Power Car Buying Tip # 3-Frustration Filter Process

Car Buying: Start the Process Right & True

In my previous two posts I went to great lengths to emphasis the importance of starting your search for a new car, truck, crossover or SUV on the right foot. If you don’t start the car buying process correctly the consequence will cost you money, time and irritation. Maybe as much as a hundred to two hundred month in payments. Or a thousand, two or three on an outright purchase.  Guaranteed. It happens every day.

Why?

Poor research, preparation, and logically discovering your number one problem or two you need and want to solve in your current mode of transportation.  Once solved, in your case you have purchased a better vehicle that eliminates the rock in your shoe syndrome. Your new vehicle [new to you!!] now delivers the one or two features that trip your trigger. You look forward everyday at getting behind the wheel and taking off. The WOW!! factor has returned.

The Tom Brady Car Buying Story

We see the Brady story http://www.bradyourcarguy.com/buying-car-pro-tip-2-leverage-ben-franklin/ or you can download Brady’s one page story by clicking here.

Here is a Quick View of the Transportation Facts for Tom and Bridget

• Tom who was single, since married has enjoyed the sporty Mustang for the last couple of years.
• Tom’s wife, Bridget wants to say good bye to the 2 door Mustang by trading in for a 4 door sporty 2011 Ford vehicle.[She is going to keep her 2007 Honda Civic and Tom will use it to drove to work.]
• This new vehicle is primarily for Bridget. It will be a family car replacing the Mustang.
• The purchase price on Tom’s Mustang GT was $34,747.
• Tom’s current payment is $539 per month. He achieved this payment by putting $5,000 down on the Mustang.
• The payoff is $19,330.
• His trade has 17,400 miles on it, is still under warranty, and is like new.

Setting the Car Buying Table -Information is Money Spent Wisely: Your  New or Used Car Buying Rules of Thumb;

Rule #1. If your income has not increased since your last car purchase, NEVER exceed 30% of the price you paid for your current vehicle for a new vehicle.

A.)  If you exceed 30% and all things are equal. 90% of the time you will not be able to afford the payment.

B.)   This equation is assuming you purchase a new or used car, truck, van or SUV every three years.

C.)   If your purchase cycle is less than three years then figure instead of 30%, 10% per year. If it is longer than five years then use the 10% increase figure.

Examples:

1.) Tom Brady paid $34,747 for his vehicle a little over a year ago. Therefore he would fall in the 10% bracket, or $34K plus $3,500. Or a top price of $37,500. Since it he made the purchase about 15 months ago he could bump that number up to $39,000 max.

2.) Mr. and Mrs. Clark last bought a new vehicle 5 years ago. The purchase price was $22,700. Today five years later, with the same steady income and credit history, they could afford a car up to 50% more than they paid for their current vehicle. The math>$22,700 x .50= $11.350, this equals a vehicle with maximum worth of $34,050.

Buy Now  or Hold?….. The Results

These examples are maximum figures and take into account a 15% cash down payment. If any of the above figures or numbers is exceeded then the probability of a customer making a purchase and a dealership making a sale drop dramatically. My definition of a dramatic drop could be compared to an elevator shaft free fall straight down at over 100 feet per second.

The Brady’s now have established:

• Their budget. What they can afford to pay for a new or used vehicle. $37,500.
• What they need. A four door. They are now a family of three. Two adults and an infant.
• What they want. Something sporty.
• Who the vehicle is for Tom’s wife Bridget, is the buyer and decision maker

Bridget Goes Online

Car Buying Tips

Bridget has gone on line at www.ford.com and has found two vehicles she really likes that will also solve her major transportation problems. Bridget is pumped.

1.) The 2011 Ford Taurus

2.) The Ford Flex.

While on line, Bridget studied both models for several hours. Right now she is torn between the two and knows now is the time to visit the dealership for a first hand, close up look at both vehicles.

The next step for Bridget is to visit the dealership. She goes on line at www.doengeschoice.com and makes an appointment to come to dealership to look at both vehicles.

My next post will describe Bridget’s visit to the dealership; The decisions she was able to make based on her preparation and what she decided to do to solve her transportation challenges.

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5 Tips to Save Money on Used Cars, SUV’s and Trucks

This is Part One of a Two Part Report on How to Save Money Buying a Preowned or Used Vehicle:                                                                    ____________________________________

Cash for Clunkers has left a Void in the Used Car Market

The rush to buy new cars since the government announced the C.A.R.S has slowed down the used car market. This slow down is to the point now that it is a good time to get a good deal on a used vehicle.

Look! Are You Currently in the Market for a Preowned Vehicle?

The slow down in the used car market has created a supply and demand scenario. Demand for used cars is down and supply is up. When this happens used car prices go down. This temporary supply issue will evaporate once the C.A.R.S program comes to an end. If you are in the market to purchase a used vehicle now is the time to take action.

Why You Should Buy Now: Within 90 Days the Tables will Turn on the Market

When the government money runs out for the C.A.R.S program the pendulum will start to swing. Right now the buying emphasis is on new cars, crossovers, trucks and SUV’s. For some dealers this could lead to a shortage of new cars and create a “run” on used cars.

This could lead to steady to higher prices for new vehicles and as the supply of used cars dwindles the price of a used vehicle will rise. When this transpires the current “buyers” market will shift to a “sellers” market. End result prices on new and used vehicles will start to creep up.

“Survey Says”

In a recent poll conducted by CCI they found that the number one consumer concern when buying a used vehicle is the future reliability and safety of the vehicle purchased. Consumers at all cost want to avoid getting stuck with a lemon. When buying a used vehicle you have heard of the term “Cherry”. Every preowned shopper is looking for a “Cherry”. These 5 tips will help you find that “Cherry”

5 Tips to Save Money on a Used Car, Crossover, SUV or Truck Regardless of the Market

Tip #1. Only Buy From a National Franchised Dealer (NFD) vs an Independent Dealer

A National Franchised Dealer (NFD) would be like a Ford, Toyota ,GM, Chrysler, Honda, or Mercedes Benz dealer etc. There are a host of benefits to only buy from a National Franchised Dealer such as:

• A NFD has Access to higher quality used cars that a franchised dealer gets on a new car trade-ins.
• Only NFD are allowed and can leverage the privilege of buying from factory sponsored auctions.
• Independents usually end-up with left over ’seconds” from auctions that quality NFD dealers pass on.
• NFD have 10 times the service facility that an independent has that guarantees some sort of pre-inspection service before and after the sale.
• Quality NFD put all their used vehicles through a rigorous certification examination and approval process before they are offered to the public for sale.
• NFD have more finance sources than independents.
• NFD’s will 8 out of 10 times provide more favorable purchasing terms than an independent.
• NFD’s have more resources to offer choices of extended used car warranties than independents.
• NFD’s will 9 out of 10 times give you more money for your trade-in.
• The life expectancy of a NDF is 30 times longer than that of an independent.

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