Archive for Auto Industry
Buying a Certified Pre-owned Vehicle (CPO) – Part III
I recently helped my daughter decide on which used SUV to buy. She was surprised when I recommended that she and her husband look at certified pre-owned (CPO) vehicles at major dealerships. I have written extensively on how to buy and sell vehicles privately and online.
I explained to my daughter that she has two options to be fully protected when buying pre-owned vehicles:
1. Buy a certified pre-owned vehicle (CPO) from a dealer
2. Create your own “virtual” CPO program.
The benefit of buying from a dealer is that you can be in and out in a few hours. Dealers can provide financing and complete all
the paperwork, saving you a trip to the DMV. I recommended this option for my daughter’s family because of their busy lifestyle.
However, consumers generally pay a premium when buying a CPO vehicle from a dealer. When I was an Internet Manager for a major dealership, the added cost for certified vehicles was in the range of two to fivepercent. Some luxury models were more, up to eight percent.
The good news for savvy buyers: the benefits of a CPO program don’t diminish even if you make a steal-of-a-deal on the certified car itself. So the actual added price to the consumer for a certified vehicle will depend upon how good you are at negotiating price.
Create a Virtual CPO
There are three components to any certified program. However, creating your “virtual” program adds a significant amount of work to the process. Also, keep in mind the basics of buying any used car. You may want to read my free report, The 8 Biggest Mistakes Used Car Buyers Make and How to Avoid Them (seebelow).
Your virtual CPO program will include:
1. Certification/selection. There is no actual entity to officially certify your car. However, selecting an equivalent vehicle means narrowing your search to only recent model years with a limited number of miles.Because both factors have a direct impact on the price, you’ll have to set these limits based on the delicate balance between your needs and your finances.
If buying privately, have your mechanic perform a pre-purchase inspection. A detailed checklist and a competent mechanic ensure that you’ll know what deficiencies are present so you can negotiate a lower price. For example, ask for the cost of repairs to be subtracted from the lowest price negotiated. Or simply say no to a vehicle with too many problems.
If purchasing from a dealer, ask to see the vehicle inspection report. If one is not available, in most cases it’s best to pay your mechanic to complete his inspection before proceeding.
2. Warranty. Private companies sell extended service contracts, also known as extended warranties. This allows you to a vehicle from a private seller and get an extended warranty for added protection. Many buyers assume incorrectly that these are only available from dealers.
A vehicle’s remaining manufacturer’s warranty is taken into account when getting quotes on extended warranties from private companies. Perform an Internet search to find out which companies to contact for quotes for the specific vehicle you are looking to purchase.
If buying from a dealer, remember that extended warranties are high-profit items and dealers are always negotiable. You can comparison shop by getting a quote from a private company online (see above).
When comparing one program to another, be sure to consider what is covered and what is not covered, as well as price.
3. Extras. Certified programs often include extras such as roadside assistance, trip interruption programs, free vehicle history reports, and other goodies. Roadside assistance is available from many sources, including the American Automobile Association, insurance and even phone companies. You can purchase vehicle history reports directly from CARFAX.com or AutoCheck.com. You may have to do without some additional benefits if you go the virtual CPO route.
If you have the time, energy, and inclination, developing your own virtual CPO program can save you money.But remember, it’s a lot more work and it’s buyer beware. Good luck!
Missed the beginning of this series? Review Part I – Part II.
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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045179_buying-a-certified-pre-owned-vehicle-cpo-part-iii.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!
Buying a Certified Pre-owned (CPO) Vehicle – Part II
My daughter recently asked for help deciding which used SUV to buy. She was surprised when I recommended that she and her husband look at certified pre-owned (CPO) vehicles at major dealerships. Her surprise resulted from my havingShe was surprised because I have written extensively on how to buy and sell vehicles privately and online. She was expecting a lesson on how to accomplish both.
In my opinion their lives are far too busy to invest the time that is needed to create what I call a “virtual” CPO vehicle. The latter requires savvy and lots of legwork: making a great deal on a used vehicle, completing a pre-purchase mechanical inspection, then buying an extended service contract (extended warranty).
What are the benefits of going directly to a dealer for a manufacturer’s certified pre-owned vehicle? A CPO vehicle generally meets a higher standard. Its benefits can be divided into three categories:
- Certification/selection To qualify as certified pre-owned, a vehicle must meet an age and mileage limit. For exampleFord requires its certified vehicles to be no more than six years old with less than 80,000miles. Vehicles also need to pass an extensive multipoint inspection with any deficiencies fixed. Ford uses a 169-inspection process. These figures vary for each manufacturer.
- Warranty. The manufacturer, not the dealer, provides the warranty. It’s handled like a new car warranty:the owner can take the vehicle to any authorized dealer in the 48 states.
The warranty is divided into two categories:
1. Powertrain warranty. This includes the engine and transmission, the two areas that can be the most expensive to repair. Using Ford as an example, its CPO powertrain warranty covers six years or 100,000 miles (whichevercomes first) based on the in-service date, or when the vehicle was initially sold.
