Ian Wittig

Company: BF Inc.

Ian Wittig Blog
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Ian Wittig

BF Inc.

Jan 1, 2017

Self Driving Cars News of the Week

Airbus to Unveil Flying Urban Mobility Prototype by End of 2017

Motor Trend reports that Airbus has finally arrived at the moment we’ve all been waiting for since Saturday cartoons: the flying car. The aviation company that is the pride of Toulouse (apart from the cassoulet of course) announced that they will unveil a working prototype by the end of 2017 of the Vahana, a self driving vehicle for passenger and cargo transport. Rosie the Robot can’t be far behind!

VW I.D. Buzz Concept Signals the Return of the Microbus

The Torque Report has more details of the Volkswagen concept car, the VW I.D Buzz. Equipped with the fully autonomous ‘ID’ mode, the Buzz is projected to arrive not before 2020 but will have plenty of space for guitars, surfboards, and other post-hippie/hipster accoutrements.

Artificial-Intelligence Developers: We?re Thinking beyond Autonomous Cars

Car and Driver also has reports of leaping into the future, as auto tech makers at CES talked about going beyond autonomous cars into ‘autonomous everything’. Nvidia, a supplier of autonomous technology, discussed plans for autonomous forklifts, tractors, buses and trucks in the future. No word on whether autonomous hair dryers, toasters or Cards Against Humanity will come out soon but one can surely hope.

The Latest Tesla Lawsuit Proves How Important Human Driving Still Is

Jalopnik recounts details of a South Korean case where a Tesla Model X crashed through the wall of a house when its owner was attempting to drive it, along with the owner’s insistence that the car and not his human error were to blame. The concept of ‘sudden unintended acceleration (SUA)’ is an important one to know as autonomous cars become ever more present, and will be a sophisticated way for teenagers to explain why they fail their driving tests in the future.

U.S. Has No Clue How Autonomous Cars Will Work: New Transportation Secretary

Jalopnik has a followup to their article last week about the state of US roadways with details of Elaine Chao’s confirmation hearing for US transport secretary. The comments made by the likely incoming secretary reveal that the massive task of updating roadways to meet the needs of autonomous technology might be left to a private sector who are more interest in profiting from the expansion rather than learning how best to do it. Shocker.

For more news on self driving cars, and whatever happened to Jet Screamer after his last intergalactic tour, visit vinadvisor and find out what Spacely Sprockets might be up to next!

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

Car Review News of the Week

The legendary film critic Richard Ebert said of the cinematic classic, “Freddy Got Fingered” that ‘ This movie doesn’t scrape the bottom of the barrel. This movie isn’t the bottom of the barrel. This movie isn’t below the bottom of the barrel. This movie doesn’t deserve to be mentioned in the same sentence with barrels.’ Luckily, none of the car reviews of this week are that bad…

Watch Top Gear’s Chris Harris Review The Hell Out Of The BMW M2

Jalopnik has a rip roaring review of the new BMW M2, courtesy of Top Gear reviewer Chris Harris. The video shows why Top Gear still matters, and regardless of how many Argentinians might get up in arms it still scores way high on the fun-o-meter.

2017 Volkswagen Golf 1.8T TSI Automatic

Car and Driver has some good news for Volkswagen (finally!) with its glowing review of the 2017 Golf, naming it among their 10 best cars for the 10th year running. It might not get any of those Volkswagen executives to come stateside anytime soon, but it will likely put a smile on some faces as they skirt extradition.

2016 Mitsubishi Outlander Sport GT Review

The Torque Report has a rundown of the 2016 Mitsubishi Outlander Sport GT, the model that has become the automaker’s focus since ditching its other models. While some of the changes give a refresh, the GT ultimately falls a bit short of a revolutionary offering. But still, higher up on the barrel than Tom Green…

2017 Honda Civic Type R Black Edition

Top Speed unveils some details of the limited edition of the limited edition Honda, set to hit US markets in the later half of 2017. The reviewers give high marks to the performance, specs and design of the car and note that it ‘pulls at the emotional heart strings’ of Civic lovers. Leave it to Honda to find the equivalent of a Tom Hardy rom-com for car lovers.

