The Salesman: Larry

Larry began his career just like any other, with training but on how to sell cars. Larry was taught to go after high pressure sales in which you try to catch people off guard. The idea is to score a quick sale while exploiting people who were weak or uninformed. Larry was also trained to go over to the service department and make small talk with the people waiting for their cars. If he overheard that someone just got hit with a $2000 bill for a new transmission, he was supposed to introduce the benefits of a new car plus a trade-in deal. When he had a customer he was taught to stay with them throughout their visit to make sure they didn’t have the opportunity to talk to other customers. This would prevent them from comparing prices or finding loopholes in the deal.

Larry explained to me that car salesmen are not the enemy. It is actually sales managers who teach tactics to haggle the customers. Car salesmen usually work on 100% commission, and have to answer to their sales manager when they don’t make a sale. However, Larry was not in fear of his sales manager because he knew he was moving in a few months and would no longer be working there. Consequently, Larry ignored nearly every technique he was taught. He would take the time to get to know what the customer wanted, figure out their budget without being pushy and would eventually lead them towards a car that fit their wants, needs, and budget. Ironically, Larry was the top salesman at his dealership for three months in a row before moving.

The Car Buyer: Ronny

Ronny took me back a few years, to when he was eighteen. He explained to me how he just had to have this brand new, yellow Pontiac GTO. It was way out of his price range and he had no credit, yet somehow he was able to purchase his dream car. He didn’t question how it happened; he just knew that the car was his. The catch was that Ronny bought the car on a 6 year loan, with an interest rate of 21% and a monthly payment of $502. “Looking back, I wish I would have listened to my mom,” Larry said, “She tried to tell me I was making a mistake, but I was a hard-headed, uninformed kid who had to get what I wanted.” Now, nearly 5 years later, Ronny still owes about $15,000 on the original price of $22,000. In all, he will pay nearly double the value of his car because of the high interest rate.

My Car Buying Test

When it was time for me to begin my search for a new car, I went in with a fresh outlook. Over the weekend, I visited to two car dealerships. One ended up being the typical dealership (which I won’t name) with the salespeople in their white shirts and gold ties waiting like vultures for their next big sale. The effort was fruitless and I left irritated. Hoping for better results, I visited another local dealership, Park Place Texas, and they blew my expectations away. I was greeted by a friendly young man who genuinely seemed interested in learning about me and what I needed in a new car. I kept in mind all the things I had learned about from Larry but didn’t notice any of the shady tactics. I ended up with my dream car, but unlike Ronny, I received a reasonable finance plan without an outrageous interest rate. I bought a 2012 Chevrolet Camaro 2SS Convertible and I love everything about it!

Every dealership is different. Larry taught me that not all car salesmen are enemies. There are those dealerships who promote the practice of genuinely wanting to know what customers are looking for. Ronny taught me not to rush into things. It is important to shop around and be mindful of what you can and cannot afford.

To top it all off, you don’t want to start your driving life with an accident that can set you back in insurance premiums and monthly expenses… let along the possiblity of getting hurt.

Fortunately, drivers ed courses are now more accessible than ever. This allows you to take a fully state accredited drivers education courses completely online in California!

I know that if you’ve not heard of this before it must seem pretty crazy. I mean, how can you possibly take a driving course completely online?

Well it’s true, and it means you can take your drivers ed course in California pretty much whenever you want! No more structuring your schedule around a driving instructor. With 24/7 access to interactive course material you can take your drivers ed course any time of the day.

We’re always trying to save you time and money here at cartips.com and these online drivers ed courses are no different. Taking one of these courses can actually lead to discounts on insurance of up to 10%!

That means the course (at only 99 bucks) will pretty much pay for itself within the first few months of you driving your new car.

There are a few different drivers ed courses that are available in California online. Cartips.com has found one in particular that has the most up to date information out there.

Driversed.com actually has 3d animated demos of real driving maneuvers to show you exactly how cars react in the real world. They’re DMV approved and their lessons are interactive so you’ll retain the most information and be sure to pass your DMV test.

You can check out Drivers Ed online by clicking here.

Had an experience with online drivers education? Let us know in the comments below.

