Understanding Purchase Order For Buying Your Car

Next to the loan contract, the car purchase order is one of the most important documents of the car-buying process. It is your agreement with the dealer on the final cost of the vehicle. Reviewing the items line by line ensures you are in agreement with the bottom line figure, which is what will be the amount you will pay in cash or finance.

Purchase orders for buying your car usually display your personal information on the top and the various dollar amounts that add and subtract to the sales price of the vehicle in a linear format from top to bottom. The top figure is usually the sales price of the car. The following are the most common items you will see added or subtracted:

• Rebates

• Discounts

• Trade allowance

• Guaranteed Assets Protection (GAP)

• Extended Warranty

• Additional protection (ex. Paint, tires, etc)

• All additional equipment or custom parts added to the vehicle

• Dealer fee

• Taxes

• Registration and title fees

• Trade-in payoff

• Down payment

Before getting involved with the details of purchasing or financing the vehicle, review the purchase order and verify no additional products or services were added. Have those items removed and a new car purchase order printed.

This would also be the last chance for you to negotiate a better trade allowance, rebate and discount-give it a shot. You never know. The dealer, registration and title fees are usually not negotiable. The payoff on the trade-in is not either. Again, any changes should result in a new purchase order printed.

Remember, take time to review and fully understand what makes up the bottom-line. Once satisfied with the purchase order, sign it and move on to purchasing or financing the vehicle.

A Car Buying Story – Part Four – The Dealers

You know, while researching the cars, I read a lot about dealing with car dealers. People generally have a negative attitude towards them and the whole car buying experience, and you can find tons of information on how to avoid their scams, how to lower the price, how to negotiate with them, what to tell them, etc, etc. An excellent website to inform yourself on all aspects of car buying is Car Buying Tips: (http://www.carbuyingtips.com/). Now with all the great info and details I learned from various sources, I still thought that generally the prevailing attitude is not realistic. I mean, you almost get a feeling that if you pay anything more than a factory price, you made a bad deal. You can certainly succeed in lowering the price apparently to a large extent, but it is the fact that the dealers have to make money too. Ok, sometimes just selling the car, e.g. to meet their projected numbers, is beneficial to them, and they might give away even the whole of their profit for that sake. But come on, I can consider such situation just a crazy luck, not my goal! Anyway, I think that the current craze about “beating” those prices down to the floor is just as unrealistic and aggressive as the dealer’s craze to take as much money from you as possible.

However, after this buying experience, I lost pretty much any respect and sympathy for the dealers. And I will always advise anyone never to become one. Of course some of them were great examples of normal and pleasant behaviour, but unfortunately I must say that most of them have taken the activity of deceit and aggressiveness to such extent that for an honest and well meaning man the idea of going to a dealership must be repugnant. I very quickly got such a strong feeling of insecurity about everything I was told by them. I think everything was a lie, smaller or bigger. A lot of what I’ve heard I don’t believe, and none of it I trust.

Here are some of the examples, more or less funny, from my recent experience:

Systematic approach

I enter a dealership, with the intention of exploring a car that really caught my attention simply by offering all of the basic features I wanted. So I wanted to see it, test drive it, and ask a couple of questions. So I ask the dealer: “I’ve read that the crash test scores for this model are not that good, most are graded 3 out of 5. Now, I know that there are different tests, and you can’t judge simply by the grade. Do you know more details about those tests and the scores? What is tested exactly, and how did they score the cars?”

The answer was: “Yes, yes I know, the scores are not the best possible. I know. But you know — what do they mean really? (And I’m thinking — yes, that is exactly what I asked) You see, a grade of 3 is really not that bad. It’s almost like 4. What is the difference? Almost nothing let me tell you. And also, all of that means something only in most severe crashes!!”

Well, no kidding!! What a thorough explanation. Now I understand and my worries are gone. And what a relief. So, if a car is simply parked on a lot, I shouldn’t worry that it will suddenly open the hood and hit me right in the face!

