Lemon Squad and Carchex…Independent 3rd Party Vehicle inspection services

I’m way behind the curve on this but a customer just told me about these two companies, Lemon Squad and Carchex.  Each serve the same purpose.  They offer independent third-party vehicle inspection services to people considering the purchase of a used vehicle.

These companies have a nation wide reach, can usually schedule an inspection with 1-3 days and offer an unbiased opinion of the car being inspected.  The cost of the service ranges from $109-$159 depending on the company and which package you select.

We just sold a 1996 Honda Del Sol to a customer that had LemonSquad perform an inspection first.  The inspection was extremely thorough but it also gave the inspector room to share his opinion in the comments section.  For example, the Del Sol is a 16-year-old car and the inspection revealed numerous inconsequential flaws, but in the comments section the inspector commented directly that it was a very good car, in above average condition for its age, and that it should make the prospective buyer a very happy owner.

It’s nice to know that if you are considering the purchase of a used vehicle you can inexpensively purchase extra peace of mind by hiring a company to perform an independent third-party inspection.

 

Different repair quotes for the same work, why? The Devil is in the Details!

When I was in college and unfamiliar with how cars worked, the A/C went out on my personal vehicle.  I asked for a price from two different shops to fix it and received one quote for $498 and another quote for $15.  I’m sure many of you have had similar experiences.  Why were the quotes so different?  Was the shop with the higher quote focused only on ripping me off? Maybe.  But I have learned that the saying “the devil is in the details” is especially true for the used automotive industry. 

Let me lay out a scenario that shows how some of those “details” can dramatically change the final outcome.  Let’s assume that a sensor in your car says that your coolant is low.  You bring the car to me and I find a small leak in your radiator.  I can provide the following quotes:

1.  Replace radiator with a new one from the dealership (very expensive)

2.  Replace radiator with a new one from reputable aftermarket supplier (expensive).

3.  Replace radiator with a reconditioned radiator (less expensive)

4.  Add “stop leak” fluid to your radiator and hope that it works (very cheap)

This is just one very simple example and you can see how the quote can vary by hundreds of dollars.  Imagine what would happen if the repair was labor intensive and not easily quantifiable.  I’m just trying to make the point that it’s not always a cut and dried case of what to do and how much it should cost.  That is why it is so important to work with a shop that you trust to be honorable in its dealings with you AND that you can communicate with.

The devil may be in the details, just try not to work out the details with the devil!

 

 

 

TGIF

Happy Friday everyone!  To all the mothers out there, thank you for what you do.  Have a great Mother’s Day this Sunday.

 

How can you tell if a car is in good mechanical condition?

If you didn’t grow up with a mechanic in the family then you might be tempted to make the same assumption about cars that I did.  That is, the formula for getting a car to run is simple: add fuel and turn the key.  But it’s not that simple.  Especially with all of the advanced electronic equipment in today’s vehicles.  The reality is, it’s not uncommon for a vehicle to have major mechanical problems but still be drivable or conversely a perfectly fine vehicle might not even start because one little hose came unplugged.  That is why servicing and repairing vehicles requires a technician with knowledge, skills, and experience who can use complex equipment and tools to identify and fix hard to find problems.

The most common tool in use today by service technicians is a “code reader.”  This is typically a hand-held device that plugs into the car’s computer system that identifies car parts, or processes that are not performing as engineered.  For example, if the check engine light comes on and we hook the code reader up to it, it might give us a code that says the vehicle’s fuel system is not functioning properly due to a lack of pressure.  We know, by experience and by investing in an online database of information, that there are three or four common reasons for this “code” to pop up and that is where we start looking.  Sometimes, if we’re lucky, it is as simple as tightening the gas cap :-).

At Brevard Value Motors, we have a full-service repair facility that is headed by a technician with 16 years of experience.  So the next time your vehicle needs new brakes, a/c work, oil change, new radiator, a tune up, or any other kind of service or repair give us a call.

Thanks!

 

Relative Value

Historically, cars would tend to drop in value signficantly from the day they were driven off of the lot to when they were about three years old.  The decrease in value would then slow down over the next few years and would then drop fairly fast again after a car reached seven to ten years of age.

Things changed however around 2008-2010.  It was at this time that the economy took a nose dive and when the government enacted the “cash for clunkers” program.  The first part, the economy, increased demand for used vehicles because people simply couldn’t afford to purchase new anymore.  The second part, “cash for clunkers” decreased supply by taking millions of  perfectly functional used cars off of the market.  The result: used car prices went up and the relative value between used and new cars decreased.

So which age group currently offers the best “relative value?”  Good question.  I would refer to my last post about buying “New vs used.”  Basically, it depends.  It depends on whether or not you want and can afford a three year old car with 45,000 miles on it or a seven year old car with 100,000 miles on it.  Both offer a good value compared to buying new, but the choice should be based more on what you actually want to get out of the car.

 

 

Brand New Cars: To Buy…Or Not to Buy? That is the Question

What is the relative value between new and used cars? A used car will cost less money than its brand new version, but it also has less of the benefits that go along with a new car. So to answer the question, “new cars: to buy or not to buy,” I would say that it depends on personal preference. What is important to you? Budget? Timeframe? Manufacturer’s warranty? If you are on a tight budget, it makes sense to spend a little more time looking for the right used car that can save you money. If a complete manufacturer’s warranty will give you peace of mind while driving (or if you just won the lottery), then by all means purchase a new car. I personally believe that I can save money by purchasing a used car without sacrificing my quality or safety concerns.

