1. BEWARE of SCAMS with CASH for Junkers

    July 13, 2009 by My Carlady

    BEWARE of CASH for Junkers SCAMS!

    1996 CHEVY Corsica

    1996 CHEVY Corsica

     

    It never ceases to amaze me how someone can ruin a good thing. Here our government has created yet another form of automaker stimulus in the form of CASH for CLUNKERS. CARS, as it is properly called, is designed to get old, gas guzzling cars off the road in favor of more fuel efficient vehicles. It doesn’t hurt the economy that you have to buy a NEW car or truck, suv or van, to get the $3500-$4500 rebate.

     

    HOWEVER, in less time than it takes to say, “START YOUR ENGINES!” along comes a dealership using the CARS: CASH for JUNKERS program to RIP-OFF the public.

    Read below the inquiry I received just days ago, and my response…

     

    John asks, “Question on auto sales tax in NJ. We just signed a sales contract based on cash for clunkers in NJ and found that the dealer wrote the contract and estimated (charged us) taxes based upon the MSRP and not the sales price agreed upon or using the cash for clunkers trade in of $4500. The red sales sticker price on the 2009 car was $15,300 not 18300 etc but 7% was charged on $18300. Should not the tax have been charged on the actual sales price of $10,555 rather than the msrp that was never even discussed? 

    Will buyers be required to pay taxes on the $4500 cash for clunkers trade in to state taxing authorities?  Looks like NJ auto dealer we purchased from taxed us as the tax was figured on MSRP?”

     

     

    MYCARLADY answers:- “You ARE NOT subject to federal income tax on the CARS rebate.  Having a trade-in of $4500.00 should give you some sales tax credit in most states. The dealership “estimating” sales tax on the rebate is pulling a SCAMto get more profit by adding the “estimated tax” to the selling price. Futhermore, MSRP has NOTHING TO DO with it. Selling Price is the NEGOTIATED Price. 

    I think dealerships advertising the CARS program and telling consumers they are getting the $4500.00 from the government program NOW, are setting themselves up to be banned from authorization, as consumers need to COMPLAIN to the www.cars.gov, their local DMV or Attorney General dealer licensing division, about the specific dealerships and their tactics. This should NEVER have happened.–slm

    If you or someone you know has experienced this type of B.S. email me the name of the dealership and the consumer and I will forward it to the appropriate authorities!

     

    READ MORE HERE ABOUT CASH for CLUNKERS.

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    NEED AUTO FINANCE HELP or CREDIT report repair go to tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.

    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 writes 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: AUTO STIMULUS BAILOUT, AUTOMOTIVE, CARS, CARS I OWN, Car rebates and incentives, FUEL ECONOMY, NEW CARS under 15k, WOMEN BUYERS, WOMEN DRIVERS, women car buyers
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  2. GMC "CAR LOANS" AVAILABLE

    January 2, 2009 by mycarlady

    1/1/09 Las Vegas, NV

    The great auto bailout of 2008 has begun. GMAC has announced that they will now offer car loans to consumers with less than a 700 FICO score. WOW.  The reality is that the Big 3 have ignored dealers pleas for financing their customers, because a) they had no money to loan b) not giving car loans would pressure congress to give them the bail out cash.

    They got the cash, so now everyone with a 621 or HIGHER FICO score can get a car loan. Right? Wrong.  What they don’t say is now that they have a BANK CHARTER, will they use the FICO AUTO credit score, which heavily factors the consumer’s car loan payment history, or the “middle” score of all three credit bureaus, a general average of how the consumer pays all his/her bills overall?  The later could prove to be more beneficial to the car buyer with spotty car payment history but solid mortgage payment status.

    However, those individuals with housing foreclosures, bankruptcy. medical or heavy credit card debts  but good car payment records, could get tripped up on the “middle” score.   The winners will be the credit report repair companies that traditonally fix all three bureaus errors, with no particular attention to risk factors of FICO AUTO scores.  Add to that issue, many car loan companies have a credit bureau preference, which could affect which car a consumer seeks out, based on the credit bureau he/she shows more favorably.

    Dave Smith recently purchased a Mazda3 with a 650 Equifax credit score. Having been offered a 17% interest at the Toyota dealership, where his TransUnion and TRW AUTO scores were lower than 650. “The Toyota dealership said their banks like certain credit bureaus and those were not the ones I was highest one. The interest rate on the Mazda3 was 12.99%,” Smith added.