Bonding

A question occurred to me about a car, and I decided to drop by a dealership to ask. My visit was about 10 minutes long — of course we exchanged numbers, I got the brochure and usual stuff. Tomorrow morning, my cell phone rings, I answer and I get this:

– “Hey Michael, Jord here from the dealership.” – “Hey Jord, how are you, what’s up?” (I thought he might have just gotten some good used car) – “Nothing, nothing…just wanted to see how are you.”

Huh… If this doesn’t sound as a start of a beautiful friendship I don’t know what does!

Then he goes on: – “So have you made a decision on which car you want?” – “No, not really, not yet. I told you I’ll need some time, and I’m not rushing really.” – “Ok, tell me, what’s blocking it? Can I help?”

Man, of course you can! Go do something else instead of asking me questions…

Landing on all four whatever happens

I wasn’t sure about a size of a trunk of one of the models, so on my visit to the dealerships I brought couple of boxes and a cart that I use often to see how they fit into the trunk. Now this was one of the smaller cars, so I wasn’t sure about the trunk size. And I tell the dealer what I’d like to do and he says no problem. So I take out the stuff and he laughs:

– “C’mooon, how can you doubt it — that will fit without a problem. Don’t worry!!” – “Wait, wait, let me try, I know what I’m talking about.”

And then I try, and he tries, but it doesn’t go so easy — the cart is a bit long and the boxes a bit high. Separately they go in no problem, but together, not that easy. Finally, he laughs again and remarks:

– “And you really thought ALL OF THAT will fit into this trunk??!!”

Wha…??

Get all the money you can

I receive a long talk describing how I should buy the replacement insurance. And the more expensive one (“better” in the jargon), which covers you for a longer time and gives you the value of the new car, rather the amount that you paid. Ok, that is a fine product. Now I also get a long description on how I should absolutely buy a VIN engraving package where they engrave the VIN on all windshields so that the thieves are less likely to steal it (they can’t sell the windshields for parts). It’s about $300. Well, I gave both of these things a good thought, but tomorrow I realized a simple thing: Why do I need two protections? If I get the replacement insurance, and if they are going to give me a new car if mine is stolen, why would I then protect it even more?? Damn, I should also probably buy two cars in case one is stolen after all.

And on top of that, I found on the internet that the engraving kit, very simple to use and apply, can be bought for mere $20.

Get all the money you can — again

This one is well-known, and usually titled as a “dealer scam”, but I decided I put it here anyways just as another example.

So I finally decide to buy the car and I arrive to the dealership at around 6:00pm. I expect the process to last about an hour. However, little thing here and there and I end up at the dealership for four hours. I think ok, nobody’s fault, there are simply a lot of things to do and a lot of people to involve — the dealer, finance guy, insurance girl, then the finance guy again, then the manager because there was an error, etc. So, I get the contract with all the figures there, and everything looks fine: all the figures match almost perfectly to mine that I calculated before. Except one thing — $900 of loan life insurance. So I ask:

– “Why is it there? Is that mandatory?” – “Well, we made such an application to Company’s Finance.” – “Ok, but is it mandatory?” – “We could reapply and see what happens — if you have life insurance elsewhere.”

Now, you see, I am not too easy to confuse, but it was late and I didn’t want to repeat the whole process again, so I’m thinking: “Ok, I’m going to think about it tomorrow.” And I let it by. Now good thing was that I had the contract with me (I had to take it home for my wife to sign), so I wasn’t too worried.

Anyhow, in the morning I realize that not only it is not mandatory to have the insurance and that I definitely do not need life insurance elsewhere, but another application without it will certainly go through. And, at that point I sincerely doubted that they need to make another application at all. So I get really angry and I go there and I get the exact same answer again. So I say:

– “Let’s apply again; I am sure the application will go trough. I simply don’t want it and I never wanted it and I never asked for it. And if it doesn’t we’ll see then what we do.”

And she does the paperwork, and seeing me irritated, remarks: “Don’t worry I’m sure it will go trough.” Of course it will — and it does.

