It stinks to be a finance manager! Sometimes...

We're now at the end of April and My dealership will finish the month with a little over 50% cash deals. For a Finance Manager that is a really bad situation. We make our money securing financing and selling warranties, and cash customers are a tough sell.

When I took this job it was to be a bad credit specialist and to help customers with bad credit get approved for loans, but apparently my dealership is asleep at the wheel, because they are not buying the right inventory, and have not been advertising right.

I may be writing this blog from a new dealership soon. I'd prefer one that actually knows what they are doing with regards to sub-prime credit.

Sorry for the rant, but I'm a little disgruntled with this place. That's why I created a blog...to vent! Actually, I created this blog as a place to "spill the beans," and help consumers in need, but to be able to vent is a nice side effect.

I've now transferred all my posts from my old blog, that might be of interest, and all I have left to do is post all of the car buying tips. I currently have 26 in all, so keep checking back, this blog will always be updating.

Feel free to start asking some questions, now consumers don't have to email me like they used to with that other worthless blog I had.

Look forward to hearing from you.

In the mean time...

Take care and beware,
J the Car Guy

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Hi All. Sorry for few posts, but it's been deader than a door nail. We usually slow down a bit after a sale and I'm not working at as large a dealership as I'm used to, but this is ridiculous! By the way, the dealer I work for sells about 100-125 vehicles a month, and we've only made a hand full of deals these past few days. I don't know if it's the economy or what.

I'd also like to apologize to any of you that came to the site this morning and saw the utter chaos that was going on. I had revamped the home page and things went wrong so it took much longer then expected.

Good news! I inked the deal with OwnerGuard GAP and will be offering their product shortly. I've only seen one company online offering GAP Protection and they wanted $399 for GAP. That's better than most dealers charge (usually $495 on up to $795), but OwnerGuard is going to kick the pants off both of them. I should be able to offer it as low as $265.

I also signed with DriverZedge and will be making their extended warranties available soon. That will be great because I can complete the warranty review page on my www.automalladventures.com site. By the way, for the niche that DriverZedge will fill, I know they will blow away the online competition, and it's the same company I use at my dealer, so I know how they work.

In the mean time...

Take care and beware,
J the Car Guy

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Big Sale is Over

Well our Big Sale ended Saturday, and the volume was well below expectations. As with most of these Big Sales the Gross Profit per sale was pretty big. I think the final numbers were at $4600 average per deal. I'm going to say it again, buy a vehicle at one of these sales events and they'll stick it to ya'.

I personally don't mind when I buy a vehicle and a dealer makes a little money, but $4600 is pretty ridiculous. I guess that's to be expected when people don't educate themselves prior to buying.

I'm sorry I wasn't around for a couple of days, but clean up after the sale takes awhile. I have to get all the required docs for the lenders, package the deals to send to the lender, etc.

It's been funny though, it's like someone turned off the faucet. The sale ended and the dealership might as well be a ghost town. This whole economic down turn stinks. I hope we can pull out of this sooner rather than later.

I'm excited to say that I've begun some of my advertising, and so far the results have been great. Thanks to all who've dropped in. Please do not hesitate to contact me if you've got any questions about your upcoming purchase.

In the mean time...

Take care and beware,
J the Car Guy

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Little Old Lady Wins

I love it! They tried to push, pull, and lean on her to buy now! She didn't! She stuck to her guns, and at one point straight told the closer to back off and not push or it'd be the last he saw of her.

She also told him that she didn't get to point in her life where she could pay $25,000 cash for a car by making spur of the moment decisions. Very smart. Don't rush into buying a car. I know it can be very exciting and the Earth would cease to revolve around the Sun if you backed away, came back the next day and the car was sold, but you simply can't make rush decisions with a purchase this big.

One thing I can say for sure is that the manufacturer will certainly make more cars for you to buy. If you don't like the way the negotiation is going, or you feel pressured, back away and give yourself some time to think away from the dealership, or else you could regret your decision in the morning.

By the way, when you buy a car from a dealership it's not like buying something from JCPenny's, where there is a no questions asked return policy. Once you sign that contract and drive off the lot, you own it.Take your time when buying and evaluate the situation carefully.

In the mean time...

Take care and beware,
J the Car Guy

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Not a Bad Finish to the Day-For the Dealership!

