General Automotive Articles

Cheat Sheet / Updated 10-20-2022

People have questions about electric vehicles — this cheat sheet provides some answers. Whether it’s about the mysteries of charging, the vagaries of tax laws, extending battery life, or having a set of talking points you can use when people are asking you why you’re investing in an electric vehicle, this cheat sheet has you covered.

Article / Updated 12-03-2021

To get the best used car, know the prices, actual value, vehicle options, mileage, and condition of the make, model, and year of your targeted automobile. Do not talk with a car salesperson, or an owner selling a car, other than exchanging some pleasantries and indicating you are just gathering information. Do not fall in love with a specific car that you must have! First, develop a plan. Arm yourself for the contest of wills you are to about to enter. Remember, with no plan, there’ll be little or no savings on the price of the car you buy. If you own a vehicle, are you going to sell it privately, donate it for a tax deduction, or attempt to trade it in when you purchase a newer vehicle? Research to price your current vehicle. The following websites have programs that will help you establish a price for your current car or truck, including trade-in, private sale, and dealer values. Kelley Blue Book NADA Edmunds You should also check vehicles, currently for sale, that will compete price-wise with yours. Look to Carvana Craigslist cars.com Autotrader You can ask CarMax for an appraisal. Advertise your vehicle. If selling a car yourself, again, Craigslist is a good free site to list your vehicle for sale. AutoTrader charges a listing fee, but is widely used. Include as many photos as allowed on internet sites. Videos, such as those posted on YouTube, may also be possible. Heck, even try putting a “For Sale” sign in the window. They really do still work! Trade-in your car or truck. The price you get will be lower than if you sell it yourself, since many trade-ins get auctioned. If your car is an absolute gem, a dealer may put it on the lot for sale. Think price negotiation. Also, sales tax may be paid on the newer vehicle you purchase. A few states allow the dealer to deduct the trade-in value from the price of the newer car or truck you buy. You only pay sales tax on the difference between the two values. Keep in mind the two negotiations: the price you get from a trade-in, or private sale, and the price you pay for the newer vehicle. The difference between comes directly out of your pocket. Research pricing, mileage, condition, and colors of exterior and interior of used vehicles. Accept only what satisfies your desires and your wallet. Use many of the strategies you used in pricing your older vehicle. Use the same internet resources you used to sell your vehicle to look for local available vehicles that match your thinking. In your searches, put in how far out you want to look — 50 miles, 100 miles, or . . . ? Talk to your local bank or credit union loan officer. Get an idea of what you can afford. It will give you an alternative to compare when a dealer bombards you with car loan options. Don’t just look at a proposed monthly payment and assume you can meet that amount. What is the total cost of financing? How many years will you be paying for a vehicle dropping in value every month? Select some vehicles from internet and classified searches to go see. This can be the fun part of buying a used vehicle. Get prepared with small info packets on each specific vehicle you select. Print out data from internet sites and cut out data from classified ads in print publications. Phone or e-mail sellers to verify those vehicles are still available for sale. Make appointments so somebody will be there to answer any questions. Check out the vehicles you selected. Be cool. Even if a car or truck looks like a beauty, curb your enthusiasm a bit. Remember that exclamations like, “Wow, this looks cool” are clear buying signals and can make a seller more firm in price negotiations. Each positive exclamation could cost you. Don’t disparage the vehicle either. That can just make the seller angry. However, you should politely ask questions about your concerns. Of course, you should definitely road test the vehicle if you are interested in a possible purchase. Don't buy the first, or even the second, vehicle you check out and test drive. You ought to see the others you selected for viewing that day. You need some examples to make comparisons on what you like and don’t like. Walk away, but promise to consider the vehicle after you see others you made appointments to see. Make a deal on the vehicle you like. Offer to purchase at a price at least 10 percent to 15 percent lower than the asking price. If the seller refuses to come down on the price, consider walking away. Make certain you express that you like the vehicle very much at the price you are offering. Tell the seller that you would want your mechanic to check the vehicle before sealing the deal. If you do walk away, leave clear written contact information with the seller and express that you would be happy to hear from him, or her, if your offer becomes acceptable. Then keep searching and making offers acceptable to you until the right deal comes through. Get the vehicle checked by an Automotive Service Excellence (ASE) Certified Technician or a mechanic you trust. If you can find an ASE Certified Master Technician, tested and certified in all eight automotive and light truck service skill areas, it would be ideal. Paying $75.00 to $125.00 for a thorough pre-purchase inspection could save you lots of money in future repairs. Ask if you can observe the inspection in progress and go along on the test drive. Also, ask for a written report or a filled out checklist of the results. Finally, when a deal goes through, make certain you get a bill of sale and the vehicle's title signed over to you. If financing part of the purchase price, check again with your bank, or credit union, before accepting a financing plan from any seller. Take the best and safest loan deal that won’t leave you owing more money than the car is worth. Happy car hunting!

