What to Know Before You Go Car Shopping

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What's in a VIN?

There are only a handful of times vehicle owners must know an auto's Vehicle Identification Number (VIN): when buying or selling a car, applying for insurance or registering a vehicle with the state Department of Motor Vehicles (DMV). Other than that, few people pay much mind to the series of numbers and letters on a vehicle's dash.

But because there are those among us who are experts at manipulating a vehicle's VIN to conceal its true identity, it pays to know what's in a VIN. Law enforcement officials in particular should be familiar with the data a VIN contains as well as the methods crooks use to alter or obliterate this information.

What's in a VIN?

A VIN is a series of numbers and letters that represent coded forms of vehicle information. The coded data found in this series adds detailed vehicle information to what is already found in the DMV's license plate database.

VINs for vehicles manufactured between 1958-1970 may have 11 numbers and letters or less, while all automobiles manufactured in North America since 1971 contain a series of 17 numbers and letters.

Sgt. William Smylie, whose career in vehicle theft investigations with the Miami (Florida) Police Department spanned nearly three decades, describes the elements of a 17-digit VIN as follows:

World Manufacturer Identifier (WMI). This information is found in the VIN's first three characters. The first character identifies the nation of origin. For instance, Canada is a 2; while the United States can be 1, 4 or 5; and Japan is a J. The second digit indicates the corporate manufacturer, such as Ford, General Motors, Toyota and so on. These numbers or letters may vary according to the place of manufacture. So, for instance, a General Motors vehicle, built in Canada would have a VIN that starts with 2G, while a VIN for an import from Japan, such as a Toyota vehicle, might begin with JT or 1T, depending on whether it was produced in Japan or the United States. The third character indicates the type and model of the vehicle, such as Chevrolet or Dodge.
Digits four through nine. The VIN's next five digits give information on various components of the vehicle such as body style, engine type, transmission and drivetrain category. The ninth character is a number known as the "check" digit. This number is part of a mathematical formula, which when applied tells investigators whether the VIN is authentic. Each character in the 17-digit VIN is assigned a corresponding value and weight. The first eight characters' values are added together, as are the last eight. The total sums are then divided by a specified number, which gives a remainder that should equal the check digit's value.
Vehicle Indicator section. This is the last eight characters (of a 17-digit VIN). The character in position 10 indicates the vehicle's model year. The codes alternate between numbers and letters according to the year in which the vehicle was produced. All VIN's use numerals from 1-9, and all the letters of the alphabet except I, O and Q. Therefore a vehicle built in 1971 would be a "1" while a vehicle manufactured in 1979 would have a "9" in the 10th position. A vehicle produced in 1980 would have an "A" in the 10th position and so on. (Each year after 1980 is assigned a letter of the alphabet with the exception of I, O and Q until it reaches Z, then the 10th position reverts back to numbers.)

Where's the VIN?

Before 1967, a VIN could be placed almost anywhere on the vehicle. After 1968, North American manufacturers were required to place the code in an area visible from outside the vehicle. This data string is usually found on the left-hand side of the dash next to the vehicle's lower edge. However, in some older vehicles, the VIN may be on the right side, and in some European models, such as BMW, it may even be situated on the steering column.

Article link; http://www.officer.com/article/10248861/whats-in-a-vin

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Thomas Ieracitano

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What to Know Before You Go Car Shopping

Photo courtesy Edmunds.com. Taken by Scott Jacobs

The test drive plays a pivotal role in car buying.

Before you start thinking about fun things like whether you want a convertible or a sports car, you need to do some self-examination. First and foremost, you need to examine your budget. You should set a reasonable price range for the car and begin to eliminate cars that are out of that price range. As a potential car buyer, you need to be realistic, don't fantasize about a $45,000 car when your budget will just barely support a $22,000 price-tag. Also, remember that trying to figure out a way to buy a car that is outside your price range is really not a good idea. After all, it's not much fun to have a car if you can't afford to go places in it.

How Dealers Profit

There are three main ways that dealers profit from you. Don't be taken for a ride!

The negotiating process for the price of the trade-in.
The negotiating process for the price of the new car.
Scams in the business office after negotiations are done.

Source: CarBuyingTips.Com

You also need to know about your own credit history. If there's something that you think the dealer will ask, that's certainly something you should be prepared to answer. Many of the promotions that you see on television are reserved just for people with excellent credit. So having a copy of your own credit report is important. There are a variety of places to obtain a copy of your credit report. All of the three large national credit bureaus -- Equifax, Experian and TransUnion -- offer single reports and packages from their Web sites. A copy of your report costs $9 plus any taxes, shipping and/or handling charges. You can even get 3-in-1 reports, showing your credit history as reported by all three major credit reporting agencies. For example, the 3-in-1 package available from the Equifax Web site currently costs $29.95.