Wow! All day yesterday, we really had nothing special going on. Low and behold, of course about the time to go home, I get slammed with 5 deals all at once! Of course, every customer was in a hurry to leave, so it got a little hectic, but manageable.

They did average about $3800 per deal, and the winner was the one cash deal we had. The dealership was only able to make $1300 from her. I know I'm probably beating a dead horse here, but you've got to get pre-approved for your auto loan.

I don't think she really did anything special during negotiations, but having cash, or the cash equivalent (pre-arranged financing) gave her a huge edge and she saved over $2500 compared to those customers that financed. Of course, you can ignore this advice and not go to the loan center for pre-approval and you can make payments on the additional dealer profit of $2500 for an extra 12 months, but that's up to you.

In the mean time...

Take care and beware,
J the Car Guy

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You Ripped Her Off!

We had a customer that bought a vehicle yesterday, and her neighbor called today saying that we ripped her off and paid to little for her trade in. They wanted to take the trade out of the deal, so they could buy it for the same amount. The customer had gotten all worked up about this from her neighbor and wanted explanations.

First off, if the neighbor thought we had ripped her off and was willing to buy the vehicle for the same amount, doesn't that mean the neighbor wanted to rip her off? I don't know what you think, but it sure sounds like it to me.

Second, by trading in her vehicle and receiving the tax savings on her new vehicle, she actually got an extra $412.50 by trading it in.

Third, my manufacturer that I work for has a competitors trade in rebate of $1000. In other words if you own a Dodge and trade it in on a new Ford, Ford will give you a $1000 rebate. Don't trade it in and you lose the rebate.

Fourth, we haven't even seen her trade! That's right we made a good faith buy bid based on never seeing the trade. We gave her $5500 for her trade, which is fair market value, she also received the $412.50 tax savings, and a $1000 rebate. By trading she actually recieved a $6912.50 value for her trade in, as opposed to the $5500 her ripoff neighbor was offering.

The ripoff neighbor is no longer calling and the customer is satisfied, and not overly happy with the neighbor that whipped her into a frenzy.

I guess the moral of this story is not to get advice from people that don't know all the facts, and have no real knowledge of the situation you're in. It's certainly okay if someone is trying to help you, but don't let them fool you into thinking they're an expert because they've bought a car or two before. An easier way to say this: Would you go to an Attorney and ask him to diagnose the pain you're having in your stomach? Of course not, you'd go to a doctor that specializes in stomach disorders.

I guess this is like this site, would you rather take advice from some self proclaimed "Car buying expert" online, that's never worked a day in the car business, or from someone that, still to this day, works in a dealership and is willing to spill the beans to you about what goes on behind the scenes? You decide.

In the mean time...

Take care and beware,
J the Car Guy

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Lots of Negative Equity

Well this super sale is dragging on, and on, and on...The best way to sum this sale up is that my dealership dropped the ball and didn't get me the inventory I need to do my job, and negative equity stinks if you're the one stuck with it. This whole sale has been about people 8, 9, and 10 grand flipped in their trades. By the way, flipped, buried, and upside down are all ways dealers describe negative equity in a customers trade.

If you're in this situation, it typically takes above average credit, or a large down payment to get out from under negative equity. The reason being, especially in today's economy, lenders just won't lend endless amounts of money based on the value of the new vehicle you're trying to purchase. I guess this is just a little heads up for those of you in this situation.

Really what this comes down to is customers overpaying for vehicles in the first place, and buying vehicles that tend to depriciate quicker than others. I personally lease if I'm going to buy new. I figure I'll always have a car payment, so why not drive a new vehicle every two years, and not worry about negative equity. A lot of people don't like to lease, because they think they are losing some ownership rights, but realistically, when you finance you don't "own" the vehicle until the last payments made anyway.

The average trade cycle is between 29 and 36 months, I guess we get bored easily here in America. My point is, please consider this before you get locked into an 84 month finance contract, most people will not keep a vehicle seven years, and that probably includes you too.

All the above is extremely important to keep in mind if you're buying new. Did you know a rough average for depriciation on new vehicles is 20-25% your first year, another 15-20% your second year and your third year is about 10-15%. OUCH!!! Buy right upfront and save yourself from the pain.

I really like CarsDirect buying service. They show you MSRP, invoice, their price, and they guarantee the lowest prices. You also don't have to work with car dealership salespeople. Try it out, I think you'll like it.

In the mean time...

Take care and beware,
J the Car Guy

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Lots of Cash Deals-Their Winning!