Essentially, all an extended warranty is is an insurance policy you take on your automobile. It is just a way to avoid those unpredictably but outrageous repair expenses. The term warranty is less accurate than insurance, in this way. However, similar to auto warranties, these do cover repairs or any sort of maintenance you encounter during the time period the policy is instated. But with the traditional warranty, you’ll purchase them as part of the product price. Extended auto warranties, on the other hand, are more like contracts. Service contracts if you will—they’ll run a separate cost and you’ll need to buy them separately as well.

Now, that doesn’t mean it needs to be done on a different day or place. In fact, you can purchase the extended warranty at the same place and day you purchase your vehicle, or even many days or months later. If you are the kind of person who needs full preparation at all times, just in case—the extended auto warranty is undeniably right for you. Especially when you consider the always rising cost of vehicular repair, the benefits of being protected are not difficult to see.

Once you determine that an extended auto warranty is the right decision for you, you’ll need to select a plan that addresses your needs. We understand this can seem a tad daunting, so we’ve listed a few points to consider below.

Your Pre-Existing Warranty:

Suppose you just purchased your vehicle brand new—examine its factory warranty and determine its value to you. For instance, suppose your warranty is for a couple of years or pre-determined amount of miles.

Well that’s fine, unless you plan on keeping it for more than a couple of years or driving more miles than what is pre-determined. If you do plan on keeping the car for a short period of time, then an extended warranty is hardly necessary. At the end of the day, it’s all about how long you choose to use the car. If you can predict your utilization of the vehicle to transcend the parameters of the original warranty, an extended plan is certainly in order. When buying a used vehicle, be aware that inherent warranties are usually packed with much less coverage. If purchasing a late-model pre-used vehicle, it may still be under original warranty or be part of a “Certified Used” program. These usually extend factory warranted to pre-owned automobiles. If your vehicle is under no (or just insufficient) warranty, the extended warranty is simply the natural choice.

The Reliability of Your Model:

It’s always a good idea to do some research before you buy. Even after you buy, it can be effective in figuring out of the extended warranty plan is a good bet. Look at how reliable the model vehicle you are buying is. While this might not be the one stop answer to determining your future repairs, it does give you a hint of what to expect, so keep it in mind when making important warranty decisions.

Warranty Provider:

Keep in mind that most warranties are only as good those who provide it to you. With an extended auto warranty, it can be backed either by an independent warranty company (or an aftermarket) or alternatively by the manufacturer of the vehicle. You’ll find that just knowing who is underwriting your policy can provide you with insight into the strengths and weaknesses of contracts you are considering. For instance, warranties backed by the manufacturer are generally much easier to use, while aftermarket values are typically cheaper. Always do additional research into the warranty practices and offerings of either the manufacturer or the aftermarket company, as the quality can differ from brand to brand, instance to instance.

Reparation Policies:

There are a few extended auto warranties that require your repairs to be done at the dealership from which it was purchased. This is nothing but restrictive and often becomes inconvenient for you. It’s ideal that you prefer a warrant that allows you some selective freedoms when choosing a repair facility, one that is more convenient for you. For instance, if you’re on vacation or a road trip and you need a repair, is it really practical to drive all the way back to the original dealership just to receive repairs? This can be a deal breaker.

Exact Coverage:

You’ll need to know exactly what is covered, and what is not, by whichever extended warranty you choose.

Does your service contract cover breakdowns and just usual wear and tear, and what are the specifics of a “breakdown warranty?” Also, a few entry level contracts won’t cover ABS brakes, which is an amenity gaining rapid popularity. If your vehicle employs the ABS feature, you’ll need to find an appropriate extended auto warranty. Additionally, overheating is usually not covered by warranties, even if it is proves to be not your fault. If an overheating fiasco is caused by a faulty radiator, you’d have quite an expensive repair bill to pay. Before investing in any warranty contract, make sure to familiarize yourself with its areas of coverage and regulations. While some contract-to-contract instances differ only in subtly, they can make all the difference in certain instances.

Cash for Repairs:

There a few different ways in which warranties can operate. With some, you pay the bill, and then send them a receipt so they can compensate you accordingly. However, as you could expect, the warranty companies relax and take a few months before sending you these hefty sums. For best results, find a warranty that pays the dealership directly via credit card.

In the long run, you just need to compare all options and weigh the odds before making a final decision in regards to warranty. Thankfully, the internet makes this considerably easy, many companies sell these contracts directly online, or at least offer instance quotes. With these features, you’ll be able to obtain a decent idea of what your desired plan will cost you. But at the end of the day it’s just like anything else, you best bet is to be very well informed.