Article / Updated 12-03-2021

Leasing is a fast and easy way to get a car with little or no down payment. Monthly lease payments usually are less than loan payments for a new car. Additionally, you’ll encounter less paperwork, inspections, and registration hassles when leasing a car. Leasing appeals to individuals who use cars for business, need a car for a limited period of time, trade in their cars at regular intervals, want to know their monthly costs in advance, or want to invest their cash in different activities. Leasing, however, has its share of limitations and disadvantages. The following table provides an overview of the comparison between leasing and buying. Comparison of Leasing versus Buying Leasing Buying Monthly payments are applied to depreciation, not the purchase price of the vehicle. Monthly payments are applied to purchase of vehicle. Monthly lease payments are significantly lower than car loan payments. Monthly payments include financing charges. A down payment often isn’t required. Down payment usually is required. After the lease period is over, you need to lease another vehicle. When the car loan is paid, you own the car. Exiting the lease early usually requires coming up with a large amount of cash. Early termination penalties vary. You can modify your car any way you want. Don’t hesitate to put on those fancy hubcaps. You must predetermine how many miles you drive per year. No mileage restrictions; however, higher mileage reduces the trade-in value of the car. Your vehicle usually is covered by the manufacturer’s warranty for the duration of your lease. Car loans usually extend past the warranty period, so you’ll be responsible for repairs. You have to pay for any excess wear and tear. Although you have maintenance and upkeep requirements, performing routine tasks is a good idea. There are internet sources to help you calculate the differences between purchasing and leasing. SmartMoney.com offers an vehicle buy-versus-lease calculator. On the home page locate "Personal Finance" and click on "Autos." Next, click on "To Buy or Lease." Scroll toward the bottom of the page and enter the price of the car, your down payment, monthly payment or lease, rate of return from your investment portfolio, and value of car at the end of the lease. The online calculator makes a recommendation.

