Youve come to the end of your lease and you like you car enough you want to keep it in the driveway. Just like buying a used car, there is some research to be done to nail a good deal.
First, you need to know the cost of buying out your lease. Read the fine print of your contract and look for the purchase option price. This price is set by the leasing company and usually comprises the residual value of the car at the end of the lease plus a purchase-option fee ranging from $300 to $500. When you signed on the dotted line, your monthly payments were calculated as the difference between the vehicles sticker price and its estimated value at the end of the lease, plus a monthly financing fee. This estimated price of the car value at the end of the lease is what is termed in leasing jargon residual value. It is the expected depreciation or loss in value of the vehicle over the scheduled-lease period. For example, a car with a sticker price of $40,000 and a 50% residual percentage will have an estimated $20,000 value at lease end.
Now that you know the cost of buying out your lease, you need to determine the actual value, also termed market value, of your vehicle. So, how much does your car retail for in the market? To pin down a good, solid estimate you need to do some pricing research. Check the price of the vehicle, with similar mileage and condition, with different dealers. Use online pricing websites, such as Cars.com, Edmunds.com and Kelly Blue Book for detailed pricing information. Gleaning pricing information from various sources should give you a fair estimate of your vehicles retail value. All you have to do now is compare the two amounts. If the residual value is lower than the actual retail value, than youre into a winner. Unfortunately, there is a good chance a car coming off a lease is a little on the high side. Dont despair though. Leasing companies know as much that residual values on their vehicles are greater than their market value and as such are always on the look out for offers. You can knock down on the price of your leased vehicle with some smooth negotiating tactics. Put forward a price that is below your actual target and negotiate hard until you wind up near that figure.
Tags: Buying A Used Car, Car Value, Depreciation, Despair, Dotted Line, Edmunds, Good Chance, Jargon, Kelly Blue Book, Lease Period, Leasing Companies, Leasing Company, Mileage, Option Fee, Option Price, Purchase Option, Residual Value, Residual Values, Retail Value, Sticker PriceRelated posts
Todays car shopper is faced with many choices on how to buy a vehicle, but none offers more information and up-to-date information like the Internet. In years past, when you in were in the market for a car, you would go to the dealership empty-handed, test-drive the car and put together the deal based on what you thought the car was worth. Unfortunately, many times buyers ended up getting a raw deal, with the dealerships using their salesmanship and behind the scenes knowledge to turn the deal in their favor.
But now, things are different. The Web offers shoppers a tool which they can research, price and even take a virtual test drive of the car they want. They can e-mail or call, and have all the information at their fingertips at sites like Kelly Blue Book (www.kbb.com) and Edmunds (www.edmunds.com).
Possibly one of the best examples of a site dedicated to the car buyer is www.sandiegocardeals.com, run exclusively by the internet/fleet department of Kearny Mesa Toyota in San Diego. The site offers a complete virtual inventory of all new Toyota and Scion models as well as complete pre-owned inventory listings. But what really sets this site apart from the others is that they actually post retail and invoice prices so that the buyer can simply name my price, based on the research theyve done online prior to coming to the site.
This approach, of providing the buyer with as much information as possible, is a product of Kearny Mesa Toyotas realization that it is not status quo in the car business anymore.
We found that the buyer responds to being treated like an intelligent human being, said Melissa Amick, Internet/Fleet Director at the San Diego Toyota dealer. They have done the research, and they just love it when they talk to one of our Internet specialists and get a straightforward, honest answer.
Kearny Mesa Toyota has even taken it a step further buy training and authorizing their entire Internet department staff so that they can quote prices over the phone without having to check with management.
Tags: Amick, Buying A Car Online, Car Business, Car Buyer, Car Shopper, Edmunds, Fleet Director, Honest Answer, Internet Department, Internet Fleet Department, Internet Specialists, Inventory Listings, Invoice Prices, Kearny Mesa Toyota, Kelly Blue Book, Owned Inventory, Salesmanship, Toyota Dealer, Virtual Inventory, Virtual Test DriveRelated posts
You need a new car. Maybe you’re in the market for something compact and economical, maybe you want something bigger to accommodate your growing family, or maybe it’s finally time for that luxury sports coupe you’ve always wanted. So where do you start?
The days of wasting time wandering around car lots, hoping the dealers are telling you the truth about whichever model they’re trying to push, are over. Say hello to your two new friends: Edmunds and IntelliChoice. Both companies host websites designed to inform and empower potential car-buyers by providing information from unbiased sources.
IntelliChoice, the younger of the two companies, was founded in 1986 and was acquired by a major targeted media company known as PRIMEDIA, Inc. in 1997. Known for publishing two award winning annuals (The Complete Car Cost Guide and The Complete Small Truck Cost Guide ) , the company has proven to be a leader in helping consumers determine which cars, SUVs, and light trucks offer the best value. A stamp of approval from IntelliChoice is nothing to scoff at. As a matter of fact, Isuzu’s website proudly boasts that its entire 2006 lineup was recognized by IntelliChoice as among the best in their classa claim that Isuzu knows will boost interest and sales.
