Automotive Resources
This page will undoubtedly be updated from time to time, as the automotive industry and related research is quite dynamic.
Books
Ford, Bob. (2005) What Car Dealers Won’t Tell You. New York: Plume Books.
This book gathers information from Bob Ford’s industry and car buying experience. A variety of topics are covered in this work, from new and used car buying auctions and using the Internet to your advantage. There are also tips on post car buying activities such as selling your car, automotive auctions, warranties and insurance.
The book begins by providing information on the new car buying process. Common assumptions regarding consumers and salespersons are dispelled and strategies are offered up as to negotiation tactics. The author then segues into dealership operations and salesperson tactics. Dealer markup, manufacturer hold backs (money the dealer gets from the factory for each car sold) and explanations as to how the dealers can sell below their cost are all explained.
Pre-shopping research is covered as well as steps to take during negotiation and signing of contracts. Also included is a glossary of terms and a plethora of dealership ploys and tactics. Following the new car section of the book, a used car section delves into areas such as the upside and downsides of used vehicles, where to find the best cars, tips on inspecting a vehicle and steps to safeguard yourself against buying a car that might have been damaged or in a serious accident. CARFAX is a very popular web service these days which can give you the history of a vehicle, whether it has been totaled or not and will offer a guarantee with limitations to ensure the information disseminated is correct.
After the used car section of the book, leasing is described in detail, as this can be a tempting way to buy a new car. However, clear distinctions between buying a leasing are made, as well as reading through the fine print and making sure you aren’t stepping into a bad financial situation. After this section, Internet purchasing, auto auctions, car buying services and tips on selling your own car are laid out for the reader.
I found this book to be quite comprehensive as it explained everything from negotiation tactics in the new car showroom to tips and suggestions when taking a used car to a mechanic to give it the once over. Most of the sources I reviewed simply focus mainly on new and used car buying tactics instead of the entire ownership experience.
Also, a neat feature in the back of the book were worksheets for things such as mechanical check lists, test drive evaluation sheets and financial work sheets. While I probably wouldn’t waltz into a showroom brandishing this book, it might help to have a few copies of these work sheets on hand for negotiation situations and such.
Gillis, Jack; Curran, Amy. (2005) The Car Book 2005. New York: Gillis Publishing Group.
This book has been a standard item of reference in automotive circles for a quarter century. Much like Remar Sutton, Jack Gillis is an expert on consumer affairs and the National Press club has named Gillis as one of the best writers in consumer journalism. In addition to these credits, Gillis was formerly employed by the U.S. Department of Transportation. While there, he was in charge of organizing the government’s automotive information program. Gillis is also Contributing Consumer Correspondent to NBC’s “Today Show.”
If one is undecided on what kind of car to buy, this book is a must read. Whether you’re in the market for a car, truck or SUV, Gillis covers it all, along with the latest safety ratings, vehicle specifications and pricing. Topics that are also touched on are fuel economy, maintenance costs, insurance and warranties.
In his research, Gillis takes into account consumer complaints that date back to the mid 1970s and compiles them into a comprehensive index. Not only is information available for the current model year, but the previous model year as well. Also, a chart of state lemon laws appears in the book. I once had a very unreliable car and if I had realized this information was in this guide, I would have been much better off.
Published in affiliation with the Center for Auto Safety, this book is a good start to someone who is a non-automotive expert. Many times friends have come to me wondering what car is right for them, whether they want a foreign or domestic vehicle, manual transmission or automatic. Gillis’ format makes for an easy read and the fact that a new edition is published every year, readers can be assured they are getting up to date information.
Sutton, Remar. (1997) Don’t Get Taken Every Time. New York: Penguin Books.
This book is one of the leading publications of its genre. For over 15 years, this book has been in publication and the newest edition helps consumers avoid the pitfalls of the Internet and the advantages it has given to the dealerships. Remar Sutton is a leading automotive expert and consumer advocate who has appeared on shows like “Oprah,” “Good Morning America” and “20/20.” He was a former automotive dealer himself and he has undertaken much research into dealership tactics and operational procedures. Along with Ralph Nader, he is the co-founder of the Consumer Task Force for Automotive Issues.