We've been selling cars, but unfortunately for me, mostly cash deals. I'm telling you if you want to have the ability to negotiate the best deals, you need to have the ability to buy like a cash buyer. The leverage you get from this is unbelievable if you use it right.

I know not everyone, in fact very few people can stroke a check for $20,000, but that's what pre approval's are for. Check out the loan center to get yourself pre approved. Click here to go there now.

That being said, over the last 9 deals we've done, 5 have been cash and 4 have been financed. The average profit for the dealership on the financed deals has been close to $4800 and for cash buyer's has been only $1800. Let the savings speak for themselves. $3000 in savings just by using the leverage of buying with cash, or like cash.

Now imagine how much you'd save if bought like a cash buyer and were able to "negotiate with a broken leg!" This is a Car Buying Tip that I'm currently writing, and should be a huge help for those of you that don't like to negotiate. I hope to have this article completed within the next couple of days.

To sum this up, get pre approved here and save thousands right out the gate!

In the mean time...

Take care and beware,
J the Car Guy

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Sale Update

Nothing super exciting to report, other than this sale is better than our other recent sales. Even though it's better it is still short of our normal volume for a sale. I'm a little peeved with my dealership right now due to the fact that these sales typically bring customers with limited or bad credit histories and they've done nothing, in the way of inventory, to prepare for the sale. We've let roughly 5 deals slip through that I could have easily gotten approved with the right inventory. Arrrrgh!

I guess these customers are stuck going to one of the junky Buy Here Pay Here (BHPH) dealers we have in the area. Too bad for them, because the BHPH's in my area sell junk! If you find you're needing a BHPH dealer, due to credit reasons, I'd highly recommend you Shop DriveTime First!
Bad credit, no credit, no problem.
Apply on-line.

They're by far the best BHPH I've seen, they sell nice, inspected vehicles with warranty, and are very flexible with their programs.

As I type this I'm getting more and more frustrated, because I was brought here to up the volume by getting people with very, very bad credit approved for loans. I can still get the approvals for these customers, but I've got no vehicles for them to buy once approved.

Thanks for listening to my rant, I'll be in touch soon.

In the mean time...

Take care and beware,
J the Car Guy

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Push, Pull or Drag Your Trade In...

It happens every sale! The advertisement reads $4000 guaranteed for your trade, in any condition. This is a ploy to get you to the dealership and does not mean they are literally going to give you $4000 for your trade. If you have shaky credit and the bank is requiring money down, this fake $4000 will not cut it.

Yes, on paper it will show that you're getting $4000, but all they're doing is using the over inflated prices from the vehicle they're trying to sell you to cover the difference in the $4000 and the real worth of the vehicle, let's say $500.

Think I'm kidding? If so, go on down to the dealership running this promotion, bring a $500 car and ask the dealer to buy it out right for $4000. Guaranteed they won't do it.

Anyway, I just wanted to throw this out there so you know just one of the many advertising ploys car dealers use. I'm sure you'll being hearing from me again today, it looks like things are starting to pick up.

In the mean time...

Take care and beware,
J the Car Guy

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Whopper Cash Deal!!!

First deal of the sale, was a cash deal. This example will just go to show that paying cash for a car doesn't guarantee a good deal. $6000 profit to the house!!! You must be educated prior to going to a car dealership, and stay away from these "Big Sales Events!" I'm telling you there are no bargains at these events. Read my Car Buying Tips #2 - Stay Away From Car Dealership Big Sales Events

The vehicle they purchased was available for $8995 before the sale, but they paid over $12,000 for it. By the way, it's totally legal for a car dealership to change the sale price of a vehicle, as long as it's not currently advertised for the lower price.

Check out Car Buying Tip #2, and let the learning begin. Of course, you can always chat with me directly.

I'm sure there will be a lot more to report from this sale, so stay tuned.

In the mean time...

Take care and beware,
J the Car Guy

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"Big Sale" starts Monday...

Well our "Big Sale" starts Monday and I'm hoping there is lots to report. As for this week, other than what's been reported, nothing too out of the ordinary happened.

The sites traffic is steadily increasing, so I'm getting pretty excited! I haven't even started advertising yet. The big campaign is set for late April.

Anyway, for those of you that are fortunate enough to find the site, and like what you've seen, please email it to some friends. Trust me you'll save them a lot of grief and money if they come here before the car dealer. By the way, thanks to you for stopping by.