Get on customer’s side — even if you overdo it

One of the dealers was affirming every little thing I said. It got funny and a bit annoying:

He thought that the features I wanted are absolutely the only important features in the car.

He was also in computer business just a few years ago.

The funniest was when we discussed payment options. He told me that leasing is a better option if I want to change the car every couple of years. So I say:

– “You know, I am more the other type of buyer, at least so far. I drive one car for years before I buy a new one, so I probably won’t go with the lease.” – “I understand, I completely understand. You know, the worst part of the auto business for me is that you simply have to change the car every 1-2 years. I hate that. If I wasn’t selling cars, I would do the same as you.”

Well, this really made me feel like home. C’mon guys, we just met and will probably never see each other again; don’t do these things.

Advertise what you have

This one was not really on the negative side, it was just funny. I went to Subaru and dealers there were actually very cool. They were very cooperative, and without the aggressive edge. And they never called me to push or ask whether I’ve made a decision. They also have a great program where you can take the car for 24hr test drive. I had really a good experience with them.

Anyhow, I told this dealer that I know that their cars use specific technology in their engine that is different from all other cars, and that repairs can be expensive. And he says:

– “Yeah, it’s so called Boxer engine where pistons are opposed horizontally instead of vertically. But we are not the only ones to use it… Porsche uses it — you know Porsche Boxster. … And some smaller planes.”

Well, that much for the affordable repairs…

Then he also added that it’s an old technology that has been well perfected so far and that I shouldn’t worry really, which was a bit more reassuring.

Always fish for customer’s weak spots — even in the dark Honda was giving rebate and they advertised it everywhere: that was very important sales pitch. Now I come to a dealership, and one of the first things the guy tells me is: “You know, I’ll tell you one thing: we will give you a good rebate, and it’s Honda’s rebate but most of the dealers won’t even mention it.”

He made it as if he is letting me know a secret, and not only that it isn’t, but it’s all over radio, their website, everywhere. But I might have been uninformed and careless and would think that I’m getting a special deal.

Lie like there’s no tomorrow and hope you don’t get caught

I was quite close to buying a car so I called some dealerships inquiring whether they have a certain model and the color on the lot. I told them I don’t want the car to be brought from some other dealership. I want to see the car and get the one I saw. This is because I don’t want to get into whole new set of issues and questions. For example, one dealer told me that they charge extra delivery fee if they bring the car from other dealership, which is by the way ridiculous and perhaps deserves story on its own. It can also happen that the car that arrives is different in some detail than what you wanted, and you already signed the papers. Etc.

So I made sure they know what I want, and then came to one of the dealerships. We chat a bit and then I say:

– “So let me see the car.” – “Oh, I was afraid you were gonna ask me that. I really don’t know exactly where the car is.”

I laugh: “But I told you I want to see the car before I buy it.”

– “Oh, don’t worry — it’s here, I’m just not sure where.” – “Ok, I’ll go outside and look for it.” – “But our lots are really big.” – “I don’t mind, I have the time.” – “But they are not really all here — we have two lots a few blocks away.”

I just don’t like arguing that much — in cases like these I give up and simply walk away.

A good guy

The positive highlight was a young dealer for which I could quickly tell that he is not (yet) turned his abilities into a deceitful routine — he even gets confused a bit when I ask him a stupid question. To me that is the normal reaction. And when I asked him what he drives, he said: “an old Volvo, you know it’s a really good car.” I am really sorry that cars he was selling were not suitable for me — I would have been very happy to buy one from him. And I didn’t even feel like negotiating with him at all.

3 Tips For Used Car Buying

Used car buying can be a fun experience. After all, the vehicles tend to cost much less than new cars, and one can find a great deal on any model of car with a little work. However, it is quite easy for an inexperienced buyer to be taken advantage of. Here are three quick tips that can help even a first time car buyer make the right choices.

