A recent CarProUSA Radio Show caller started our call saying he wanted to lease a new F-150 and was going with a famous third party lease company, not affiliated with a dealership. I sort of jumped on him, then apologized, explaining to him that this was not a good idea.
Third-Party Lease Companies I enjoy pointing out car dealer ads to my radio listeners that I find false or offensive. For one thing, people seem to enjoy the education, and it gives me satisfaction to think that maybe I can dissuade someone from doing business with a dealership that practices deception. Read More
I hear from listeners all the time who can no longer afford their car payments. Unfortunately, by the time they reach out to me, it is often too late.
Sometimes, especially with the pandemic, it is because the person lost his or her job, but often, it is because the person didn’t think through his or her budget very well. I actually hear from people who want to trade their cars to lower their payments $50-$75 per month. Normally, this cannot be done because they owe more on their car than its true value.
Too often, people contact me just before they know their car is going to be repossessed, and that means they are usually two payments behind and another one coming up. By that point, it is usually too late. If you jump on this early, and not just “hope” it will go away, you have some options. Read More
Usually, when we get callers who owe more on their car than its true value, they financed too long or rolled negative equity from one loan to another. One such caller owed $8000 too much on her car because she was way over her mileage on a lease, due to excess mileage penalties. She wanted to try to roll that into a new loan, but not only was that a bad plan, the overage was wreaking havoc on her next payments.
Being “Upside Down” The car business has a language of its own and always Read More
How much did you make for a down payment on your last car? If it was $4,500 dollars, you’d be under the current average. Down payments are up in the age of the pandemic, surpassing $4,700 in the fourth quarter of 2020.
Average Down Payments: According to an Edmunds analysis, the average down payment for a new vehicle climbed to $4,734 in Q4. That’s up from $4,458 in the third quarter and $4,329 a year ago. The takeaway here, according to Read More
Weekly on the Car Pro Show, we have a number of callers who identify themselves as senior citizens who are considering leasing for the first time.
I explain on the air that as we age, our mobility becomes more and more important and, frankly, precious. For many seniors, they have never given much thought to leasing a vehicle; many grew up in a time that this just wasn’t done. However, it should be considered, along with the purchase option. It is wise to look at both in-depth to make the Read More
I hear from listeners all the time who are looking forward to getting a new vehicle but dread the process of going through the financing process. Honestly, there is nothing to be concerned about if you understand what will happen once you get into the finance office. Knowledge is power, and below I will tell you what you can expect, and hopefully you won’t encounter any surprises.
Beware: Like every profession, there are good dealers and bad dealers. Many people are taken advantage of in the finance department of dealerships. Over the years, I have seen it all, high-pressure tactics to purchase extended warranties, credit life, and disability insurance, GAP insurance, etc. I have also witnessed downright fraud. Bear in mind, most finance managers are paid on commission, based on what they sell. Read More
I got involved with a Los Angeles listener who tried to buy a vehicle, trading his in, and taking conditional delivery of a new vehicle. After earnest attempts by the dealer, financing could not be obtained. When a new car is delivered before financing is 100% completed, it is called in the car business a spot delivery.
What Is A Spot Delivery? So, just what does it mean if a dealer “spot delivers” you? The term has been used in the car business for as long as I can remember and simply Read More
Sure, everybody wants the best price he or she can get on a car, right? I think often people assume that if they got the best possible price, they also got the best possible deal, but that is not always the case. As the man who trained me to sell cars many years ago always said: “there is no way a part-time customer can outsmart a full-time car salesman.”
The Problem With Being Hyper-Focused On PriceSome people love the idea of beating up a car dealership on price, getting them down to the Read More
It’s been a tough year financially for a lot of folks. First came the economic impact of COVID, which is still ongoing, and add to that, many people are now also dealing with natural disasters in parts of the country, like hurricanes and fires.