2. Comprehensive warranty. Also known as the “bumper-to-bumper” warranty, the comprehensive warranty covers items not included in the powertrain warranty, such as electrical, electronic, and other mechanical issues. Not all CPO programs include a comprehensive warranty. Those that do vary in length, depending on the manufacturer.
Consumers should be aware that dealers may offer to extend the comprehensive warranty for a fee, in some cases matching the length of coverage of the powertrain warranty. This can be advantageous, but needs to be considered on a case-by-case basis. Variables include what’s covered, the term of coverage, and the cost.
3. Extras. These can include a free vehicle history report, 24/7 roadside assistance, trip interruption service,and in rare cases a return/exchange program, along with other goodies.
Time is Money
You can literally walk onto a dealer’s lot and drive off in your next vehicle a few hours later (something my daughter and her husband did). Dealers can take care of the financing and complete all the paperwork, saving you a trip to the DMV. You pay a premium for this option, but it is well worth the price to many people.
If you have the time, a virtual CPO vehicle may be your best option because it’s usually less expensive. Creating a virtual certified pre-owned vehicle will be covered in Part III of this series. Missed the first segment of this series? Review Part I here.
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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045178_buying-a-certified-pre-owned-vehicle-cpo-part-ii.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!
Buying a Certified Pre-owned (CPO) Vehicle – Part I
My daughter was surprised. She had asked for help in choosing a used SUV and I recommended that she and her husband look at a certified pre-owned (CPO) vehicle. “But Dad,” she said, “you literally wrote the books on how to buy and sell used cars and you want us to pay a dealer extra for a certified car?”
It’s true that I used to be an Internet manager for a major car dealer and have since written on how to sell cars online, as well as how to avoid making mistakes when buying used vehicles.
Based on that experience, I explained the facts of life to my daughter: I want my two grandchildren (along with my daughter and her husband, of course) in a safe vehicle that’s been fully checked out by a mechanic and carries a warranty for future problems.
You can get these benefits two different ways:
- Buy a CPO vehicle from a dealer.
- Create your own “virtual” CPO vehicle, purchased privately (or a great deal on a non-CPO vehicle from a dealer), complete a pre-purchase mechanical inspection, and buy an extended service contract (extendedwarranty).
Choosing the Right Option
When my daughter informed me that their Toyota Matrix was too small for their growing family, I found myself extolling the virtues of CPO vehicles. As much as I would have enjoyed teaching her and her spouse how to create a virtual certified vehicle–and put much-needed cash in their pocket–a formal certified program was their best choice. Here’s why:
- Time is money. My daughter and her husband have a busy life with little time to spend searching for a private seller who has a gem of a vehicle at a fair price. Buying privately can be time-consuming: a lot of phone calls, test drives, mechanical inspections, and other long-drawn-out tasks.
- One-stop shopping. You can literally walk onto a dealer’s lot and drive off in your next vehicle a few hours later (this is what my daughter and her husband did). Dealers can take care of the financing and complete all the paperwork, saving you a trip to the DMV. You often pay a premium for this option, but it’s well worth the price to many people.
Benefits of a CPO Program
When you buy a CPO vehicle, you are getting a used vehicle that meets a higher standard. Peace of mind can be priceless. To qualify, a CPO vehicle can only be a few years old with a limited number of miles. It must pass an extensive mechanical inspection with any deficiencies fixed. Then the manufacturer–not the dealer–adds an extended warranty. If something does go wrong, the buyer is protected.
In addition, there are usually other benefits that can include roadside assistance, trip interruption service, a free vehicle history report, and other goodies.
In Part II of this series we take an in-depth look at the three components of every certified pre-owned program:1) certification/selection 2) warranty 3) extras.
Part III teaches you how to create a virtual CPO option where you gain all the benefits of a certified program but get to keep much-needed cash in your pocket.
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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045188_buying-a-certified-pre-owned-vehicle-part-i.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!
Choosing the Right Color for Your New Car
Are you concerned about making a color choice that could make it more difficult to sell or trade your car in a few years? According to DuPont Automotive, you can’t go wrong if you choose a white exterior. DuPont’s Color Popularity Report crowns white as the most popular color for new cars in North America for the third straight year.
Surprising to some buyers is the fact that black is a close second, with silver not far behind in third place.Although gray comes in fourth, blue and red are increasing in popularity and rank fifth and sixth.
New car buyers take into account many factors when choosing a color. They not only have their own personal preference, but that of a spouse or other family members to consider. Savvy car buyers also don’t want to choose a color that buyers won’t like in three or four years, making it harder to resell.
Here are the top ten colors in North America:
1. White 17.8%
2. Black 17.0%
3. Silver 16.7%
4. Gray 13.0%
5. Blue 12.4%
6. Red 12.0%
7. Brown 5.7%
8. Green 2.8%
9. Yellow/Gold 2.3%
10. Other >1%
What the Future Holds
Color remains a major reason a given buyer chooses a specific car to buy. Yet car makers need to recognize color trends three
years in advance to be able to integrate changes into the manufacturing process.
Here are the current trends DuPont identifies: both white and silver have been slipping in popularity in recent years while black is gaining ground. The subtler tones now available have also increased the popularity of blue and red.