Do Your Research

Perhaps the most important part of used car buying is knowing what to look for in a vehicle. A good shopper will not only have some idea of what a vehicle should look like cosmetically, but also the realistic life span of the car. For example, a Mercury Cougar with ninety thousand miles will be at the end of its lifespan, while a Dodge truck might have quite a ways to go.

Make sure that you know something about what the common features are on a vehicle, its realistic lifespan, and what common signs of wear and tear are. Coupled with an informed knowledge of the realistic price of the car, this can help a savvy buyer get quite a good deal.

Check Out The History

One major problem that many buyers have with used vehicles is the simple fact that one often does not know what the car has gone through before purchase. Fortunately, there are a number of ways to find out the history of a vehicle before making a down payment. First and foremost, one should ask for some kind of car history report – the most common is from CarFax, but there are several other reports available.

If one cannot find this sort of third party history, one should ask the salesperson directly about the car’s history. If the answer is “it is in perfect condition” or something equally as unrealistic, the salesperson may be hiding a major defect. This is a prime situation in which one should go with their gut instinct over a sales pitch.

Don’t Be Afraid To Walk Away

New car buying is generally a very careful game of give and take, but used car buying tends to benefit from dramatic gestures. Used vehicles tend to have quite a bit more markup than a new car, and thus the dealer tends to have a good bit more discretion in setting a price. If the price you have found is significantly higher than the blue book value of the vehicle, it is time to walk away.

In fact, any price that sounds suspiciously high should be discounted immediately. Dealers make their living off of buying low and selling high, and they rightfully try to get the most money possible for any given used vehicle. As a consumer, your job is to find a price that will work for both you and the dealer. If you cannot come to an acceptable compromise, be willing to walk away.

Make Some Easy Money by Buying a Car For $1000 Bucks and Parting it Out

Lots of people turn to cars under $1000 bucks looking save a buck or two. Here is a quick guide on how to make some cash (that you can use to buy more rusty boxes on wheels of course)

Plain and simple part cars out.

Step 1. Buy a car. This is pretty much the most crucial step. If you are actually doing this to make money and not just salvaging that blown up buick sitting in your driveway than you need to find a car that people want to buy parts for. eBay is pretty much your friend here and my suggested avenue for selling most parts. In the past I have watched people make money from a variety of cars (my roommate used to finance his workshop with parted out cars) One in particular was a 1994 Honda Accord. Thats right you don’t need to buy a 1939 Alfa Romeo (although that would be sweet) or anything super rare to get good money for parts.

Often times finding a car that is pretty common can be a good thing but be sure to check eBay for the prices certain parts are going for before hand and let that be your guide in making your purchase. Now when it comes to buying the car usually the ones that don’t run will be your best deals and you may even get a freebie if your lucky. (few people want dead cars in their driveway) Obviously the less you pay the more you profit.

Step 2. Tear it apart. The key here is research and time management. Everybody wants to pull the engine and trans etc., but often times it may not even be worth it. Check out eBay or where ever you plan on selling and ask yourself is what these parts are selling for worth my time? Would I actually want to crate and ship this? Is anybody actually bidding on this crap? All good questions that need answers. Honestly it tends to be the nickel and dime parts that can really make you some money. Shifters, speedometers, sensors, mirrors, sun-visors, etc. these parts take seconds to remove and if they are in good shape people are often willing to pay a pretty penny for them, because the only other option for parts like these tends to be the dealers who charge an arm and a leg.

Step 3. Sell The Parts. Once you have determined what you want to sell and pulled the stuff off its time to start selling. I like eBay but swap meets, forums, and other sources may work better for you. If you have done your research you know where to find the people who see value in the parts you have pulled.

Step 4. Scrap the rest. Always factor in that you can prolly get $100-$300 bucks for the rest of the pile at the scrap yard. Usually you will want to haul it there yourself and will probably need to pull the tires and gas tank. I would even consider it a good rule of thumb to try and not pay more for the car than you can scrap it for. This helps you avoid any kind of loss.

And there you have it. Four easy steps to make some quick money and make your neighbors hate you.