Checking any or all of IntelliChoice’s sites can arm you with the information you need before making a vehicle purchase. Of all the car buying resources on the internet, IntelliChoice is truly one of the most respected sources of automotive information in the United States.
Edmunds Inc. also operates a website, guided by its mission statement: “To empower automotive consumers by providing complete, clear, timely, accurate and unbiased information needed to make informed purchase and ownership decisions.”
As a matter of fact, Edmunds was the first to publish an online automotive resource in 1994. The company itself was founded in 1966 and has continued to grow ever since. Well known and frequently recommended, Edmunds doesn’t mind relying on word of mouth to increase site traffic. With a plethora of information available on the site, Edmunds offers photos, data, reviews, articles, as well as pricing information on every vehicle on the market. As a matter of fact, Forbes ASAP named the site “Best Car Research Site,” and Money rated it one of the “50 Most Useful Financial Websites.” Consumers consistently find it reliable as well, shown by numerous J.D. Powers and Associates studies in which Edmunds was described as “the most useful website.”
With credible, organized information at your finger tips, there’s no need to cross your fingers and hope you’re making the right decision when buying a car, SUV, or truck. The antiquated tradition of roaming around on car lots has been replaced by a flurry of fingers over a keyboard, the legwork already done for you.
So the next time you’re in the market for a new vehicle, don’t forget your two new best friends: Edmunds and IntelliChoice. It’s like having two uncles in the business, only better.
Tags: Automotive Information, Buying Resources, Car Buyers, Car Lots, Cars Trucks, Edmunds, Growing Family, Intellichoice, Isuzu, Light Trucks, Luxury Sports, Matter Of Fact, Mission Statement, New Friends, Primedia Inc, Scoff, Sports Coupe, Stamp Of Approval, Suvs, Wasting TimeRelated posts
For a woman buying a car alone, the experience falls somewhere south of having a root canal on the pleasure scale. Female car buyers often have to endure a subtle and sometimes not so subtle discrimination. They find themselves being shown cute cars. Salespeople discuss the choice of paint colors rather than the gas mileage. At worst, women are asked if they want to wait for their husbands to arrive before making the big decision. So, how does a woman purchasing a car on her own defend against this sort of behavior? Education. Learn what you need to know before you head to the showroom.
First, decide on the car you want. Consider what you are looking for in a vehicle size, style, and features. Use the websites of the major car manufacturers to build your dream car.
These programs will even given you the sticker price of your ideal vehicle. You can ignore this price during real negotiations, but you’ll have a idea of the general price range of the vehicle.
Still unsure about what you should buy? Look at car comparison websites such as Edmunds and NADA Guides that can help you compare cars side-by-side as well as offer reviews and guides for car buying.
Once you have found the perfect vehicle, its time to research the price. Using the internet, you can find out what the dealers invoice price is for your car. This is the price you want to work with, as it is the actual dealer cost.
In addition, check to see if there are any incentives available on the car. These can be incentives such as low-interest financing or cash back. There may also be incentives to the dealer from the manufacturer. That means that if the dealer sells a specific model, they receive a rebate. This means that a dealer can sell at or below invoice and still make a profit on the car.
Many websites will even give you information on actual selling prices of similar models in your area. By analyzing this information, you will be able to determine a reasonable sales price for the car you want.
Now that you have found your car and know how much you should reasonably pay, head out to the dealer. You can now negotiate effectively.
When you arrive, make it clear to the salesperson that you know exactly what you want and exactly how much you are willing to pay. In short, there should be very little negotiation. Make your offer and stand firm. You will likely get the usual, I have to check with my sales manager runaround.
If the dealer will not meet your price which you know is reasonable go to another dealer. In some cases, you can even get dealers to bid against each other. With a little homework beforehand and a little persistence at the dealership, you’ll have a better experience buying a car.
Tags: Addition Check, Behavior Education, Car Buyers, Car Buying Tips, Car Comparison, Car Manufacturers, Cute Cars, Dream Car, Edmunds, Gas Mileage, Incentives, Invoice Price, Mileage, Nada Guides, Paint Colors, Purchasing A Car, Root Canal, Salespeople, Sticker Price, Subtle DiscriminationRelated posts
Is it time for a new car? Depending on where youre located, it may be possible for you to save a substantial amount of time and money by researching and buying your new car online. Buying cars online is becoming just as normal as buying household items online. The internet is truly expanding to make it easier and cheaper for dealers to sell and buyers to buy.
