A car-buying guide to keep you from having fits

By Chris Johnsen

December 21, 2005 | "They tell you anything to get you in, but then they change their story. The only difference between them and a stripper in Las Vegas is . . . hell, I don't know a difference, they've got all the big lights and everything," said Bill Wright, Lewiston dairy farmer.

I know what you're thinking, and no, Bill didn't visit a casino or attend the Future Fortune 500 convention; this past July, Bill and his wife Cindy bought a car.

The Wrights, parents of five boys, were very dissatisfied with their recent car buying experience. Cindy was looking for a new van. She had a Honda Odyssey, but wanted the updated model complete with DVD player, CD changer, leather seats, basically the works.

The Wrights chose to purchase from a local valley dealership, who found the desired van at one of their affiliates in Salt Lake. The dealership told Cindy that the van was brand new, but asked Cindy to sign release forms so they could register the van to her. They explained the papers were necessary because the van had been mistakenly registered to another person. The Wrights didn't understand how their new van could have already been registered to someone else, but accepted delivery on the van anyway.

"They said the secretary made a mistake. We never did get to the bottom of that. We finally just gave up, but I want to know what happened," said Cindy.

The van arrived, yet not as new as one might expect. The van odometer read 300 miles, the visor was dirty, there was a rock chip in the fender, a ding in the dash, and air whistled through the driver's door. However, the kicker is what was found in the van's owners manual; a sales receipt made to another person signed by one of the dealership's salesman.

When Cindy asked one of the salesmen about it, he replied, "If they'd been smart, they'd put a new book in."

The problem with Cindy's situation is not one of car wear but car cost. A dirty visor may be annoying but survivable, while tricking someone into paying cost plus depreciation is worthy of a good beating.

"A new car can depreciate 20 percent or more the moment you drive it off the lot. Let's say you buy a new car for $10,000 (a cheap car these days), and change your mind a few weeks later. The dealer might give you $8,000 for it. It's hardly used. You haven't even put your gym clothes in it. Doesn't matter. It's a used car," wrote Todd Temple of Boundless Webzine in How to Buy a Car the Bank Won't Own .

But, the dealer wasn't finished with this deal. The Wrights had agreed to trade-in their old van. Before Cindy signed the release forms for her registration, a salesman called her, and told her the registration issue had been resolved and that if she brought in her title on the old van they could wrap things up. The Wrights were offered $14,000 for their trade-in, yet they found a Honda Odyssey on the lot, a year older than theirs, with fewer options, more miles and a larger price -- $19,000. Cindy said the salesman excused the low price by saying that the van wasn't in demand. When Cindy brought her title in to the dealership she found that the registration had actually not been resolved; but gave them her title anyway.

"They said the van wasn't selling, I brought the title in and the van was gone within a week, I wish I hadn't given them the title," said Cindy. The Wrights withheld their signature on the registration release forms while trying to resolve their concerns with the dealer. After two or three temporary dealer plates they finally just gave up and signed the papers.

"A car is a hard thing to buy, it just is," said Mark McNeil, a local salesman at Utah Carzz who was willing to share some car-buying tips with me.

"I think you can find a deal anywhere if you look hard enough, every dealer can work a price. There's always a little bit of room to work," said McNeil. The trouble with buying a car is that its complicated. Most people don't understand anything about a car other than it gets them from point A to B and depending on the car, you may or may not enjoy the trip. Furthermore, car financing, pricing, ratings, depreciation, and values represent an information gap few dare to cross. But, knowlege is power and those who dare cross find that the grass is truly greener, especially if that green is savings padding your wallet.

Chandler Phillips, a veteran journalist from Edmunds.com, worked undercover as a car salesman at high and low pressure car dealerships in Los Angeles. I recomend reading his article Edmunds.com "Confessions of a Car Salesman", and will use seven of his recomendations as bullet points in explaining various money saving strategies for potential car buyers.

1) Use the internet. The internet provides accurate, current information and many car resources are provided free of charge. Sites such as Eopinions , AutoTrader , and Consumer Reports are very helpful. Remember that no car price is set in stone. McNeil said that even the well-known Kelley Blue Book, or NADA car guides are just basic guides, "they're not really telling you the complete truth. Usually a good deal is probably mid-book NADA."

2) Don't be in a hurry. Phillips wrote that you shouldn't let your old, dying car push you into a desperate corner. A limited time-table will more likely land you in 'a deal' you'll regret.

3)Walk away from any deal or salesperson you don't like. "I know one dealership where they'd even jump in front of the car, I couldn't turn the wheel so I honked at him and he wouldn't move. Be aware that all salesman have sales techniques, you're gonna know who you're dealing with before you even talk price," said McNeil.

Car salesman should be flexible, how do they treat you? Are they laidback, do they answer your questions, do they pressure, do they say, 'lets run a credit check or how much a month can you put down?' McNeil said credit checks or payment questions are bad news, "A lot of dealers try to sell payment over price." Frequent credit checks can ding your credit, while dealers who sell payments can get you paying more overall without you realizing it. Additionally, be wary of backrow managers or the mysterious unseen price czar that some salesman consult frequently while negotiating a price. Backrow managers don't need to be involved in your price negotiations and will limit your ability to negotiate. Remember the wizard, from the Wizard Of Oz. He was a lot more intimidating behind fire, smoke, and a curtain. "We don't have a backrow manager, that to me is the low pressure way of doing it," said McNeil.

4)Know the numbers. Have you considered that the sports package price is negotiable? How much will that $700 car CD changer be if its bought and installed at a local audio store? Would you let the salesman sell you Scotchgaurd for $200, when a bottle only costs $10?

5) Shop around. See what that car will cost you elsewhere and use that information to find out what's reasonable. This is not a new concept, but it provides you with a lot of haggling leverage.

6) The deal's not done until you drive off in your new car. If the deal doesn't feel right walk away. "I would read the fine print and read the warranty and ask plenty of questions. You can't be afraid to address those things or your going to be had," said McNeil.

7) Always remember that it's your money. "The best thing to do is take the car your looking at to a trusted mechanic. We've had people gone with the car for five hours before," said McNeil. Basically, there are many things car buyers can do to get a good deal. Be pro-active, by being assertive, knowing the market, and keeping your head even inexperienced car buyers can get a good deal.

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