Mercedes-AMG S65, Bentley Continental GT Battle on Head to Head

Motor Trend has a side by side review of two proletariat classics, the Mercedes and the Bentley. With an “Expensive Car Option Price Guessing Game” and lots of fancy extras, these guys should really be wearing red polo trousers and boat shoes and TiVo-ing Downton Abbey (but only for the hunting scenes, of course).

Faraway Future? We Ride in Faraday Future’s FF91 Prototypes

Car and Driver thankfully saves us from going any longer without a Faraday Futures post with their review of the FF91. They climb aboard the Yeti of cars, confirming the existence of the mythic machine as well as the fact that indeed, it was able to park itself and did resemble an actual tangible motor vehicle. In light of the last few weeks, that’s probably as glowing a review as they could hope to get.

For more car reviews check out vinadvisor and be prepared for your fun-o-meter to fly through the roof!

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

How to Maximize New Car Incentives

Purchasing a new car is the largest investment most of you will ever make, second only to buying of a home. This means, buying a brand-new ride definitely isn’t light on the pocket. To get the best price on a new car with the latest features and technologies requires you to maximize available incentives. If you are looking for a new car, keep reading this guide to maximize yours.

Finding the Best Car Incentives

It is important to remember that there are three types of incentives: (1) incentives specific to the car you select, (2) incentives specific to you (loyalty or conquest offers based on what you own or drive) and (3) affinity incentives. There are over 1,000 different Affinity incentives offered by companies to select groups (Military — active and retired), members (Coscto, Sam’s, USAA) and employees (Comcast, Google) as benefits.

The best place to start is at a manufacturers site’s shopping tools where you’ll be asked to enter a zip codes (incentives are regionalized) to see incentives offered for the new car or truck you are interested in. Here you’ll find the vehicle incentives (consumer rebates, special finance and/or lease terms) and loyalty (if you own or drive the same product) and conquest (if you own or drive products targeted). When it comes to Affinity incentives, which can be anywhere from $500 to $2,000 or more, you’ll need to do some research. Check with your membership clubs (Costco & Sam?s), employer HR portal (GM and/or Ford Supplier plans), lenders (banks, credit unions) and credit card companies.

The challenge from here is getting clarity on all the incentives available to you on a select car. Dealers want to retain control over pricing until they get you into the dealership, so answers are usually hard to come by. It’s not their fault as manufacturers add complexity to your purchase by offering so many different incentives, not all of which are compatible, on the same model. Start with the vehicle you want to buy and then dig into to identify your best mix of incentives.

Tips to Get the Best Car Incentives

To get the best car incentives as possible requires thorough research beforehand and a few simple tips:

  • Negotiate the Price of the Car Before ?
  • Never begin talking about incentives, until you have negotiated the final price of the car you are planning to buy. This way, you can lower the costs by negotiation, then further drive the total cost low by leveraging amazing incentives.
  • Research for Multiple Manufacturers ?
  • Some makers of vehicles may offer better incentives as compared to others. To ensure you get only the best incentives, consider looking at different cars from different brands.
  • Work a Cash Deal ?
  • Oftentimes, when you plan to purchase a new car, you need to plan the financing beforehand. However, if your finances allow it, always work a cash deal out, as dealers will often lower the sales price with more cash up front.
  • Purchase at the End of The Calendar Month ?
  • Dealers are often pressurized into selling the remaining cars left in their garage, as the end of the month gets closer. If they have too much inventory, they are more likely to move their stock quickly and offer amazing incentives.

So, now that you are familiar with the tips mentioned above, finding and obtaining the best incentives for new cars won’t be a problem.

