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Car Buying 101: Volume 1
So you want to buy a car!
This will be the first in a series on the "How To" of
car buying.
Step one:
Budget
Now I know nobody likes to think about it, but its
time to break open that piggy bank and part with some of that hard-earned
cash to buy a new car. For some - I doubt that they are any on
this forum - buying a car is for one purpose and one purpose only - to
get from point A to point B. Im going to try and stay
in the middle here on the issue of car buying. We are going to focus on
buying NEW cars, I will get into USED cars at later date.
How much can you afford?
Now I know that a lot of you on this forum are
financially comfortable and a car budget isnt a problem. But there are
some people that may need to justify the cost of a new car.
Here are a few things to consider when deciding how
much can you afford.
Vehicle Cost
- The Vehicle itself
- Sales Tax (In most
states)
- Luxury Tax (In every
state for a few more years)
- Personal Property Tax
in some states
- Registration,
licensing or both
- Any other taxes or
fees that Im unaware of (some states may have additional taxes)
- Maintenance
(Everything except gas)
- Repair cost (This is
less of a problem now with most new cars because they come with at least
a 3 year warranty, many cover more than 3 years)
- Daily expenses, such as gas
- Insurance (This is the
hidden cost that is rarely looked at until its too late)
I know most of you
already know this, so please bear with me and remember this is Car Buying
101. So were taking it from the beginning.
So now youve looked at
every potential cost and said to yourself I think I still have enough
money to buy a new car?
Determining the vehicle
cost
Now we all have horror stories
about car dealerships. Well save those for later.
The cost of a vehicle has two basic parts. What
you pay, and what the dealer paid. This column
is about how to get those numbers as close as possible.
Finding the price of a
car is much easier than it used to be. The Internet is a giant library just
waiting for you to ask the right questions. Newspapers wouldnt exist if it
werent for advertising, and auto ads are one of the biggest. The mega
dealers spend well over $150,000.00 per month on advertising. Have you
ever noticed that car dealers never mark down their cars by percentages?
Heres a couple of places
on the internet to find the price of a vehicle. Both Retail and Whole sale
(Or the price the dealer paid)
There are many more, like brokers, online
dealerships, newspapers, and magazines. The above two are free and you
won't get spammed or have to give a credit card for security purposes. And
you can find almost any vehicle's price, and you can use it as many times
as you like. To save time will stick with the two above.
You'll notice discrepancies on both web pages
in the cost of the vehicles and the cost of the options. Don't worry
about it, because the numbers you'll find in above web pages won't
correspond to what your going to find at the local dealer anyway. It's
just a range and were are looking at the cost of the car, not what your
going or willing to pay.
Vehicle cost differs from state to state and even
from town to town. Why, you ask?
One word will explain it, location, location, location.
Yes Real Estate my friends plays a factor in the price of your
car. Where you buy your car from not where you live.
Now, I live in a smaller town near the state capital. But some of
the world's most expensive Real Estate is less than 2 hours away. The Bay
Area, Silicon Valley, the City, San Francisco, what ever you want to call
it. It's expensive to live there, and so are the cars.
You will pay more in heavily populated areas
than in the rural areas. But the selection and availability differs in all
areas. The dealers have vehicles on their lots, that represent the car
buying public of that area. This doesn't mean you can't get a good deal it
just means that the asking price is a little higher. The dealers in big
cities sell more cars! And can afford to bring the price down very low to
sell a vehicle.
Remember popular vehicles, such as Corvettes, are less
negotiable.