From the Front Lines
As Internet Manager for a major car dealer, I saw two types of buyers walk onto a dealership’s sales lot. I experienced first-hand the agony some buyers went through deciding on color: “What’s it like to maintain?” “Which color is safer?” “Which color hides scratches and blemishes the best?”
The second category of buyer knows exactly what color they want. Some are actually willing to switchmodels, and in rare cases manufacturers, in order to get the color they want.
Other buyers in this category know what they want but are more flexible. Flexibility is often a good thing,especially when new car inventories are tight. Being willing to accept your second or third color choice can help you to get your new car now and at the price you want. The least advantageous option is waiting to a point in the future for the exact color you want when the loss of manufacturer and dealer incentives may increase the cost of the car beyond what’s practical.
Whichever category you fit in, the above chart will help you understand what other buyers are choosing for their new car exterior colors. The next DuPont Automotive Color Popularity Report is due late in 2010.
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As an Automotive Journalist, L. James Johnson contributes articles to the High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045177_choosing-the-right-color-for-your-new-car.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!
Selling Car on Craigslist – How To
One of the biggest mistakes sellers make when posting ads on Craigslist is not including enough information.
I posted thousands of ad on Craigslist as an Internet Manager for a major car dealer in the San Francisco Bay Area. I finally learned to include a simple template at the bottom of the ad to make sure I didn’t forget crucial data. I always copied it after a complete, normal ad and didn’t worry about duplicating information. I’ve copied that template below.
The second mistake most sellers make is not pricing their vehicle correctly. Price it too high and no one calls, too low and you leave money on the table. That’s why car dealers use a pricing strategy versus picking a price and sticking with it. I explain how to price your car by developing your own pricing strategy in my new book, HELP! I Gotta Sell My Car NOW!
In HELP! NOW! I also provide other car dealer Best Practices that can benefit private sellers. These include how to safely test drive, how to negotiate like a pro, and how to complete the paperwork.
I also teach you how to write a compelling and personalized ad for your car that will help you sell it quickly and profitably. Also, which pictures to take, and even how to do a video walk around, something that I used as a secret weapon when I was actively selling cars as an Internet Manager. This is simple to learn and will help set your ad apart from the many dealers and private sellers posting on Craigslist.
You can download FREE chapters of HELP! NOW! to see if you want the entire book? Look on the right hand column of this page.
Buying a car?
Download my FREE report, The 8 Biggest Mistakes Used Car Buyers Make and How to Avoid Them! Learn from my experience as an Internet Manager – don’t make mistakes that can cost you hundreds, even thousands of dollars. Get this PDF report for free. Look on the right side of this page.
A note about the Craigslist Ad template
If the following items don’t apply (or you don’t have the information), then simply delete them from the template before posting it to Craigslist:
Gas Mileage –
Vehicle History Report Available – Yes
Video Walk Around Available – Yes (ask me to send you a link)
Pictures – More available, just ask.
Clear Title? – Yes
Craigslist vehicle information Ad template
Copy the info below AFTER the content of your actual ad. It’s fine if information is duplicated. BTW, it’s better not to have a space between each line, but this is a wordpress site and extra space may be included in the template you receive:
Here are the vehicle details:
Year –
Make –
Model –
VIN –
Miles –
Body Style –
Engine –
Transmission –
Drivetrain –
Exterior Color –
Interior Color –
Gas Mileage –
Vehicle History Report Available – Yes
Video Walk Around Available – Yes (ask me to send you a link)
Pictures – More available, just ask.
Clear Title? – Yes
Price –
Contact –
What a completed Craigslist Ad template may look like
Here are the vehicle details:
Year – 2008
Make – Nissan
Model – Rogue S
VIN – JN8AS58T48W0136B
Miles – 16,441
Body Style – SUV
Engine – 2.5L, 4 cyl
Transmission – CVT – Automatic
Drivetrain – FWD
Exterior Color – Silver
Interior Color – Black
Gas Mileage – 22 mpg/city, 27 mpg/hwy
CARFAX Report Available – Yes
Video Walk Around Available – Yes (ask me to send you a link)
Clear Title? – Yes
Pictures – More available, just ask.
Price – $16,950.00
Contact – Call Phyllis at 510-648-0000 or click on the email link.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!
HistoryReports
Anyone who buys a used car and doesn’t check its vehicle history report is asking for trouble.
As an Internet Sales Manager I used both major vehicle history reports: CARFAX and AutoCheck®. Both serve a purpose, but in this economic downturn it’s important to save money. That being the case, the best buy is the one that is better known in the auto industry, yet less known by private sellers: AutoCheck®
. This is one situation where my position as an industry insider comes in handy.