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

Ford F-Series News of the Week

Read the latest Ford F Series news of 2017 and browse the full collection of Ford F Series articles, photos, press releases and related videos. The F-150 is the light-duty version of Ford’s F-Series line of full-size pickup trucks. Read more exciting Ford F-Series news of the Week like these:

FORD REDESIGNS IT’S BEST-SELLING F-150 PICKUP FOR 2018

The confirmed F-150 mid-cycle refresh for the 2018 model year is largely a bunch of tweaks: a redesigned front-end grille and wheel options; bolder seat colors; first-in-class technological offerings; and a new diesel engine among other enhanced features designed to reach a broad cross-section of truck buyers.

ALL-NEW FORD F-SERIES SUPER DUTY EARNS 2017 MOTOR TREND TRUCK OF THE YEAR

The all-new 2017 Ford F-Series Super Duty — the toughest, smartest, most capable Super Duty ever — has won the 2017 Motor Trend Truck of the Year title — the first time the Super Duty has taken home this prize.

FORD F-SERIES SUPER DUTY IS THE 2017 FREE PRESS TRUCK OF THE YEAR

The new pickups are as much as 350 pounds lighter, more fuel efficient and stronger. They also tow more and offer roomier cabs and a brace of features that raise the bar for competition with commercial pickups and chassis cab trucks.

FORD F-250 SUPER DUTY

Brutish power and payload capacity remain key traits of the F-250, while aluminum construction brings it into the 21st century. A 6.2-liter V-8 with 430 lb-ft, a max tow rating of 15,000 lb, and a six-speed automatic are standard; a 6.7-liter turbodiesel V-8 with 925 lb-ft and a max tow rating of 32,500 lb is optional.

UNPRECEDENTED: FORD F-SERIES ACHIEVES 40 CONSECUTIVE YEARS AS AMERICA’S BEST SELLING TRUCK

When paired with advanced powertrains, like Ford EcoBoost V6 engines, the F-150 lineup offers the most hauling capability and best-in-class gas mileage.

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BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

Honda Civic News of the Week

The next Honda Civic Si coupe, traditional standard bearer of the Japanese sport-compact segment. In all seriousness, people are glad to see the Si return. As much as people are beginning to miss naturally aspirated performance engines, they are very curious to sample the Si in turbocharged form. Read more Honda Civic News of the week:

Battle of The Compact Turbos: 2017 Honda Civic Vs 2017 Hyundai Elantra Sport

The Civic packs a 1.5-liter turbocharged 174 HP (176 PS) engine, whereas the Elantra Sport is using a 1.6-liter turbocharged 201 HP (204 PS) unit. The Elantra Sport also comes with a 6-speed manual, whereas the Civic Touring tested, uses a CVT gearbox, so not exactly what we’d call a fair comparison, though you can get the Honda with a manual in EX-T trim.

2017 Honda Civic Type R BTCC racer revealed with striking new livery

Like the 2016 model, the new Type R racer is powered by a turbocharged 2.0-litre four-cylinder engine. It?s based on the road Type R?s unit but has been up-rated by Neil Brown Engineering.

2017 Honda Civic Hatchback: All Turbo, Available Stick

Beyond that the 2017 Honda Civic hatchback will be, quite clearly, a hatchback, its name is particularly fitting. Where other Civics come with a 158-hp naturally aspirated 2.0-liter four-cylinder engine, the hatchback will have as standard those models? optional 174-hp 1.5-liter turbocharged four.

2017 Honda Civic Type R Bids Farewell in Black Edition

The Honda Civic Type R Black Edition features a unique look of red end-plates that are attached to its rear wing. In addition, the interior is also primarily black with a few red elements. A report from Top Speed stated that the Honda Civic Type R Black Edition is still powered by a 2.0-liter turbocharged engine that delivers a 310 horsepower and 295 pound-feet of torque.

2017 Honda Civic Si fills the performance gap between Sport and Type R

One of the most distinctive styling elements is the center-exit exhaust, which features a single hexagonal tip. Of course, both ends of the car get red Si badges, and the whole thing rides on 19-inch wheels. Surprisingly absent, though, are Honda’s traditional “i-VTEC” stickers along the sides, which have appeared on Civic Sis since at least the 1999 model.