I will use a basic vehicle for an
example:
2001 Chevrolet Malibu Standard model Using
Kelley Blue Book
MALIBU |
1ND69 Sedan 4D |
15692.25 |
17150.00 |
Destination Charge |
585.00 |
585.00 |
|
|
--------- |
--------- |
BASE MODEL PRICE WITH DESTINATION CHARGE
|
16277.25 |
17735.00 |
(Mfr's. Effective Date 3-2-01
Revised) |
|
|
Note:
Base price does not include advertising and other dealer costs (see
below). |
OPTIONAL EQUIPMENT
|
|
SPECIAL
FEES/CREDITS/INCENTIVES/OPTIONS |
R6M |
New Jersey Cost Surcharge
|
48.00 |
N/C |
|
(Req'd in New Jersey) |
|
|
--- |
College Graduate Incentive (Expires
9-30-01) |
|
-400.00 |
|
(For Recent Graduates Only) (Regional Programs
May Vary) (Restrictions May Apply) |
|
|
--- |
Customer Incentive, 1.9% Short Term
Financing (Expires 4-2-01) |
|
|
|
(N/A w/Cash Customer Incentive or Fleet
Incentive-VX5) (Available Only in Western, South Central &
Southeast Regions) (Regional Programs May Vary) (Restrictions May
Apply) |
|
|
--- |
Customer Incentive, 4.9% Short Term
Financing |
|
|
|
(N/A w/Cash Customer Incentive or Fleet
Incentive-VX5) (Available Only in North Central & Northeast
Regions) (Regional Programs May Vary) (Restrictions May
Apply) |
|
|
--- |
Customer Incentive, Cash (Expires 4-2-01)
Models in Southeast, Northeast, North Central & Western
Regions |
|
-1000.00 |
--- |
Models in South Central
Region |
|
-1250.00 |
|
(N/A w/Financing Customer Incentive or Fleet
Incentive-VX5) (Regional Programs May Vary) (Restrictions May
Apply) |
|
|
|
EMISSION EQUIPMENT (All Orders Must Code an
Emission Equipment) |
FE9 |
Emission Equipment,
Federal |
N/C |
N/C |
YF5 |
Emission Equipment,
California |
N/C |
N/C |
|
(Req'd in California) |
|
|
NG1 |
Emission Equipment, Northeast
States |
N/C |
N/C |
|
(Req'd in Maine, Massachusetts, New York &
Vermont) |
|
|
NC7 |
Emission Equipment Override,
Federal |
N/C |
N/C |
|
(Req's Emission Equipment-YF5 or NG1) |
|
|
NB8 |
Emission Equipment
Override, California/Northeast States |
N/C |
N/C |
|
(Req's Emission Equipment-FE9) |
|
|
|
ENGINE |
LG8 |
V6, 191", SFI
(3.1 Liter) |
Std. |
Std. |
|
TRANSMISSION |
MX0 |
Automatic,
4-Speed w/Overdrive |
Std. |
Std. |
|
PREFERRED EQUIPMENT GROUPS (All Orders Must Code a Preferred Equipment
Group) |
1SA |
Preferred Equipment
Group |
N/C |
N/C |
|
(See Std. Equipment Listing) |
|
|
1SB |
Preferred Equipment
Group Base |
895.50 |
995.00 |
|
(Items Included in Pkg. May Not Be
Deleted) |
|
|
|
Base Includes
Dual Power Mirrors, Reading Lights, Power Windows, AM/FM Stereo
w/Cassette, F&R Floor Mats & Speed Control. |
|
|
|
LS Includes
Special Leather Surfaced Seat Trim, Rear Spoiler & Power Sun
Roof. |
|
|
|
OTHER OPTIONS |
AU0 |
Entry System,
Keyless Remote Control Base |
135.00 |
150.00 |
|
(Std. LS) (Std. w/PEG-1SF) (Req's
PEG-1SB) |
|
|
B37 |
Floor Mats,
F&R Base |
36.00 |
40.00 |
|
(Std. LS) (Std. w/PEG-1SB on Base) |
|
|
K05 |
Heater, Engine
Block |
27.00 |
30.00 |
VH4 |
Mud Guards,
F&R Base |
67.50 |
75.00 |
|
(Std. LS) |
|
|
UL0 |
Radio, AM/FM
Stereo w/Cassette Base |
198.00 |
220.00 |
|
(N/A LS) (Std. w/PEG-1SB on Base) |
|
|
UN0 |
Radio, AM/FM
Stereo w/CD Base w/PEG-1SA |
288.00 |
320.00 |
UN0 |
Base w/PEG-1SB |
90.00 |
100.00 |
|
(N/A LS) |
|
|
UP0 |
Radio, AM/FM
Stereo w/CD & Cassette Base |
180.00 |
200.00 |
|
(Std. LS) (Req's PEG-1SB) |
|
|
AM9 |
Seat, Split
Folding Rear Base |
175.50 |
195.00 |
|
(Std. LS) (Std. w/PEG-1SF) (Req's PEG-1SB
& Seat Trim-G) Includes Cargo
Net. |
|
|
**H |
Seat Trim, Cloth