On Dec 28, 2009 I found these prices online following a price increase by both companies:
- Single Reports
- AutoCheck®
$24.99
- CARFAX $34.99
- AutoCheck®
- Multiple Reports
- AutoCheck®
- CARFAX $44.99 – Maximum of 5 reports
- AutoCheck®
If you choose the single report package you can save 40% by buying your vehicle history report from AutoCheck®. (34.99 – 24.99 = 10 divided by 24.99 x 100 = 40%)
Other Benefits of AutoCheck
Speed is Crucial
As an Internet Sales Manager for a major dealership, we once took in a trade that came up with a clean report when we initially ran the vehicle history. However, a month later when I went to sell the car we ran a new vehicle history report that indicated an accident.
The dealership I worked for had a policy of NOT selling used vehicles that had been in an accident – period!
The result was that I lost a sale, the dealership lost a customer, and the customer was put through a process he was justifiably disappointed over, all because the speed at which the accident appeared on this vehicle history was not as fast as it could have been. A quicker turn around could have saved us all a lot of grief.
This is an example of buyer beware. No vehicle history report will catch every incident and this is another reason to have your own mechanic check out used cars prior to purchase. Want more examples? Below are two investigative journalism reports on the negative aspects of some vehicle history reports:
Shorter U.S. TV station report
Speed is crucial, and it’s another reason for purchasing AutoCheck® because they deliver accident information faster. And you get twice as many number of accidents in your report when compared to CARFAX.
And just like CARFAX you get:
- available information on accidents, odometer rollback, lemon vehicles.
- a list of the number of previous owners.
- a buy back program is available.
But unlike CARFAX, AutoCheck® has another benefit, which is something I haven’t used so I can’t recommend it one way or the other:
- An AutoCheck®
Remember that no vehicle history report is perfect and getting any pre-owned vehicle inspected by your mechanic is always a good idea. Of the two, the better buy is AutoCheck®
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
The links I provide are often affiliate links that I receive a commission from if you click thru and purchase a product. I appreciate the support as this allows me the resources and time to develop my website (www.BayAreaCarGuy.com) and funds the development of my next book. See my video explanation at http://bayareacarguy.com/sell-car-online-thanks-for-the-click/.
The 8 Biggest Mistakes Used Car Buyers Make
Buying a used car can be one of the most stressful life experiences you’ll have. I should know. When I was an Manager for a a major car dealer in the San Francisco Bay Area, I saw my customers make the same mistakes over and over.
I have just released my new 18-page, easy-to-read eBook:
The 8 Biggest Mistakes Used Car Buyers
and How to Avoid Them!
To get your FREE copy simply add your information below and click Submit.
Pass It On
I’ve written the copyright for The 8 Biggest Mistakes in a way that allows you to freely distribute it among family, friends, and others who can use some help reducing their stress level when buying a used car.
You can pretty much do whatever you want with this report as long as you don’t change the text or ask for anything in return. But remember, the idea is to help as many others as possible, so pass it on!
Sign Up & Download
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Cadillac Conversations Book Review
My thanks to Bruce Nunnally for his extensive review of my new book, HELP! I Gotta Sell My Car NOW! You can read his full review here.
Bruce has an interesting website – CaddyInfo.com – it’s everything Cadillac. I love the way Bruce himself describes it:
All Cadillac models, all years, all the time.
And he’s right: CaddyInfo has a huge amount of information on Cadillacs. Bruce even sells his own eBook entitled, Cadillac CTS Press Book for the avid enthusiast.
I must say that it’s nice to see automotive experts from their own areas of expertise give a public nod of approval for HELP! NOW! in the manner that Bruce Nunnally did in his recent book review.
Thanks again Bruce!
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
HELP! NOW! Free Sample Chapters
If you don’t want to buy my new book just yet (HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online!), download the sample chapters:
HELP! NOW! Sample Chapters (…click ADD TO CART… it really is FREE!)
HELP! I Gotta Sell My Car NOW!
HELP! NOW! is the only step-by-step guide for selling your car online that is available today. It not only walk you through HOW to create an effective online ad, but you learn industry BEST PRACTICES so you:
- price your car so you don’t leave money on the table
- what sites to choose, and how to market your car for FREE
- which photos do you take and how do you shoot them
- handling inquiries and test drives
- how to negotiate like a pro
- handling the paperwork and counting the money
Get FREE Sample Chapters by clicking above (it really is FREE).
Learn more about HELP! NOW!, and even buy it, by clicking here.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Car Concerns – Harry Douglas
I was sitting at my computer working on a marketing piece for my new book, HELP! I Gotta Sell My Car NOW! last weekend when Harry Douglas called me out of the blue. He had found me on Twitter, and after a short conversation asked me to be on his nationally syndicated radio program “Car Concerns.”
To be honest, I didn’t know who this Harry guy was. He was calling from Knoxville, TN, well out the San Francisco Bay Area where I lived. However, it didn’t take me long to check out his website at CarConcerns.com (and to listen to his previous shows on podcasts) to get a sense of someone who is an expert, someone who knows the car industry inside and out.
Harry headed up his own car dealerships for 25 years. As someone who spent just three years selling cars at the dealer level, that’s something I can respect. He then spent the next ten years on the air hosting one radio program or another. As an ex-Broadcast Journalist, I have a lot of respect for someone who can leave one calling and successfully move into the media as an expert host.