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

Top Auto Industry Videos of the Week

Comprehensive coverage of the automotive industry’s latest, breaking news brought to you by auto’s leading network of international journalists. Watch the 2017 Top auto industry videos of the Week:

Ford Just Revealed Some of the First Production Versions of Its Most Expensive Supercar ? The Ford GT

Ford recently showed off their newest supercar, the iconic Ford GT, by presenting some of the first production vehicles to be built. 1,000 GTs are expected to be built over the next four years. Watch this video to know everything you’d like to know about Ford GT – 2017:

2017 Nissan Altima is a capable sedan with the decent features

Curvy, dramatic styling mimics bigger brother Maxima and gives the Altima an upscale vibe. Engine choices are either an 182-hp 2.5-liter four or a 270-hp 3.5-liter V-6, both with a CVT. The SR infuses a little fun by adding stiffer suspension tuning, paddle shifters, and unique wheels. Watch the video to learn more:

 2017 Chevrolet Spark Activ – Debut at 2016 LA Auto Show

Chevrolet is now offering a slightly raised version of its new Spark subcompact with 0.4-inches more ground clearance, leading to the new Spark Activ. Watch the video to get updates about interior and exterior of Spark Activ:

Tesla just revealed new cars and Model 3 will have fully self-driving hardware

Tesla vehicles will now have eight surround cameras that provide 360 degrees of vision at up to 250 meters of range, the company said in its statement. The system will also include 12 ultrasonic sensors and an improved forward-facing radar that is capable of working in extreme weather conditions.

Watch New Land Rover Discovery Model in 2017

The reveal moment saw the Discovery maneuver across the giant structure with Ben Ainslie behind the wheel. Review the latest Land Rover discovery with test drives, car comparisons and shootouts plus coverage of breaking auto industry news, auto shows, rumors and spy photos.

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BF Inc.

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BF Inc.

Jan 1, 2017

Ram news of the Week

Fun fact: the original Dodge logo was made up of three interlocking triangles known as a ‘fratzog’ and was later changed into the iconic ram after someone noticed that the exhaust resembled a ram’s horns. Feel free to steal that little knowledge nugget for the next auto expo…off we go!

Ram to Build Current 1500 Along Redesigned Model in 2019

Motor Trend reports that Ram will debut a redesigned 1500 in 2018 but will continue building the older model, in an effort to bring the lower cost pickups to fleet businesses with the updated features being sold to retail customers. That’s right, Ram will not rest until absolutely everyone is buying one of their trucks, and from the sales figures they pulled last year, it won’t be long before they do.

Battle of the Brands 2017: Ram

Automotive News had more information about the 1500, with additional details about the retooling of the Michigan plant that will construct the truck. The $1.48 billion project will involve switching the factory from unibody to body-on-frame production, renovation of the paint shop and the construction of an on site test track. So basically like the 2013 Miss Universe competition (making America great, again)!

2016 Dodge Ram 1500 Review: The Off Road Beast that Rides Like an SUV

Auto World News has a detailed review of the 1500’s specs, calling it ‘a perfect pickup for just about anyone’. While listing the pros and cons, the review ultimately comes down on the side of the Ram, which is safe because those wheels look like they could crush you like a Cheeto. Best to stay on its good side.

2017 Ram Owner Wants to Know What His Remote Start Can Be Programmed to Do

Torque News has answers to that age old dilemma that has plagued our forefathers since we set rubber to the road: can the remote fob for my car activate my seat warmer? If not then what the hell is the point? The forum has some useful information for Ram owners about the creature comforts that their trucks offer because it’s not like we’re living in the Stone Age, is it?

Over 1,000 Ram Pickups Lap Nürburgring in World Record Parade

Finally, a little throwback from AutoBlog about one of the most epic uses of the Ram, in a story that surely made its rounds to every bar in Germany that weekend. Back in November, 1,152 Ram trucks stormed the Nürburgring Nordschleife to break the Guinness world record. The parade was arranged by AutoGlobalTrade and was held at a slow speed, so unfortunately the record for most Rams involved in a high speed crash on a corner was not attained. There’s always next year!

