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Showing posts from October, 2017

Car Salesman makes $200,000 a year

In today's world the title of this post doesn't really happen anymore. The day's of car salesmen or women making big money are pretty much gone.

According to the Bureau of Labor the average car salesman makes $42,150 a year.

There is a trend in the car business to attempt to increase profit by lowering employee expenses (i.e. payroll). A lot of dealers are turning to a salary program. On this program sales people get paid a weekly salary and have to chase unit sales over profit. And, at the end of the month the salesperson will get paid a bonus on the number of units he/she sold.

Here is the good and bad of what we see in the industry at dealerships that utilize a salary program.

1) Dealer initially increases net profit

1) After a few months the dealer's employee turn over rate goes up
2) Total profits go down
3) Unit sales go down (related to turn over)

That's right there is typically only 1 good factor for a dealer when utilizing a salary program for s…

What's For Lunch?

Did you know that the most talked about thing in a car dealership in the morning is, "What's for lunch?"

This is why you need to take control of your car deal by knowing all your rights and through a proper buying process. If you do not take control you will have the same buying experience you have had in the past.

Here is why you need to take control:

Dealership employees are lazy. Yes, we said it. Because we understand it, we have been there and we see it every day.

This is the largest purchase the average consumer ever makes outside of their home purchase.

This is your money and you deserve the right to be fully informed and treated properly.

The more you know, the more power you will have to control your vehicle purchase transaction. Keep the dealer honest and make them work to have the honor to sell you a vehicle.

Learn more about how to take back control of your car deal at

Gifting a Vehicle

Can I give me child my car to use as a trade-in and save on taxes?

Yes and No. This all depends on your state's tax rules. But typically in most state's you can gift your vehicle to immediate family, which they can trade-in and lower the tax liability. Please see your local tax office for more information.

Now, if you do live in an area where this is allowed by law, you have every right to do so, even if the dealer does not want to fill out the extra paperwork.

Your Car Buying Rights

Do you know your rights?You have the right to be treated fairlyYou have the right to be properly educated about buying a carYou have the right to having your private information protectedYou have the right to know what the dealership is doing with your informationYou have the right to know who is veiwing your creditYou have the right to know how your credit is being usedYou have the right to know ALL of your financing optionsYou have the right to question the dealerYou have the right to question the car dealYou have the right to enjoy purchasing a vehicle

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Arbitration Agreements and Car Buying

Why do you have to sign an Arbitration Agreement?

If you are purchasing a car at a dealership that uses an Arbitration Agreement, then if they make one customer sign it, then all customers have to sign one. 

A dealership does have the right to refuse you the right to purchase a vehicle from them if you do not sign the Arbitration Agreement. And, in some states an Arbitration Agreement is a requirement by state law.

Now with that being said, you are NOT truly giving up your rights. All you are doing is agreeing that you will go to Arbitration first, if an issue arises between you and the dealership in regards to your purchase.

Learn more at

Control Your Car Deal

If you want to control the process of buying a car, follow these simple steps and you will have control of the dealer:
Do your online vehicle researchSubmit inquiry to dealershipSet an appointment with the dealership's internet departmentDrive to the dealership ask for the manager and let them know you have an appointmentMeet designated salesperson who will be handling your transactionView the vehicle and take test driveAsk to view the service driveMeet Used Car Manager and walk around your trade-in with themAsk for your keys back before, salesperson comes back with numbers to negotiateAsk to see all your finance options when reviewing numbersNegotiate numbers directly with the ManagerWhen you have agreed on numbers, ask to meet the Business ManagerOnly discuss credit with the Business ManagerHave salesperson go over and set up any special electronic options the vehicle may haveBusiness Manager comes out to get you to process your paperworkReview your finance product options w…

Why is your credit score different when buying a car?

When applying for an automobile loan, typically the banks or financial institutions used an enhanced view of your credit which is more focused towards your auto loan history. This is called "Auto Enhanced".

Also, not every bank uses the same credit bureau when determining the credit worthiness of an applicant, and note every lender reports to the exact same bureaus as other lenders. For i.e., you might have checked your TransUnion score before you go to the dealership and then the dealership pulls an Equifax report. The scores can be different. 

Another example, is that Lender A reports your good pay history to Experian, yet does not report it to Equifax and the bank that you are looking at only uses Equifax. Then the scores would be different.

Mississippi Law - Extended Service Plans

Automotive Dealers in Mississippi offer both Manufacture backed and third party extended service plans. But did you know back in 2014, the House voted on Bill 581 (which went into effect in 2015) which provides added protection to the consumer.

Under Bill 581, the dealer is required to not only verbally tell the consumer, but also have the consumer acknowledge in writing that the extended service plan that they have been offered and are purchasing is not a manufacture backed product.

Why did they do this?

Well we can't say exactly why they did this, but we can say it is included in a Bill that protects Dealers in the event of a shut down of their location or product by the manufacture.  This looks to be a compromise to keep the manufacture and their interest groups happy with the full Bill.

What does this mean?

This is a good thing, it is added consumer protection. Dealers are required to properly inform their customers of their products and who backs them.

Consumers need to know e…

Do you need GAP coverage?

This is a personal question. But, from a finance point of view banks and finance companies typically do not allow GAP to be written on a vehicle finance contract if the amount to finance is less than 80% of the vehicles value. This means that you had 20 to 30% down or an equivalent amount in equity in your trade in.

Even with this being said, for people who drive more miles year than the 15,000 miles a year norm, a case can be made for GAP as their vehicles will depreciated fast than normal. In this case, at your request for GAP, a dealer can contact the finance company and request an override on their amount to finance GAP policy minimum.

There's more to buying a car than just price

In today's world there are sites all across the internet asking for you to visit them for the best price on a vehicle. And don't get me wrong, price is important, but there is more to buying a car then just price.
There are interest rates, term of the loan, is the car new or used, do you need extra coverage like GAP or an Extended Service Plan, is the Dealer reputable, even though the price is the lowest is it really a good deal, where are you going to get the vehicle serviced, and what are the cost of repairs going to be. Just to name a few other considerations you need to take into mind when you purchase a vehicle.
These are all things you need to understand before going to a Dealer to purchase your car. Without knowing this information you can feel like the Dealer is not helping you but just trying to get over on you.
Let's take a look at just one of the major components of buying a car. There are two types of car buyers; the one that pays cash a…