sm buying-carguide
©1992-2005
Have
you ever found yourself when buying, selling or trading a car feeling unprepared
and without a strategy? Use our proven guide to get better results. The end
result should be the best price, comfortably and in a reasonable amount of
time. The buying-carguide system is the solution that you may use with
confidence.
This
simple system is a strategic tool you can use, time and again!
WHEN IT COMES TO BUYING, SELLING OR TRADING A CAR, YOU WANT TO HAVE AN EDGE.
THAT
EDGE IS A SYSTEM, OR A PLAN... A TOOL THAT WORKS RELIABLY AND CONSISTENTLY...
The
buying-carguide.
Read
along and follow this simple system. There is a worksheet for you to use as
I have and still do at the end of this booklet. The simple action outline
and brief instructions are included also.
First get a source of auto ads in a paper, or online advertising. Next copy 3 to 5 buying-carguide worksheets, a pencil and a telephone. Do your screening by phone and by the time you’ve made a few calls you’ll get a feel for the process. Keep in mind, depending on your individual drive and focus, economic resources, where you live, the type of vehicle you are looking for and the state of your specific marketplace will determine your outcome.
My experience is the more I know about all of the above influences, the better my OUTCOME. Take your time whenever possible, as transaction speed can result in poor choices, higher prices and misunderstandings.
Such
as when you think you have finally negotiated the price and the sales person
or sales manager has you WAIT for the F&I Manager to complete your contract.
Insurance, extended warranties and other aftermarket price boosters. Know
one thing... by having you wait your anticipation, anxiety and memory can
become distorted. These are avoidable with focus.
The
first thing to do is choose what make and year of car you want. Then what
price range are you working with?
Next
what colors will you accept? Most important of course is what time frame are
you working with... immediately, in a few weeks or is this your perfect dream
car that can take as long as it takes to locate on your terms, in other words,
long term. Finally, what do you want to avoid? As in any field, there are
considerations getting a new piece of equipment. For you, you may want more
car than your budget will allow. We will try to help you get more car...
The
buying-carguide system will guide you.
Perhaps
you’ll discover you don’t want the vehicle you thought you did. One time I
started out looking for a sharply priced 912 Porsche in very good condition
and what I found was my 1979 Mercedes Benz 300D Diesel. By using my original
first version of the buying-carguide system. I kept the car four years
and spent hardly anything on repairs or maintenance. I kept using and improving
the buying-carguide into what you are using today.
What’s
the best way to achieve the result you want for this investment? Have a plan
and keep it as simple as possible.
Will
confidence be possible? Absolutely!
Let’s
back up here a little bit and get a perspective on the background about car
purchasing, trading and selling. Before cars there were of course horses for
work in plowing, for transportation and for recreation.
Horses
were traded when cash was unavailable or just plain simpler to arrange. However,
sometimes techniques were used to secure a more favorable result such as feeding
the horse a turnip or two so the horse would appear energetic though the horse
would be having a little gas and be moving around more than usual. Perhaps
a little cinnamon on the gums to cover bad breath, and a possible digestion
problem.
The
‘why’ of why I am writing this manual is simple, actually. I have owned more
than 22 cars within a span of almost 32 years of driving (that works out to
a different car every 18 months). This is not including driving the numerous
vehicles of parents, friends and employers including rentals all over the
United States, Canada, Mexico and Europe. My father was an International Businessman
with fleets of cars in 50 states and 17 foreign countries. He preferred for
me to drive whenever we traveled together. I spent a short period of time
selling cars, which included customer trade-ins, some wholesaling and a few
auctions. The bottom line is that the need for a comprehensive list of questions
that are relevant to any car purchase, new or used, be compiled as a tool
for securing the best possible price considering personal desire, needs and
budget. After all this is what the professional is doing when they appraise
your vehicle for a possible trade-in. You can now, with the buying-carguide,
improve your future automotive transactions by following some simple basic
guidelines. Now is the time to read this step by step plan.
This
guide that you have in your hands can assist you to buy, sell or trade your
next car. It will be as good as your use of the buying-carguide system.
By using this system you should be able to get the best possible transaction
that you can, with the most confidence, with the least amount of time.
The
benefits of used cars are becoming quite attractive as an abundant supply
of off-lease, warranted autos abound in the marketplace. Even the cars that
original owners sell after three to ten years can be quite desirable depending
on your budget and the condition they are in at the time of sale. As with
any piece of used equipment, its condition and any repair work that are necessary
will determine fair value price. As future owners of a prospective vehicle
you will want to remember that used cars are big business. Respected auto
industry analysts report the risk has been reduced in used car purchasing.