Car Concerns
Harry’s program “Car Concerns” is broadcast across the country, as well as internationally, on the Lifestyle Talk Radio network. He does two hours of live radio five days a week. His program is fun, informative, and upbeat.
What was it like being his guest? Listen for yourself:
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Thanks Harry for such a great interview. You won’t believe how traffic on my website BayAreaCarGuy.com spiked for days following the interview! Harry’s program is not only informative, but he obviously has a huge audience that loves to hear about all aspects of the car business.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Welcome “Driving Today”
The BayAreaCarGuy.com has a new partner.
A new page on this website has been dedicated to Driving Today, a daily mix of news and information on the major trends, personalities, and new products shaping the automotive industry.
One of the deciding factors for adding Driving Today to this site was the hands-on input of Jack Nerad in the daily content. Jack’s past credits includes Editor of Motor Trend magazine and Automotive Age magazine.
Studio One Networks is the company that produces Driving Today. They are well known for their high quality, award-winning editorial web programs, articles, and features.
You can find Driving Today on this site via the Diving Today tab in the top navigation bar.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Buying Nissan Certified at Dirito Bros Concord
It’s true: I help friends buy cars from dealers. What professional from the car industry doesn’t do that?
In this case it was my friend Cynthia whose 1995 Honda Civic was just written off by her insurance company. Cynthia has a busy life and had no time to invest in the car buying process.
She called me, explained her tight budget, and asked for help. I did a Needs Assessment (see my book, HELP! I Gotta Sell My Car NOW!) to determine if her initial request for help buying a Honda Civic or Toyota Corolla could be expanded to other makes – especially ones that were less expensive in an effort to stay within her budget.
The budget was a problem. A new vehicle was out of the question, and a pre-owned Civic or Corolla that fit the restrictive price requirements would have more miles than I could recommend. This is where my experience selling used cars came in. I asked Cynthia if she would consider the Nissan Sentra.
Think Outside the Box
Buyers who prefer imports usually think of Honda or Toyota. Yet, Nissan is not just an import, but its quality, gas mileage, and low cost of ownership is within striking distance of the Big Two. And with pre-owned, you gain all those benefits for significantly less money.
Cynthia knew that I used to sell for a major Honda dealership. That fact added credibility to my statement, “There are a few sleeper models that most buyers don’t know about, but remain some of the best buys in the market place. The Nissan Sentra is one of those.”
Cynthia immediately got on her computer and did research through Consumer Reports. What she found confirmed my recommendation and she gave me the green light to find her the right car; in this case, a Nissan Sentra.
I got on the phone with my friends in the industry: all in various levels of sales for major dealerships in the San Francisco Bay Area. We don’t beat around the bush: they tell me what they have and I see if I can match my friend with their car so everyone’s happy.
More than a Good Deal
I think most of the time when friends ask me for help buying cars they simply want to know they aren’t being conned and paying too much for what they think is a good deal. Who would have thought that my experience in the car business would come in so handy for my friends.
In Cynthia’s case I set out to get the best deal available. Part of getting a good deal on a used car is making sure the buyer is protected:
- has the car been fully inspected and deficiencies fixed (ask to see the actual inspection sheet the mechanic fills out).
- does it have a clean vehicle history report – especially no accidents (see previous article: CARFAX or AutoCheck).
- is there warranty left? Is an extended warranty available.
You can resolve all the above issues by simply buying a Certified Pre-Owned (CPO) vehicle. A CPO vehicle not only has to meet a higher standard to even qualify for CPO status, but all CPO programs are backed by the manufacturers – not the dealer – and require the vehicle to passed an extensive inspection process where deficiencies are fixed. You also get a manufacturer’s extended warranty.
This is the protection I wanted for Cynthia, and usually recommend for most of the friends I help. Vehicles don’t have to be certified, but it simplifies the process.
In the case of Nissan, the warranty only includes the power train (engine and transmission). I recommended that Cynthia get the optional WRAP service contract (bumper-to-bumper extended warranty) so she would have total protection for the next 4+ years and to 100,000 miles.
Hats Off to Jeannie Stang at Dirito Brothers Nissan
I regularly recommend to friends that they walk out of dealerships that don’t treat them fairly and with respect. However, I also tip my hat to the sales staff and dealers that go out of their way to be professional, courteous, and are great to work with.
Even after calling all my friends in the car business they couldn’t match the deal I found at Dirito Brothers Nissan in Concord. Their Nissan Sentra was certified and after back and forth calls with Sales Consultant Jeannie Stang and her Sales Manager Laura Fernandez, we quickly came to terms that I could recommend to Cynthia.
We didn’t waste time. Cynthia took BART to Walnut Creek. I drove from Berkeley and picked her up at the BART station and we drove the remaining ten minutes to the dealership. Jeanne (the sales consultant) was literally waiting outside for us. The car was freshly washed and literally just a few feet away. A quick test drive confirmed its condition (even better than we expected!) and we all moved inside to complete the paperwork. Simple. Fast. Efficient.
