Gas Mileage Tips When Alternative Isn’t An Alternative

OK… we’ve heard of all the alternative fuel car answers. You know… hybrids, corn, water… whatever else.

The fact remains that the vast majority of us still own the same type of engine in our cars that we always have and just aren’t in a position to with these other alternative fuel vehicles just yet and purchase a new car.

So, until that time comes, if you’re like me, you do want to get the most you can out each gallon of gas your vehicle consumes.

Lately due to the steep gas prices, there has been a rise in the popularity of how to get more for each gallon of gas… mostly dedicated at changing or modifying your driving habits.

There are still some tried and true maintenance tips that you can use that will also help you squeeze every inch out of your gas mileage as well.

So if your going to stay with your older car a while longer… and zero payments, here are a few gas allowance savings tips.

Bad, inefficient spark plugs are source of fuel guzzling. Spark plugs that are old and not firing properly can rob you of as much of 30% when it comes to fuel efficiency. So, don’t skimp on cheap plugs… get the higher rated plugs… gas is too expensive to not set fire to.

Your car needs air to run. If your air filter is getting a bit long in the tooth and becoming clogged… there goes another possible 10% of your gas mileage. If your air filer is looking a little grey and dingy… then your car may be gasping for air and losing gas mileage.

Keep the fuel system clean. Over time the internal working components of your fuel system will accumulate gunk and deposits. Using a fuel additive once about each time you change your oil will help keep this gunk in check and allow your engine to run more efficiently and healthy.

With gas prices as high as they are, there’s no need to empty your wallet without fighting back. By implementing just the 3 tips above you’ll keep more money in your wallet and make fewer stops at the gas pump.

How To Avoid The Used Car Lemon

It doesn’t matter what type of car you’ve got your eyes on… new, used, or even the make and model, driving off in that new purchase of a car is a big financial commitment… even if you pay cash completely for your car.

For our discussion here, let’s talk a bit about buying a used car.

One decision that many of us have to come to terms with when considering the purchase of a used car is the fact that used cars won’t come with the peace of mind provided by a factory warranty (assuming the used car is beyond the factory warranty… which most all are at the time of purchase).

Because of this, there is a certain amount of risk that is at an elevated level with used car buying.

If you know how to look at a used vehicle and recognize some points that affect the dependability score, you’ll be able to avoid some of the anxiety of purchasing a used car.

Currently more than 8 out of 10 vehicles purchased are, in fact, used cars… so you’re definitely not alone here. This statistic really isn’t all that surprising since there is a great price difference between that of a used car and that of a new one.

However, if the used car you buy turns out to be in bad shape and requires large or constant repair, you can quickly give back all the savings you realized by buying a used car instead of a new car.

So, let’s take a look at some quick used car buying tips that you can easily use to help you evaluate the condition of a perspective used car.

The first really goes without saying… but just to make sure… have the car thoroughly checked by a mechanic.

Even before you get the car to your mechanic you should look on the inside of the door panels, on the seams of the hood and the trunk for over-spray. Over-spray is where the car has been painted in a body shop. Look closely. Even the best of body shops can’t blend the paint perfectly with the factory so they have taper off their paint job at natural seams or breaks in the body.

Look closely at the carpet on the floor of the car and even pull back a couple corners of the carpet to check for rust and water damage. A car that has been under water and refurbished can be a big problem down the road.

Check to make sure that the wear on the brake pedal seems to match what the mileage is on the odometer… a used car with higher mileage is going to have a brake pedal that looks almost new.

Look at the tires and check for even wear on the treads of the tires… uneven wear can be a sign of alignment problems of worn out components of the steering or suspension areas.

Also, when sitting in the car, crank the wheel to the max in both directions and listen for any ‘clunk’ or other type of noise. This could be a sign of worn CV joints. Joints that are not inexpensive to replace.

And while your in the used car be sure to check all the creature comforts as well as the heating and the air conditioning.

For the most part, if you combine these few tips with just taking your time and not getting into a rush, you’ll greatly increase your chances of purchasing a used car at price that won’t keep costing you later down the road.

Car Sales Down Quality Up?

At least according to a J.D. Power and Associates recent study.

