Internet surpasses traditional means of vehicle shopping: J.D. Power

According to a recent J.D. Power and Associates study, the internet has surpassed all other shopping methods as the source for locating the vehicle a late-model used car buyer will ultimately purchase.

The 2007 ‘Used Autoshopper.com Study was released yesterday alongside information showing that internet vehicle locators like Text4Cars.com, Autotrader.com, CarMax.com and eBay Motors are working harder than ever, leading one in four shoppers to the vehicle that they actually decide to purchase. That’s a 44 percent increase over last year, the study says.

“This is just one indication that use of the Internet is now perhaps the most efficient source for shopping for and purchasing late-model used vehicles,” said Jon Osborn, research director at J.D. Power and Associates. “In the past, the majority of used-vehicle automotive Internet users relied on the traditional method of driving around to dealer lots to find the vehicle they ultimately bought.”

Another interesting trend discovered by the study deals with Consumer Generated Content, or CGC. Many owners are offering their own experiences and opinions on makes, models and dealerships, consumer reviews and ratings are the most common form of CGC.

J.D. Power says that over 70% of new and used car shoppers use CGC to some extent during their shopping and purchasing process.

Best Time to Buy a New Car in Canada is Now!

New Car in Canada | Buy a New Car | Canadians Buy New Cars Now

Wednesday’s Metro reported that Buzz Hargrove, President of Canadian Auto Workers union, announced North American automakers will be forced to lower prices on new vehicles in Canada to better reflect the greater buying power of the Canadian dollar.

The article also mentioned both Porsche and BMW recently reduced auto prices and is now offering new incentives to bring the costs of the high-end vehicles more in line with similar models in the U.S.

Interesting was the news that Canadian consumers aren’t necessarily being “ripped off” when imported car prices are 20% to 40% higher. Apparently many products sold now were bought months before the Canadian dollar rose to its current level.

So, what does this tell us? That’s it’s a great time to buy a new car in Canada AND to shop for new vehicles recently purchased by the dealer.

Top 10 Questions to Ask Before Buying a Used Car

Want to ferret out the weasels before wasting time to go view that vehicle for sale?

The following questions will not only allow you to weed out the cars that you know you don’t want, even before leaving the comfort of your own home, but also give you a chance to gauge the seller. Certain types of people take better care of their cars, for instance. And let’s not forget that some sellers just want to offload their car – no matter what.Buy a Used Car | Selling a Used Car | Car Sales in Canada

Studies show that people give away verbal clues when lying. Listen for “ums” and “ahs”, stuttering, throat clearly, a lot of expanded contractions (`did not’ rather than `didn’t’) and an inordinate amount of adjectives.

Grab some paper, a pen, get on the phone, conduct this interview like you were George Stroumboulopoulos and pay particular attention what the car seller is not telling you:

  1. Why are you selling the car? You’d be surprised as to how many people will flounder when asked this very simple question. It’s because they don’t want to say it’s a piece of rubble even if they truly believe it is. If they have an alternate reason or if they have enough wits about them to make up something believable, then you can almost be certain they had enough sense to maintain the vehicle.
  2. I’d like to do a history check, what is the vehicle’s VIN#? By asking this question next, it lets the seller know, first, that you’re on the ball and second, that you’ll be verifying their answers.
  3. How many kilometers/miles are there on the odometer? The more mileage on the vehicle, the more used it is and the less it’s worth. Check the current value of the vehicle in the Canadian Black Book or the Canadian Red Book. For utility vehicles and motorcycles, research values in the Canadian Blue Book.
  4. What’s the condition of the vehicle? This open-ended question allows the seller to use their discretion. What does their answer tell you about them? Write it down and analyze it later. If they haven’t provided you a thorough enough answer, then be more specific and ask about its structural and mechanical condition.
  5. As far as you know, does it need any repairs? This very pointed question confronts the seller who may have kept this important piece of information to him/herself with the last question. If you go so far as to test drive the vehicle and notice some obvious repairs are needed, then you may want to question the honesty of this owner.
  6. Does it have any special features? A moon roof, leather seats, air conditioner, MP3 player, etc. will increase the perceived value of the vehicle for most people.
  7. Are you the original owner? If they are, then you’ve hit a sweet deal. They will know everything about that car, what it’s been through and how well it’s been maintained.
  8. Was the vehicle ever in an accident? Collisions devalue vehicles as they are more likely to have problems now or in the future. The history check should reveal the answer, even if this owner doesn’t know or isn’t telling.
  9. Any recent work done on it? Do you have service records/receipts? Obviously a brand new motor will increase the value of the vehicle. If the owner has kept track of vehicle servicing and the receipts, then they most likely have kept good care of their car.
  10. How much are you asking for it? The wording here indicates that you believe the price is negotiable. The quoted price here is what they want for it, not necessarily what they’re willing to get for it.