Toyota Financial and Ford Credit are stepping in to provide some payment relief to customers impacted by Hurricanes Laura and Isaias, as well as those impacted by the wildfires in California and the derecho which struck the Midwest Read More
I’ve talked on the Car Pro Show for eight weeks about used car prices being sky high. I monitor the Manheim Dallas auction weekly so I can report to my listeners up-to-date information about trade values. I have also warned everyone that this bubble would burst and prices would drop hard and fast.
Just last Saturday I talked about every vehicle, especially trucks and SUVs, bringing way over MMR (Manheim Market Report). MMR is the gauge car dealers Read More
Something I said on the Car Pro Show recently spurred a lot of questions about putting money down on leases. I soon realized this was an area of confusion for many people.
If you do a conventional purchase of an automobile, I recommend putting as much of a down payment or trade equity as you can. This lowers the monthly payment and cuts down on interest charges. However, the scenario is very different with a lease.
We had a listener call the show who was skittish about leasing, she had never done it before. We get this call at least weekly. Here are some things to think about when considering whether to buy or lease your next vehicle.
1. Consider How Much You Drive When I get the question of lease versus buy, my first question back is always how many miles per year do you drive? Some people, especially third party leasing companies, will disagree with me on this; however, I maintain that if you drive Read More
Many of the questions I get on the air have to do auto financing. This is an area people who have bought cars before worry about. By the time it is time to sign on the dotted line, you may have been at a dealership for a long time, you are tired, and you are just ready to go home with your new vehicle.
Here are some things to keep in mind:
Finance Departments Beware: Like every profession, there are good dealers and bad dealers. Many people are taken advantage of in the finance department of dealerships. Over the years, I have seen it all, high-pressure tactics to purchase extended warranties, credit life, and disability insurance, GAP insurance, etc. I have also witnessed downright fraud. Bear in mind, most finance managers are paid on commission, based on what they sell. Read More
A lot of people are worried about their financial future right now in the uncertain times forced upon us by the COVID-19 pandemic that refuses to loosen its grip. That can make the proposition of buying a vehicle, either new or used, even more daunting. So Ford is providing some peace of mind with its new “Ford Promise” program. It allows eligible buyers who purchase a 2019-2021 model-year new or used vehicle through Ford Credit to return the vehicle if they lose their jobs within Read More
A record number of consumers are upside down on their car loans, according to new research released by Edmunds. In a press release, Edmunds says its data shows that in April an all-time record share of 44% of new vehicle sales with a trade-in had negative equity, compared to 40% in March and 33% in April of 2019. The average amount owed on upside-down loans also climbed to an all-time record high of $5,571 in April, compared to $5,405 in March and $5,036 in Read More
Toyota Motor Credit Corporation is launching a private label business with Mazda North American Operations, its first-ever client, through the creation of Mazda Financial Services (MFS). Mazda Financial Services began operations April 1 and offers a suite of automotive finance, lease, wholesale, dealer banking, and insurance protection products and services to Mazda dealers and customers in the U.S.
“We’re honored that MNAO selected us as their financial partner Read More
As the country battles the spread of COVID-19 and the resulting financial crisis now facing many families, automakers are tackling two separate issues. One, helping customers who may be severely impacted by COVID-19 and find themselves unable to make payments. To that end, automakers are offering to discuss payment options and help for current owners.
At the same time, automakers know they need to do something to bolster sales during this uncertain Read More
By nature, we are a giving group of people. We really want to help people when they are down on their luck; it is what we do as Americans, right? So you have a friend or relative who asks you to “just co-sign” a car loan so he or she can get around, take the kids to daycare, and get to work. It sounds easy and you believe he or she will do the right thing. Sadly, too often, these scenarios play out with a loss of money and a loss of the relationship.
The operators of a bogus credit repair scheme are banned from the credit repair business and subject to a wide array of other requirements under settlement terms with the Federal Trade Commission.
In its press release the FTC states: the settlements relate to an FTC complaint filed in June 2019 alleging that the defendants targeted consumers with false promises of substantially improving consumers’ credit scores by claiming to remove all Read More