The findings showed that the number of problems car owners are having is actually dropping. It should be noted however that the study showed that 5 of the top 10 consumer reported problems with their cars three years ago… still remain in the top 10.

So “minimizing quality deterioration” remains a high priority for the car industry according to J.D. Power. This is measure of the problems that car owners have within the first three years of ownership.

Tough to knock of the big dog…

The Lexus brand was again rated number 1… bye the way, that’s the 14th consecutive year for Lexus to hold the top spot for this consumer study. Lexus owners reported 120 problems per 100 vehicles sold. This numbers is actually 25 fewer problems per 100 vehicles sold than was recorded for the 2007 study. Quite impressive.

In case you’re wondering… and why not…

Mercury cruised into 2nd place with 151 problems, followed closely by Cadillac with 155, Toyota actually finished out of the medal race in fourth 159, and Acura rounds out the top five with 160.

OK… so it begs the question… who is scraping the bottom?

Land Rover landed in the basement with 344 problems per 100 vehicles sold… yikes. The other cellar dwellers in the bottom five were… Suzuki with 302, Kia with 278, Isuzu with 274, and Saab breaks the tape at 254.

Now to fair… Saab also gets the most improved award with 65 fewer per 100 than a year ago.

Speaking of most improved… the most improved car industry segment goes to those in the mid-sized SUV range. This group showed 36 fewer problems per 100 this year.

In fact, the industry average had a good year improving from 216 a year ago to 206 this year.

So, all in all this appears to be a tale of two stories… much of the industry showed improvements, yet 5 of the top ten reported from three years ago are still in the top 10.

A Spot Delivery When Car Buying Can Leave A Mark

In the car business a ’spot delivery’ is a common practice. But just like about anything else that involves revenue, sales, and commission, there are those that are unscrupulous around us.

What happens in a ’spot delivery’ is that the buyer agrees to the terms and conditions of the loan and to take delivery ‘on the spot’… even though the financing contract isn’t yet been picked up and actually approved by the bank.

All dealerships have working relationships with various financial institutions that approve (and disapprove)the loan papers.

Sales managers work with and evaluate potential buyers credit reports and credit scores all day long in conjunction with the working relationships that they have with their various lenders. Needless to say there are many business hours that a car dealership is open and doing business that the banks and lenders are not. As such, dealers will make the decision to ’spot deliver’ a car based on the probability that they will be able to get the loan as stated in the contract from one of the lenders.

For those customers with good to excellent credit, this is rarely if ever a problem. The problems occur when someone’s credit is in the gray area. Also, more often than not this usually (but not always) involves a used car purchase.

As you might imagine, under the aforementioned business practice there would be advantages and disadvantages (as well as the opportunity for exploiting). The most prominent advantage is for both sides. For the dealer… obviously the sale. For the consumer who may need transportation, the ability to take delivery ‘on the spot’ and not have to wait for the next available approval such as when a sales takes place after hours or on the weekend.

Again, this all depends on your credit rating and if you are deemed a good risk.

The problems can occur when those who don’t have the best of credit and don’t have the income to overcome the lackluster credit, ultimately don’t get approved for the financing terms that the dealer put them in the car at.

So what happens… first of all all the contracts that I ever dealt with state that the agreement that you are signing up for is contingent upon approval from the lender. In other words, the agreement isn’t binding until the vehicle financing is approved.

If the car financing isn’t approved… the ’spot delivered’ car must be returned or you’ll have to re-sign papers for a less favorable deal.

When a dealer mis-calculates and doesn’t get a car buyer approved for the terms that they put the customer in the car with, it’s not a pleasant situation.

I know that there are unscrupulous dealers out there and this is where the window of opportunity opens for them… but that’s a whole other article and for the purposes of this one, I’m going to just stay with the idea that the dealer got a bit too aggressive thinking they could get the customer approved.

So, when the bad news comes back that none of the lenders will approve the loan ‘as is’, outside of returning the car, the customer will generally have to come up with a larger down payment (this puts the lender at less risk), accept a higher interest rate (which will mean higher payments) or in some cases have to come up with a co-signer of good credit standing.

None of these options are pleasant, and for me as a sales manager weren’t pleasant to have to be the bearer of the news either.

