1. Dealers Close-outs save thousands

    June 6, 2009 by My Carlady

    CAR BUYERS HOT on AUTO SALES.

     AS Americans we like to BUY stuff. SO in the midst of the greatest economic crisis of the past fifty years, we are tired of being tired.  We are also tired of driving cars that continually breakdown, have to share or no longer fit our needs/lifestyle.

    Welcome to summer selling season in the auto industry. If it was ever time in the last two years, it’s a great time to go car shopping. Pent-up demand is driving car customers to dealerships hoping for half-price Jeeps and deep-deep discounts.  You may also want to RE-consider buying a soon to be discontinued make or model: SATURN, SAAB, HUMMER, PONTIAC and some Chrysler, Jeep and Dodge models; Chrysler Aspen and PT Cruiser, Dodge Durango and Stratus, Jeep Commander.

     

    However, BUYER BEWARE. The car market has changed and you need to be prepared for some surprises. 

     

    Salesmen/women.   The salesmen still stand outside, but there are far fewer of them. That may work well for browsers, but those ready to make a deal are going to find less product knowledge and willingness to trot around on long test drives.

     

    Less Inventory.   The dealers have pared their inventories to all time lows, so be prepared to be flexible, to get a better deal now, or wait 10-12 weeks when ordering a car to meet your specs.  SOme HOT models are selling for higher prices now, than they were in January. During model year change over, you can also expect to pay more for the new year model, as the first ones delivered are usually the most in demand=higher price.

     

    Financing.   Perhaps the hardest thing to understand about auto financing is the higher the score doesn’t guarantee you an immediate approval or the best rate.  Cash down, over and above rebates, are considered in the loan application, along with trade-in values and how many other cars notes you have signed for.  The auto banks are looking hard at car loans vs. debt and income. While mom and dad make great co-signers, if sister and brother have already tapped them, the next in line may need to ask another relative.

     

    TRADE-IN.  When trading a vehicle with a payoff, you may be better off to make the payoff yourself, to be assured the closing dealership will, in fact, pay off the existing lease or loan. As dealerships are burdened with closing, employees are let go, and title payoffs can slip through the cracks. Having your trade paid off before the next payment is due, is crucial to keeping your credit in good shape.

     

    Incentives. You can have rebates or low interest rates but not both. Don’t expect to buy a car for half-off sticker. The biggest discounts I’ve seen are $6,000 off a $40,000.00 car. Multiple rebates for everything from loyal clients to military and first-time buyers often cannot be layered, so pick the highest reward for your car, in real time. By REAL TIME, I mean NOW.  If you take a lower interest rate and payoff the car early, trade-it or it gets stolen/totaled, you have lost the full value of the interest saved. Sometimes cash in your deal as down payment, is the better deal because you have lowered the amount borrowed, and should a better rate be offered by another bank, you can move the loan.  Note, low interest rate incentives do not allow for negative equity from a trade-in.

     

    If you are really interested in buying a new car this summer, look to a broker or car buyer’s agent to get the bottom line before you start kicking tires. They can help you figure out the REAL price on the BEST DEAL and find you the car you want, saving you hours of hassle, and aggravation driving from dealer to dealer. The fee you pay a broker or buyers agent more than pays for itself in time and savings you would not realize on your best day of negotiating.

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    Category: AUTO LOAN FINANCE, Auto Finance Loan, CHEVROLET, CHRYSLER, DODGE, GMC, HUMMER, JEEP, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
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  2. 0% financing on what models?

    March 12, 2009 by My Carlady

    Las Vegas, NV–  montecarlossO%  financing for 60 months isn’t gone yet. However it will be a distant memory if Chrysler and GM turn to bankruptcy reorganization to salvage the remains of their business’.  The problem isn’t attracting buyers to the 0%, it’s getting those anxious consumers auto loan qualified.  The rest of the car buyers are struggling with debt overload and high payments based on interest rates over 15% . Negative equity in their trade-ins and minimal cash down payment add to the woes. The dealers want to sell cars, but the auto loan stranglehold is choking the delivery process.

    0% has little to do with auto loans and more to do with marketing.  For those with savings, the idea of no interest for five years may have been the way to get the money out of the mattress and into a new car.  The more expensive the vehicle, the bigger the interest savings over the term. However, if the car was traded , stolen or totalled before the end of the loan, the owner lost some of the incentive.  

