Wednesday, November 08, 2006

Buying a Car on the Internet Sight Unseen by Chris F. Herbert
Buying a New Computer... Or Car... on the InternetFor over two decades, Dell, Inc. has been wildly successful at bypassing the traditional stores and selling computers directly to consumers, custom-assembled according to a selection of options. The promise of convenience and savings, along with Dell's strong company reputation and their backbone of customer service have helped ease consumer fears of buying a relatively expensive product sight unseen. Gateway and other computer makers have since embraced the online medium and are now enjoying a similar success at a varying degree. It won't be long before buying a new car online is not going to be much different than ordering a new computer. Some German manufacturers have already caught on to this emerging trend. A BMW enthusiast, for example, could configure and order a new M6 months before its official entry into the US market. He or she could then track its progress through the manufacturing facility online similarly to the way one would track the progress of one's new Dell. However, buying a new car online sight unseen is not a very risky proposition. One knows what one is getting and there is franchise dealer and a manufacturer standing behind it.Buying a Used Car on the Internet - a New Breed of ShoppersWhat about the used car market online? How can consumers quantify the risk they are taking buying a used car sight unseen to make sure it is justified by the savings of such purchase?Historically, conventional used car buyers have been able to kick its tires, take it for a spin, and haggle over the asking price of the car they like at their local dealer since the invention of the automobile. Because of the internet, a considerable number of these "conventional" used car buyers have found a myriad of ways to harness the power of the ever expanding online automotive resources and tools available at their disposal to make informed buying decisions.It is from those online savvy buyers that a new breed has emerged - those who buy their used cars online, sight unseen. Although they represent a relatively small portion of the used car buyers, these brave souls see an unmatched advantage and find ways to minimize the risks. But what's in it for them, one might ask? Simple, actually: selection and price. The internet offers easy access to a vast selection of vehicles worldwide - online car portals, classifieds, conventional dealers with online presence and pure online-only outfits(online used car brokers and auto auctions) to name but a few. Since most of them are looking for a specific vehicle, their chance of finding "the one" is far greater online compared to the confines of their local area.Needless to say, virtually all of them are looking for a bargain. Our brave souls take risks, but these are justified, at least in their eyes, because of the savings they realize by utilizing the online channel. How do they do it? They, too, are well-armed with the online tools they need to make intelligent buying decisions. Here is how these online tools help them through the decision-making and buying steps of the process.Fair Market ValueDetermining whether a particular car is a bargain is a function of understanding its fair market value given its condition in the context of the current supply and demand. For the non-economists, of course, there are a number of excellent online market valuation sources available. Kelley Blue Book, NADAGuides, Edmunds.com are some of the most widely used car pricing providers. They all base estimates on a large number of recorded transactions and provide appraisal adjustments for the year, make, model, mileage, options, condition and even local market trends. As their appraisal algorithms differ slightly from each other, the estimates may vary, so checking more than one source is recommended. There are three major price levels: trade-in (or wholesale), private party and retail. Trade-in is what one would expect to get from a dealer for one's used car - it is the lowest of the three averages, but it's important to know as a baseline. Private party is what one would expect to get if one sells a car to another person, and retail is what one would pay for that car at a used car dealership.Third Party Vehicle History ReportsIn addition to the seller's honest word and availability of service records our prudent innovators tap into the same third party vehicle history report providers the rest of the used car buyers use. CARFAX and Experian's AutoCheck, initially serving the automotive professionals only, have been available to the general public for a number of years now. For $24.99 CARFAX offers 30 days and AutoCheck offers 60 days of unlimited vehicle history reports. These provide extensive reporting on the vehicles' recorded history: date and type of registration and renewal events, as well as checking for recorded incidents, odometer rollbacks, junk, salvage, rebuilt titles, insurance loss, theft, lemon buybacks, etc. Many dealers realize the convincing power of stating the recorded facts and now offer free vehicle history reports for the cars they sell.Car InspectionsIndependent vehicle appraisal/inspection services with online presence have also seen a boost in their business. For $99.95, CARCHEX offers to give any automobile a 155-point pre-purchase auto inspection almost anywhere in the USA. Not too high a price for peace of mind, especially if it can save one from having to deal with surprise repairs. For half of this amount, one can find a mechanic in the local directory who can check out the car and even take it for a test drive on one's behalf and then fax a detailed report. Nevertheless, some of the more thrifty buyers have found ways to save themselves the nominal fees mechanics charge without depriving themselves of the peace of mind of a pre-sale inspection. Say, I live in Boston and happened to find a 1974 BMW 2002tii that I really wanted all the way in San Diego. Now, I would definitely want the car inspected prior to buying it. My thrifty side, however, wants to avoid the $150 fee a local company would charge me to inspect the vehicle. The solution? I would ask a fellow member of the BMW enthusiast community who lives in San Diego to take a look at the car for me. There are plenty of BMW forum members that would be more than happy to offer their time and expertise to a fellow east coast bimmerphile in need.ShippingThere is a sea of car shipping companies that would gladly bring our pioneers their newly acquired vehicles home at a reasonable price. One example, Dependable Auto Shippers operate a fleet of state-of-the-art, satellite tracked vehicle shipping transporters, which allow one to track one's car while it's on its way much like one would track a package. Yet, a healthy number of this new breed of used cars buyers opt for driving their new purchase home on their own instead. It's cheaper, it's faster, and admittedly, it's much more exciting. Sellers specializing in online sales of this kind have also adapted to accommodate the demands of this new kind of used car buyer. Airport pickups for our weary yet eager buyers are more or less industry standard, these days. Sellers specializing exclusively in online sales, providing a hot meal for their 'guests' at the family table before they depart on their voyage home, is not unheard of.Although buying a used car online sight unseen is not for the faint of heart, it is a growing phenomenon, which if executed carefully, could be a very rewarding experience for all parties involved.