Article / Updated 12-03-2021

Whether you've found the vehicle you want through your own research or have been steered to a dealership by a buying service, you're still going to have to do some negotiating before you drive away in your new car. Even "one-price" dealerships and those who "commit" to "lowest possible prices" through buying services leave some room for making more profit, and it's up to you to recognize and resist the pitfalls that await you. If you do, you may save thousands of dollars and really pay the lowest possible price. Keep the following tactics and games in mind every time you find yourself in the process of buying anything expensive. Car dealers aren't the only sharpies out there, you know. Take advantage of rebates Many auto manufacturers offer rebate programs on new vehicles. Call the car manufacturer for up-to-date information on available rebates and keep an eye on the car ads on television and in local newspapers to spot special, limited-time offers. Rebates are often attached to financing packages or come with other strings attached, so check the fine print closely before committing yourself to purchasing a vehicle under one of these deals. Don't discuss rebates with dealers until you've negotiated the lowest possible price without one. Always deduct the rebate from the price you actually pay rather than letting them send you a check after the sale. If the rebate is deducted from the purchase price, you don't have to pay sales tax on it. If you're financing the vehicle, avoid paying interest on the rebate by making sure they deduct it from the amount you have to finance. Choose the best time to buy In the good ol' days, the best time to buy a vehicle was in early autumn when dealers were eager to get the current year's cars off the lot to make way for new models. These days, new models are released all year long, and "next year's models" may arrive as early as the spring or summer of the current year. However, any time new models are announced the dealers are anxious to clear the showroom of older models, so they may be very willing to sell at a discount. In addition to new-model time, you have other windows of opportunity to get a vehicle at a lower price. Car salespeople have quotas to meet and are judged by their performance at regular intervals. Arrange to negotiate when the pressure on them is at its greatest: The end of the sales week, usually on Saturday. If your salesperson or sales manager has had a slow week, you could have cause to celebrate on Saturday night. After the 25th of the month. At this point, the sales staff at many dealerships gets antsy about making their monthly quotas. As a result, they may be quite willing to shave a bit off their normal commissions to make a sale. The end of the year. This is the last chance for good annual figures. If you can wait until the end of December, you may really give yourself a great holiday present. Keep your cool Never negotiate a deal when you're pressed for time. Arrange to visit the dealership when you have plenty of leisure. Tell the salesperson you dealt with before that you are now ready to negotiate and will buy the car that day only if you get a satisfactory deal. Then pull out your Features and Options Checklist and state exactly what you want. If a vehicle you saw previously had everything you desire and nothing you'd want to pay extra for, ask whether it's still on the lot. If not, find out if they have a similar model and go over it closely to be sure it fills the bill. If the car is equipped with options you can do without, tell the dealer right up front that you won't pay a penny extra for anything you don't need. If necessary, find out whether a suitable vehicle is available or whether they can special-order one for you. If they can, ask how long you'd have to wait to see (not buy) it. Keep your old vehicle out of sight Whether or not you want to trade in your old car, park it down the street and walk to the dealership. The salesperson will probably ask you early in the game whether you have a vehicle to trade in. Whatever the case, tell them no and refuse to discuss it further until you are in the final phases of negotiation. Arriving at the lowest possible price without a trade-in, before you allow the possibility of negotiating one, is very important. To get the most for your old vehicle, you must have an accurate idea of its value. Let them know they're not the only game in town If you want to get the lowest price from a dealership, flaunt the fact that you're comparing their quotes with those you've obtained from alternative sources and dealerships. Refer to your notebook, checklists, and worksheets to see if their quotes for options agree with what you've heard from other sources, but don't let them see the actual data. It'll drive them crazy. Also, keep asking, "Can't you do better than that?" Constantly tell them, "I can do better at so-and-so's," or "According to the such-and-such pricing (or data) service, the dealer's cost (or factory invoice) on this model is such-and-such." Doing that should eliminate some of the finagling right away. Don't let them pressure you Don't be swayed by sales pressure tactics. Dealers love to make you feel that ten other people are just waiting to get their hands on the only model you like. Sometimes they'll arrange to receive phone calls from a colleague down the hall: "The red Voomer? Yes, we have it. As a matter of fact, I have a possible buyer with me right now. . . ." They may tell you that if you don't act today, the "special deal" they've proposed will no longer be offered. Don't believe it. To any good salesperson, closing a deal is the most important thing. If they can't do it now, they will be just as eager to make the sale on the same terms another day. If a vehicle with the options you want is no longer on the lot by then, they will turn heaven and earth to find a similar one for you rather than lose the sale to someone else. So, relax and refuse to be high-pressured into a commitment until you're certain it's the best deal you can get.