    Today almost all General Motors, Buick, Chevrolet, Cadillac, Pontiac vehicles have 0% for up to 60 months for the wholesale value of the car. Taxes and fees must be covered with a down payment. Consumers must have a minimum 700 FICO credit score and a debt- to- income ratio of 75% available, in most cases.  The 72 mos. for 1.9% is an attractive alternative on the 2009 Escalade, Chevy Tahoe and GMC Denali, keeping the payment around $800-$900.00 a month.

    Chrysler, Jeep and Dodge are trying to stay competitive by offering 0% on 2009 models for 36 mos. up to 5.9% for 60 mos. Hardly a fair fight in the interest game, except where less expensive models are involved. The argument can be made that on a car under 30k, the idea of paying the car off sooner may be more appealing to the over 50 yr. old consumer, less worried about the higher monthly payment. 

    The import brands are not offering 0%, and only recently announced 2.9% to 5.9% for their preferred clients. The interest rate advertising was a back-handed effort to minimize any negative feelings from cash strapped consumers.  In difficult economic times, anti-foreign sentiment can rise, even with a general understanding by the American consumer  that most Toyota, Nissan, Honda, and Hyundai cars on the road today are built in the US and a large percentage of Chrysler 300, Dodge Minivan and Ram trucks are built in Mexico or Canada.

    Protectionism aside, the need to get the US car business moving requires assistance from all sides, including the consumer. Fear has driven huge cash allotments out of the stock market and into the savings account.

    Saving for a rainy day was common saying in the homes of many baby-boomers. Well folks, the rainy days are here and making good financial decisions will move those rain clouds faster than a lot of sideline moaning and groaning about the stock market losses. (I know from whence I speak, I feel your pain.)  There are an estimated two million vehicles over ten years of age that should be retired for scrap. I’m not going to go on a rant about Cash for Junkers, but I do want to say, those who have a stable income and a car over ten years of age should consider this a great time to take advantage of a new car. The 0% financing, depressed car prices and auto sales tax credit for 2009 are great reasons to put a smile on your face driving down the road in a safer, more fuel efficient car.charger

    NEED AUTO FINANCE HELP or CREDIT report repair go to www.ecreditautoadvisor.com tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.If you want to know more about specific models with low apr’s or best pricing, contact Sarah Lee@mycarlady.com or www.mycarlady.comor follow me at TWITTER: @mycarlady.

     

    Top learn more about getting your best car deal click here: CAR DEALS

     Sarah Lee is an automotive executive with 20+ years of experience. She writers about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com

    Category: AUTOMOTIVE, Auto Finance Loan, CADILLAC, CHEVROLET, CHRYSLER, CUMMINS DIESEL TRUCKS, Car rebates and incentives, Credit repair, DODGE, FUEL ECONOMY, GMC, HUMMER, JEEP, MERCURY, NISSAN, TOYOTA, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
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  3. CAR CZARS need to merge GM-CHRYSLER NOW.

    March 8, 2009 by My Carlady

    Las Vegas, NV–  The bleeding needs to stop. Before another dime is spent, the Washington Car Czar board of guru’s need to bring out the Ginzu knife and do the surgery to save the patient. 2008_chrysler_sebring_20115728-300x189In this case the patient is the ailing US auto industry and the remaining retirees and employees of those companies.   Being a member of this industry I would rather have the amputation than bleed to death, which is what will happen if the government continues with the drip IV of taxpayer funds.  Say ADDIOS to Chrysler and Dodge, merge Jeep with GM. 2009_dodge_avenger_20241742-300x189

    Kiss Pontiac, Buick, Saturn and Saab goodbye, leaving Cadillac, GM trucks and Chevy cars in place.  As for Fiat, if you want to play in this market, buy one of these vacant plants, retool and retrain the displaced workers of Lordstown or Detroit and get to work. The US consumer is not holding their breath for your cars, but then again, maybe you’ve got something they’d love to own for under $15k and over 25mpg. 09 Saab2009_pontiac_solstice_20236106-300x1891I’m thrilled Ford hasn’t asked for a dime, that’s the best marketing money can’t buy.  Leave Lincoln, drop Mercury and keep Carroll Shelby as our legendary hero of muscle cars.  BTW Carroll, can you have an electric Mustang 500GT  ready for next year’s race?