Finally, you need to know what your automobile needs are:

Do you need to haul heavy equipment? You may want to think about a pick-up truck.
Do you have a sizeable family or head up a carpool? You may want to think about a minivan, wagon or large sport utility vehicle (SUV).
Do you live in an area where you need four-wheel drive? You may want to think about an SUV with all-wheel or four-wheel drive.
Do you travel far or use the car rarely? If you log a lot of miles, you may want to research cars that get good gas mileage, like a hybrid car.
Do you have a towing requirement -- perhaps you need to tow a horse trailer or a boat? You may want to consider a heavy-duty pick-up truck or an SUV with a towing package.

There's a vast amount of choices for today's car buyer. Knowing what your automobile needs are is the easiest way to begin eliminating some of those options. Eventually, with some additional research, you should be able to narrow the field down considerably.

When you figure out what car you want (or what cars you want to check out up-close-and-personal -- think "test-drive"), there are some things you want to learn about the car(s) so that you can get the best deal possible when you're ready to buy. You will need to know the average price of the car, so you won't overpay. You can get a good idea of the base price (the price of the car without any special options) by visiting different dealerships and comparing prices and by using the Internet to get price quotes. You should also get an idea of how much the dealer will add on for various options like air conditioning, a cd player or anti-lock brakes. If you can, try to find out what the dealer price is and negotiate up from that figure. According to ConsumerReports, it's actually a lot better to do it that way as opposed to working from the sticker-price down.

In addition to visiting dealerships to do your research, you should also be reading car reviews in magazines and online. You can learn which cars are given high marks for safety, which cars get the best gas mileage, and so on. Once you've narrowed your list down to a few possibilities, you should read as many reviews on those makes and models as you can. Some good places to look for both professional and consumer car reviews are:

MotorTrend magazine
ConsumerGuide.com
Automobile magazine
Car and Driver.com
Edmunds.com
CarReview.com

Another good way to find out about a car is by simply asking your family, friends, co-workers and neighbors. Among all these people, you're bound to find someone that drives or has driven the make or model you're researching.

Finally, if you plan to trade in a car you already own, you want to know the price of your trade-in. Remember that some car dealers make big money paying you way too little for your trade-in. Do your homework and check out what publications, such as the N.A.D.A. Official Used Car Guide, the Kelley Blue Book and the Consumer Reports Used Car Buying Guide, list as the market value of your trade-in. Keep in mind that these estimates are based on cars in good condition with an average of 12,000 miles per year. So, if your car has been driven less than or more than that, the price could go up or down accordingly. If you have enough information, no one will be able to take you for a ride!

link to this article; http://auto.howstuffworks.com/buying-selling/car-buying3.htm

Thank you,
Thomas Ieracitano

http://auto.howstuffworks.com/buying-selling/car-buying2.htm

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How to Buy a Car

How to Buy a Car

by Allison Klein

Inside this Article

Car Buying and the Internet

Photo courtesy Edmunds.com. Taken by Scott Jacobs
Let your fingers do the walking so your feet don't have to! Use the Internet to help put you behind the wheel of your very own vehicle.

Whether you're buying new or used, there's no doubt that the Internet is a great tool for your car quest. If you are buying a new car, you can research the kind of car you want, the options you need, the price of the car and the price of the additional options. If you've done your homework, you'll be able to walk into a dealership armed with loads of valuable information.

When you're just starting out, a good first step is to go to the manufacturers' Web sites to check out the cars and the available options. You can usually find local dealers and request quotes or see the Manufacturer Suggested Retail Price (MSRP). Once you've narrowed your choices, you can check out an array of other Web sites for more pricing information:

Make sure you go to more than one pricing site to get the best idea of the average price.

In addition to using the Internet to research the car you want to buy, you can also use it to figure out your finance options and select a warranty for your car. Sites like E-Loan and Lending Tree offer online auto loans. A warranty is a contract that guarantees maintenance if your car has any mechanical or other problems. Remember that warranties are another way for dealers to get more money out of your bank account, so know what kind of warranty you want and how much you are willing to pay for it.

Odometer Fraud

The odometer lets you know how many miles the car has driven. A used car's mileage affects its selling price. For instance, the more miles the car has logged the lower the cost of the car. Because high mileage can decrease the selling price, some unscrupulous people practice odometer fraud. Although it is a crime to try to "roll back" or change the odometer reading, that doesn't stop people from doing it.