BTW, I asked for and received the vehicle history report and the actual mechanic’s inspection report of the car. When I needed the brake measurements interpreted (I wanted to confirm that both front and rear brakes had more than 50% life remaining) Paul Voskes, the Service Manager, came over and confirmed that both measurements were over 50%. He also answered other questions that arose in the moment. This was exceptional service!
Dollars and Cents
Buyers who negotiate the deal over the telephone or via email are always nervous until they see the final figures on paper.
When Jeannie brought over the paperwork everything was exactly as agreed – to the penny. And Jeanne and her boss Laura Fernandez worked quickly to get us into the Business Office to complete the final paperwork. It was there that Greg Corbett, the Finance Manager, was quick, professional, and a genuinely nice person to deal with. Again, no surprises.
Driving Away
After Cynthia and I left the Business Office, Jeannie took us out to the Nissan Sentra where she handed over the keys and answered any last minute questions on its use. And even though she wasn’t required to do so, when we were in the business office Jeannie took the car to a gas station and brought the gauge to over half as a simple courtesy to Cynthia. This kind of service really stands out.
We were in and out of the Dirito Brother’s Nissan Concord dealership in 2 hours and 10 minutes. When I was in car sales the average customer stay was at least 3 1/2 hours and often extended beyond 4, and even 5 hours. Two hours seemed miraculous.
As I drove away I contemplated my experience with this dealer: my time working with Jeannie Stang and Laura Fernandez on the telephone could not have been better. Our experience at the dealership itself rated a full 10 out 10. All the staff were great: courteous, professional, and down-to-earth people who were pleasant to work with.
Most importantly, Cynthia was thrilled to have received the deal she got and was just as thrilled with the car itself. What a pleasant surprise that it was in even better condition than we expected.
I was also reminded that not all car dealerships are created equal. Unfortunately, the industry’s negative image is earned through bad behavior. As an insider to the car industry it was my direct experience that Dirito Brothers Nissan Concord and Jeannie Stang are on par with the best dealerships and sales staff I have worked with. Such good behavior deserves recognition.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
AutoCheck or CARFAX?
Anyone who buys a used car and doesn’t check its vehicle history report is asking for trouble.
As an Internet Sales Manager I used both major vehicle history reports: CARFAX and AutoCheck®. Both serve a purpose, but in this economic downturn it’s important to save money. That being the case, the best buy is the one that is better known in the auto industry, yet less known by private sellers: AutoCheck®
. This is one situation where my position as an industry insider comes in handy.
On Dec 28, 2009 I found these prices online following a price increase by both companies:
- Single Reports
- AutoCheck®
- CARFAX $34.99
- AutoCheck®
- Multiple Reports
- AutoCheck®
- CARFAX $44.99 – Maximum of 5 reports
- AutoCheck®
If you choose the single report package you can save 40% by buying your vehicle history report from AutoCheck®. (34.99 – 24.99 = 10 divided by 24.99 x 100 = 40%)
Other Benefits of AutoCheck
Speed is Crucial
As an Internet Sales Manager for a major dealership, we once took in a trade that came up with a clean report when we initially ran the vehicle history. However, a month later when I went to sell the car we ran a new vehicle history report that indicated an accident.
The dealership I worked for had a policy of NOT selling used vehicles that had been in an accident – period!
The result was that I lost a sale, the dealership lost a customer, and the customer was put through a process he was justifiably disappointed over, all because the speed at which the accident appeared on this vehicle history was not as fast as it could have been. A quicker turn around could have saved us all a lot of grief.
This is an example of buyer beware. No vehicle history report will catch every incident and this is another reason to have your own mechanic check out used cars prior to purchase. Want more examples? Below are two investigative journalism reports on the negative aspects of some vehicle history reports:
Shorter U.S. TV station report
Speed is crucial, and it’s another reason for purchasing AutoCheck® because they deliver accident information faster. And you get twice as many number of accidents in your report when compared to CARFAX.
And just like CARFAX you get:
- available information on accidents, odometer rollback, lemon vehicles.
- a list of the number of previous owners.
- a buy back program is available.
But unlike CARFAX, AutoCheck® has another benefit, which is something I haven’t used so I can’t recommend it one way or the other:
- An AutoCheck®
Remember that no vehicle history report is perfect and getting any pre-owned vehicle inspected by your mechanic is always a good idea. Of the two, the better buy is AutoCheck®
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
The links I provide are often affiliate links that I receive a commission from if you click thru and purchase a product. I appreciate the support as this allows me the resources and time to develop my website (www.BayAreaCarGuy.com) and funds the development of my next book. See my video explanation at http://bayareacarguy.com/sell-car-online-thanks-for-the-click/.
Sell Car Online – Thanks for the Click!
The links I provide in on this website and in my new book, HELP! I Gotta Sell My Car NOW! are often affiliate links that I receive a commission from if you click thru and purchase a product.
The truth is, I appreciate the support, as this allows me the resources and time to develop my website (www.BayAreaCarGuy.com) and funds the development of my next book.
So, if you click thru and purchase products, thank you. More in my video below.
James Johnson explains why clicking thru affiliate links is important.