    GMC needs to make public, exactly which 621 FICO they will use going forward, the AUTO score or the MID-score of the general report. I’m betting they stick to the auto score, as it assess the likely default risk more accurately. Let’s face it, houses can’t be driven across the border (most of the time).

     

    Want to compare rates? CLICK here.

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    Sarah Lee is a veteran of the automotive industry. She writes on all areas of car and consumer subjects. Her company My Carlady helps save you thousands of dollars and time buying your next car. You can reach her at sarahlee@mycarlady.com

    Category: AUTOMOTIVE, CARS I OWN, CHRYSLER, GMC, women car buyers
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  3. HOW TO BUY YOUR NEXT CAR: Auto Buyer Agent or Car Broker?

    December 29, 2008 by mycarlady

    12/28/08 LAS VEGAS, NV 

    2009 Toyota Venza

    2009 Toyota Venza

    CAR SHOPPING SUCKS right? Wrong. For those individuals smart enough to find an Auto – Car buyers’ agent or Auto broker, the ability to car shop from home or office is the ultimate master plan. 

    You use a real estate agent when you buy a house, a dentist for your teeth and doctor when you’re sick, why wouldn’t you seek out a professional EXPERT when considering the formidable task of shelling out THOUSANDS of dollars to buy a car?   Busy executives and professionals have used brokers for years.  Now you can appreciate the ease of car shopping, if you pick the right expert for your next car purchase. 

    There is a difference between an auto-car buyer’s agent and an auto broker…

     The Auto broker often has a used car license, allowing him/her to sell the trade-ins or purchase cars at auto auctions for resale at their lot.  Brokers typically have an escrow account where they deposit the clients funds until the car arrives.  There are brokers that only handle NEW high line or luxury cars over a certain dollar amount. You must have your credit line in order and know how you are paying for the vehicle, as many brokers do not provide direct to lender financing.  They may have access to provide factory incentives and financing/lease programs through a servicing dealership, but you should ask these questions up front. Most brokers want you to have the car picked out, know how you will pay for it and be ready to move forward once the vehicle is located or ordered with a hefty deposit. (no backing out.) Brokers are paid a commission, percentage or mark-up on the car you are buying from them.  They are not required to disclose the amount. In most states a broker must have a dealer license to operate.

    Auto-Car Buyer’s agents act on behalf of the client. They often work from home or office suites, usually visiting the client at their home or office. Auto buyer’s agents charge a flat fee for their consultant type service. Agents do not mark-up the price or purchase cars for resale, the flat fee of typically $300-$500.00 is paid by the client upfront.  A contract protects the buyer and agent, should one or the other terminate the process. Most Agents will not refund fees once the shopping is initiated or if the client decides not to buy, however, some exceptions are usually outlined in the agreement.  Agents will sell both new or used vehicles in a wide range of prices.  Given the needs of the client, the agent will help locate, negotiate and deliver the new or used vehicle.  All contracts, monies and financial information regarding the customer are strictly confidential and pass directly to the selling dealership, including warranties and aftermarket service.   Buyer’s agents will arrange test drives, coordinate discussions and car comparison’s if you aren’t sure what car you want or can afford, and will direct you in a limited manner to get the right car. You need to be ready to make a decision quickly if the car is available, as most agents will limit the number of car’s presented for consideration.  Financing and trade information should be addressed upfront, to eliminate misunderstandings or lost opportunities, especially with used cars.

    Auto-Car Buyers agents are licensed as business owners, and in some states are also required to have a used car dealer license. 

    Things to know before you contact a Buyer’s Agent or Broker:

    1. Have the specific car(s) or price range and needs before making contact.

    2. Know your credit score or approved loan amount before deciding which car to buy. If you don’t know your score, ask the agent/broker to pull your credit before you start shopping out of your wallet.

    3.  Get references on the broker or agent you are working with. Check the Better Business Bureau or www.rateadealer.com for complaints.

    4.  Ask to see their contract and have a consultation to be sure you and he/she are on the same page.

    5.  Decide what features are optional and what are MUST-HAVES and provide this information upfront.  I use a questionaire to be sure I haven’t missed any crucial bits of info., like: must hold large dogs, elderly parents or four golf bags.

    6.  Ask about registration. Does the broker/agent handle it or will you be going to DMV or paying a service to get your license plates.

    7.  If your trade a vehicle, find out who is making the pay-off, the selling dealer, broker or you?

    8.  Only take delivery in daylight and inspect the car thoroughly BEFORE signing paperwork. Note any details that must be corrected on ALL copies of your contract.

    9.  If the selling dealership must approve changes or modifications, get them to sign-off before taking delivery. Promises don’t count unless they are in writing, signed and dated.