One of the most useful sites on the Internet is Car Buying Tips.com. This site offers up just about everything you need to know about buying a new or used car. The tips are invaluable for anyone who wants to make sure they don't overpay for their new ride. One of the best things about the site is that it deconstructs various dealer scams. If you know the dealer's agenda before you walk in the door, you'll be able to spot if someone is taking advantage of you. We're certainly not saying that all car dealers are out to dupe you, but you have to be careful and be prepared. Remember, an ounce of prevention can save you thousands of dollars in the end.

Now that you know where to start looking for information, let's take a closer look at what you should know before you go shopping.

http://auto.howstuffworks.com/buying-selling/car-buying2.htm

Thank you,
Thomas Ieracitano

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Buy a Car Online for Less

SMARTMONEY AUGUST 9, 2010

Buy a Car Online for Less

By STACEY L. BRADFORD

THESE DAYS, THE BEST way to purchase a new car might be to skip the dealership and head online.
While the advantages might not seem obvious at first, auto experts agree that shoppers can save time and money by going online. Perhaps more important, the entire process is a lot more pleasant: No more wrestling with tough sales teams.
You can purchase new and used cars online. People who've purchased new models say it's remarkably easy. Most sites will forward your request for a free quote to a dealership's Internet sales department. These people make their commissions based on volume rather than price. They understand the importance of offering a fair price to move the sales process along quickly.
While a dealer may laugh if you offer $500 over invoice price, if you go to the dealer s Web site you may have better luck getting the deal you want.
Those looking to purchase a new car online typically field multiple offers at a time a detail not lost on the dealerships. They know that if they want your business, they'll have to offer you a competitive price. Of course, there's always the opportunity to try to haggle it down even more.
In addition to the sales price, you can work out all the smaller details online as well, including aftermarket products (like rust proofing and extended warranties) and financing. (Auto experts always recommend lining up your financing with an independent lender. Read our story for tips on how to do this.) By arranging everything upfront, you can all but avoid the finance-and-insurance manager.
These are the best salespeople in the business, and can squeeze an extra couple of hundred dollars out of almost anyone.
There are also plenty of sites that deal with used cars, which we'll detail below. Ready to give online car buying a spin? Here's how to do it right.
Start Off the Old-Fashioned Way
As glorious as the Internet is, there are some things it can't offer, like a first-hand experience of how a particular model handles. So as soon as you know which model and features you're interested in, go down to your local dealer and kick the tires. Take the car out for a test drive and make sure you love it.
The Price Is Right
Once you've read all the reviews and taken your future car out for a test drive, it's time to research prices. On sites such as Edmunds.com and CarsDirect.com, you can compare the sticker price with the invoice price, and also see if the manufacturer is offering any incentives. Edmunds.com also provides users with the True Market Value of every vehicle on the market. This is an average price for what other consumers in your area are paying. You shouldn't have to pay more than this. If buying a used car, the industry standard for pricing is Kelley Blue Book.