Base |
N/C |
N/C |
|
(N/A LS) (First Two Characters Refer to
Interior Color) |
|
|
**G |
Seat Trim,
Custom Cloth Base |
N/C |
N/C |
|
(Available & Included Only w/Seat-AM9 on
Base) (First Two Characters Refer to Interior Color) |
|
|
K34 |
Speed Control
Base |
216.00 |
240.00 |
|
(Std. LS) (Std. w/PEG-1SB on Base) |
|
|
PF7 |
Wheels, Cast
Aluminum Base |
279.00 |
310.00 |
|
(Std. LS) (Req's PEG-1SB or 1SF) |
|
|
|
TIRES |
--- |
(4) P215/60R15 BSW |
Std. |
Std. |
|
EXTERIOR COLORS (All Orders Must Code an Exterior Color) |
41U |
Black |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
28U |
Blue, Navy
Metallic |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
76U |
Bronzemist,
Medium Metallic |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
33U |
Driftwood, Light
Metallic |
N/C |
N/C |
|
(Req's Interior Color-52) |
|
|
56U |
Green, Dark Jade
Metallic |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
44U |
Maroon, Monterey
Metallic |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
12U |
Silver, Galaxy
Metallic |
N/C |
N/C |
|
(N/A w/Gold Pkg.-Y11) (Req's Interior
Color-92) |
|
|
16U |
White,
Bright |
N/C |
N/C |
|
(Req's an Interior Color) |
|
|
|
INTERIOR COLORS (All Orders Must Code an Interior Color) |
92* |
Gray |
N/C |
N/C |
|
(N/A w/Exterior Color-33U) (Last Character
Refers to Seat Trim) |
|
|
52* |
Neutral |
N/C |
N/C |
|
(N/A w/Exterior Color-12U) (Last Character
Refers to Seat Trim) |
|
|
|
STANDARD
EQUIPMENT |
|
Air
Conditioning Alternator, 105-Amp. Axle Ratio, 3.05 Battery, 600-cca Brakes, Power Front Disc Braking System, Anti-Lock Clock, Digital (w/Radio) Console Cup Holders Defroster, Rear Window Door Locks, Automatic Power Drivetrain, FWD Emission Equipment, Federal (Must Code) Engine: V6, SFI, 3.1 Liter Entry System, Illuminated Fuel Tank, 14.8 Gal. Cap. Headlamp Control, Auto Lights: Cargo Comp't., Daytime Running &
Glove Box Mirrors, Dual w/LH Remote Control
& Dual Visor Vanity Moldings, Rocker
Panel Power Outlet, (1) Preferred Equipment Group-1SA (Must Code) Radio, AM/FM Stereo Restraint System, Dual Front Air Bag Seats, Cloth (Must Code) Bucket Stabilizer Bars, F&R Steering Wheel, Tilt Steering, Power Tachometer Tire,
Limited Use Spare Tires, (4) P215/60R15
BSW Tongue Load, 100-lb. Max. Towing Cap., 1000-lb. Max. (When Properly
Equipped) Trans., 4-Spd. Automatic
w/Overdrive Trunk Release, Power W/S Wipers, Variable Intermittent Wheel Covers
General
Specifications:
W.B. 107.0"; O.L.
190.4"; Width 69.4"; Height 56.4"; Cargo Cap. 17.1 cu. ft.; Curb
Weight 3051-lbs. (Base), 3077-lbs. (LS).
Warranty:
3-yr/36,000-mi
Limited Bumper-to-Bumper; 3-yr/36,000-mi 24-hr Roadside Assistance;
6-yr/100,000-mi Sheet Metal Rust-Thru.
Engine
Specifications:
Code LG8; VIN J;
Cylinders V6; Liters 3.1; Fuel Induction SFI; HP 170; Torque 190;
EPA City 20; EPA Hwy 29 |
************************************************************************
Now you can clearly see
all the available information on this vehicle.
Now Same car using
Edmunds:
2001 Chevrolet Malibu 4dr
Sedan (3.1L 6Cyl 4A)
Invoice: |
$15,692 |
|
MSRP: |
$17,150 |
: |
$15,896 Effective until 3/28/2001
|
Financing: |
6.95% |
Destination Charge: |
$585 |
Gas Guzzler Tax: |
N/A |
Dealer Hold Back: |
3% of the Total MSRP |
|
|
Check Edmunds' list for currently
available incentives and rebates for this vehicle. Be sure to
take any incentives/rebates into account when calculating an appropriate
price for the vehicle.
