Since I'm Not Able to View My Blog at Work...

Well I can't access my blog from work anymore and will have very limited posts from here on out. I did want to let those of you know that are looking for car buying tips to please visit my main site at InsiderCarBuyingTips.com There are a lot of car buying tips there and I think the information you find there would be extremely valuable. If you have any questions, please don't hesitate to contact me via email at jthecarguy@insidercarbuyingtips.com And here is the rest of it.

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This Blog is in it's final days!!!

I have a crazy firewall at work that seems to get stricter and stricter each day, kind of defeats the purpose of an insider at work. I don't think that I'll be able to keep this blog active enough to attract anyone, but... I will update www.insidercarbuyingtips.com often. I also received some excellent information recently and will be able to sell warranties better than those I offer at work and I'm able to kick butt on pricing. Bye for awhile...

In the mean time,

Take care and beware,
J the Car Guy

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Big Sale Is Over!

This was by far the most worthless sale we have ever had. The sales guys they sent out thought there s**t didn't stink and let me tell you the whole dealership smelled of it. Actually, the salesmen they sent were professional and good, but one manager in particular thought he was top dog. They used techniques that are illegal (payment packing) and new before they got here that the 50,000 mailers going out were not going to hit in time for the sale.

The dealership actually did not pay the crew that came out, to try and recoup some of their money for the mailers that were flooded in Florida, and that caused all kinds of issues.

I'm sorry it took so long to report, but we had some long nights where I had to stay late and was just exhausted. All in all, they averaged $4,200 per deal, which is typical for these sales, and the reason I try to keep consumers from buying at these events.

I also found out that I can no longer access Blogger.com from my work computer, due to their firewall, so this will limit some of my blogging, but I will still update with any news worth mentioning.

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The Big Car Sale Has Begun

I haven't seen an atomic pencil like that in a couple of years... They blew this guy out of the water, it was hilarious.An atomic pencil is a huge set of first numbers, that is designed to blast a customer to the ceiling. For instance, with this deal the customer was looking to buy a $27,000 truck and the first numbers they showed him was a 36 month finance term with $8,100 down and monthly payments of $860.

For most customers this blows them away and they have to be peeled off the ceiling with a spatula, which is actually the point of the atomic pencil. It's designed to get a customers thinking up. For more information read my Car Buying Tip #19 - How To Negotiate With A Four Square.
You'll also find some tips for using the four to your advantage.

By the way, these guys here for the sale are really good and as long as we get traffic it will be interesting to see what I'll be able to report. I'm sure we will have some huge deals this week, so stay tuned.

A quick for those of you here for the first time, do not buy at car dealership big sales events. They are typically a big rip off and prices actually go up believe it or not.

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Big Car Dealership Sales Event

We have a big sales event starting at the end of August. I'm sure this one will have a lot of exciting stuff to report.

They are planning to send out like 50,000 mailers, do some big radio spots and plenty of print ads. They are also bringing in an entire team. The team will consist of a desk man, closers, finance managers and salesmen.

I'm sure this sale will do a lot better than the last, so stay tuned and I'll give you a play by play of all the deals. I'm sure this one will really open your eyes to what a rip off these sales events are.

In the mean time...

Take car and beware,
J the Car Guy

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Lender Review and Credit Breakdown

Especially Important For Bad Credit Consumers!

For those of you who didn't know or haven't had time, remember to check out my Lender Review and Credit Breakdown on how lenders see you. You can apply for financing to multiple lenders and get a better feel for what type of credit tier you will fall into.

You can find this here Car Loans. I tried to set it up in an easy to read bullet fashion and I think you'll find it pretty informative. It should save you a lot of time and frustration. There are lenders for both good and bad credit. Check it out.

For those of you looking to refinance, check out my other site EZAutoLoanRefinance.com it's really easy to refinance, the average customer saves over $60 a month and the best part is it's free. Apply today.

In the meantime...

Take care and beware,
J the Car Guy

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How to buy a car with negative equity in a trade

I have received several emails lately from customers in some pretty serious negative equity situations. One customer was told by a car dealership that she had $14,000 negative equity and there was no way that they could get her approved with that kind of negative equity. So how does she buy a new vehicle?

First off, I'd like to say that this is an extremely difficult situation and with this much negative equity will be tough to accomplish. It's all going to come down to finding the right vehicle that can absorb the negative equity and still be in line with the lenders loan structure.

1) You can put $14,000 as down payment.
Obvious one, but unlikely possible for most customers.