8 Car Buying Tips To Avoid This Situation:

1. First and foremost know what a ’spot delivery’ is (which you should by now) and know what can happen if the dealer can’t get you approved.
2. Check with the Better Business Bureau and/or only visit reputable car dealers.
3. It’s in your best interest to find your own loan rate and terms. If you can, apply for and arrange a loan so you’ll already know what you’re approved for. At the very least, talk with your bank or credit union and see what term and rate you could qualify for… you’ll then be able to compare with the dealer’s offer and get the best car deal possible for your scenario.
4. This is a biggie… especially if your credit is risky… if you finance through the dealer, after signing the papers, simply decline to take a ’spot delivery’ of the car… just tell them you’ll be back to pick up the car once the financing has been dutifully approved.
5. Give yourself a cooling off period. This is a good idea because buying a car can be a long and tiring day… give yourself a chance to get yourself back together after the rush of the car deal.
6. Read everything… ask questions!
7. Keep a record of everything and don’t pay cash.
8. Get it in writing… if you’re going to accept the car buying ’spot delivery’ it is not too much to ask to get in writing that your trade-in WILL be returned to you if the financing should fail… and… if the financing does go through but with different credit terms than you were ’spot delivered’ at… you are free to cancel the deal.

Car Buying Tips - Back End Profit Center

The ‘back end’ of the car deal is essentially all the variables and salesmanship that you are confronted with once you enter the dealer’s F&I (Finance and Insurance) department to sign all the necessary paperwork (and then some).

On the back end of the car deal is where a buyer can really get lost in the numbers and the dealership can score very well on the profit… particularly if the buyer has opted in for letting the dealership arrange for the financing .

And by the way… it’s probably O.K. for you to let the dealer ‘compete’ for your financing. I say compete because I know at this point you’ve done your financing and have a good idea of what you qualify for in a loan, what your credit is, and what your interest rate will be. If you don’t know this or haven’t researched your financing situation… you DO NOT want to have the dealer do this for you! Remember the ‘back end’ is where a dealer can make a lot of money on your car deal.

Bottom line… get yourself pre-approved before you even set foot on a car dealership’s lot.

One aspect of car deals and car buying tips that we’ve not touched on is the element of cash… and more precisely… if you are going to pay cash for the bottom line amount.

We all should be so lucky to even have this as an option. But, if you do, it is probably not in the best interest of you getting the best car deal possible if you tell this to the sales person right up front.

Why you ask…

Remember… we just talked about the back end of the deal and how dealers rely on the back end to make additional money on the whole deal itself. If the dealer / sales manager knows that there is not going to be a back end because you are going to pay cash; then (s)he knows that they are going to have to make their number on the front end of the deal… this means getting them to come off the selling price of the new car or squeeze some additional money out of your trade-in is going to get much tougher.

The same will probably hold true if you’ve been pre-approved for your financing… in essence you’re taking away the ‘back end’ profit for the dealer, so it’s best from a negotiating perspective that you hold those cards close your vest.

Having said this though, there is certainly nothing wrong telling the dealer up front that you would welcome offering the dealership a chance to beat the financing numbers that you’ve already got in your pocket.

Selling cars for dealerships and sales people is a very competitive business and something that you as a consumer can certainly leverage. Many times you may decide on which deal to go for between multiple dealers based simply upon how you were treated at each of the dealerships… whatever the ultimate reason… the numbers you arrive at are greatly determined by your diligence in your research and homework and your patience at the car dealer.

Car Buying Tips - Smoke, Mirrors, and Shells

Last time out we we’re talking about what not to say or talk about when you are on the car lot trying to get your best car deal. Number one is monthly payments… don’t get into this type of conversation with your sales person.

When money and profits are involved, a dealership will absolutely trying to engage you in a monthly payment discussion or focus.

The sales fundamentals for dealerships and car sales people are essentially one of moving the numbers and money around.

Because of this it probably not in your best interest to mention right up front that you are going to be introducing a trade-in into the equation. Again, another mathematical variable that the dealership has to work with if you do. And once this happens the shell game really begins.