In the mean time...

Take care and beware,
J the Car Guy

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Economy is getting tight be extra careful!

Oh Boy! Some of the banks I work with are laying people off left and right. I feel really bad. People that I've worked with for years, are all of the sudden gone...This stinks. I hate to hear about people losing their jobs.

This is a big wake up call for those of you looking to buy new vehicles. You definitely do not want to get stuck owing 6,7,8,9 or even $12,000 more then a vehicle is worth. You'll essentially never be able to get rid of the vehicle quickly in the event you lost your job.

You need to take advantage of every angle to ensure you're getting a good deal. If you are buying new, you absolutely must visit CarsDirect. You can see MSRP and invoice on vehicles, and what you'll pay. It's really easy and you don't have to give any personal information to get these quotes. They guarantee the lowest prices, check them out CarsDirect

In the mean time...

Take care and beware,
J the Car Guy

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It's all custom, I want more!

We sold a truck to a customer today with an awesome, totally suped upped Jeep trade in. He was haggling, and expected us to give him all the money he was in it for. With all the adds it was over retail book! It was a really nice Jeep, but a car dealer cannot pay retail for a vehicle, and expect to sell it and make money. Don't forget they are running a business and need to profit on sales. You just don't want them to profit too much from you!

I guess the point of this post is to let you know you will never get your money invested in a vehicle back when you trade in. If you have a $100 car with a rebuilt engine that you just paid $1200 to rebuild, your car is not worth $1300 to a car dealership. It's simply a well running $100 car.

If you have a custom vehicle, or one you feel is worth more than a dealership is offering, then prepare to either take a hit at the dealership or sell it on your own. That way you cut out the middle man (the car dealership) and you get to keep the middle mans profit. If you do want to go the route of selling yourself, I've found Cars.com to be the fastest and easiest way to sell a car yourself. Click here to sell your car quickly for a great price at Cars.com

In the mean time...

Take care and beware
J the Car Guy

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Smart Came Back With His Wife...

Well he came back and let his wife review the numbers with the salesman and she told him she had looked online, and seen vehicles for less at other area dealers...Here it comes, BIG savings for her...

Sawiiing and a miss. The salesman over came her mild attempt at negotiation, and no more discounts for them. If she would have come in and said I want this truck for $2000 less, it would have been a done deal!

Unfortunately, I'm not able to give people advice when they are here at the dealership, and can't refer them to this site. But for those of you fortunate enough to be here, I could have saved you (under the same circumstances) an additional $4000.

So what did she do right? She went online and did some research. What did she do wrong? She didn't find my site, and let me show her easy ways to have saved an additional $4000.

I'll be starting my big marketing campaign here in the next couple of weeks, and hopefully getting the word out to thousands of consumers. Any help I can get from those of you fortunate enough to have found this site in the way of referrals, will help the popularity of this site immensely. Trust me, they'll thank you for it!

In the mean time...

Take care and beware,
J the Car Guy

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Smart Guy Buying a Car!

Hi all. We just had a customer at the dealership and he did everything just right. He came to the dealership by himself, which allowed him to use the "I need to run it by my wife" classic line, and meant he had a pretty solid way to not commit to the deal right then and there.


He also worked the numbers and then went outside, without the salesperson with him and called his son to find the book value for the vehicle. The salesperson told the desk manager that he was on the phone getting the book value and and the desk manager immediately knocked another $2000 off the sale price, and gave him an additional $1000 for his trade. They were originally hitting him at full retail.

WOW! $3000 in a matter of seconds and he didn't even have to negotiate. He also told us that he was pre-approved with his bank, and at what rate. He qualified for the best rates, and asked us if we could beat it, which took any rate mark up out of the question, and saved him about another $1000.

He then left here on a BCA (borrowed car agreement) for the night. Which is always a good idea, you want to make sure you like the vehicle and it gives you time to evaluate your new vehicle and the terms before committing to buy, without a salesman buzzing in your ear.

I won't be surprised if he comes back tomorrow and makes a lower offer and saves himself an additional $2000. His approach, and I don't know if he knew he was doing it or not, could save him $6000.

It's so important to be educated when buying a car, and not make impulse decisions. It will literally save you thousands! You can check out some of my lender reviews and insurance reviews below.

Loan Center Insurance

In the mean time...

Take care and beware,
J the Car Guy

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