for and what that interest rate will be over the term of the loan is a must when car buying!

Besides saving yourself money on your car deal, having this knowledge during the car dealer financing part of the car buying process will allow you to tell the car dealer to beat what you’ve got.

And you never know… they may be able to; saving you even more!

Next Mistake Shopping Only Car Dealerships Nearby

Bravo!

Does this mean finding a nice reliable car for a reasonable price?

To many people this may be the ultimate goal as they trek through one car dealership after another in search of their best automobile deal.

Think for moment.

Does getting a good price on a car mean getting a good value for your hard earned bucks? Is the price you pay for the new car what the car is going to actually cost you? Yes?…. No? ….. Maybe…..

I bring this up at this point just so we can take a brief respite from the hard work of car price negotiating. And to make sure that during all the research and self education that you actually take into account what the vehicle cost is going to actually cost you.

The price you pay to purchase your automobile is not the cost of the car.

Although price and cost are certainly blood relatives (no pun intended), there is a distinct difference between the two.

The price you pay for your car is merely the exchange of cash for the title. The title which either goes to you or the lien holder. There is no expense involved at this point in the car purchasing cycle, just consideration exchanged for a product.

In other words, say… you have just exchanged with the dealer $20,000. The dealer has $20,000 and you now have a vehicle valued at $20,000….. well…. almost.

Of course, part of that $20k you just shelled out or signed loan papers for included the profit the dealer made on the deal, taxes, and fees.

In reality, the actual vehicle market value of your new car never was $20,000. Every car is marked up above the market value. Essentially, this is know as profit.

With the dealer profit attached to the car, the car itself isn’t really valued at $20,000. On a tangible basis your car itself really is not valued at $20,000. Even if you walk straight out of the finance department, don’t even touch your car, and try to sell it, you’ll not see your $20,000 again (at least not from any dealer).

And once you drop yourself behind the wheel and head off to make all your friends and neighbors jealous, you begin to run up the tab.

We all know the typical costs of owning a car, but for you parents out there looking at this with your son or daughter, a quick reminder:

• Your car is already depreciating (ouch!)
• Fuel costs (large and growing)
• Ongoing finance charges and insurance costs
• Routine maintenance and repair

So, back to the question….. is the price you pay for your car, what the car costs you?

Not really.

As you can see it is much more financially prudent to consider all of the costs involved in vehicle ownership rather than just the price of the car as you begin doing your homework on car buying. Consider this. By the time most cars are five year old the cost of ownership will exceed the original purchase price.

Also, while we’re on the subject, and even more critical to think about, is that similar cars with similar or even the same purchase prices can have very different cost of ownership.

This is why it is very important to understand the difference between car price and car cost and how the two relate to each other as you begin your search for the car that will afford you the best value. Don’t limit your thinking to price alone as you begin your quest for finding your best car deal.

Very good!

You are still hanging in there with me. I am surprised and humbled by your presence (really!)….

Check out our handy car cost comparison calculator to give you the whole picture when it comes to ownership costs.

Car Insurance in more detail next….