    10. The best thank you is a referral. If you are pleased with the service of your broker or Auto-car buyer’s agent, send them a thank you letter with permission to reprint, or post. 

    As I always say, your referral is my greatest compliment. SO next time you are looking for a new or used car, truck, van or suv, don’t schlep to the dealership or stick your name all over the internet car buying websites, call an auto broker or auto-car buyer’s agent.

    [youtube=http://www.youtube.com/watch?v=Z20fDkcX5wQ]

     

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    Sarah Lee is MyCarlady.com, a 20yr. veteran of the car business and consumer advocate. MyCarlady.com is a network of auto-car buying agents anxious to dispel the fears of consumers that all car sales people are nasty. The MyCarlady approach is as an auto-car buying agent acting as your personal car conceirge. You can reach her at sarahlee@mycarlady.com to request her free guide and worksheet tools for selecting the right car for you!

    Category: AUTOMOTIVE, CARS I OWN, women car buyers
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  4. My Carlady News from the Street!

    December 16, 2008 by mycarlady
    Miles of Smiles Club and News from the Street…

    My predictions for 2009 and the Automakers bailout.
     
    The Detroit Big 3 will consolidate in 2009. Watch for Mercury to go away and Lincoln to become the luxury division of Ford, to be relocated to Ford showrooms. Ford dumps Saab. Chrysler will become Dodge-Jeep and maybe the 300, if any car remains. GMC will dump Pontiac, Saturn, leaving Chevy and GMC trucks to battle for position. Some cars will become collectibles and others will be obsolete. Which ones? That’s why you have me… Carlady@cox.net  
    Leasing: It’s not dead, but it’s seriously curtailed to specific cars in each automaker’s portfolio. Nissan: Altima, Toyota: Camry, Lexus RX350 and ES350, Honda Accord and Civic, Infiniti GS37, Audi A4, VW Jetta. These are the hot ones right now.
     
    USED TRUCK DEALS:  If you need a good work truck or Caliber these are being made available through one of my Miles of Smiles faithful friends.  If you are interetsed in making an offer email me: sarahlee@mycarlady.com I’ll send you pictures.

    1999 Toyota Tacoma 4X4 extracab SR5 with auto 184,104 miles 3.4 liter v-6
    2001 Ford F-150 4X4 supercrew XLT 155,236 miles 5.4 liter v-8
    2003 Ford F-250 superduty extracab XL, 2wd, auto, 5.4 liter v-8 gas, 82,000 miles
    2004 Ford F-150 extracab longbed XL, 2wd, auto, 5.4 liter v-8 gas, 95,900 miles
    2007 Dodge Caliber, 2.4 liter with CVT, 33,644 miles awesome condition! 
    2005 F-150 extracab 4X4 FX4 flareside, 64,200 miles, 5.4 liter v-8

    I still have the 2004 BMW convertible too! It would look great under the mistletoe or HanukCAR lights.

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    AUTO CREDIT ADVISORY 
    The auto industry is not making getting a car loan easy. Chrysler, Ford and GMC are not making loans to small business or consumers unless the buyer has 30-40% cash down and over 700 AUTO FICO scores. Chase, BofA, CapitalOne and local credit unions are picking up the slack, but VERY selectively. If there is ANYTHING derogatory on the credit bureau, you can forget a great rate. A great rate today is 6.99% for 72 mos. available only to those with 720+ Auto FICO scores. The special incentive rates offered by the car factories are only available to the over 700 FICO owners and you must have 20% cash down to cover tax and fees. Any negative equity from a trade must be covered with additonal cash down. In other words, the bank is only buying the wholesale value of the car AFTER rebate or 80-90% of the wholesale value under the most conservative cases.  Those of you with two car loans in your name, co-signed or otherwise, can expect to see a one person, one driver policy going forward.

    Second chance lenders have all but disappeared, leaving one or two demanding 25% interest and 3000 cash down. If you are currently in a bankruptcy forget the car loan until you are discharged. Those with discharged Bankruptcies can expect a min. of a 22% interest rate, 2000.00 cash down and a cap of $10,000.00 on the vehicle value.

    If you have low secured but high revolving debt (credit cards) of 40% or more, be prepared for a higher interest rate. CONSIDER THIS: The next wave of car loans to those with bad auto loan history or high revolving debt will be GPS moniters and shut-off devices in the cars. If the loan is late, the car won’t start. If you’re a month down, the car is ”located” and repo’d.  Welcome to my world. If you want to know how you can clean up your credit report and raise your FICO score, call me, I’ve got a great tool with a 100% money-back guarantee.  carlady@cox.net Subject line: CREDIT REPORT FIX
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    2009 Toyota Venza has arrived.