Friday, October 13, 2006

No-Hassle Approach When Purchasing Your Next Vehicle

Enjoy a No-Hassle Approach When Purchasing Your Next Vehicle by Morgan Ward
There is just something about a new car smell, isn't there? The aroma of new leather and upholstery conjures up images of blissful car rides and the enjoyment of the open road. However, it is the journey to getting that new car that can be a pain in the neck. On the other hand, thanks to BJ's Wholesale Club, your new car buying experience can be a pleasant one. You are probably wondering what BJ's has to do with buying a new car. The answer is simple. The same company that has brought you the best pricing and deals on groceries, jewelry, clothing and other consumer products has thrown their hat into the auto buying arena.
The result of this new role for one of the most popular warehouse clubs around, is BJ's Auto Buying Program. How many times have you dealt with a slick car salesman that just does not seem to hear what you want and need in a new car? All the hassling and all the haggling over a vehicle's price tag can not only be a headache, but it can also take away precious time that could be better spent elsewhere.
BJ's strives to bring you the best pricing around when shopping for a new vehicle. The way the program works is easy for all parties involved. BJ's Wholesale Club has arrangements with select dealerships in your area to bring you an affordable deal for a new car without all the hassles and haggling over price, keeping your blood pressure on an even keel! Each participating dealership has an authorized salesperson who specially handles any BJ's club member. Only this authorized salesperson has the power to bring you a great deal at a special BJ's Wholesale Club price.
Through BJ's Auto Buying program website, you can fill in a number of parameters in the auto search engine in regards to what characteristics you are looking for in a new car. You can specify the particular make and model you are looking for, in addition to whether you want a two-door car or a four-door sedan. You can even choose a truck as well. If there is a specific budget you are trying to stick to, that information can also be given.
Other ways you can refine your search include independent reviews of the vehicles, as well as incentives offered from the factories or dealers. Did you want to trade in your old vehicle? You can even look up Kelly Blue Book values to see what you might get for it. The great thing about your BJ's Wholesale Club membership is that you automatically get to take advantage of all the great savings you will potentially receive through the Auto Buying Program. Non-members do not enjoy the same privileges as you.
There are a few things to remember when visiting one of the dealerships working with BJ's Wholesale Club. First, don't forget to only deal with the salesperson who handles BJ's members. No one else will be able to authorize the special deals you could receive as a member. Secondly, the relationship between BJ's and these dealers offers a hassle free-no haggling atmosphere. Be sure to specifically ask for the special pricing list for BJ's members. You will likely have to show proof of membership to BJ's Wholesale Club.
As a member, you also can enjoy special discounts for routine services and auto parts for your vehicles. And did you know that BJ's Auto Buying Program encompasses boats, recreational vehicles, trucks and other motorized transportation? If you are in the market for any of these, make BJ's your first stop in your shopping experience. Your journey to that new car smell can be a pleasant one if you go through BJ's Auto Program. Why try anything else? Special treatment, special pricing and no hassles equal an awesome new car experience, all thanks to BJ's!