Article / Updated 12-03-2021

Since Apple CarPlay has been introduced, you may be curious about whether or not your car is equipped with this new safety feature. Most automobile manufacturers have already started incorporating Apple CarPlay into many of their upcoming models. If the make and model you desire is not in the list below, contact the automobile manufacturer and ask if they plan to include this feature in a future model you wish to purchase. Keep in mind that most dealerships will install anything you want into the car to finalize a sale — this includes aftermarket equipment (for a fee, of course). Compiled below is a cheat sheet on which cars currently offer Apple CarPlay: Make Model Year Acura NSX 2017 Audi A4 Q7 2017 2017 Buick LaCrosse Regal 2016 2016 Cadillac ATS ATS Coupe ATS-V CT6 CTS ELR Escalade Escalade-ESV XTS 2016 2016 2016 2016 2016 2016 2016 2016 2016 Chevrolet Bolt Camaro Camaro Convertible Colorado Corvette Corvette Convertible Cruze Impala Malibu Silverado Silverado-HD Spark Suburban Tahoe Volt 2017 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 Citroen Berlingo C3 C4 C5 2016 2016 2016 2016 DS AUTO DS 3 DS 3 Cabrio DS 4 DS 5 2016 2016 2016 2016 Ferrari 488 GBT 488 Spider California T Berlinetta F12 TDF FF 2016 2016 2016 2016 2016 2016 Ford Escape 2016 GMC Canyon Sierra Yukon Yukon XL 2016 2016 2016 2016 Honda Accord Civic Ridgeline 2016 2016 2017 Hyundai Sonata Elantra 2016 2017 KIA Forte 5 2017 Mercedes-Benz A-Class B-Class CLA-Class CLS-Class E-Class GLA-Class GLE-Class 2016 2016 2016 2016 2016 2016 2016 Mitsubishi Pajero Pajero Sport Mirage 2016 2016 2017 OPEL Adam Astra Corsa Insignia KARL 2016 2016 2016 2016 2016 Peugeot 208 Partner T 2016 2016 Porsche 911 718 Boxster Macan 2016 2017 2017 Seat Alhambra Ibiza Leon Toledo 2016 2016 2016 2016 Skoda Fabia Octavia Rapid Superb Yeti 2016 2016 2016 2016 2016 Suzuki Baleno Ciaz SX4 S-Cross Vitara 2016 2016 2016 2016 2016 Volkswagen Beetle CC E-Golf Fox Golf GTI Lamando Passat Polo Scirocco Sharan Spacefox Tiguan Touran 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 Volvo XC90 S90 2016 2017 Keep in mind other car manufacturers such as BMW, Dodge, Scion, Toyota, and many others plan to offer Apple CarPlay in future models, but have not yet released information on which models they plan to include. Not to worry. If you have already purchased a new car and it is not equipped with Apple CarPlay, you can always have an aftermarket stereo installed that does support this new feature. When picking out an aftermarket stereo make sure the packaging sports the Apple CarPlay logo. Big name manufacturers such as Alpine, Kenwood, and Pioneer have already started releasing models that include Apple CarPlay. Check with the stereo manufacturer to see if the stereo you wish to purchase is supported.

Article / Updated 03-26-2016

Shopping for car financing in advance can mean a better car loan. Compare the Annual Percentage Rates (APRs) of different loans. If all other things are equal, the car loan with the lowest APR is the best deal. Having your financing in hand when you go car shopping is a good idea because that way you negotiate based on the price of the car, rather than monthly payments. You must make many decisions about financing your car, including answering these questions: Should you finance or pay cash? When you pay cash, you save finance. How much down payment do you pay? If you make a higher down payment and finance your car for a shorter period of time, you don’t have to dole out so much cash. How much will you pay each month? The amount of your monthly payment depends on your loan amount, loan term, and the interest rate of your loan. How long do you keep your car? Industry experts note that new cars depreciate between 30 percent and 40 percent in the first two years after they’re made. Vehicles can be financed through banks, credit unions, or other similar financial institutions. This type of financing is called direct lending. You agree to pay the amount financed, plus a predetermined finance charge during a specified period of time. The following are a few online sources for information about auto loans: Bankrate.com reveals what the current APR is for an auto loan. E-Loan enables you to shop several lenders for your auto loan at one Internet location. Lending Tree gives you opportunity to check out several lenders' rates at one online location. Dealership financing means you and the dealership enter into a contract. You agree to pay the amount financed, plus a predetermined finance charge during a specified period of time. The dealership may retain the contract but usually sells the loan to a bank, finance company, or credit union, which, in turn, services the account and collects payments. The finance and insurance departments of the dealerships require you to complete a credit application, and with your permission, obtain a credit report and your credit score. Your credit history, current finance rates, competition, market conditions, and special offers affect your APR. The following table shows a comparison of a three-year auto loan to a five-year auto loan. In most cases, the longer the loan’s term, the lower the monthly payments and the higher the finance charges. For the sake of argument, say that the interest rate is the same for both the three-year and the five-year auto loans. The monthly payment for the five-year loan is $406 compared to $627 for a three-year auto loan. Although the low monthly payment seems attractive, the cost is high. Total interest payments for the five-year loan are $4,332 compared to $2,562 for the three-year loan. Bottom line: The longer the loan, the higher the financing costs. In this example, the total difference is $1,770. Comparing Loan Terms for Car Financing 3 Years (36 Months) 5 Years (60 Months) Amount Financed $20,000 $20,000 Contract Rate (APR) 8% 8% Finance Charges $2,562 $4,332 Monthly Payment Amount $627 $406 Total Payments $22,562 $24,332 Down Payment 10% 10% Note: All dollars are rounded in this example.