Web Site What It Does
MyRide.com Coaches its dealer network to offer the best price out of the gate. Searches its database to find the best deals on used cars in your area. Boasts approximately 400,000 used vehicles on its site and allows you to search an additional 3.5 million used vehicles from across the web. AutoTrader.com This automotive marketplace allows you to see actual prices and inventory for both new and used cars in your zip code. Boasts three million new and used vehicles. CarsDirect.com You never have to haggle or step foot in the dealership again. This web site offers a low price guarantee and many of its partner dealerships will even deliver the car or truck to your door. eBay Motors Largest online automotive marketplace. Claims an automobile sells every minute on its web site. The majority of the vehicles are used. Edmunds.com Provides consumers with the True Market Value of every vehicle on the market. This is the average price consumers in your area are paying for a specific vehicle. The web site's Local Car Dealer tool puts you in touch with the Internet managers at local dealerships, which tend to offer lower prices than the salespeople you'll find on the showroom floor.
The Best Sites for New Cars
Each site works a little differently. If you use Edmunds.com or MyRide.com, local dealers will e-mail you free price quotes. There's no obligation to buy, and consumers should feel free to ask for a lower price. It's going to be tough to get a car for under invoice unless it's last year's model and the dealership needs to unload it to make room for newer vehicles.
CarsDirect.com acts more like a broker. It has relationships with dealerships that agree to charge the web site's low-price guarantee. (If you find a lower price within three days of the sales transaction, CarsDirect will match it.) Even though your purchase is made through a dealer, the entire transaction feels like it's conducted through CarsDirect.com. Most of the company's partner dealerships will even deliver the car to your front door.
If you want to see cars that are actually sitting on lots, go to AutoTrader.com. Here, dealerships list their inventories. This is helpful if you're looking for a quick sale, or if you want to see which vehicles are overstocked in your area (potentially giving you an advantage during negotiations). Just keep in mind that AutoTrader.com only matches buyers with sellers. It's up to you to secure a good price.
If you're feeling a bit sporting, you could always roll the dice and try bidding on a car using eBay Motors. For the savvy, good deals abound. EBay claims to be the largest online automotive marketplace, with one vehicle selling every minute. Just be careful not to get caught-up in the bidding process and wind up overpaying for a car.
The Best Sites for Used Cars
All of the aforementioned sites sell used cars, both from individuals and from dealers, with the exception of MyRide.com, which lists price quotes for used vehicles sold in dealerships. AutoTrader.com and eBay, however, excel in this arena, say experts.
The advantage of looking online vs., say, the local newspaper, is that you get to search and compare prices for thousands of cars in your area and can scan multiple pictures that help give a sense of the car's overall condition. And buyers tend to get better prices when they use the Internet to purchase a vehicle than they'd get from a dealer's lot.
Experts recommend limiting your search to vehicles within 20 or 30 miles of your home. This way you can easily test-drive them and get them inspected by a mechanic you trust. It's also crucial that you ask to see service records, and run a vehicle history report from Carfax or Experian. A vehicle history report will tell you if the car has been salvaged, flooded or in an accident.
Also, be sure to ask for the vehicle identification number if the owner won t hand it over, walk away. Chances are he or she has something to hide, such as so-called title washing. This is the practice of taking a flood or salvage vehicle across state lines and getting a new title for it.
Finally, don't fixate on getting the absolute lowest price possible. It s not worth your time to fight over $50. If you shop online know you can quickly come up with a price that will knock the socks off half the people walking the lots.

link to this article; http://www.smartmoney.com/spend/autos/buy-a-car-online-151-for-less-17102/

Thank you,
Thomas Ieracitano

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Buy a Car Off the Internet?

August 23, 2010 65 Comments and 301 Reactions

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The other day, I bought a 2010 Camaro SS off the Internet. More specifically, I bought it from Aaron Smith of Motorphilia. They have an interesting business model. But how I got on Aaron's radar is every bit as interesting a story as the fact that I bought this car, without kicking the tires. And I have some ideas for car dealerships and others who want to understand how a $40,000 product can be sold virtually (oh - and thanks to Aaron Smith's efforts, I didn't pay $40K for the car: he found me a great deal).

It Started With a Blog Post

A few weeks back, I wrote a post about how car dealership websites suck. I was frustrated, because I wanted to comparison shop and found that the dealerships within 50 miles of me (and there are many) all had horrible websites with really difficult navigation, and a lack of useful information. Worse still, they weren't exactly doing much to bring me in for a visit. But I'll get back to that. First, just realize that I wrote this post.

The post populated on Facebook. Aaron Smith from Motorphilia saw the note in his stream and dropped me a line (FOUR MINUTES AFTER THE POST WENT LIVE). He said, "Hey, saw you were looking for a new Camaro. I found a few you might want to hear about. Interested?"

Lesson #1: The people who LISTEN for business beat the people waiting around for business to find them.

Actually, it Started a Year Before All This

In April 2009, I visited GM headquarters. I got to drive a Cadillac CTS and a CTS-V, but then I got to play with the Camaro RS (the littler engine version of the SS). It wasn't even out on the market yet. I felt amazingly blessed.

I should put an aside in to say that I'm not much of a car guy, really. Or I wasn't. I've never owned a "cool" car. I've owned all (but one) GM cars since I stared driving, though, so it wasn't much of a stretch to get interested in a Camaro. And why? Because the newer model looks like the Batmobile, and I'm a Batman kinda guy. (Okay, I know someone will say the Corvette is more like the Batmobile, but they're like an entirely different tribe of people, Vette types, and that's not my thing.)

But Buying A Car Off the Internet?

I admit that it's a little weird to buy a car off the Internet. If I hadn't met Aaron a few times in person (he even gave me a ride around Austin in a Prowler), I might have been a bit less likely to trust a website-based car sale. But, again, when you read Motorphilia's business model, it feels like they're the kind of relationship you want to have.

If I didn't know Aaron, I'd recommend that he put a few pictures of himself and/or his staff on the site. We relate to pictures. In fact, there's a lot of "we" language on the site, and normally, without any sense of who "we" is, that's a potential turnoff. However, and here's the next big lesson:

Lesson: Aaron Smith's @motorphilia efforts in social media are warm, friendly, and always on.