For more news on the Ram and any other anthropomorphic cars that will make you feel like a champion, visit vinadvisor and grab life by the horns!

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

Car Recall News of the Week

The past week has seen some major revelations in car recalls, with some big names coming under fire in the automotive world. Some of the news didn’t make major headlines- it’s almost as if other big news stories were going on this week, isn’t it? Can’t think of what that might have been…

VW Pleads Guilty to Criminal Misconduct, Six Employees Indicted

Motor Trend has more details of the settlement reached between the US government and Volkswagen over their diesel cheating scandal. The automakers was fined $4.3 billion and six of its employees have been indicted for their roles in the conspiracy. No word on if there were any high speed car chases involved in the investigation, but that would have been incredibly ironic.

S.Korea Approves VW Recall of Tiguan Vehicles

Wards Auto has more bad news for Volkswagen, as South Korea announced that it has approved the carmaker’s plan to recall 27,000 Tiguan SUVs to ensure that they comply with emissions standards. As part of the fallout from the diesel scandal, South Korea plans to review thousands of other vehicles, along with forcing Volkswagen officials to listen to ‘Gangnam Style’ on a loop for 14 straight hours. The ICC has cited this as cruel and unusual punishment.

Honda Recalling 641,302 Odysseys for Second Row Latch Issues

Auto Blog has details of a Honda recall of almost 650,000 Odyssey minivans for two separate issues that involve locking mechanisms for the sliding second row seats. The recall was announced before any injuries or deaths were reported, and a manual fix is in place for current owners. Carpool karaoke imitators around the world were said to be rejoicing that the beat will indeed go on.

Honda Adds 772,000 Vehicles to Takata Airbag Recalls

Car and Driver brings some more details of the Takata airbag recall, reporting that Honda has added 772,000 more vehicles to the recall list, bringing the total cars affected from the automaker to over 11 million. All but one of the eleven people who died in the US from the faulty airbags were in Hondas, and four people from Malaysia were killed by airbags in Honda vehicles. Takata could not be reached for comment because, well, everybody hates their guts.

Don’t Quit Trying to Fix Recall System

Automotive News has an editorial about the reversal of AutoNation’s decision not to sell new or used vehicles with pending recalls, citing the various dilemmas faced by car dealers looking to protect drivers while also needing to remain competitive in the market. In the wake of the recent high profile recall cases, they argue that the fight should still continue even though the odds may seem daunting. Sounds like someone needs a training montage and an old grizzled guy (or small green alien) to be their coach…

For more news on car recalls, and how to make the best purchase for you, your family, and your karaoke buddies, visit vinadvisor  because Mickey loves ya!

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Ian Wittig

BF Inc.

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BF Inc.

Jan 1, 2017

Top 5 Auto Advertising Lies

When we purchase a new car, trust is important since cars are so expensive. A Gallup poll recently discovered that while 85% of Americans trust nurses, only 8% trust car dealers.  Just how bad is that figure?  Put it this way, car dealers are last on the list…after Congress.  That’s right, Americans trust car dealers less than Congress.  Why?  One of the big reasons is auto advertising and just how misleading it is. Jim Dykstra of vinadvisor, Philip Reed of Nerdwallet and Jaclyn Trop tackle some of the lies to watch out for in auto advertising.

Hidden Car Shopping Fees

Hi, welcome to the top five ways that automotive ads mislead us. Let’s start with a lease ad. You see them all the time online, 199 a month for 36 months. Sounds great, right? Three things that you need to understand before you jump into the car and race down to the dealership, and the details should be included in the ad if you look at the fine print. First of all, what’s the mileage per year? Because the difference between a lease calculated at 10,000 miles per year and 15,000 miles per year can be $25 to $50 a month depending upon what car it’s related to.