The book begins by using a fictional account to describe the daily goings on in a new car showroom. Sutton then progresses into explaining dealership tactics and systems for selling. An important few chapters covered in the book also were about knowing yourself, what you want out of a car and how much car you can afford.
The second part of the book is all about the art of negotiation, from negotiating in the dealership to online. Buying versus leasing is also discussed. Sutton shows consumers how to use the Internet as a tool against car dealers, as oftentimes dealers use the Internet as a tool against them. Even the smallest bit of information given on a website can give car dealers an unfair advantage when it comes time to negotiation.
Included in the book is a 16 step checklist for examining a used car before purchase as well as a glossary of terms. A good piece of information I found was that only 9% of consumers actually do get the commonly advertised 0% financing. Often they are offered higher interest rates instead.
I like the fact that Sutton tries to take the consumer behind the scenes in the automotive dealership; however, I find some of the examples perhaps a bit far fetched for everyday life. I am sure not all car dealers are as corrupt as described. However, it does give one lots to think about when going into a new car purchase.
Articles
Road & Track Magazine is a good source for the automotive connoisseur; however, they occasionally have articles that are handy for the average consumer. This piece is one of them. Ten steps to buying a new car are laid out and each step has a short explanation. I found this to be an excellent template to follow when shopping around for a new car.
First, it was encouraged to “monitor the market” and shop around for incentives. In this day and age of fluctuating economic conditions, auto manufacturers have been more than willing to give out rebates than before. Even General Motors, whose stock price is down and sales below expectations, have rolled out employee pricing for all consumers.
Secondly, the article suggests it is better to buy than lease, unless, for instance, you are leasing a company car and it is more beneficial for tax reasons. Also, Bohr warns of going upside down on your car loan, in other words, owing more than the vehicle is worth. Automobiles are, of course, depreciating assets and in this day and age of six year loans and no down payment deals, it is easy to get into this situation. Some solutions are to buy a cheaper car or put a large amount of money down at the time of purchase.
Finally, a few other suggestions put forth were the timing of the purchase. It is best to buy late in the day, for obvious reasons and at the end of the month, because dealers and salesmen must meet quotas and therefore are more apt to give you a better deal. It was also noted to keep the negotiation of the price and the interest rate separate, as well as avoiding costly accessories, such as window tint and undercoating that the finance and insurance manager might try and sell you.
For the new car buyer, this article is a good primer. However, it’s not so valuable for those in the market for a used car. Still, Bohr provides a valuable outline as to the steps one should take before taking the new vehicle plunge. By no means is this article as detailed as the books which I reviewed. If one keeps in mind the ten main points of this article, they can consult other, more in depth sources and fill in with information as needed.
McCluggage, Denise. (2004). “Buying vs. Leasing.” Road and Travel Magazine.
This article stood out among others in my search because I have read works authored by Denise McCluggage before. A former race car driver as well as an automotive and motor racing journalist, McCluggage dispels the myth by many financial experts that leasing a car is less advantageous than taking out a loan to gain eventual ownership of a vehicle.
The debate between buying and leasing is perhaps the biggest issue of contention when it comes to the automotive purchase. Many people think that, such as with real estate, cars are an investment. However, leasing a vehicle can sometimes be an attractive proposition because cars are, for the most part, depreciating assets. A lease can also guarantee that you will not be upside down, or owe more than the vehicle is worth, when the lease term is over.
However, those that argue against leasing claim that if you always lease a vehicle, it is like a never ending car payment and you will never have the satisfaction of ownership once you are done paying on the vehicle in question. But, if you are less than satisfied with the purchase you made or the car has proven unreliable, in two or three years you can walk away from that automobile and have a wide variety of choices in front of you. Leasing eliminates the hassles and constraints of ownership in that respect.