With a trade involved the psychology of the deal really begins to come into play at this point. If you focus on the amount that you want to get out of your trade in, you’ll (at least temporarily) lose sight of the selling price of the new car. And it’s only human nature that if you dig your heels in and fight for your trade in value and feel like you won one; then the law of reciprocal respect engages in our brain and we allow the dealer to win back on the new car price even more than we though we gained on the trade value!

Answering the trade in question can be difficult for most people when they feel like they’ve been told to not mention the trade or to save it to the very end then spring it on the sales person. My car buying tips take on this is bit different in that when asked about the trade, just insist to the sales person that “we’ll talk about the trade a bit later.”

After all, if you’ve done your homework on the selling price of the new car and the value of your trade-in, you only have to keep one number in your mind that you want to hit and that is the ‘trade difference’ and this makes it much, much easier.

For example, if feel like a fair deal is the value of your trade minus the selling price that you want for the new car is say… $15,000 then until the dealer gets to a bottom line or ‘trade difference’ of $15,000 then there is still work to be done and you only have to focus on that number.

If the sales person comes back and presents you with $15,500 on the bottom line, you can mention that it really doesn’t matter to you whether they get you $500.00 more dollars for your trade or they come off the selling price of the new car by $500.00… or a little of both… either way the number that makes you happy is $15,000.00 so it’s up to them to ‘git er done’.

The value of knowing what the ‘trade difference’ is that you want to ultimately have to come up with is, this allows you to keep the numbers very clear and substantially reduces the ability of the car dealer to shuffle numbers around on you.

Next time out we’re going to discuss the ‘back end’ of the deal and why once you get to the ‘trade difference’ number you like; you’d better not let your guard down.

Car Buying Tips - Loose Lips Sink Ships

When it comes to buying a car what you don’t say can be your biggest and best car buying tip.

Feeling a bit lazy and don’t want to read the whole article?

OK… no problem… here’s the most important car buying tip once you’ve got yourself on the dealership car lot… DO NOT talk about or otherwise negotiate based on hitting a monthly payment.

There you go… that’s it. That’s numero uno.

But please read on… there’s more amazing money saving car buying tips.

You know what you want your monthly payment to be… you’ve done your budgeting homework (if you haven’t then get the hell off the car lot).

No body that you come in contact with at a car dealer should have any idea what you want your monthl payment to be… nobody… so don’t even answer that question!

The probabilities are high that the sales people will try to get you to commit to some sort of monthly payment figure. When this happens just politely remind them that the focus is on the price of the car not your monthly payment.

Walking into a car dealership and begining the car buying process is an aniexty filled event for most people. Generally we don’t like confrontation it’s just human nature; and most people regard any type of negotiating process a form of such confrontation… a battle… a struggle over that damn price.

Hello internet… hello www.informationsuperhiway.

Today… the average potential car buyer has the aforementioned at their disposal and as such has a tremendous tool that we of a few years back did not so readily have… information.

So use it.

Don’t go anywhere car shopping until you’ve done your homework. Shop and compare car prices, get a quote, check on your insurance coverage, check your credit, and qualify for a loan… and do it all from the comfort of your favorite chair at your house. Folks… this is powerful stuff you have at your disposal when it comes to getting your best car deal possible!

But even after you’ve taken the time to educate yourself, there are still some things you’ve got know once your on the car lot… things you just shouldn’t say… so let’s take a look.

Stay focused and keep the conversation focused with whoever you talk with on the selling price of the car… do not slide into the murkey waters of monthly payment discussions… do not do it.

Monthly payment’s are a function of several mathematical variables that can be introduced beyond the selling price of the car such as down payment in form of cash - trade - or both, your interest rate, and the length of the loan… so just don’t give the sales person the opportunity to work and swirl these variable around at you trying to hit a monthly payment…. you’ll probably lose track and lose money.

Why is the monthly payment approach from a car dealership such a common tactic?

Ok… shhhhshhhhhh… I’m going to tell you…

(Whispering)… because they can make more money.

So, you may very well hear the approach… “If I can get you in this car for $300 a month….”

If you listen real close to the sales person (or if you missed it have them repeat it)… you’ll note that they don’t say for how many months that $300 per month is going to last. A key element to be sure.