In fact, if it’s your first time buying a new car it can be really daunting to know what to offer the new car dealer.

If you offer the wrong amount, you can not get taken seriously, or even worse totally ripped off. In trying to find you the best car buying tips possible, we went out to try and find some information on other car buyers and what they’ve paid for their new rides.

In comes TrueCar.com.

This little site will tell you what others have paid for the new car that you are looking into buying.

As you can see in the screenshot below, truecar.com will let you know the average price paid for the car compared to the dealer’s cost and the MSRP price of the new vehicle (sticker price).

This information will give you the edge over the new car dealer when you start your sale negotiations.

As always, doing as much research as possible before setting foot in a car dealer is really your best option. There are a lot of different online research tools that you can use to start your new car search aside from truecar.com. You can also:

1. Get an insurance quote for the car you’re thinking of buying.
2. Ensure your credit rating is high enough to get a loan over at creditreport.com
3. Apply for a car loan online, get instant approval, and often a better rate than your bank or your car dealership.

Have any of you ever used this service? Have any other ideas? Let us know in the comments section below this post.

So here’s the list:

1. The first is obvious. These days you can start shopping online. Don’t visit a car dealership without prior information of average price of new or used car that you are considering. Go online and find the car you want to buy. This will save you lot of time as you will not have to go from one dealership to another. Moreover, you will not be swayed by emotions and pay far more than you could have.
2. If you are getting car financing, you must know your credit score. This will help you find the right lender and also let you know the APR you qualify for. Some reputable websites provide new car buying tips online as well as excel sheets for calculating monthly payments on the basis of your credit score.
3. Avoid third party loans at all costs. There is never a free lunch and if you let the salesperson arrange a car loan for you, you are going to end up paying higher monthly payments. Just as car shopping can start online you can also get a car loan approved online.
4. Get your old car evaluated before you offer it as a trade-in. There are websites where you can get to know how much your trade is worth (like Kelly Blue Book). However, remember that all assessment of old cars is only indicative of book value and not set in stone. The actual value depends upon on how well you have maintained the car. The car dealership is buying your car for reselling and you are likely to get a lower trade-in value than if you sell it yourself.
5. Almost all the car sales scams take place when it comes to settling payment. There are lots that the finance department will do to extract more money from your pocket. Apply your mind and decide whether you really need extended warranty, GAP insurance and other products that they are offering.
6. Always keep affordability and cash flows in mind and never let excitement get the better of you.
7. Get insurance quotes. Factor the insurance cost before you finalize the deal. You may not know how much your monthly payments will be until you get an insurance quote.
8. Learn car buying negotiating tips from online sources. MSRP is only a recommendation and not necessarily the price that car dealerships will agree to sell at.
9. One of the biggest mistakes that buyers commit is on add-ons. Use your negotiating skills here also to get the best deal on these as well.
10. Choose add-ons that you must have and discard the ones you can do without. Add-ons are a lot cheaper in the open market.

Anything to add to the list? Have a car buying horror story? Let us know in the comments!

Sometimes, there are so many fees that it can be confusing to know which ones are really legit.

One such fee is the dealer prep fee.

The dealer prep fee is a scam… plain and simple. Here’s why:

The dealer prep fee is supposed to cover the dealer’s time for things like removing the cardboard carpet covers… the plastic on the windows… and taking the car for a test drive.

And even though the dealer will charge you something like 400-500 bucks for this service, it seems pretty expected that they would want you to pay for their service, right?

WRONG!

The thing is, most manufacturers already pay the dealer for this service by including this service in the price of the vehicle!

So where is that extra 500 bucks going? Straight to the pockets of the car dealer.

The manufacturer wants the vehicles to be delivered in the same way for each customer. That’s why they include this service in the price, so that they can get the dealers to follow their steps correctly.

Though the dealer prep fee isn’t necessarily common practice, it is out there… and you should know about it.

If you do run into a situation where a dealer wants to charge you the dealer prep fee, tell them to remove it from the invoice. If they refuse, then you can let them know that you’ll find another dealer that wants your money. After all, just think about how many other scams this dealer is trying to push on you if they are willing to try and pull the dealer prep fee off on you?

If you’ve had any experience with a dealer prep fee, let us know in the comments below.

While you’re at the dealer, don’t forget to try and get as many car insurance discounts as possible too. Check out a few of the most common discounts here.