Off-lease: low-mileage cars are creating a new market in used
cars. Dealers are offering special warranties that were nonexistent only a
few years ago. However, one well-known auto manufacturer through its dealer
network offers a warranty that is good up to 100,000 miles. Two important
points need to be clear for the prospective new owner of the previously owned
vehicle. First, this is not a 100,000 mile warranty. It is the difference
between the current mileage and 100,000 miles. For example, let’s say that
a car has 50,500 miles then the warranty is for the remaining 49,500 miles.
This actually is an excellent warranty.
It
is not a pure 100,000 mile warranty. The way this is expressed to the potential
buyer is as a 100,000 mile warranty and if you do not ask for clarification
you would be left with incomplete information that could cost you a lot of
aggravation.
Dealer process: In person, over the phone or on the Internet, pick 2 or 3 dealers and go shop. Ask questions and fill in the blanks on your buying-carguide. If a dealer or salesperson gets offended that indicates they don't want you to have the facts to be an informed buyer... something to consider, dump them, next, move on. Keep in mind that after you have the facts with your buying-carguide filled out, you then have a tool to sit down and negotiate price and terms. Here is the part that requires focus and persistence. New or used they have 25%- 35% gross profits no matter what. Does this mean they are going to give you a car at cost? Not hardly! However, it is very easy to secure a deal at 10%-14% above the true cost. Some people will take issue. I worked for enough dealers and was trained in the costs. I have left all the tricky jargon out to eliminate the confusion. Here's how it works. Take the price and subtract the 25%-35%. Then add back the 8%-10%. The salesperson will go to his manager and take usually quite some time. Just think about the anticipation anxiety! This is what they want. Either the salesperson comes back and says no deal or the manager will. It may go back and forth a few times. Yet finally that will be it. After you think you have the final deal done. The dealer will then have you wait, usually. Be careful here, this is where the contract happens with the F&I Manager. His sole job is to probe every possible way to inflate your price, payment or interest rate. Has anything been left out? The add-ons add up for the dealer. They usually want you to pick monthly payment amount or price with tax and license, then the extras! Many a car buyer has related horror stories of how a $13,000.00 car turns into a $19,000.0 with interest, extras and insurance. Each transaction will be different.
Remember
you are negotiating price or payment. The dealer wants to focus on only one.
They work the one you are not focusing on. That's their strategy! That is
what the buyer needs also. Why do I say this... simple I was trained to do
this as a car salesperson. I've seen this happen over and over, then and now
in and out of the business as a buyer and consultant to buyers.
Private Party Process:
This
one requires actually as much care as with the dealer for many reasons. First
and foremost with private parties one must remember there essentially are
no warranties and you are really buying "as is". With the exception
that perhaps there is still a portion of the factory warranty that is transferable.
In which case that is quite good. The big concerns are accident damage that
will haunt the car, or a dirty title, such as stolen or salvage. Other concerns
are poor maintenance & records, which can be checked with a good independent
mechanic. They usually charge basic fees for analysis. Financing a private
party car is best when arranged in advance with a reputable lender.
Auction Process( see 'Car Auctions' on the Home Page ): This is best for the serious and experienced car buyer, no others! A good value can be secured with extreme caution and research. Knowledge is key.
On
the next page is the buying-carguide system worksheet. Then on the
pages after the worksheet is the LINE numbered directions for the worksheet.
|
the buying-carguide |
notes... |
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1 SOURCE: TELEPHONE: |
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2 LICENSE NO.& REGISTRATION: |
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3 MAKE: |
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4 MODEL: |
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5 YEAR: |
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6 COLOR: Body Interior |
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7 NEEDS TO BE DONE: |
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8 AFTERMARKET EQUIPMENT: |
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9 ENGINE: |
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10 TRANSMISSION: |
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11 SUSPENSION &BODY: |
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12 OWNERS’ MANUAL |
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13 MILEAGE: |
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14 FEATURES: |
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15 PROBLEMS: |
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16 SERVICE RECORDS: |
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17 NEEDS: |
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18 WHY SELLING: |
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19 PRICE: |
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20 FLEXIBILITY? : |
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21 COMMENTS:
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22 RATING: BUY OR REJECT |
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the buying-carguide simplifies car buying and lowers your cost through organizing the purchasing information. LINE 1 below describes what information that line holds; LINE 2 describes its contents, etc. and so forth through to the last LINE, where by this time in the process you most likely will knwo in your gut whether or not this car makes sense for you.
Good luck and share your results if you like and we'll publish them on the Car Forums on CarGurussm
LINE
1: SOURCE
and TELEPHONE are listed on the left. To the right there is a space for notations.
LINE
2: may seem
unnecessary, however the LICENSE NUMBER space is to be used for noting current
or delinquent registration status and to verify a clean title.
LINE
3: the MAKE
of the car is for your preference reference as you may be comparing different
makes of cars.