Aaron and team know the value of social media. He's active on Facebook, on Twitter, on their blog, and in several other locations, as well. It's the exact opposite of the mainstream local dealership model. Instead of waiting for people to show up for test drives (and/or sending out flyers and other dead tree products and local commercials), Aaron's team invests time and effort into human-based connections that they hope to translate into sales.

Trust and Buying Something Sight Unseen

I admit that looking at photos of a car that I intend to buy is like moving into a house that you've only seen remotely. It's spooky. It's not how things are done. I further admit that I am a bit strange, in that I buy many things off the Internet, so I'm not your typical mainstream buyer. Finally, I will cop to the admission that I knew that if something went wrong, that I'd raise holy hell about it, and that felt like a great insurance policy. But since I dared to do it, I can vouch for the service.

It Requires a Bit of Awareness and Conviction

I already knew that I wanted a Camaro. I already knew the rough price of the car I wanted. I knew that I didn't want to haggle (my last five cars were Saturns because they sales method is: 'here's the price, no matter who you are.' And all of this really suited the buying scenario of an online purchase. There may or may not have been negotiating room in the price, but I've got to be honest: Aaron found me a car that was $4500 less expensive than the three I'd found within 20 miles from my house (and the one he found me had tons fewer miles - only 1100).

If you needed lots of test drives, or if you wanted to really negotiate and do a lot of hand-holding and tire-kicking, then online obviously wouldn't be a good fit. Also, I can't advocate taking up a dealership's time on test driving, only to buy somewhere else. That wouldn't be the right thing to do.

What Does This Say for Dealerships, Though?

Local car dealerships find themselves in a potential bind. What used to be a sure thing is now far from it. Many car manufacturers had to thin out their dealership relationships over the last few years. Local print and TV media have been decimated making it harder to get a local dealership's ads seen. Location and proximity help keep some customers at hand, but it clearly didn't work for me. Will the rest of the Netflix generation feel that way, too?

And if local dealerships keep avoiding the social web, how many more buyers like me will they miss?

Since writing the first post over a month ago, I never once heard from a dealership within 100 miles of me. I heard from one other online dealership, but that's it. So, no one from the local world claimed my $40,000. It went to Texas.

Obviously, we won't all just buy on the net. We won't all forego test drives. We wont have such an affinity for a product that we'll buy it without a lot of comparison shopping. But there are signals here to consider, and there are opportunities to grow. What follows are a few potential takeaways, and then a couple of videos I shot with thoughts about the car.

Takeaways for Car Dealerships

Make your sites more mobile-friendly. Flash doesn't cut it in the smartphone era.
Add listening tools to your marketing efforts.
Have a social presence, so you can respond and invite in potential buyers.
Work with the manufacturers' social media people, like Christopher Barger at GM and Scott Monty at Ford (and your manufacturers of choice).
Look for alternatives to the current business models, as sales won't rush up on gimmicks and discounts alone.
Consider the after-sale. I just bought a Camaro SS. Do you doubt that I'm prime for aftermarket and/or related offers? Heck, I couldn't even find my tripometer reset until this afternoon. I'd be a perfect candidate to build a deeper relationship with, and you'd have a sales funnel extension.
Equip your buyers with social extenders. People don't buy cars fast enough for you to build a single relationship. Seek the referral, and the share. Not one local dealership had a Facebook Like button next to each make/model.

The rest, I'll let you figure out. Or, you can work with me. I might even have some experience in this field. : )

Now, the Videos

I've never been much of a car person. I'm not one for spending lots of money. I'm definitely not one for spending money on myself (unless it's for business materials). I bought the car because I won't benefit from a cool car when I'm 70. I bought it because I haven't really celebrated my last several years' hard work in any tangible way. I bought it because I wanted my own Batmobile. Here are a few videos related to the experience:

On buying a car through Motorphilia:
(apologies for my hair. It was still wet.)

My first night drive in the Camaro:

Thoughts on Buying a 2010 Chevy Camaro SS:

Thanks for indulging me. It was quite an experience, and I've been dying to tell the story, but had to wait until the car arrived, and/or until all the bits lined up. I haven't ever had a second car for my family, so this will also open up some opportunities in logistics. And hey, it's a darned fun car to drive.

Thank you,
Thomas Ieracitano

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Part One: Internet vs. Traditional Car Buying

How Much Can the Internet Save You?