Take your gut feeling and the answers to these questions to evaluate whether or not you want to deal with this seller. If you do, then before going to see the car and test drive it, arrive to the meeting with some figures in mind. According to your budget, determine the most you’d pay for the best case scenario about this car.

Good luck in buying a car; and keep your eyes and ears open to those behavioural cues!

10 Signs Your Used Car is a Lemon

Found a deal on a used car that’s just too good to be true? That’s because it probably is. Take a look at your second hand vehicle and see if you can spot any of these tell-tale signs that you’re used car is indeed a very sour lemon.

  1. Odd movement. Problematic steering can lead to dangerous situations on the road.
  2. Body damage. Rust and holes are difficult to repair and more often than not call for a full replacement of panels.
  3. Bad Brakes. Squeaking, grinding and shaking are things to look out for.10 Signs Your Used Car is a Lemon
  4. Transmission Trouble. Any unusual noises when shifting are a clear indicator of problems.
  5. Check the clutch. If it’s loose and noisy you may be in trouble
  6. Oil in the tailpipe. Often associated with significant motor problems.
  7. Erratic Exhaust. Is that your car violently coughing out black and blue smoke?
  8. Broken electrical components. Problems with turn signals, the horn, or windshield wipers can indicate a major electrical problem with the car
  9. Torn Interior. Rips in the upholstery and excessive wear and tear are sure signs that the car was poorly maintained by the previous owner.
  10. A battle uphill. Rough and slow acceleration on a hill may indicate a weak engine.

When buying a used car, you should always take it for a test drive with these concerns in mind. You don’t want to be stuck on the road with a dirty, rusty and smoky disaster. For more helpful tips and strategies for buying a used vehicle, check out Tony Iorio’s Insider Car Secret’s article.

13 Safest Cars of 2007

The bar for automotive safety has been raised significantly for 2007, as The Insurance Institute for Highway Safety, an American non-profit organization funded by auto insurers, set rigorous new standards for their annual awards. According to CTV.ca, all 13 cars awarded featured electronic stability control (ESC), a relatively new feature that allows drivers to have more control of their vehicle while going through an emergency maneuver.

The institute’s research showed significant reductions in single-vehicle crashes for both cars and SUVs with ESC, with fatal crashes down 40% and fatal rollovers down 80%. The Institute made the addition of ESC mandatory for car manufacturers to qualify for the awards.

“The idea of tightening the criteria for the award is to encourage more vehicle safety improvements,” Institute president Adrian Lund said in a written statement.

“Last year a car could win with an acceptable rating in the rear test instead of the highest rating of good, and ESC wasn’t considered. Now it’s tougher to win, and some of the 2006 winners don’t meet the criteria for this year’s award because the manufacturers haven’t improved the head restraints from acceptable to good or don’t offer ESC.”

The Institute’s List:

Large car

Audi A6 (manufactured in December 2006 and later)

Midsize cars

Audi A4

Saab 9-3

Subaru Legacy (equipped with optional electronic stability control)

Minivans13 Safe New and Used Cars | Canadian Car Sales | Buy a Safe Car

Hyundai Entourage

Kia Sedona

Luxury SUVs

Mercedes M class

Volvo XC90

Midsize SUVs

Acura RDX

Honda Pilot

Subaru B9 Tribeca

Small SUVs

Honda CR-V

Subaru Forester (equipped with optional electronic stability control)

Following the Institute’s awards, several top manufacturers, including Ford, Hyundai, Daimler Chrysler, General Motors and Toyota, made press releases regarding the standardization of ESC, most speculating the addition of the technology for all 2008 and 2009 models.