Regardless of whether you buy new or used, it’s important that you understand what you want. One of the aspects of my job that I enjoy the most is working with customers to identify their top priority when it comes to the car search. It seems simple, but surprisingly isn’t. Fuel efficiency, reliability, cost, color, age, size, and image.   All of these factors are important but it’s almost impossible to find one vehicle that meets your expectations in every category. That’s where I come in. I help work through the criteria to determine what the “must haves” are and what the “wants” are. That’s fun for me 🙂

 

 

 

 

The biggest hidden fee of them all…the DEALER FEE!

As a follow up to my last post on hidden fees I’d like to discuss the granddaddy of all hidden fees, the DEALER FEE. What’s up with dealer fees?  Where else can a company get away with slipping in a fee on top of the price of a product?  And has it ever made sense to a customer when the dealer said, “The dealer fee is not profit, it’s just a fee.”

For full disclosure, Brevard Value Motors does charge a dealer fee.  GASP!!!  Why do we do that? Charging a small dealer fee helps us to prepare each and every car for sale in the appropriate way without killing our cash flow.  At a minimum, every car that enters our inventory has gone through a 33-point inspection by our mechanic, and has been professionally detailed (inside and out).  It’s just some of the work that we do to prepare cars for sale.  So what is our dealer fee?  The staggering sum of $149

Oh, by the way, I happen to know what the dealer fee is at some of our local franchise new car dealerships. Let’s just say the fees range from $499 to $799.  I’ll bet they get their cars extra clean to justify that cost.

Sincerely, Rick, BVM

 

Hidden Fees: Why???????????????????????????????????

What do Hidden Fees and the United States Congress have in common?  No one likes them but we can’t get rid of them either.  Allow me to illustrate by retelling a story that I have heard multiple times.  Many customers have told me that after negotiating a price for a vehicle with a dealership they go to sign the paperwork only to find that the price has been increased by thousands of dollars….and they still signed the paperwork.

Why do Hidden Fees exist?  Because they work.  It doesn’t make it right, but it’s the truth.  Car dealers know that purchasing a vehicle is an emotional and complicated process and they count on the fact that you will be too distracted by other things to notice or resist when they sneak in fees after the fact.

At Brevard Value Motors we try to quickly determine and communicate what the customer can expect to pay “all-in” or “out the door.”

Since it seems that hidden fees and an unpopular congress are here to stay, be ready for it.  Ask for the price of a car in writing and make sure that it includes all transaction costs.  And when you get sticker shock at the final “all-in” amount, say thank you very much and come right over to Brevard Value Motors!

 

Why does it take so long to purchase a car?

Why does it take so long to actually “purchase” a car after you’ve already had to negotiate with the salesperson, the sales manager and the finance manager?  Because after you finished your test drive, an employee of the dealership immediately jumps in the car and does errands for the boss!

It’s not uncommon for the final process to take two hours or more.  On a positive note, some of the time is generally used to prepare the car for sale, like a quick wash perhaps.  Mostly however, the time is used to give you thirteen more opportunities to spend even more money.  Warranties, Service Contracts, Trim package upgrades, roadside assistance, GAP insurance, life insurance, etc.  While these additional products do serve a reasonable purpose, it can be quite frustrating to waste another hour of your life listening to the finance manager go through his sales pitch when all you want to do is drive away with your car.

At Brevard Value Motors we try to stike a reasonable balance.  We can usually “complete” a transaction in about 30 minutes depending on the details regarding your insurance and license plate situation.  I use some of that time to discuss 3rd party service contracts because I have found that many of our customers desire piece of mind knowing they have an option to protect their new investment for some amount of time after the purchase.

 

 

 

Inaugural Informational Humorous Insightful Poetic Transcendent Life Changing You’ll-never-be-the same Post

Hello, my name is Rick…and I don’t know anything about cars.  So opening a used car dealership with a good friend and business partner (who similarly lacked experience in the industry) could only be politely described as an “interesting” (aka: ludicrous) decision.  I say it was an ambitious adventure into the unknown in search of unlimited rewards but that’s a bit over the top.

What have I learned?

I’ve learned that cars do not operate because they have been sprinkled with pixie dust or because there’s a hobbit under the hood pushing them along.  Cars operate because some smart people designed a machine with thousands of moving parts that work together to help us get along with our lives.  It reminds me of my high school physics class.  At first it was as if my teacher was literally speaking another language: vectors, centrifugal forces, refraction, angular velocity, etc. But over time, a long, long, long time, those foreign words starting making sense and I finally understood that E=MC².  The car industry is the same, just with different terminology: mass air flow sensors, EGR valves, finance charges, APR, exclusionary service-contracts etc.  These terms all have a specific meaning and serve a specific function within the used car industry.

Why am I writing these posts?

 At Brevard Value Motors, we want to sell cars at huge, obscene profits in order to purchase exotic cars, vacation homes, and Russian caviar.  Seriously, my hope in writing this and future posts is to “pull back the curtain” so that you, the consumer, are empowered with true, accurate, current information during the car buying/selling process.  In return I hope to earn your trust, respect, and business.  If I can afford Russian caviar down the road, that’s just an additional bonus.

What should I write about?

Now that we have the ground rules set, what should I write about?  This is where you, the consumer, come in.  What frustrates you the most about how cars operate, how car dealerships operate, or how to reduce a white wine sauce using oil instead of butter?  Send in your comments or questions and I will use that input to get started.

FYI…if no one submits a question or comment to get me started I’ll be embarrassed, then I’ll start crying, and nobody likes a crybaby, so PLEASE send something in.  My manliness depends on it.

With appreciation,

Rick Renfro, BVM partner (my partner by the way is the amazing Rich Titus)