2) You can buy a new truck or SUV and finance with the manufactures financing arm.
Trucks and SUV's have some rather large rebates currently available on trucks and SUV's. Manufacturers are eager to move these units, so they are offering big rebates and flexible financing to help them sell. This obviously does you no good if you don't want a Truck or SUV, but unfortunately cars are stronger right now and manufacturers aren't offering rebates as big.

3) You can buy a late model used Truck or SUV.
These are selling very cheap at the auction and dealers are buying them, in some instances, for half of book value. Again, it does you no good if you don't want a Truck or SUV. There are some late model cars that come to mind that may also work in this scenario, the two that really stick out are Cadillacs and Pontiacs.

4) You can refinance and lower your interest rate so that more of your payment goes to principal.
This is probably going to be your best option. Unfortunately, this means you'll have to keep your current vehicle for awhile longer, but you may not have a choice. If you're not able to get a new vehicle with the above options, you're going to be stuck with the vehicle anyway, so you might as well have lower payments and make each one of those payments count. By count I mean have more of your monthly payment go towards principal then to interest. Refinancing is FREE and you could have up to 60 days to your first payment.

If you're interested check out my Auto Loan Refinance site. The average customer is able to lower their payments by over $60 a month and lower their interest rate by close to 4%.

You may be wondering how you'd be able to refinance your vehicle, but not be able to buy a new. Basically, let's say your vehicle has a book value of $28,000 and you owe $32,000, but do to current market conditions it's only worth $18,000 to a car dealership. Well most lenders are going to use the book value to figure how much they will lend and not what they sell for at auction. So it can be done. Of course, all approvals are OAC. If you are in an extreme situation like this, it certainly can't hurt to try.

In the mean time...

Take care and beware,
J the Car Guy

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Buy the extended warranty BEFORE the car breaksdown!!!

I can't tell you how many times I've had customers come straight out of service and pay some outrageous bill only to come over to my office and buy an extended warranty.

In fact, I just recently had a customer who did just that. She paid a $2,500+ repair bill and then shelled out another $1,400 for an extended warranty. If she had bought the warranty before the breakdown, the warranty would have more than paid for itself.

I asked why she hadn't bought one when she bought the car and she said when she bought the car it still had some factory warranty remaining and she was going to buy one once she got close to running out of the factory warranty, but never got around to it.

The extended warranty would have cost her less had she bought it while the car still had factory coverage and she wouldn't have had to put the extended warranty on a to do list, which I've found most people don't ever "do" until it's too late.

If you are the type of customer that buys extended warranties (which I always think is a good idea), just do it at the time of sale. It's cheaper and you don't have to remember to do it later.

In the mean time...

Take care and beware,
J the Car Guy

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Car Buying Tip #9 -- Extended Warranty -- Don't Get One!

This is a follow up to my original article entitled Extended Warranty -- Get One! In this article, I'm going to point out the customers I've found that don't necessarily have to have the protection an extended warranty can offer.

The first set of customers I'd like to identify are those that only buy new vehicles and trade regularly before the factory warranty expires. I don't think I need to spend a lot of time on this, because you are already covered, and to buy an extended warranty, legally referred to as a service contract, would be a waste of money.

The second set of customers I'd like to identify are those that have extreme incomes with a low debt ratio. If, using an extreme example, you have a monthly income of $20,000 with monthly expenses of only $3,000, then you should be able to comfortably afford an unexpected $1,500 repair. On the other hand, I've found people with those types of incomes are usually buying high end vehicles where the average repair might be in the several thousand dollar range.

I'm reminded of my days working for Volkswagen, and the repair costs for one of their Touareg models. I remember a customer that had to have the diesel engine replaced...cost: $18,000 plus. Just to have the brakes changed was close to $1,100...Ouch! Now imagine even higher end vehicles like Mercedes, BMW, Porsche, etc.

The option to purchase an extended warranty will simply be up to you at this point. Keep in mind that both the extended warranty company and the car dealership profit when you purchase an extended warranty, so you'll want to weigh your options carefully. On the other hand, even with a profit for both the extended warranty company and the car dealership, I've seen where extended warranties have more than paid for themselves, on many an occasion.

I know of many well to do customers that "will" purchase the extended warranty, simply because $1,500 to $3,000 for the warranty is a drop in the bucket for them and they simply don't want to deal with the hassle of haggling with the service department over repairs. They just want it fixed and fast!