HELP! Me Buy My Car – A New Service
Car dealers have a bad reputation for a good reason. During my dealership career in Internet Sales, I listened closely to my customer’s intense, even harsh opinions about car dealers. Guess what? Their intensity was an appropriate reaction to the way they had been treated.
My customers not only wanted the best deal possible, they wanted to know that they weren’t being conned, manipulated, or made a fool of.
Yet a mistake can cost you hundreds, even thousands of dollars more than necessary. And what is even scarier for most buyers is the fact that this is after the actual price of the car is determined. See more below under Negotiate the deal.
Real HELP! for Car Buyers
As I began to offer my HELP! Me Buy My Car service, it made significant changes in people’s experience at the dealership. From saving money to feeling empowered by knowing they were finally getting more than a good deal. Here’s one person’s remarkable experience.
Help is on the Way
- Needs Assessment. As a preliminary service (no extra charge!) I can provide a “Needs Assessment” to help you determine which is the right vehicle for you.
- Find the vehicle. Once you’ve determined which vehicle you want, I perform a search in your area and provide a short list of dealerships where it’s available.
- Negotiate the deal. I have two basic rules for buyers when purchasing a car from a dealer:
- Never begin your vehicle search by walking in the front door of a dealership.
- Don’t be sucked into believing that negotiations are done once you establish the price of the vehicle.
I contact the dealers on the short list and negotiate your best deal. The price of the vehicle is only the beginning. Most buyers relax and effectively go to sleep once the price of the car is negotiated. Big mistake!
Where circumstances dictate that I an unable to pre-negotiate all price points (i.e. you may not be able to line up financing ahead of time), I educate you so you are empowered while at the dealership – in control because you are informed and confident. And if issues arise, I’m only a phone call away.
- The price of the vehicle is the first of five points where the dealer can make a profit. That’s why dealers can sell cars at invoice (and in some cases, below invoice) and still stay in business. In fact, they can more than make up their profit margin in the four remaining profit points.
That’s why I negotiate the “deal” and not just the “price” of the vehicle. I make sure you stay safe during the entire car buying process. Based on your specific circumstances, I pre-negotiate as many remaining areas of concern as possible. Handled incorrectly, these can cost you hundreds, even thousands of dollars more than necessary.
HELP! Me Buy My Car
Do you want real HELP! with your vehicle purchase? Would you like to make sure that you get more than a good deal – and you know it!
Finally, be the driver’s seat and in control when you walk into the dealer’s showroom. Have your deal pre-negotiated on the exact car you want. Take the worry and fear out of this car buying experience, while getting a great deal and saving tons of money.
HELP! Me Buy My Car $477
HELP! Me Buy My Car – Jan’s Story
Car dealers have a bad reputation for a good reason. During my dealership career in Internet Sales, I listened closely to my customer’s intense, even harsh opinions about car dealers. Guess what? Their intensity was an appropriate reaction to the way they had been treated.
When I began offering my HELP! Me Buy My Car service, it made significant changes in people’s experience at the dealership. Here’s an example from the very first time I helped a friend who needed advice on the spot. Watch the video version, or read the story below:
James tells of the first time he helped a friend buy a car from a dealer.
In Jan’s words:
I called James directly from the dealership, while the professionals waited for me to sign the contract to purchase my first new car in 11 years. They told me I was getting a good deal but something didn’t feel right. Even though we were on opposite coasts, I knew of James and his reputation in the auto industry for being honest, upfront, direct, and successful.
James asked me questions until he was clear about my needs, my budget, my trade, and my experience with this dealership. Next, he got my salesperson on the telephone and in just a few minutes determined that the dealership was not only giving me a very bad deal financially, but they were using manipulative sales practices that he considered unethical. I remember he asked me, “Do you really want to buy a car from a dealer who treats their customers like that?” Well, no!
When I saw what was happening through the eyes of a car industry insider, I knew that the knot I’d been feeling in my stomach was like a neon sign flashing “Don’t Trust This Dealer.” James confirmed what I knew deep down to be true.
I asked James what I should do. He told me to simply walk out of the dealership. I did, despite the protests of my salesperson and his manager. Then, as if to further earn their bad reputation, the Manager refused to return my driver’s license and car keys until I listened to a last ditch sales pitch. Uurrghhh! By the time I got out of there I was both stunned and angry. But at least I was out.
What happened next still amazes me. James contacted another dealer and made sure the car I wanted was in stock. He interviewed a member of the sales staff over the telephone to confirm that this dealership would treat me fairly and above board. He then negotiated the price of the new car and my trade and emailed me a detailed price breakdown of everything that was agreed upon. He also let them know he was only a phone call away should any problems arise.
When I walked into this dealer the next day I simply handed them a print out of James’ figures and we went about completing the sale. It was easy and stress-free. I didn’t have to play my Ace card by calling James.
Incredibly, James saved me $2800 on the price of the new car and what I was allowed for my trade compared to the deal I almost made with the first dealer. My total savings were over $3,000 when I add the savings James provided on the extras I purchased in the business office when completing the paperwork.