Published: 11/15/2002 Updated: 04/30/2009 - by Philip Reed, Senior Consumer Advice Editor, Edmunds.com

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Part One: Internet vs. Traditional Car Buying

On-line vs. traditional: Which do you prefer - walking onto a car lot and going eye to eye with the salesman? Or will you get a better price through the Internet department?

There are two entrances into today's new car dealership.

The first entrance is the traditional one where customers walk onto the car lot, wait for a salesman to approach them, hear the sales pitch and then hash out a deal in a sales office.

The new entrance leads into the "virtual dealership." Shoppers can read car reviews, scope out photos and price their dream cars - all on the Internet.

Which of these two paths to new car ownership result in a lower price for the consumer? And, which of these two approaches will be the most pleasant buying experience for shoppers?

This article has two parts. The first will gather the opinions of several Internet car salespeople and describe the Internet sales experience for shoppers. The second article will test these opinions in real-world shopping conditions. Taken together, they should give you, the consumer, the most up-to-date information about your best way to buy your new car.

The Creation of the Internet Department

Traditionally, dealers have sought to maximize their profit by keeping most of the figures in a deal hidden. In this way dealers charge customers whatever they can convince them to pay for a car. Because of the complexity of a transaction filled with many variables (trade-in value, interest rate, different loan terms, multiple fees) buyers often didn't even know how much they are really paying for the car.

But in the late 1990s, Web sites such as Edmunds.com began publishing the invoice prices of cars while also reaching a larger segment of the car-buying public. This neutralized the car salesman's most powerful weapon: confusion. A smart shopper could find the invoice price of the car he wanted to buy, add a 2-3 percent profit and make a take-it-or-leave-it cash offer. Car salesmen hated dealing with this type of buyer because their profit was lower.

But rather than lose this buyer all together, some dealerships began creating "Internet departments." With an Internet department, informed shoppers could bypass the traditional salespeople standing outside the dealership. (One Internet saleswoman called these salesmen "the vultures.") Instead, shoppers could contact Internet salespeople, either by phone or e-mail, and quickly get a bottom-line price. If the price was good, they bought the car. If it wasn't, they got another quote from another dealership. This reduced the haggling.

Even today, however, many people don't trust the Internet. They don't believe the car-buying process can be that easy.

Who is the Internet Saleperson?

The Internet salesperson might have once been a traditional car salesperson, but his computer skills and ability to correspond via e-mail, monitor Web sites and grasp the psychology of on-line buyers made them a natural for this position. In other cases, the Internet sales manager might also double as the dealership's fleet manager.

For an Internet department, it is more important to sell a lot of cars than it is to maximize profit on individual cars. Therefore, the initial price quotes from an Internet sales manager are often very close to the absolute lowest selling price for a given vehicle.

A Typical Internet Experience

Edmunds.com maintains a fleet of test cars, some of which we purchase ourselves. When shopping for a 2002 Nissan Altima, we searched for the exact car we wanted on the Internet. We located a car, with the options we wanted, at Lew Webb's Irvine Nissan and sent a request for a price quote to the dealership via e-mail.

A short time later, Internet Sales Manager Marj Aldoph wrote back, describing the options on the car and the color. She also wrote: "Your preferred Internet price is $27,417 plus tax and license." We compared the price to the Edmunds.com True Market Value^® price and saw that her price quote was even lower. We bought the car at that price.

After the sale was finalized, we asked Aldoph if we could have gotten a better deal on a new car if we just walked onto the lot. "I would never walk onto a lot to buy a car," she replied. "I don't want to go through all the hassle." Besides that, she said, the sales team will start by trying to sell the car at sticker price. Plus, they will try to make more money on the back end, such as higher finance charges. "[In the Internet department] we are straightforward and disclose everything. Nothing is pushed onto a client."

Denise Justice, the Internet and client service manager for Rusnak Auto Group in Pasadena, Calif., said, "I like to be up-front with all my customers. I show them all the numbers. I don't try to hide things or put extras into the contract at the last minute. I don't want any misunderstandings."

When Rusnak wanted to develop its Internet department, it recruited Justice from Nordstrom because of that company's reputation for customer service. Now, Justice uses her skills to sell 15 to 20 cars a month (more than most car lot salespeople), often to customers who never physically come into the dealership.

"The Internet customer doesn't want the traditional sales pitch," she said. "They don't want to sit down and do the four-square [a worksheet used by salesmen for negotiating]. They won't play that game where the salesman starts high and goes low. They've already done their homework and, in some cases, they know more about the car than I do."

Justice said that women, in particular, prefer car shopping on-line because many Internet sales managers are women. "Women buy from me because I'm easy to talk to," she said. "I'm not like some men who won't give straight answers or may be intimidating."