[Advertising Charges: Most vehicle invoices include a
legitimate advertising fee levied by either the manufacturer or regional
dealer groups. Ad fees can range from less than 1 percent of the vehicle's
MSRP to more than 3 percent, depending on region. Metropolitan-area
dealers are more likely to charge higher advertising fees than rural
dealers. When you comparison shop for a car, be sure to ask the dealers
how much the advertising charge is on the vehicle.]
|
SELECTED STANDARD
EQUIPMENT |
3.1L V6 OHV 12-valve engine; FWD; 4-speed automatic
transmission; front independent suspension with stabilizer bar, rear
independent suspension with stabilizer bar; power steering; front
disc/rear drum brakes with 4-wheel ABS; 15" x 6" steel wheels, P215/60TR15
tires; air conditioning; Delco, 4-speaker, AM/FM, and fixed mast antenna;
engine immobilizer; Instrumentation and warnings include tachometer, door
ajar, low fuel, low washer fluid, oil pressure; variable intermittent
wipers, rear window defroster; cloth upholstery, folding rear seat;
passenger side vanity mirror; tilt adjust steering wheel; manual remote
black driver side mirror, manual black passenger side mirror; front door
pockets; remote trunk release.
|
|
Invoice |
MSRP |
|
Base Price |
$15,692 |
$17,150 |
Destination Fee |
$585 |
$585 |
|
Option Code |
Option Name |
Invoice |
MSRP |
1S- |
Base Requirements
Requires: [1SA] Base Preferred Equipment
Group Or [1SB] Preferred Equipment Group 1 |
$0 |
$0 |
1SA |
Base Preferred Equipment Group
Base vehicle with standard
equipment |
$0 |
$0 |
1SB |
Preferred Equipment Group 1
Front power windows with one one-touch,
rear power windows, Driver and passenger power black door mirrors,
Front reading lights, Includes: [UL0] AM/FM ETR w/ATC/SCV/Cassette
and [K34] Cruise Control and [B37] Floor Mats |
$896 |
$995 |
AM9 |
Seats, Split Folding Rear & Cargo
Net Three asymmetrical
bench front facing rear seats with zero adjustments, Load restraint
net, Excludes: [1SA] Base Preferred Equipment Group |
$176 |
$195 |
AU0 |
Keyless Entry: Remote
Remote power locks includes trunk/hatch,
Illuminated entry system |
$135 |
$150 |
B37 |
Floor Mats
Carpet floor mats |
$36 |
$40 |
K05 |
Heater: Engine Block
Block heater |
$27 |
$30 |
K34 |
Cruise Control
Cruise control |
$216 |
$240 |
NG1 |
Northeast Emissions
Emission control level other |
$0 |
$0 |
PF7 |
Wheels: 15" Aluminum
Front and rear alloy wheels with partial
wheel covers, Excludes: [1SA] Base Preferred Equipment
Group |
$279 |
$310 |
UL0 |
AM/FM ETR w/ATC/SCV/Cassette
Audio system with cassette, Audio
anti-theft protection: code, Automatic tone control, Excludes: [UN0]
AM/FM ETR w/ATC/SCV/Compact Disc and [UP0] AM/FM ETR
w/ATC/SCV/Cassette and CD |
$198 |
$220 |
UN0 |
AM/FM ETR w/ATC/SCV/Compact
Disc Audio system with CD
player, Audio anti-theft protection: code, Automatic tone control,
Excludes: [UP0] AM/FM ETR w/ATC/SCV/Cassette and CD |
$288 |
$320 |
UN0 |
AM/FM ETR w/ATC/SCV/Compact
Disc Audio system with CD
player, Audio anti-theft protection: code, Automatic tone control,
Excludes: [UP0] AM/FM ETR w/ATC/SCV/Cassette and CD, Requires: [1SA]
Base Preferred Equipment Group |
$90 |
$100 |
UP0 |
AM/FM ETR w/ATC/SCV/Cassette and
CD Audio system with CD
player and cassette, Audio anti-theft protection: code, Automatic
tone control, Requires: [1SB] Preferred Equipment Group
1 |
$180 |
$200 |
VH4 |
Mud
Guards Rear mud
flaps |
$68 |
$75 |
YF5 |
California
Emissions Emission control
level California |
|
|
|