So, if the sales person can get you to commit to that nebulous monthly payment, both the sales person and the dealership now have you on the road to profit city….

If you’ve looked around my website you’ll know about the three basics business areas of a car deal: the price of the car - the financing - the trade in (the trade in may or may not be there but the vast majority of us do trade).

If you’ve just allowed the sales person to pull you into the monthly payment vortex… you’ve just about lost sight of the price of the car (cha-ching) and now you’re about to go work with their finance manager on accomplishing those monthly payments (cha-ching again)… so you’re just about to contribute to the profit margin of the dealer in two of the three areas… ouch!

Is it all just smoke and mirrors from the car dealer?

Let’s talk about that next time… in the mean time take a cruise around my car buying site… it’ll save you some money.

The Perfect Electric Car?

General Motors is pushing hard to ready its electric powered ‘Volt’ for production by 2010.

Changes have been made to the exterior since GM first pulled the covers back at the Detroit auto show back in 2007.

The Volt has understandably generated massive amounts of interest in a short amount of time due to the current fuel crunch and the political climate. GM says that the time-line for the production of the electric vehicle is not only important to GM but for the auto industry as a whole.

With the grips of the currently energy crisis continuing to tighten around consumers and the entire economy, GM is under huge pressure to deliver the car on the set time-line. To that, GM indicates that the production of the Volt is on schedule even though there are significant challenges centered around delivering a batter power source both durable and affordable enough for the mass market.

Currently, a rechargeable lithium-ion battery would power the Volt. This power source is currently rated to last about 40 miles. The Volt also contains a small on-board motor designed to recharge the battery between stops… this power-train model that GM calls its E-Flex is slated to be used by GM in a range of other models.

Ultra fuel-efficient vehicles is the mantra around the country right now and auto makers are rushing to compete to satisfy this demand. The Volt is GM’s strategy not only for this but to also compete with the success that Toyota is having with its Prius.

Competition is a good thing as auto makers across the board are stepping up efforts to engage in the marketplace.

Honda has indicated that it plans to unveil a new hybrid car next spring to also compete with the Prius. Honda’s goal is to sell 100,000 units of this new hybrid electric car… which by the way… is currently said to be priced lower than the Civic hybrid.

The unique aspect of GM’s Volt is the presence of the on-board motor. The on-board motor makes it possible for the Volt to re-charge while on the road. If this functionality proves to be viable, it would solve a major hurdle in the marketplace as consumers are still reluctant to purchase an electric vehicle that could potentially leave them stranded once a charge is depleted.

Car Buying Tips - Don’t Invest

Car Buying Tips

It drives me crazy when people use car buying and investing in the same sentence.

O.K… excluding antique and classic cars, I’m talking about basic everyday car buying. So, here’s the number one tip… cars are not investments… in fact they are quite the opposite.

Your car begins to depreciate the before the ink is even dry on all those papers you just signed.

How much you ask?

On average both cars and trucks will lose more than 20% of their initial value in their very first year!

Ouch!!!

If no other reason you should now be convinced it is in your very best interest to get the best possible car deal you can when you buy your car… with that kind of depreciation hit, you sure don’t want to overpay for your car right out of the gate.

Using nice, round numbers to illustrate this hit you’re taking… if you paid $20,000 for your car; after but two years of driving your $20,000 car might now be worth about $13,000! In case you are wondering that works out to about $300.00 per month to the negative… nice investment eh?

If your house or your retirement account offered up to you those types of ‘investment’ numbers, you’d probably feel like jumping off a cliff… So, again… car buying tip number one… all together now… a car is not an investment…. it’s a major expense in your life.

Keep this at the forefront of your mind the next time you feel that itch to buy a car feeling… if you do, this type of reality will be the the cold bucket of water for you.

If you’re driving a car that is getting you around and is paid off, chances are it’s older and as such you’ve already paid for the depreciation, so get some good use out of your money and keep driving your car for as long as it will stay reliable and get you to your job and back.

If, however, you just can’t stand the thought of driving your current car and your going to scratch the proverbial car buying itch, at least get the best deal you can… so that’s where we’ll start our next set of car buying tips.