However, the Internet can be a grind for those brave enough to work in this department. One Las Vegas Internet manager told us that he gets hundreds of e-mails a day, everyday. "They expect a reply almost instantly or you've lost their business. I spend a lot of time on-line, just going through my e-mail."

Justice said she works on salary with some commission. How much of what she makes is dependant on the scores on her "CSI" surveys (customer satisfaction index). "If I get dinged by even one person, for one point (getting a 4 out of 5 rather than a 5 out of 5) it can cost me $1,500," she said.

Moving Metal the Old Way

The traditional car salesperson greets "ups" (customers who walk onto the lot) and personally leads them through the buying process. Car salesmen employ a variety of psychological tactics to excite the buyer, hurry them toward a commitment to buy and then sell the car at the highest possible price. Often, car salesmen are told they should "never leave any money on the table" - in other words, they should take as much money as they can from the buyer.

While the Internet clearly offers advantages to many consumers, some buyers are still more comfortable buying the traditional way. They want the sales pitch, they want to test drive the car and get a "walk around" from an experienced sales professional. Dealership sales managers still firmly believe in this approach to selling - trying to turn everyone into a "today buyer." These veterans tell trainees "the feel of the wheel will seal the deal." Their pep talks center on trying to "excite" buyers and maintain "control" over the buyer.

However, as consumers learn more about the car-buying process and our society becomes increasingly mobile, loyalties to the neighborhood dealership are disappearing. As a car buyer, knowing you got a good vehicle at a fair price - all without battling a pushy salesman for several hours - isn't asking too much. In the end, time is money and cash is king.

COMING NEXT: Edmunds.com goes car shopping. An editor will get a price the traditional way from a car lot salesman, then solicit a quote through the Internet department. How do these prices compare? Find out in Part Two.

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Thank you,
Thomas Ieracitano

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CarsDirect is the best place to buy new cars and used cars online

CarsDirect is the best place to buy new cars
and used cars online!

CarsDirect.com has been rated the #1 site for buying new cars online by Forbes, Time, PC Magazine and PC World, among others.

We offer low, no-haggle prices and have a huge selection of new and used cars for sale. To find the CarsDirect price for any new vehicle, begin by selecting the make at the top of this page.

If you choose to buy a new car online through CarsDirect, a Vehicle Specialist will contact you quickly and help you through the entire car buying process.

If you prefer to buy your next new car from a dealer, we will match your needs with a member of our certified dealer network near you. Your VIP dealer representative will work with you to find your vehicle and negotiate a low price.

Searching for cars for sale on many used car websites can be a challenge. You can search and buy using our intuitive used car search section. We offer a huge selection newer model year pre-owned cars. Finding the right used car for sale has never been more convenient.

Thousands of happy customers buy cars through us every month. Who knew it was so easy to buy new cars online?

Thank you,
Thomas Ieracitano

Leasing or Buying a Car Resources on the Web

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Buying a Car on the Internet

If you're thinking about buying a car over the Internet, then you're going to be pleasantly surprised. Buying a car on the World Wide Web is a fairly simple process. It also eliminates a lot of the unpleasant experiences often associated with a visit to the local car dealership.

Advantages of Buying a Car Using the Internet

If you happen to sell cars for a living and you're honest in your dealings with customers, then you shouldn't be offended by any of the following statements we're going to make in this publication. That's because we're not talking about salespersons and dealerships that treat their customers fairly.

Buying a Car at a Dealership

Additional Resources

We're talking about individuals selling cars that give car dealers a bad name. For some of us, this is what we actually experience when we bought a car in the past:

Bait and Switch Tactics - working with a salesperson to purchase one type of car, only to find that salesperson is now trying to get you to buy another car.
Haggling - while some people might actually like the idea of negotiating with a salesperson in the hopes of striking the best purchase price on a new car, to many of us that entire process is pretty upsetting.
Hard Sells - if there is one thing that any salesperson learns through experience it is that you need to close the deal. Some salespersons simply don't know when to give up, and high-pressure sales tactics, which occur at some car dealerships, are annoying to virtually everyone.

Buying a Car Online

The nice thing about buying a car over the Internet is that all of the negative face-to-face interactions are eliminated. You can research your car from the comfort of your own home, and you can take your time making a decision. One big advantage of buying a car this way is there's a lot of information right at your fingertips.

Buy a Car Online in Four Simple Steps

For anyone convinced that buying a car over the Internet offers some big advantages, we've outlined a "how to buy a car online in four simple steps" below:

Conduct research to find the car you think you want to buy.
Test-drive several of the cars you've identified in your research.
Research cars again to make sure you're making the right decision.
Comparison shop new car dealers over the Internet.