Another point to keep in mind is that you can also negotiate to buy that vehicle at the end of the lease term for a much lower price than someone who would have financed the vehicle normally. Also, if there’s a new model that just came out which you yearn after, you are free to sign a new lease for that car in question.
While this all sounds tempting and might make you never want to buy a new vehicle again, leasing is not for everyone. If you rack up a lot of miles, say, over 25,000 a year, this can be an issue. You could wind up paying steep penalties if you go over your mileage allotment at the end of the lease term.
Also, if you abuse the car or modify it, you might wind up paying some extra fees at the end of the lease term. Consumers should also be aware that rebates and incentives as well as lemon laws still apply to leased vehicles. Lease terms can be negotiated, as factors such as mileage allowances, monthly and down payments can be adjusted.
The best advice given in the article was the quote McCluggage cited by J. Paul Getty. “If it appreciates, buy it; if it depreciates, lease it.” Certainly I would heed advice from such a wealthy individual. I like how McCluggage summed up this never ending question succinctly. She gave real life scenarios for good and bad candidates for leasing as well as providing the new car consumer food for thought as they debate whether to buy or lease.
Websites
(2005). Intellichoice
www.intellichoice.com
Started in 1986, Intellichoice has been providing industry and consumer automotive information. They are the publishers of The Complete Car Cost Guide, which first appeared in 1987. This guide, along with the online services that Intellichoice now offers, has garnered many accolades throughout the industry.
Typical for an automotive information portal, both data on new and used vehicles is readily available. The ability to search by manufacturer, vehicle type and price range (for new vehicles) is possible. Also, a welcome addition I thought was a “deals” link, which brings up a list of current rebates and incentives by manufacturers. Also in this section is a list Intellichoice revises each year called “Best Overall Values” and along those lines there is also a list of “Best Deals of the Month.”
Some other services Intellichoice offers include free quotes, in which you submit your contact information and within one to two business days, a dealer near your area will contact you for a test drive. There is also a page with articles and glossaries as well as tips for auctioning your car on eBay. At the bottom of the main page there is a sponsored link inclusive of buying services, manufacturer incentives and new car information.
As far as automotive web sites go, this one is laid out pretty efficiently with advertisements and pop up ads kept to a minimum. I did find it odd that many of the “Best Overall Values” were in fact Toyota products, prompting me to speculate whether or not Toyota has any sponsorship ties with Intellichoice. While there were no Toyota links in the sponsor section when I visited the site, I would have to dig deeper to find out the reason for this. However, such an investigation would require more time than I have allotted for this work.
(2005). Edmunds
www.edmunds.com
Founded in 1966, Edmunds and Edmunds.com is a noted source for new and used car shoppers. They are the publishers of new and used car pricing guides, as well as Edmunds.com Strategies for Smart Car Buyers. Edmunds got into the Internet fray at an early stage in 1994 by posting their pricing information on a site called The Electronic Newsstand and shortly launching Edmunds.com the following year. Edmunds also was the first automotive information source to offer wireless access, making their information available to PDAs and cell phones in 2000.
Edmunds.com is a bit busy when you first look at it, but you soon realize how the information is organized, mostly by the new and used and car or truck categories. There is also a toolbar at the top of the homepage with links to the aforementioned categories. Edmunds tries to do the average vehicle pricing guide one better by offering road test information and including a new vehicle spotlight at the top of their webpage.
One of the best features of the site is a link to a page called “The Inside Line.” Here, you can get the latest industry news, watch videos, take part in surveys and also chat with automotive enthusiasts in a discussion forum. Much like blogs, these kind of online forums can prove valuable as they can offer information that corporations or paid sponsors might sidestep.
Edmunds.com is a favored source of mine for pricing information. I regularly go to the site, take the information there and average out the numbers with other pricing guides to get a good feel for what I should be paying for a new or used vehicle. While I would rather get road test information from industry magazines such as Road & Track or Auto Week, it’s nice to have pricing information and car reviews all in one place for less than serious car enthusiasts.