Next up, what are the total taxes and fees that will be associated with that ad? Are they included in that lease price? Most likely not. And do you need to pay them on a monthly basis or shed a lump sum basis? And then number three: What’s the cash down or cap cost reduction on a lease? These three things can dramatically change the monthly payment and/or require a lot of cash out of pocket to get to that monthly payment.

Car Shopping Drive Off Fees

Thanks Jim, and here’s lie number two which is drive off fees. Yes you can lease that brand new Audi A4 for only $199 a month if, and this is a big if, you put down $4,500 up front. If you do that, you’ve just obliterated one of leasing’s great advantages which is preserving your cash flow, so it’s not a good idea to do that. You can redesign your lease and put down $1,000 or even zero if you want to.

Car Shopping Base Price

A classic game that car ads like to play is showing the most decked out, fully loaded, top trim, but advertising it for the price of the base model. In reality, the prices can differ by thousands of dollars and in some cases even tens of thousands, and we know, as Phil and Jim pointed out, that the price advertised usually doesn’t include taxes or drive-off fees.

Ad Cars

Alright, next up on our list of misleading automotive advertising is the ad car. If you see a price point on a car, it might be a monthly payment on a purchase or a lease or a specific sales price. In many cases, a manufacturer’s equipped a particular car to reach that ad price point. In other words, to entice the consumer to come in on that particular car. The challenge is normally this: Most dealers only order a few ad cars whatever is the minimum requirement to fulfill their legal obligation if you will. So a lot of times even if you wanted to buy the ad car that you saw online or on TV, there’s not a choice there, which means, just remember when you get to the dealership you’re more likely to see a more expensive model and more equipment and to pay more for the car simply because those ad cars are few and far between. One more time, where it’s buyer beware when you walk into the dealership.

Loyalty Cash

Here’s lie number four and this is a new one I’ve seen cropping up a lot lately particularly in newspaper ads, and that’s where they factor in a lot of incentives that you probably won’t qualify for. A typical one is the loyalty cash bonus which means that you’re buying the same make of car that you did the last time around, so if you do that you get $500 off, but not all that many people do that, so don’t be misled by these customer cash rebates and make sure you do in fact qualify for them.

Alright, so the five things we’ve discussed that every consumer should be thoughtful about as you’re in the process of buying a car. Number one: On a lease, make sure you check your mileage. That’s the first place where you can have a big delta between what you think you can drive and how you actually drive versus what’s being offered. Number two: What are the total drive-off fees in any offer you’re looking at: License plates, taxes, sales tax, and cash down expectations? Number three: Are we looking at the picture of the most loaded model possible and yet looking at the numbers for a base model car? It can happen. So just make sure that you’re comparing apples to apples. Number four: The ad car. A lot of times, manufacturer will have a specific vehicle packaged in a certain way so that they can get to the price point that entices you to come to the dealership, but in many cases the dealers don’t have many of those cars, so again you’re gonna look at a more expensive car when you get there.

And lastly, what I call the incentive of all incentives, a list of four or five incentives that might get you to a $5,000 or $10,000 off offer of some kind, but it’s highly unlikely most consumers would ever be able to qualify or be eligible for all those incentives. So keep that in mind as you’re shopping. Good luck. Hope this helps.

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Ian Wittig

BF Inc.

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Ian Wittig

BF Inc.

Jan 1, 2017

What Is A Fair Price For My Car?

Your car’s value is dependent upon demand and condition.

 

Good morning, Jim Dykstra for vinadvisor, welcome. We’re here, as always, to dramatically simplify your purchase and ownership of cars and trucks. So with that, let’s focus on the question at hand today, “What’s a fair price for my trade?” Or maybe what’s a fair price for my car? There’s really two components that are gonna determine the value of your vehicle, supply and demand, how many are out there, how hot or cold is that car in the marketplace right now, how often do they sell? And then number two, the piece you have the most control over is, what’s the condition of the car you’re driving? Is it in great shape or is it just in good or average shape? And remember, we all tend to think our car is in great shape, particularly when we wanna trade it.  We have several resources to help you when you are shopping for cars for sale, including our free car buying checklist.