Later on, we'll be talking about websites you can visit to buy a car online. But for now we're going to explain how to conduct your research, test-drive a car, and how to make fair comparisons. This way you can be sure you're getting the best deal.

Researching a Car over the Internet

We've covered researching a car elsewhere in this publication in much greater detail than explained below. The important part of this first step is to figure out what features you need in a car, and which cars provide you with those features.

Some of the more important factors to consider when researching a car include:

Budget - perhaps the single most important consideration is how much car you can afford to buy. We have some great car loan calculators that can help to simplify this step.
Use of Car - are you playing taxi driver to your kids and their friends, or are you looking for basic transportation to and from work? This is the "practical" part of car research.
Reliability and Safety - for many people a car must not only be able to move us from point A to point B, but it also needs to provide us with reliable and safe operation.

Test Driving a Car You're Thinking about Buying

If you think you can buy a car only using the Internet, then we have some bad news for you. Even if you think a certain car will meet all your needs, you have to test drive the vehicle. The last thing you want to do is to pick up your car and discover that it has a blind spot that makes you nervous when you drive, or the interior color didn't look like the pictures you saw.

If you're not an "average" person with respect to height or weight (many of us are not average), then it's important to make sure you have enough room in the vehicle to drive or sit comfortably.

Unless friends or relatives own all of the cars you're thinking about buying, then you have to visit a car dealership to conduct your test drives. Since you're thinking about ultimately buying the car over the Internet, you need to be careful about working too closely with a salesperson. If you do, they might try to claim you owe them a sales commission.

Keep in mind that even if you buy a car online, the dealership might be the same one you visited when you test drove the car; especially if there aren't many competing dealerships in your area. If that's true, then the dealership might owe a sales commission to someone if you've been working with them on a regular basis.

Researching a Car: Again

Now that you've narrowed down the field of cars that you can afford, meets your list of requirements, and you enjoy driving, it's time to double back on your car research. This is especially true if you're having trouble deciding between two makes / models.

Here we are talking about customer satisfaction ratings, fuel economy, safety and reliability. You can probably go back to some of the same sources you used earlier, but the information you're looking for may be a bit different. Taking one last look at what others are saying usually helps to solidify a decision.

Comparison Shopping for Cars over the Internet

The final step in our four step process is comparison shopping. This involves not just comparing offers, but also evaluating those offers versus the car's invoice price. Here's where the Internet really comes in handy when buying a car.

There are some websites that will actually quote you a price for a new car without any questions asked. Other sites want you to provide them with some of your contact information before sending you a quote. We're going to finish this topic up by listing some of the major players in this market, and what you can expect as far as the car purchasing services offered by their websites.

Kelley Blue Book

Kelley Blue Book built its reputation on its used car pricing expertise; the KBB of today offers new and used car buyers much more. Services you'll find at KBB include:

New Car Pricing
Used Car Trade In Values
Side by Side Car Comparisons
Ratings and Reviews
Buying Advice
Financing and Insurance Tools
Used Car Listings
Dealer Price Quotes (requires information before quote)

MSN Autos (Formerly Carpoint)

MSN Autos also allows you to research cars and make side-by-side comparisons. MSN's approach is to leverage the power of its entire network. Some of the information, such as financing and advice, is not as focused on cars as the information you'll find elsewhere.

The total array of services offered exclusively by MSN Autos includes:

New Car Pricing
Side by Side Comparisons
Ratings and Reviews (from Consumer Reports)
Buying Advice
Dealer Price Quotes (requires information before quote)

Edmunds

Edmunds is another website dedicated to car buying and research. Edmunds has some unique approaches to the logical ways people buy a car, such as sorting cars by price. Other services include:

New Car Pricing
Side by Side Car Comparisons
Ratings and Reviews
Buying Advice
Used Car Listings
Dealer Price Quotes (requires information before quote)

CarsDirect

One of the unique features of CarsDirect is that they provide price quotes without requiring you to supply any of your contact information. That's a big plus if you're just trying to get a feel for how much you can get off the MSRP (or sticker price).

Perhaps the most comprehensive approach to buying a car over the Internet, services offered by CarsDirect include:

New Car Pricing
Used Car Trade In Values
Side by Side Car Comparisons
Ratings and Reviews
Buying Advice
Financing and Insurance Tools
Used Car Listings
Dealer Price Quotes

About the Author - Buying a Car on the Internet

Thank you,
Thomas Ieracitano