The last set of customers that I'd like to identify are those that are purchasing very inexpensive vehicles. Extended warranty companies will typically have a clause in the contract that states that the repairs they will make to the vehicle shall not exceed the wholesale value of the vehicle immediately prior to the mechanical breakdown. What this means, is if your vehicle has a wholesale value of $1,500 the extended warranty company will not authorize any, accumulated over the life of the extended warranty, repairs that exceed the value of the vehicle.

The reason this is important to note is that a vehicle that is worth $1,500 wholesale is probably old, with high miles and the extended warranty is probably going to cost more then the max payout you could ever expect to receive.

I hope this car buying tip has helped to shed some light on the sometimes confusing issue of extended warranties.

As mentioned before some people that fall into the categories listed above still opt for the protection, and additional benefits, of the extended warranties. If you'd like to get more information, I've found what I consider to be the most comprehensive coverage available. In fact, this coverage is more comprehensive then the coverage I offer at my car dealership. To get a FREE quote Click Here...

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Car Buying Tip #8 -- Extended Warranty -- Get One

If the thought of an extra $25 - $30 a month seems like more than you can handle to get an extended warranty, then you probably need one.

I see it all the time, customers come to the car dealership I work for and are looking for a $300 payment. By the time all is said and done their base monthly payment is $350, already exceeding their "max" payment by $50, and now they are faced with the decision to protect their personal finances and credit rating with an extended warranty, but the increase in payment is more than they feel they can bare.

First off, I'd suggest you work a deal on another vehicle where payments would be more comfortable for you. One of the number one reasons people face repossession is that they simply can't afford the vehicle and have no choice but to give it back. This is especially true when a customer is maxed out on payment and the vehicle breaks down.

Think you are having problems with a $350 payment, what happens when you take that $350 payment and add a $900 unexpected repair to that? To simplify this, your monthly payment would have been more like $1250, with repairs, vs. a $380 payment with the extended warranty. I hope you catch my drift on this, because it can mean so much to your present financial condition and to your future credit rating.

If you do opt to purchase the extended warranty, legally referred to as service contract, read the contract carefully. You'll want to know if you are purchasing a stated components coverage, or an exclusionary coverage. Exclusionary coverage is always the better option.

Exclusionary coverage will simply state that everything on the vehicle will be covered except for what is listed in the Items Not Covered section of the contract. A stated components coverage will state that the items listed are the only parts that are covered. Unless you are a Master Mechanic, how will you know what the items are that won't be covered? This is where a lot of people have had bad experiences with extended warranties.

It all comes down to the Finance Manager at the car dealership not explaining the warranty in depth and customers not knowing the right questions to ask.

To sum this up, unless you've got several thousand dollars available that you could comfortable part with over the course of your ownership of this vehicle, buy an extended warranty.

I hope this car buying tip sheds some light on the sometimes confusing issue of extended warranties.

I have found an extended warranty company online that, hands down, has the most comprehensive exclusionary coverage available. In fact, this company offers coverage that I don't even offer at the car dealership I work for. Not because we wouldn't want to offer this coverage, but we simply haven't found a company that has coverage like this available to car dealerships. They are a very financially sound company, and they pay claims quickly, without hassle. To get a FREE quote Click Here.

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Bad Credit Tip #3 - Bad Credit Loans

So you've got bad credit, no credit, or straight out horrible credit. You've applied to nine lenders online and gone to four different car dealerships to get the same answer from all. A resounding, NO! Well, don't despair. Your world is not tragically crumbling down around you.

"What's the problem," you ask. Good question. You're looking in the wrong places. You may be thinking that you have applied to some of the biggest banks in the country and have gone to some fairly large dealerships, so if they can't get it done, who can?

First off, the larger banks, do not typically cater to those in search of bad credit auto loans, nor do most car dealerships. For the lenders there is simply too much risk and for the car dealerships it is, in their minds, too much of a hassle.

That is where sub prime loan specialists, like myself, come into play. A good sub prime loan specialist understands your needs, knows the right lenders, knows how to properly structure a bad credit auto loan, and stocks the right inventory.

My advice would be to call local car dealerships, ask them if they have a sub prime credit department and if you could speak to one of the finance specialists (be sure it is not a sales person you are speaking with). Once on the phone with them explain your situation and see what services they can offer to help you. If you like what they have to say, go visit them. If you don't like what they have to say, call the next dealer in the phone book, until you find the right one.

It's a little time consuming to make all these calls, but it's well worth it when you find the right loan specialist that can get you on the road and driving again.