    The truth, IMHO, is evident. Make the brutal changes swiftly and get it behind us. The sooner we make the necessary moves to consolidate the most viable assets of GM and Chrysler, the sooner the country can start moving forward. –

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    Top learn more about getting your best car deal click here: CAR DEALS

    Sarah Lee is an automotive executive with 20+ years of experience. She writers about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com  You can follow My Carlady on Twitter at www.twitter.com/mycarlady or @mycarlady

    Category: AUTOMOTIVE, CADILLAC, CARS, CHEVROLET, CHRYSLER, DODGE, FIAT, FORD, GMC, HUMMER, JEEP, LINCOLN, MERCURY, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
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  4. NO AUTO TAX BREAKS for Used, Lease or CASH car buyers.

    February 9, 2009 by My Carlady

    2/10/09 Las Vegas, NV 

    SORRY Joe the PLUMBER, your leased work truck, used car for your teen driver or cash car purchase for mom-in-law, won’t get you anything under the proposed: American Reinvestment & Recovery Act!

    Senator Miluski’sAmendment for the deductibility of interest and sales tax on auto LOANS misses 30-40% of the car buying public.  Can you guess who wrote this legislation?  While USED cars help the economy as their value improves with demand from American’s that can’t afford, or can’t get approved for a new car loan, the factory mavens haven’t figured out that helping people buy used cars will drive demand from the folks making those trades.

    Leasing, typically a work-related purchase, also stimulates the economy,  but since the finance arms of the Big 3 got clobbered with plummeting residuals when the price of gas strangled the demand for big SUV’s and trucks, you can appreciate their reluctance to endorse leasing. However, leasing actually stimulates the manufacturing at a faster rate than a 60-72 month loan, as most leasing clients turn their cars in 36-42 mos. intervals.

    So, as you consider the latest pitch for saving the auto industry, please consider yourself dissed if you lease, pay cash or prefer to buy a used car.

    OR, you can write your congress person or Senator using the letter below (Thanks Grant Cardone) and get yourself some tax deductions on your next car. Contact them at: www.house.gov. or Senate

    HURRY WE STILL HAVE TIME!!!!

    SAMPLE LETTER, FREE TO DOWNLOAD, EMAIL or CALL !

    Dear ____:

    The American Recovery and Reinvestment Act being considered today contains a provision that would allow families to write off the sales tax and interest paid on a new car loan. While I agree with the premise of the bill, it fails to take into account the 30-40% of car buyers who either lease or pay cash for their vehicles. This bill as written does not offer any benefit nor incentive for these consumers to make a new car purchase.

    Given the fact that many families lease their cars in order to keep monthly payments within their budget, wouldn’t it make more sense to incent new car transactions without regard to how it is financed? A tax credit that is a percentage of MSRP would include not only those who purchase their cars via a retail finance contract, it would also include the 30-40% of Americans who lease or pay cash.

    In addition, a tax credit based upon MSRP would be easier for the public to understand and therefore better motivate them to consider getting a new vehicle – which I assume is the real objective of this bill.

    In addition, maybe we could go back to President Obama’s position on oil independence and suggest a focus on vehicles getting better than 21mpg, as long as the American public is driving this initiative?

    Yours truly,

    _____________

    btw: I nominate Sarah Lee: aka: MY CARLADY for CAR CZAR!
    . www.mycarlady.com

    Category: AUDI, AUTOMOTIVE, Auto Finance Loan, BMW, CADILLAC, CARS I OWN, CHEVROLET, CHRYSLER, DODGE, FORD, FUEL ECONOMY, GMC, HUMMER, HYUNDAI-pronounced hun-DAY, Honda, INFINITI, JEEP, LEXUS, LINCOLN, MERCEDES BENZ, MINI COOPER, NISSAN, SMART, TOYOTA, VOLKSWAGON, WOMEN BUYERS, WOMEN DRIVERS
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  5. Auto Sales and Interest Tax Breaks 4 who?

    February 7, 2009 by My Carlady

    2/7/09 Las Vegas, NV 

    2009- Lincoln mkz

    2009- Lincoln mkz

    AUTO TAX BREAKS 4 WHO?