LINE
4: the MODEL
notation is important because features, problems and costs differ from MODEL
to MODEL in a given MAKE.
LINE
5: a given
year of a car or truck is important after you target the MAKE and MODEL of
your purchase. You may save additional money by selecting an earlier year
of vehicle, or you may want a newer year with fewer miles, which can lower
maintenance costs during ownership.
LINE
6: COLOR!
Yes, this can add or subtract value from a vehicle. COLOR can also assure
visibility on the road, which is an element of greater safety or a source
of increased interaction with law enforcement.
LINE
7: is the
area for listing what NEEDS TO BE DONE. Things such as, tires, body work,
interior, glass or mechanical. This section is actually very important,
as this is what you are going to need to put into this purchase so that it
will suit your needs and use.
LINE
8: AFTER MARKET
EQUIPMENT is an area of interest due to the fact this can actually cause the
car or truck you are considering to have greater value or less depending on
whether the additional equipment is functional and useful. Quality is key
regardless of utility! Remember "function before form" is
a valuable standard when dealing with a mechanical or electrical product.
LINE
9: the most
important part of your consideration in this purchase, the engine. Note whether
it appears clean or is dirty with oil leaks. If you buy a car for parts for
another car that would be different. However, for most purchases the engine
or motor is the essence of value. This is where a good mechanic becomes a
valued partner. (number 1 consideration)
LINE
10: the NEXT
most important part of this transaction is the transmission. After all what
good is a good engine if there is no way to power the wheels. So, if the transmission
is automatic, does it slip? If the transmission is manual, does the clutch
slip? Does the gearbox feel loose? All of these conditions are expensive to
repair later.
LINE
11: safety,
safety, safety is the SUSPENSION. This includes the springs, the shock absorbers,
tierods, rack and pinion, etc. A defective suspension can affect the BODY.
The BODY condition can affect the way the entire car handles. So even slight
body damage can be something to be aware of.
LINE
12: the OWNER’S MANUAL is a good thing to have. Especially
the one that comes with the car. All the basic operating instructions are
essentially contained in it.
LINE
13: the MILEAGE can tell you what kind of shape the vehicle
is in mechanically and help in gauging the price. First divide the number
of miles on the odometer by the number of years old the vehicle is. This will
give the average annual miles it has been driven per year. The lower the better
and the higher the lower the price and value proportionately. The odometer
should have all the numbers aligned fairly well except when turning a 100
or 1000 unit change. If for some reason it appears a little strange do not
hesitate to inquire politely as to the cause. No one should be offended if
your inquiry is sincere.
LINE
14: FEATURES are what makes a particular vehicle unique
or what sets one from another. For example a factory leather interior on a
car that normally comes with cloth or vinyl. Nothing more.
LINE
15: when it comes to PROBLEMS this could include anything
you previously noted, or it could be something such as your financing or the
timing you require that is in conflict somehow. Perhaps it is something that
is odd to your way of doing things. Little things count in large amounts usually.
LINE
16: SERVICE RECORDS are an indication as to what level
your prospective vehicle was cared for by the current and previous owners.
In Europe service records are as common as a spare tire. Safety and maintenance
are a necessity for government certification for road worthiness. You should
also note any long periods of nonexistent service. This could be an indication
of severe mechanical problems or improper care of their investment. Flawless
service records are valuable for two reasons, first to disqualify a questionable
vehicle or secondly to clinch the decision to acquire the car in question.
LINE
17: NEEDS refers to any of the previous line items that
you noted that are glaring and should be repaired, changed or adjusted before
or after you purchase it. You may write the LINE #’s here as a short
hand to refer to later should you select this vehicle later.
LINE
18: WHY SELLING is important. Listen carefully to the stated
reasons that you are given. Some are rather creative, so you will want to
listen carefully.
LINE
19: PRICE is here for comparison purposes.
LINE
20: FLEXIBILITY is good question for you to ask about. Keep
in mind that a truly good value will probably not be very flexible unless
there are extenuating circumstances involved, in which case further probing
on your part will be required to secure the best transaction that is possible.
This does not mean ripping someone off. The guideline here is that of the
best deal is the one that is best for all concerned participants, period.
LINE
21: when it comes to COMMENTS your own style and preference
will be best. However keep in mind this should and could include your gut
feeling, your observations and impressions. These are the intangible factors
such as your personal comments about your possible future vehicle purchase.
LINE
22: And finally, RATING: BUY OR REJECT line. This is where
all of the above lines of your analysis come together hopefully in a spontaneous
synergistic moment. If the vehicle is lacking then go find another. Repeat
the process with the buying-carguide as many times as necessary until
you land your catch. Good luck and let us know how you’re doing with your
searches using buying-carguide. They will be posted on this site from
time to time with cash & prize awards.
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