So let’s take a look at what your car might be worth to a dealer and their perspective. In this example, a 2011 Chevy Equinox, most dealers start with the valuation of good. But most consumers start where we’re starting here, excellent, very good, and ultimately good. And that makes a big difference, because when you look at those three valuations of the car, from the highest single transaction point to the lowest, it’s about a $3,000 spread. But when you take the midpoint for those three conditions, excellent, very good, and good, it’s about $1,000 difference between those three cars, or those three values. And that difference is almost always related to the condition of your car.

Cars For Sale

So what’s the market of value of your car when you roll into the dealership? For your car to even be considered excellent, garaged, washed weekly, literally the kind of car when somebody gets in it, they say to you on a regular basis, “Wow, is this a new car?” That’s how good it has to look before you get to the dealership. A $250 detail is not gonna make the car look like that. A dealer looks at cars every day, they know. Very good, similar but a little more wear. Good is where most cars are gonna fall, and that’s certainly where most dealers are gonna start the valuation process. Fair, that means a little rough around the edges, probably hasn’t been in the garage very much, it’s got rained on more than it’s gotten washed, if you know what I mean, and it lives outside. So be honest with yourself about what the value of your car is. Just one simple attempt, wash it more often, that will make a lot more sense and help you in terms of valuation.

So let’s talk about the issue of, “Do I trade it to the dealer or do I sell it myself?” I get this question all the time. And the answer is, “Whatever the right answer is for you.” So a dealer starts by looking at a trade-in from good condition, if you will, and if you compare that to the value of that car, when you look at, say, a private party price on the marketplace, the difference between those two numbers is about $2,000. So most consumers would say, “Wow, for $2,000 I’ll sell it myself.” But here’s what you need to understand, to be able to garner that $2,000 of profit, you’re gonna need a couple things, ’cause the average dealer spends over $1,000, at least, to sell your car. $700 to recondition it, safety inspection, dealers always put new tires on, really just for liability, because if they don’t know the quality of the tires and there’s an accident, they’re likely to be in a litigation issue, so they always put new tires on used cars. And they’ll spend $300 to $400 advertising. So even after that, their cost basis really is $13,500, if they get $14,500 there’s about a $1,000 profit opportunity. And remember, it takes a dealer who does this every day, 30 to 45 days on average, to sell a used car. If you’ve ever listed a car for sale, taken it down to a consignment lot, and the phone hasn’t started ringing off the hook, you can understand it just takes a little time to sell a car.

So why should you trade it? From a risk standpoint, I think the most important thing to consider is, if you’re gonna go give your car to a person you’ve never met at the Costco parking lot, number one, “Are the funds he or she’s gonna give you verified? Do you have a cashier’s check? Are you sure the money’s good?” Number two, if you have a payoff to a lender, if you owe Toyota Motor Credit $3,000, $4,000, $5,000, or any other lender, consider how much risk you have, if the check for some reason isn’t good and you still owe a lender money, so you gotta make sure that gets handled. Number three, that kind of releases your liability risk. So now the dealer has it, it’s his responsibility to make sure all the recalls are looked over and the car is safe to sell when he’s ready to sell it.

A lot of reasons to trade a car into a dealer not the least of which is time and money. And by the way, step one for most people when they’re first getting in the market, whether they wanna buy a new or a used car, is to look at their used car or the car they own right now, and which one they plan to trade, and try to figure out what’s it’s worth. The simplest way to do that is if you live in an area where you’ve got a CarMax, stop in. They’ve done a brilliant job of allowing people to come by, get a full appraisal on the car, and they’ll give you an offer good for 10 days on that car. Now you know where the baseline is, that’ll help you tremendously in terms of figuring out whether it’s time to trade, what you’re able to trade for, etcetera.

So, good luck and thank you from vinadvisor.

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Ian Wittig

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1 Comment

Maddy Low

DrivingSales

Jan 1, 2017  

This is a very interesting article that I plan on sharing with people not in the industry so they can maybe get a glimpse of why trade-ins are a great deal! 

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