     

    So the newest round of automotive bailout theory involves giving tax breaks to anyone making less than $250,000 a year, BUYING a NEW Car for less than $49,500.00

    Okay, Car, truck, minivan, suv or crossover. Dodge, Chrysler, GMC, Ford, Chevrolet, Jeep, Pontiac, Saturn, Mercury, Lincoln, or any other brands are eligible.

     However, for the millions of folks that won’t qualify for a car note on a NEW vehicle or elect to LEASE or PAY CASH for a new 2009 model, this latest automotive stimulus effort means NOTHING. That’s right, $0.  This is a TAX DEDUCTION for the SALES TAX and INTEREST paid on the car loan. 

    Matt Hardigree of CarpocalypseNow writes; “Senator Mikulski’s amendment, the Auto Assistance Ownership Amendment, makes interest payments on car loans and state sales or excise car tax-deductible for new cars purchased between November 12, 2008 and December 31, 2009, which, in turn, will help more Americans afford cars during these tough economic times and spur investment in America’s ailing automobile industry.”

     

    I get the fact that buying a USED car doesn’t keep plants stamping, or automotive plant workers, truck drivers, parts manufacturers assembling, but I do think this latest proposal is amazingly one-sided.

    As the automotive industry as a whole employs 1 in 4 jobs directly or indirectly, let everyone participate in the program.  Give used car buyers, cash buyers and leasing customers a credit too! Why should only those able to qualify for the loan, be rewarded? Why do those with exemplary credit who qualify for a LEASED vehicle lose out on the tax credit? What about the folks that have saved and scrapped to pay cash or use the 0% offers, they should be rewarded for their fiscal resourcefulness, not penalized.

    Here’s the MYCARLADY AUTO STIMULUS AND TAX CREDIT PROPOSAL…

     Given that the average car loan is 72 mos. (6 years) and the average interest amount on that auto loan is $5,000… 

     Include all makes and models; 2007, 2008, 2009 and 2010 purchased between 12/31/08 and 1/1/2010.

    1. Leasing customers, including FLEETS, get $2500.00 income tax credit per unit.
    2. Customers paying cash for a car get a $5000.00 tax credit.
    3. Small Business can take the interest credit or the Sec. 179 deduction for capitalized equipment purchases, not both.
    4. Small Business owners can take the mileage deduct or the depreciation, plus the interest credit or the flat lease amount.

     What happened to the TARP money the car makers got?  Why wasn’t that money earmarked for car loans to consumers?  SO many folks need cars, want to buy, and can’t get a car loan, even at a 25% interest rate.  Realizing that credit has become so tight that many clients with formerly great 700+ credit scores are now suffering as their scores plummet, we need to get that money into the auto lending system so dealers can “move the iron”. The tax credit doesn’t mean anything if the consumer can’t buy, because there are no auto loan banks left. 

     This bill is misguided, rewarding a small percentage of the population.

    The proposed auto tax break initiative needs to be bundled with a serious directive to make the funds already provided to the automakers get funneled to the lending institutions that make car loans; prime and second chance.

     Now before you start screaming about “second chance” car loans, unqualified buyers, and predatory lending, hold on and breathe.  The banks already hold the dealers to minimal rate mark-up, and carefully “screen” every buyer. (SCREEN= call the person and grill them on everything from features of the vehicle to date of employment.). Second chance lenders often install kill switches and GPS devices to track errant car owners missing a payment. The systems are in place to monitor the situation, if dealers had the finance support to sell cars. There are buyers, like the housing market, but no banks to carry the loans.

     The “Minnows” as Senator Mikulski (Maryland) refers to the targeted public of this bill, needs a loan before a tax break.

     

    Sarah Lee writes about all things car related, is a constant car consumer advocate and car buyer’s agent. www.mycarlady.com for a great no hassle, deal on your next “tax break” car.

     

     

    Category: ACURA, AUDI, AUTOMOTIVE, Auto Finance Loan, BMW, BYD Chinese car, CADILLAC, CARS I OWN, CHEVROLET, CHRYSLER, Credit repair, DODGE, FORD, GMC, HUMMER, HYUNDAI-pronounced hun-DAY, Honda, INFINITI, JEEP, LEXUS, LINCOLN, MERCEDES BENZ, MINI COOPER, NISSAN, SMART, TOYOTA, VOLKSWAGON, WOMEN BUYERS, WOMEN DRIVERS
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