If you'd like to bypass all the time consuming calls and find local loan specialists that can help you quickly I'd strongly suggest applying Here. It's FREE, fast, easy and with their huge nationwide network they can put you in touch with a loan specialist that can have you driving your new vehicle in as little as 24 hours.

In the mean time...

Take care and beware,
J the car guy

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Bad Credit Tip #2 - Settle For Less

This is an easy one that can help you to save hundreds, if not thousands when trying to clean up your credit. Before I get to the Bad Credit Repair Tip let me quickly explain how collections companies work.

Most collection companies will buy your debt from the original creditor for pennies on the dollar, hoping that their expertise in collecting will allow them to make a rather substantial profit if they are successful, and you pay in full.

Let's say that XYZ company had given you a loan for $1,000 and you were to repay the loan within one week. Well XYZ hasn't received a payment and it's now two months later. They forward your now delinquent account to their in house (if they have one, not all do) collection department, where they will try to collect. Now, another four months has passed and they haven't been able to collect, so XYZ company is now going to try to cut their losses and get paid whatever they can for that $1,000 from whoever is willing to pay them something.

In this case, ABC collections is glad to step up to the plate and pay $200 for your $1,000 debt in hopes that their far superior (sometimes they get big heads) collection skills will allow them to collect that $1,000 and gross an $800 profit.

Here's where you can save some money...Your ready to get a new loan for a car, house, credit card, etc. and realize to get the better rates it's time to clean up your credit. My suggestion is to try and settle for less.

Using the above example, you call ABC collection agency and tell them you'd like to settle your debt, but have let's say only $500 and that's all you can afford, would they agree to accept your $500 to settle your $1,000 debt. More often than not the bulk of these collection agencies will settle for less, and in this example would have pocketed a $300 profit plus their $200 initial investment.

Way to go!!! You just moved yourself one step closer to getting your credit restored and saved yourself $500 in the process. Don't forget to ask them to stop reporting to the credit bureaus. Read my post on removing these items Here

In the mean time...

Take care and beware,
J the Car Guy

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Random Car Buying Tip - Buying Cheap Used Cars

Just a heads up for those of you that have $2,000 to $3,000 cash to buy a car with, a car dealership is probably not your best option. You see a car dealer has a certain level of responsiblity they take on when they sell a vehicle and they don't want to get caught up selling a $2,000 which is probably old with higher miles for a $200 profit let's say.

You will also need to pay sales tax and any dealer fees that apply. In Arizona, where I live, a private party purchase for a vehicle is exempt from taxes, which is always nice, and you avoid all dealer fees, which applies to any private party transaction (obviously).

If you're looking for an inexpensive vehicle I'd definitely not waste your time looking at car dealerships, until you've exhausted your search in your local paper, or one of the online sources available. You'll probably find you'll get more vehicle, in better condition, with less miles, for the same money.

I know of a great site to sell your vehicle private party, so I'll go way out on a limb here and assume they are a great place to buy a used vehicle Here.

In the mean time...

Take care and beware,
J the Car Guy

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Watching the car dealer auction

I'm watching the car dealer auction, out of Phoenix, online right now and I'm telling you if you're in the market for a used Truck or SUV now is the time to buy. These things are selling so cheap right now!!! I'm watching these vehicles sell for $5000 to $8000 back of wholesale book. Cheap, Cheap, Cheap...

On the other hand I would absolutely stay away from New Trucks or SUV's. If you buy one expect to take a bath, a major bath, as soon as you drive off the lot. If you absolutely have to go with a new one lease it.

Take care and beware,
J the Car Guy

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Bad Credit Tip #1 - Have that collection removed

I see it all the time, people trying to do the right thing and clean up their credit, but doing it the wrong way. One of the easiest, but top mistakes I see people make when cleaning up their Bad Credit is to pay off or settle a collection and not insist that the company stop reporting to the credit bureaus.

It's simple to do, just insist that before you pay the company will stop reporting the collection. Make sure to get an actual commitment and not some round about we'll see what we can do. Preferably get it in writing.

The reason this is so important to cleaning up Bad Credit is because you don't want any sign to future lenders that an account had to go to collections before you were willing to pay. Not to mention, it will drag on your score for some time to come.

Repairing Bad Credit can save you thousands in the long run with lower APR's on vehicles, mortgages, etc... It's also a little embarassing to get turned down for a loan in public. Do yourself a favor and review your credit today Fico Scores/Reports

Take care and beware,
J the Car Guy

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