Tuesday, September 05, 2006

Kelley company

Since its humble beginnings 75 years ago, the Kelley company has worked to bring value information for cars, recreational vehicles and motorcycles to buyers and sellers. Its Kelley Blue Book has become the standard automotive price guide for dealers and consumers alike. Now Kelley is using the Internet to make that information even more readily available. In this article, we'll explore Kelley's history, show you how to use its price guides and Web site, and explain where it gets pricing information.
Les Kelley never intended to start a publishing company. He began in 1918 by selling used cars, starting with three Model T Fords in a Los Angeles parking lot. With the help of his younger brother, Buster, Kelley turned his small lot into a thriving used car sales and repair business within a few years. Kelley began printing lists of used cars that he wanted to buy, including how much he would pay for them. He sent these lists to other dealers and banks. Before long, Kelley's lists were on the desk of every sales manager in the county and people came to rely on them for accurate appraisals of an old car's value. In 1926, Kelley published his list in book form for the first time. He named it after the Social Register, a list of the important and elite people in local society often referred to as the Blue Book.
Photo courtesy Kelley Blue BookLes Kelleycreator of Kelley Blue BookThe Kelley dealership continued to expand until it was the largest used car dealer in the country. The Blue Book increased in popularity as well, moving beyond its regional boundaries and becoming a nationwide car value guide for dealers. In 1962, the Kelley family sold off their dealerships and focused entirely on the Blue Book.
In the 1980s and 90s, Kelley started using computer software to track prices. In 1992, it offered dealers a computer program that allowed them to print out a label displaying the condition, mileage, and optional equipment on a used car. The label also included the Blue Book price and the Kelley Blue Book official seal. In 1993, the Blue Book was finally released as a consumer guide. The last major change in publication format came in 1995, when www.kbb.com was created.
Kelley Blue Book stayed in the Kelley family for three generations until 2000. That year, Bob Kelley (Buster's son) and his son Mike retired from the company, leaving it in the hands of new leaders who kept the famous name and worked hard to maintain the tradition of trustworthy and accurate information. Today Kelley employs around 200 people and has offices in Irvine, California and Detroit, Michigan.
Photo courtesy Kelley Blue BookThe very first Kelley Blue Book, published in 1926When Kelley first published its Blue Book in 1926, it was simply a price guide with a basic list of cars and prices. Today, Kelley offers guides for new cars, used cars, older cars dating back to the 1940s, as well as motorcycles and recreational vehicles like motor homes and camping trailers. Much of this information is available free from the Kelley Blue Book Web site.
Kelley only offers information on cars sold in the United States, so the same model of car sold in Canada might have some key differences that would alter the value. Kelley can still be used as a guide when a used car is sold in another country, but it does not account for regional market differences.
Most people are familiar with the consumer editions of the New Car and Used Car Guides, which can be purchased in almost any book store. These guides are published twice a year.
The Kelley Blue Book New Car Guide contains pricing information on cars for the current model year, including:
MSRP (Manufacturer's Suggested Retail Price)
the dealer's cost
any extra costs that may be involved, such as shipping the car
pricing schedules for various options that buyers can select
The Blue Book Used Car Guide contains information on the values of cars made in the last 15 years. This guide offers several different prices:
retail price - what you would expect to pay for this car at a used car dealership
trade-in price - what a dealer would offer you in trade value
private sale price - the price you could expect to get for this car if you sold it yourself to another person
The Used Car Guide offers charts and tables to calculate the price based on the condition of the car, the mileage, and optional components. It also describes how those factors influence the overall value of the car. Information on older used cars is presented in a separate book, while motorcycle and RV information is published separately as well. That information is only available in the guidebooks -- not on the Kelley Web site.
Using the books is easy. The cars are listed by manufacturer, then alphabetically by model. If you wanted to look up a Ford Explorer, you'd first go to the Ford section, then thumb through the "E"s until you found "Explorer." The book includes a "How to use this book" section that explains optional equipment and mileage.
Next, we'll take a tour of the Kelley Blue Book Web site.