Saving money was only part of the benefit. The insecurity and apprehension I experienced at the first dealership compared to the confidence and empowerment I felt at the second one. The difference between the two was profound and had to do with the trust I had in James’ level of expertise and knowing that he was on my side. I was also completely confident that I was getting an honest and fair deal.
There is a post script. A few weeks ago, a friend who has lived in New York City for many years just got his driver’s license. He needed to buy a new car but had no idea where to begin. He knew nothing about cars, dealers, or how to negotiate. This time I was the one who confidently recommended dealer #2. My inexperienced friend not only got a great deal on his car but also had a very good experience buying it there.
James took me from being naive, inexperienced, and stressed out about buying a new car – afraid I’d be conned and feel stupid – to confidently recommending a dealer based on my actual positive experience.
Thank you, James, for helping me to finally feel empowered while working with car dealers, and for saving me thousands dollars.
Health Industry Consultant
Connecticut
The Book of Love – Library Voices
Seasonal winds bring a change of pace in the focus of this blog.
Specifically, I want to draw your attention to a Christmas gift from Library Voices, a Canadian 10-piece pop collective
Library Voices
that is pushing the envelope of new sound in the North American music recording industry. Their gift of song in the form of a free download of “The Book of Love“can be found here.
I first heard Library Voices last summer when my son – and band member – Carl Johnson brought the troupe to a small lake resort on the bald prairie in Saskatchewan (Canada). They played at the celebration and dance following the wedding of one of my other sons – Daniel and his wife Candice.
Vaguely reminiscent of another seasonal favourite (shades of The Little Drummer Boy), The Book of Love is etched with a depth of harmony, instruments, and analog sounds that’s not just pleasing to the senses and soothing to the spirit, but acts as a remedy to the bustle of activity that we harried urban survivalists now experience in all four seasons.
Thank you Library Voices for a momentary pause in the frenetic pace of modern Christmas. From the fractured sense of presence that arises in vehicle-clogged street, to the elbow-jossling encounters that dominate my less-than-ideal experience in stores upon arrival. The simple act of slowing down to listen to such a beautiful piece of music is a gift appreciated.
Wow. The fact that this is also music from band that my son is a part of, with members I know and respect, is a huge bonus. Yahoooo!
This Christmas, enjoy The Book of Love from Library Voices. Feel free to pass along such soothing Christmas cheer.
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L. James Johnson is the proud Dad to Carl Johnson, a member of Library Voices. His new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Sell Your Car Online – Marketing Services
Having an effective online ad can make the difference between a vehicle selling or not – and getting full value.
I wrote my new book, HELP! I Gotta Sell My Car NOW! so private sellers and dealers could learn from my experience as an Internet Manager and improve their ability to sell cars online. I’m thrilled to announce that I am expanding the options available to private sellers by offering two levels of support:
1. The Quick Consult
One of the biggest areas of concern for private sellers – and the one that can cost you hundreds and even thousands of dollars – is pricing your vehicle. With The Quick Consult I:
- review your price, ad copy and pictures
- provide comments and suggestions in each area.
I make sure that your vehicle is priced correctly based on your needs AND market conditions. I also provide suggestions for an ongoing pricing strategy. And I make sure that you have included ALL the crucial information in your ad that buyers need in order to make a decision.
The Quick Consult is for sellers who are comfortable creating their own ad, but want it double checked to avoid costly mistakes that can delay the sale of their vehicle (an over-priced vehicle will NOT generate calls) or leave money on the table.
The Quick Consult $67
2. Write My Ad
You provide the information and I send you a clear, concise, and comprehensive ad to post online. Your ad will be personal while including ALL the crucial information buyers need to make a decision. I also work with you to develop a pricing strategy that balances the financial return you need with what the market will allow. I also help you post the most effective pictures that SELL your vehicle.
Write My Ad is for sellers who want the best chance of selling their vehicle quickly and profitably. I double check the ad once you post it to make sure nothing was missed. And I check back with you every week until the vehicle sells. I’m there to answer questions and HELP! with any concerns that arise.
It’s not uncommon that local selling conditions require that changes be made in the ad, the pictures, and the price. I work with you in all three areas until your vehicle sells.
Write My Ad $167
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
Benefits of HELP! NOW!
Why get my new book HELP! I Gotta Sell My Car NOW! This is what you’ll learn to do:
- how to prepare your car, including when an investment in fixing it up pays off
- price your car so you get everything coming to you – and not leave money on the table
- where to post your ad – start on free classified websites
- how to use free websites, including Craigslist, Kijiji, Oodle, and Backpage
- how to use premium sites, including AutoTrader and Cars.com
- how to create an ad that SELLS
- what pictures to take and how to take them
- how to record a video walk around – the secret sales tool that even dealers don’t know about
- how to SAFELY test drive your car
- how to negotiate like a pro
- completing the paperwork, including what needs to be in the bill of sale
- counting the money, including what to do if there is a loan against the vehicle
- the final checklist before you hand over the keys
Still not sure? Read the FREE sample chapters.
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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.
eBay Motors – the Right Choice for Some Sellers
In my book, HELP! I Gotta Sell My Car NOW!, I identify the fact that a great place to market unique vehicles is . I state:
