BayAreaCarGuy.com

Why Americans Hate Buying Cars – Part II

The Dilemma

Consumers are in a bind when it comes to buying their vehicles: The majority of Americans love the cars that they drive but they hate the process of buying them. It is this specific issue that moved me to begin this weblog because I prove every day that buying a car, truck, or SUV does not have to be a painful experience.

The consumers I work will tell you that their car buying experience was “informative,” “constructive,” and at the very least they will report that the experience was not as “stressful” as they thought it would be. In fact, a few customers have actually described their car buying experience with me as “fun.”

Don’t get me wrong: It is not always bliss, and not everyone leaves having successfully negotiated a vehicle purchase. However, buying your next vehicle does not have to be so stressful that it ranks as one of the worst experiences that you will go through this year.

There Is Another Way To Do Business

Earlier in my life I was a business owner and operated three businesses simultaneously: A regional modular home sales & service center, along with two property management companies. A significant part of my job was learning how to provide topnotch customer service in a variety of business environments. This process had its own learning curve, but in time I was able to make real contact with my customers, and to work with them to resolve issues in an intelligent, transparent, and fair manner.

After moving back to the San Francisco/Bay area a few years ago, I chose to enter automotive sales and worked with both Honda and Ford dealerships. In both cases I was an Internet Sales Manager who specialized in developing online marketing of pre-owned and Certified pre-owned vehicles, as well as selling and leasing new vehicles. 

Skill are transferable, and it was in the auto industry that I was able to transfer the professional customer service experience that I developed in other industries. This, at a time when the auto industry is enduring major—and, at times—turbulent change.

It seems that life is not always easy for either customers or car dealers in this age of evolving automotive markets. The severe economic downturn, combined with more limited lending practices,  is drastically impacting society in general, and the automotive industry in particular. More on these issues in another article. 

For now, suffice it to say that life goes on and here in the Bay area this means that we need good, reliable transportation that we can afford to buy, that we can afford to maintain, and that we can afford to put gas in. We also need vehicles that are comfortable enough—and safe enough—to spend the long hours that we invest each week in our commute. This is often done in less than ideal driving conditions. 

The bottom-line is that our jobs, our livelihood, our safety, and, at times, our very sanity rests on good, reliable transportation that we can afford to buy and maintain. Our ongoing dilemma is figuring out how to buy the cars that we love in such a way that lessens the stress in our life rather than adding to it. The good news is that there are practical options available to you that will move you towards this end. 

Tomorrow: Real solutions for Americans who hate the process of buying their cars.

The Most Stolen Cars!

Each year the National Insurance Crime Bureau releases their Auto Theft Study. The latest figures are from 2007.  Honda is particularly popular among the thieving crowd these days. The Toyota Camry and Ford trucks aren’t far behind.

Here is the list:

1. 1995 Honda Civic
2. 1991 Honda Accord
3. 1989 Toyota Camry
4. 1997 Ford F-150
5. 1994 Chevrolet 1500
6. 1994 Acura Integra
7. 2004 Dodge Ram
8. 1994 Nissan Sentra
9. 1988 Toyota Pickup
10. 2007 Toyota Corolla

Where Are They Stolen From?

Four of the top five cities for car theft in the United States are in California. Las Vegas, NV has the honor of being the only non-CA city that broke into the top five award territory. 

Here is that list:

1. Modesto, CA
2. Las Vegas, NV
3. San Diego/San Marcos/Carlsbad metro area, CA
4. Stockton, CA
5. San Francisco/Bay area, CA

There appears to be some good news in the report, however. Auto thefts on a national level appear to be down by as much as 9% when compared to data from 2006.

Why I Love Honda Certified Used Cars! Part III

In the last two posts I’ve been gushing about the many reasons that I love selling certified Honda vehicles – at least I did while I was an Internet Sales Manager at a local Honda dealership. Now that I am the Internet Sales Manager at Michael Stead’s Hilltop Ford I still sell pre-owned Hondas, and we have program where we offer more protection for our customers than the Honda program. Today – part III of this article. I begin with a pricing example of our program:

2008 Honda Accord EX-L sedan

• Stock #16646
• VIN: JHMCP26868C015791
• Color: Black exterior, tan leather interior
• Miles: 18,646 

PRICING OPTION #1: $22,995 + tax and license fees – only includes remaining manufacturer’s warranty (see chart above). 

PRICING OPTION #2: $23,995 + tax and license fees - includes PremiumCare Extended Service package – extends protection to 7-years/100,000 miles.

COMPARE: Check our prices against other Honda Accords that have made it onto your short list. Compare these two prices to other vehicles you’ve found in your area – both Honda Certified and not.

HOW TO DECIDE: Consider differences in:

• Features (does it have leather? Navigation?)
• Condition
• Mileage
• Certified or not
• Warranty coverage
• Price 

If you find the equivalent of our PremiumCareExtended Service package at other dealerships you’ll see that it usually costs significantly more – to the tune of thousands of dollars. In designing this package – including the cost of the car + the PremiumCare 7-year/100,000 miles protection – I hope to save you money while providing more value in ongoing protection compared to anyone else in the marketplace. 

And in writing this and future articles, I am attempting to hand you tools so you can make the best decision for you and your family. OTHER TOOLS: Check out my FREE report, The 8 Biggest Mistakes That Used CarBuyers Make and How To Avoid Them! This FREE download is available on the right side of my home page at www.BayAreaCarGuy.com. 

And for goodness sakes, try to make your car buying experience f-u-n!

L. James Johnson  

james@BayAreaCarGuy.com      –      Personal website:  http://www.bayareacarguy.com

Check out my article The 8 Biggest Mistakes That Used Car Buyers Make and How To Avoid Them! It’s a free download at  www.BayAreaCarGuy.com 

See my video on the top-right of my home page: How Can I Sell Used Cars To My Friends and They Won’t Hate Me Afterwards?

To see the entire article clickhere.

Why I Love Honda Certified Used Cars! Part II

Yesterday I gushed about the many reasons I love selling certified Honda vehicles – at least I did while I was an Internet Sales Manager at a local Honda dealership. Now that I am the Internet Sales Manager at Michael Stead’s Hilltop Ford I still sell pre-owned Hondas, and we have program where we offer more protection for our customers than the Honda program. Today – part II of this article:

What is the POWERTRAIN? The powertrain is the engine and transmission – considered to the two of the most expensive parts of the vehicle to fix if serious problems arise.

What is the NON-POWERTRAIN? Everything on your vehicle other than the engine and transmission. The non-powertrain warranty is often called the “bumper-to-bumper” warranty.

Why is the NON-POWERTRAIN WARRANTY so important? Each year more vehicles depend on computerized components. This can include maintenance monitoring programs, navigation systems, and electronic stability assist programs. These provide great convenience, safety, and access to technology. When problems arise, it can be expensive to diagnose the problem, or to even swap out computerized components. That’s why having the non-powertrain warranty extended to 7-years/100,000 miles is so important: to make sure that, for example, computer or electrical problems will most likely be covered.

PRICING: Have you noticed that virtually all manufacturer’s certified vehicles cost more than non-certified ones? This is because the dealer pays the manufacturer a fee when a vehicle is certified. The vehicle also must meet certain requirements, and go through an extensive inspection process with any deficiencies repaired. This added cost is going to be passed along to you, which is why certified vehicles are generally more expensive. It makes sense: A certified vehicle has added costs, but also has added value. These are passed along to the consumer with a higher selling price.

PURCHASING OPTIONS: At Hilltop Ford we offer two purchase options with most pre-owned Hondas. You can buy a Honda with only the remaining manufacturer’s warranty, if any. Or, buy your Honda with our PremiumCare Extended Service package. Let’s see how these two options compare when applied to a specific Honda Accord that we currently have in stock. (Details and pictures of the vehicle at http://hilltop-ford-lincoln-mercury.ebizautos.com/detail-2008-honda-accord_ex_sedan_4d-3786487.html.)

TOMMORROW – I get into exact costs using the example above.

To see the entire article click here. 

Why I love Honda Certified Used Cars! Part I

I love selling certified Honda used cars!

Until recently I was the Internet Sales Manager for a major Honda dealership in the San Francisco/Bay area. I sold many, many certified Hondas to customers, friends, and friends of friends. These folks relied on my recommendations to find the right used vehicle for their needs, comfort, and budget. They trusted my judgment. And were so pleased with their experience that they sent their friends to me.

Selling a Certified Honda was a no brainer: there’s virtually no risk for my customers. Our mechanics not only put the vehicles through an extensive inspection – fixing any deficiencies they found – but Honda extended the warranty significantly.

NOW – I’m the Internet Sales Manager at Michael Stead’s Hilltop Ford. I continue to sell pre-owned Hondas and I continue to love the Honda Certified program. However, only an official Honda dealer can certified a Honda. “Too bad for me and my customers,” I thought.

BUT, to provide our customers with that “virtually no risk” experience when purchasing a Honda - Hilltop Ford has instituted a program that duplicates most of the Honda program AND provides better protection. We call this added level of protection our PremiumCare Extended Service package. 

What does this mean to you? It means that we DOUBLE the warranty!

 
Tommorrow - What is the powertrain warranty? And more about the added value you recieve with the PremiumCare package!

You can see the entire article here.

The 8 Biggest Mistakes – #8

Buying a used car can be one of the most stressful things that you’ll do this year. Yet, here are specific steps to:

• make the buying process easier
• ensure you get more than a good deal
• find a vehicle that will last you for years to come

I have compiled a list of the most common mistakes my customers have made when buying used cars. Making any one of these mistakes can cost you hundreds – even thousands of dollars more than necessary. Finally, you can get ahead of the learning curve and buy your next car with confidence.

Mistake #1 – Not test driving early in the buying process.

Mistake #2 – Not checking the CARFAX report.

Mistake #3 – Not looking at the vehicle inspection report.

Mistake #4 – Ignoring fuel consumption.

Mistake #5 – Ignoring Certified cars (CPOs) or extended warranties.

Mistake #6 – Don’t comparison shop.

Mistake #7 – Not buying from a reputable dealer.

Mistake #8 – Not following your intuition.

I find it amazing how my customers blurt out their previous car buying experiences – including all the mistakes they have made. Here are a few examples:

STORY #1 – Denzel C. told me that he knew as he was driving the car away  from the seller’s house that he had made a mistake. His intuition was confirmed a short time later when he discovered that the car he just bought had been in a serious accident which damaged the frame. He wished he had not over-ruled his gut feeling. He also told me that from now on he would have his mechanic check out all private sales vehicles that made his short list.

STORY #2 – Ahmed S. told me that didn’t trust his last sales person, but bought the car anyway. It turned out that the sales person wasn’t telling him the whole truth about the car’s history. Ahmed told me that he now listens to his intuition in those situations. He also learned to read the vehicle history report before signing on the dotted line.

Life’s Lessons:

• research all the factors that concern you
• test drive early in the process
• read the vehicle history and vehicle inspection reports
• ask yourself, “Is this the car for me?”
• listen to the answer – your intuition
• if you are really sure – take action
• always contact me if you have questions

Good luck, and for goodness sake, try to have fun in your car buying experience.

The 8 Biggest Mistakes – #7

Buying a used car can be one of the most stressful things that you’ll do this year. Yet, here are specific steps to:

• make the buying process easier
• ensure you get more than a good deal
• find a vehicle that will last you for years to come

I have compiled a list of the most common mistakes my customers have made when buying used cars. Making any one of these mistakes can cost you hundreds – even thousands of dollars more than necessary. Finally, you can get ahead of the learning curve and buy your next car with confidence.

Mistake #1 – Not test driving early in the buying process.

Mistake #2 – Not checking the CARFAX report.

Mistake #3 – Not looking at the vehicle inspection report.

Mistake #4 – Ignoring fuel consumption.

Mistake #5 – Ignoring Certified cars (CPOs) or extended warranties.

Mistake #6 – Don’t comparison shop.

Mistake #7 – Not buying from a reputable dealer.

I work at Michael Stead’s Hilltop Ford. There are a lot of small used car outlets in our area. It is heartbreaking to hear the nightmare experiences of buying a used car somewhere else.

STORY – An unemployed Brenda walked onto our sales lot one day. She told me a sad story about her last car buying experience: Less than a month after buying her used car from a small used car dealer the transmission broke down. It turns out that she hadn’t checked either the vehicle history report or the vehicle inspection report prior to buying it. Instead, she took the salesperson’s word that the car had been fully checked out.

She soon discovered that it would cost $3,500 to get the car running again. She didn’t have the money. She asked the dealership to fix the car but they refused. Brenda tried to sell the car to get out from under her remaining bank loan. But the dealer hadn’t completed the paperwork to give her a clear title. Without the title she couldn’t sell the vehicle.

Stuck, she let the car sit in its broken-down condition. Because she no longer had reliable transportation to get to her job, she was fired. When she walked onto our sales lot and asked me for help she was out of work and desperate. We went to work to get her help with her non-working vehicle, and did everything possible to get her into another car. Unfortunately, Brenda was not able to get approval on a second car loan, and the last I spoke with her she was going back to the dealer to try and resolve the numerous outstanding issues. It was a sad and unfortunate situation.

INSIDER INFORMATION – Buying from a reputable dealer will help you feel comfortable and safe in your used car purchase.

One reason that I work for a major dealership is because of the high standards and transparent dealings. I will:

• provide a free vehicle history report
• show you the vehicle inspection report
• explain warranties and the Ford Certified Pre-owned vehicle (CPO) program
• explain the Stead Certified Pre-owned Vehicle Package w/Warranty Wrap
• help you find information online
• for convenience you can even complete your credit application online
• invite you to test drive the same car more than one

There is a reason why I work where I do – and why I sell used car to my friends and neighbors – and they still like me afterwards.

And there is a reason why my friends and neighbors recommend me to their friends – and friends of friends, and so on.

See the next article in this series:

Mistake #8 – Not following your gut instinct.

The 8 Biggest Mistakes – #5

Buying a used car can be one of the most stressful things that you’ll do this year. Yet, here are specific steps to:

• make the buying process easier
• ensure you get more than a good deal
• find a vehicle that will last you for years to come

I have compiled a list of the most common mistakes my customers have made when buying used cars. Making any one of these mistakes can cost you hundreds – even thousands of dollars more than necessary. Finally, you can get ahead of the learning curve and buy your next car with confidence.

Mistake #1 – Not test driving early in the buying process.

Mistake #2 – Not checking the CARFAX report.

Mistake #3 – Not looking at the vehicle inspection report.

Mistake #4 – Ignoring fuel consumption.

Mistake #5 – Ignoring Certified cars (CPOs) or extended warranties.

View my YouTube video, “How Can I Sell Used Cars to my Friends and They Won’t Hate Me Afterwards?” to see how my friends and I have remained friends after they purchased pre-owned vehicles from me. It’s a pretty simple formula – I first make sure that our cars are checked out mechanically, and then I try to make some form of warranty available so my friends are protected when problems occur. Here are some different scenarios:

• My mechanics have fully checked out every pre-owned vehicle before it is offered for sale, and every major component of every car has past muster. Then:

My friends buy a vehicle with remaining original factory warranty.

My friends buy a Ford Certified Pre-owned vehicle (CPO). These cars not only meet a higher standard, but Ford significantly extends the warranty at no extra charge.

My friends buy a Stead Certified Pre-owned Vehicle Package w/Warranty Wrap. This pre-owned vehicle meets a higher standard AND comes with an extended warranty. 

My friends buy an extended service contract to cover any future mechanical problems.

By following these steps I know that my friends won’t be mad after they purchase a pre-owned vehicle from me.

INSIDER INFORMATION - Cars, trucks, and SUVs have thousands of moving parts. It is unreasonable to believe that they won’t break down. No matter how well a vehicle is checked out by a mechanic, or looked after by it’s owner, problems will eventually arise. One of the reasons that I work where I do is the Ford Certified Used Car program – it is one of the best in the industry. I also work for the Stead Automotive Group, which demands that every pre-owned vehicle meets a higher standard, and we have the vehicle inspection and history reports to prove it.

Did you know that part of the requirements of the Ford Certified Used Car program and the Stead Automotive Group is to replace tires or brakes if 50-percent of their life isn’t remaining? Vehicles must also pass a minimum 150-point inspection by our mechanics.

Certified programs and extended warranties can get complicated – even confusing – especially when comparing one manufacturer’s program to another. Need help? I have a special CERTIFIED section on my website that will answer most of your questions. it also compares the many manufacturer’s CPO programs with the Stead Certified Pre-owned Vehicle Package w/Warranty Wrap. The Stead CPO package can often save you money while providing a more comprehensive warranty when compared to most manufacturer CPO programs. It’s a win-win situation for my customers. I’m also happy to answer any questions that you may have. Email them to james@BayAreaCarGuy.com

See the next article in the series:

Mistake #6 – Don’t comparison shop.

The 8 Biggest Mistakes – #3

Buying a used car can be one of the most stressful things that you’ll do this year. Yet, here are specific steps to:

• make the buying process easier
• ensure you get more than a good deal
• find a vehicle that will last you for years to come

 I have compiled a list of the most common mistakes my customers have made when buying used cars. Making any one of these mistakes can cost you hundreds – even thousands of dollars more than necessary. Finally, you can get ahead of the learning curve and buy your next car with confidence.

Mistake #1 – Not test driving early in the buying process.

Mistake #2 – Not checking the CARFAX report.

Mistake #3 – Not looking at the vehicle inspection report.

Don’t take the seller’s word that the car you want to buy is in good condition. Lives have been changed – and not in a good way – by taking someones word for this (see Brenda’s story, Mistake #8).

The dealership I work with uses a 150-point checklist to guarantee that every major component of every vehicle is inspected before it is offered for sale. A detailed checklist and a competent mechanic guarantee that most deficiencies are fixed before the car is sold.

Why spend $15,000 on a vehicle and not know that it needs a $4500 transmission job, or $600 for brakes? How do you protect yourself from making these kind of mistakes?

INSIDER INFORMATION – A vehicle inspection report is a basic, inexpensive tool that every used car buyer should use.

If you are buying a car from a private party have your mechanic perform a pre-purchase vehicle inspection. Most mechanics are familiar with this process and will charge you $100 or less. They can quickly tell you about any problems and the cost to fix them. You’ll need to factor these results into your buying decision.

STORY- A seller is asking $9800 for their low mileage 2007 Chevy Aveo. Your mechanic says it needs a $550 brake job. Show the seller the report from your mechanic and demand $650 off the asking price. That will compensate you for both fixing the brakes AND the time and effort to take care of a problem that the seller should have already fixed.

Reputable automobile dealers will gladly show you their vehicle inspection report. You save the effort and cost of getting one from your own mechanic.

RED FLAG – If a dealer refuses to show their vehicle inspection report:

• they may not have inspected the vehicle themselves
• they may be trying to hide something

Be ready to RUN – DON’T WALK – to the exit.

See the next article in this series:

Mistake #4 – Ignoring fuel consumption.