     
    2009toyotavenza 

    This compact crossover fits between the Matrix and the Rav. Slightly larger than the Dodge Caliber, this is a five seater packed with features and upgrades usually available in fancier models. No thrid row seat or tow capacity, but it drives like a Toyota, smooth and reliable. You have to like the nose on it. Available as a 4 and 6cyl, the price STARTS in the $25K range but quickly runs to $30K with leather. I’m not sure I can justify that price for the size compared to other Toyota/import products. You be the judge. Watch for my Venza car review on YouTube or my blog: www.everythingcars.wordpress.com later this week.

    Category: AUTOMOTIVE, DODGE, GMC
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  5. CREDIT CRUNCH CRUSHES AUTO BUSINESS

    November 29, 2008 by mycarlady

    11/29/08  Las Vegas, NV

          If you run your own credit via an online service, DON’T bet on that score when shopping car loans. The car banks; factory captives, local credit unions and independent banks are creating their own model to determine the lowest possible risk of repossessions.  No longer is a 700 FICO an automatic shoo-in to the lowest interest rate or a second car. 

    “Recently a client wanted to have her father co-sign for her first car,” a salesman told me, “and the bank said no because he had signed on the car loans of two other children. His score was 720, the other children were making the payments perfectly, and his debt to income was in line. The bank said no. Too many cars.”

    Add to this concern of too much auto debt, a growing list of car companies opting out of leasing. In the car market today, the bank controls the car deal more than the dealership. Today the average car loan is 6 years/72 mos. and some banks will offer 84 month loans on cars worth more than $45,000, to those with 720+ scores and a low debt ratio. Add to the car loan debacle, if a consumer visits many dealers and allows their credit to be run too often or the dealer sends the application to too many banks, the consumer shopping can find him/herself burned out by too many inquiries to the WRONG financial institutions. 

    So what can consumers do to protect themselves?  Don’t run your credit at every dealership you visit. When you find the car you want, settle on the price and then run the credit report. Ask to see the report to be sure the information on your report is correct, and you see the numbers. Any score under 700 is no longer an automatic A tier. In fact, some car companies now deem anything under a 700 score an automatic B tier, suggesting a higher interest rate.  A 650 isn’t an OKAY score these days. “Anything under a 625 FICO AUTO is an automatic +13% interest rate in today’s auto loan market,” one dealership finance manager reports.

    Be prepared to have 10% cash down or a trade-in with equity. If you have a car that you owe more than it is worth, double the cash down. Rebates on some models may help reduce the cash out of pocket, but don’t expect to lower your current payment without some financial participation.  If you have error on your credit report consider using a legitimate, verifiable and guarantee-back company to dispute the errors. It may take 6-8 mos. but the results could be well worth the monthly fee as it saves you a ton in interest on all your future credit purchase. (more later on this.)

    If you have had a repossession, bankruptcy, foreclosure or multiple late payments on your auto loans, be ready to show proof of income, residence, tax returns and more. Second chance financing is popular in many states, but you need to understand the process before grabbing the keys.  Understand the interest rates of 20% plus are not unusual in states without usury laws. Simple interest contracts vs. compounded are often misunderstood by individuals with credit challenges, so  ask which contract you are signing, BEFORE signing.   The N.Y Times recently reported car loans for high risk clients are at an all-time high, along with defaults.

    Car dealers everywhere see more rough road ahead as consumers once boasting 700 scores and those facing financial hardships find they must come to the table willing to work together with the bank, to make the best deal.  The automakers request for bailout assistance must make automobile loans to consumers a cornerstone to it’s plan, or forget stimulating the economy. Consumers can expect to be told that their cars will not start if they miss a payment, and any failure to pay will result in long-term harsh penalties including an inability to get future car loans, auto insurance and other such punitive practices.

    The ability to buy or sell a car is no longer in the hands of the salesman and his dealership, the bank now controls the entire process, deciding “who will drive and who will not.”

    Sarah Lee is a 20 yr. automotive executive writing on all things car related. You can get a great no hassle, personalized and professional car deal through her www.mycarlady.compersonal car buying concierge service anywhere in the US.

    Category: AUTOMOTIVE, CARS I OWN, CHRYSLER, DODGE, FUEL ECONOMY, HYUNDAI-pronounced hun-DAY, Honda, NISSAN, TOYOTA
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