Dealers love the concept; they get more visitors than the average walk in neighborhood dealership and dont necessarily have 8 car sales people sitting around reading the paper. Their overhead drops significantly while the sales and profits soar through the roof. Consumers are starting to get more comfortable with it because a high percentage of car shoppers hate the car dealership experience. But online they can get the answers many of us are afraid to ask when were sitting in front of a pushy car salesman.
In some countries such as the United Kingdom, an increasing number of people are choosing to cut out shady dealerships and buy their new auto on the internet. Now you have the luxury to shop online and take your time understanding what vehicle and what price you want. As long as you choose a reputable source, its possible to save a substantial chunk of money by purchasing your new car online.
Remember, when you buy online you cannot test out the car youre interested in..so only choose to buy online once youve driven the car (try it out at a dealership first). Even when buying online you should still do your homework and know the car you’re getting and the price it’s worth. Learn about the car you like before a dealer decides what they want you to buy, which is the car that makes them more commission, keep the ball in your court.
Use price guides such as Edmunds or Kelley Blue Book to find out the true value of the car youre buying. This will make sure youre not paying more then normal prices for your new or used car. A little homework will give you some confidence and most probably save you some cash.
Many online sites for car purchases work by local dealers offering you free price quotes (these can often be negotiated downwards). These sites are growing larger by the month and are being considered more and more by consumers in North America. Popular sites like Auto Trader which we took as a manual search from their catalogues at the store are now really building their online presence. Other sites like CarsDirect.com, CarMax.com and CarPrice.com are also starting to see sales rise.
Some sites will even offer a lowest price guarantee – so if you do find the car for less, theyll match the price. Additionally, some online car buying sites will even drive the car directly to your home. If you’re in the market for a new car and really don’t like the whole dealership experience, this just might be what you’re looking for.
Serious ease and convenience not to mention you can save thousands of dollars this way. But best of all, no hard sell.
Tags: Amount Of Time, Buying Cars, Car Dealership, Car Sales, Car Salesman, Car Shoppers, Confidence, Dealership Experience, Edmunds, Homework, Household Items, Kelley Blue Book, New Auto, New Car, New Cars, Profits, Reputable Source, Substantial Chunk, Time And Money, True ValueRelated posts
What To Do Before Buying That New Car Or Truck
Ahhhh, that new car smell…
It’s great isn’t it? But it comes at a premium. We all know that it’s cheaper to buy used instead of new, but if you still don’t think you can live without that fragrance of a new car (the real one, not the one you buy from Wal-Mart in the little spray can) – then at least think about following these steps first:
1. Research! If you absolutely have to have a new car, do yourself a favor and spend some time at Edmunds.com and research some of the cars that you are thinking about buying. If you have a specific car in mind already, be sure to research the other cars in its class as well. You might even find another one you like better and is rated higher from consumers, has higher crash test scores, better resale value, higher mpg’s, or whatever else floats your boat.
2. Once you have decided on a car, Edmunds has a great feature for pricing – it’s called True Market Value. That is basically how much other people are paying for that specific car. This can give you great leverage when negotiating the price on your new vehicle. But you also must keep in mind that it’s not a definite price level, but more of a guide for haggling with the salesman about the price.
3. Dare I say the “L” word? Loan! There I said it, whew. Once you have settled on a fair price for the vehicle you are buying, it’s time to think about how you’re going to pay for it. Since most of us don’t pay cash for new cars, most likely you’ll need to obtain a loan for your new ride. If so, then you need to pay close attention to the interest rate on the loan. This is not something that can normally be negotiated, but you still need to be aware of what your interest rate will be – even 1 percentage point lower can save you over $700 on an average priced new vehicle, over the life of the loan.
My advice on this would be to go after those low APR loan offers that the dealerships sometimes have. You know, the “buy now and receive 2.9% apr for up to 60 months” type of offers. That can save you some big bucks, lets take a closer look…
How much money can lower interest save?
Ok, lets use an interest rate comparison loan calculator and plug in some numbers, and see what we get.
Example 1 – lets say it’s for a Chevy Impala:
Loan amount: $25,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $2,073.94
That’s right, for this example the lower interest rate would save you more than $2k over the 5 year length of the loan. That money would be much better off sitting in an interest bearing bank account, don’t you think? Just for kicks, lets do a higher priced vehicle with the same comparison criteria…
Example 2 – Let’s say you want a Tahoe instead:
Loan amount: $45,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $3,733.08
With example 2, you would save almost $4k in interest over the life of the loan. That would be a nice down payment on your next vehicle don’t you think?
There are many different things that factor in to what vehicle you actually end up purchasing – comfort, resale value, safety, style etc. Just make sure you add “research” and “interest rate” to that list, and stay informed!
Tags: Buying Car, Consumers, Crash Test, Definite Price, Edmunds, Fragrance, Interest Rate, L Word, Leverage, Low Apr Loan, Mpg, New Car, New Cars, Percentage Point, Resale Value, T Pay, Test Scores, True Market Value, True Value, Wal Mart