Tuesday, April 10, 2018

Buying Cars Used VS New

While buying new cars is enticing, you should take a cold, hard look at how much you could save over time by buying used cars instead.

The average person owns 13 cars in a lifetime, each costing an average of $30,000, according to a report by the National Automobile Dealers Association. If each of those cars was 3 years old, instead of new, you could save nearly $130,000 during your lifetime.

The real money-saver in buying a used car is wrapped up in a sinister-sounding financial word: depreciation. Once you fully understand how car depreciation sucks money out of your wallet, you’ll learn how to save boatloads of cash over your lifetime. You often hear that a car loses 20% of its value as soon as you buy it. Yes, in just one minute, a $30,000 car will lose $6,000 as you gleefully drive off. By the end of the first year, mileage and wear and tear could bring that to 30%, or $9,000. Why don’t you feel this big hit? Because it takes effect much later when you sell or trade in your car.

Take a look at two similar cars, one new and one used: 

New-car depreciation: You buy the car for $30,000 and sell it three years later for $15,000. The car has cost you $15,000 in depreciation.

Used-car depreciation: Now let’s say you buy the same car, but it’s 3 years old when you buy it. You could buy the car for $15,000. Three years later you could sell it for $10,000. So the used car depreciation cost you only $5,000.

Now, if you’re paying attention, you would quickly say, “But driving a brand new car is much better!” You’re absolutely right. So, if driving a new car is worth an extra $10,000 to you, go for it. But don’t say we didn’t warn you.

Forget the old used-car stigmas 

It used to be common for people to put down used cars by saying that it was just a way to buy someone else’s problems. That’s not true anymore. Here are two updates on old knocks against used cars of recent vintage.

Reliability: Cars have never been more dependable than they are today. It’s not uncommon for some cars to deliver more than 100,000 miles before needing major repairs.

Maintenance: All cars require regular maintenance such as oil changes, tire rotation, brake jobs. But you can drive today’s cars much farther in between these scheduled maintenance visits. Even tires and brake pads last much longer than before.

So it’s pretty clear that buying a used car is much cheaper and that cars, in general, are more dependable. But take a look at these other advantages:

  • When a vehicle is worth less, it costs less to insure it when you’re buying collision and comprehensive coverage. You can also drop collision and comprehensive coverage, which pay for repairs to your car and save even more. 
  • Registry renewals are cheaper: The cost of registering a used car goes down every year. 
  • Move up to a luxury car: Because you can save 30% or more, you can shop in a higher class of cars. 
  • Less stress: Got a ding in the door? Who cares? But when it’s the first dent in your new car, it’s a huge bummer. 

Since the value of the vehicle will be lower, you’ll also save on your sales tax and insurance premiums. If you are financing, you’ll probably save in total interest payments, as the loan amount that you’re paying interest on will be lower, even if the interest rate is a bit higher.

By looking at the research and rankings for the car you are considering, you’ll know where there are potential problems, and you can avoid them. By the time a new model has been on the market for a couple of years, there will be some good predicted reliability information available that you can use to compare models.

The greatest advantage of going used is that the original owner will have absorbed the costly depreciation that occurs in the first few years of ownership. Their pain is your gain, however, as it will allow you to save thousands or tens of thousands of dollars on the cost of your car. You can either budget much less for your vehicle purchase or take a new-car-sized budget and buy a bigger or fancier model than you would otherwise be able to. And features such as navigation and leather seats don’t add as much to the price of a used vehicle as they do to the price of a new one.

Saturday, March 31, 2018

Private Party Scams VS Used Car Dealers

While most used-car sales conducted by private individuals are perfectly legitimate, there are used car-buying scams out there, and they are on the rise — even for so-called "local sales". This is because so much of the business has an online component. In fact, consumer complaints about car sales scams increased 25 percent last year, according to Internet Crime Complaint Center, a U.S. government agency.

 Buying from a Used Car Dealer, on the other hand, comes with a certain amount of protection (even if they don't sell warranties, and are selling the car "As Is"). Besides the practicality of having the dealer handle all of the paperwork (which can really be a hassle when you’re doing it on your own), and of course, the potential of being financed through a dealer, as opposed to a private party. You can also potentially trade your car in to a dealer as a downpayment on the car you want to buy. Another important thing to think about when buying a used car is that a dealer has a reputation at stake with each sale. Think about it: If a dealer sells a flawed car without disclosing its problems, the dealer risks creating an angry buyer who could damage the dealer's reputation. A private seller doesn't have the same concerns, since he or she isn't actively engaged in the car sales business. As a result, good dealers will likely go out of their way to solve problems that arise after the sale, while many private sellers will likely avoid them. Additionally, a dealer will usually inspect and repair any issues that arise with the car before putting it up for sale to, again, protect their reputation. And dealerships offer more legal protection than buying from a private party. For example, because of the stringent laws dealerships must follow, you're less likely to run into problems such as purchasing a lemon or undisclosed salvaged vehicle. And dealers will always let you have the car inspected by your mechanic before you ever commit to buying, should you choose to do so.

You may get lucky with a private party seller, and buy a car with no issues that you can get cheaper than you would at a dealership. And for a lot of people, that is worth the risk. But it is a risk that you may end up having to pay more for, down the road.

Friday, March 23, 2018

We LOVE Smart Buyers!

Making a smart purchase requires some skill.  A smart buyer is really invested in getting the most for their money. They research extensively and “do their homework” to make sure that they are getting the highest-quality, at the lowest price.  At Southern Auto, we are smart buyers.  We are very invested in our inventory (literally!), so we “do our homework”.  We only buy New Car Trades from major dealerships, as they are the most reliable. And then we dedicate a lot of time looking for cars that are super-clean (humble brag: we have been told repeatedly that we have the cleanest cars in the local area. And we appreciate that, since we make work really hard to ensure that every detail is pristine), with a body that is as perfect as it can be, and no mechanical issues (if we do, by chance, end up with a car that we notice has a mechanical issue: we fix it right away, and we make sure that it is really fixed, because we love return customers - and we thrive on word-of-mouth). Then we do our research as to how much we can invest in the car while passing the savings on to our customers, all while still remaining competitive in the market.  We take great care in finding cars that meet our high standards because if we invest in a product to sell, we want it to be a good investment. We are smart buyers. And we love dealing with smart buyers, who speak our language. So, if while “doing your homework”, you happened to find this website - please give us a call….We would love to help you.

And if you are looking for something specific that you don’t see here, we can work with you to find what you are looking for, at the right price. Give us a call or send us an email, and let us know how we can help!  At Southern Auto Liquidators we are proud of the quality used cars we sell and our dedication to serving the needs of our customers. This is reflected in the amount of repeat business we receive. Whether this is your first purchase with us or one of many, you can count on our dedicated sales staff to make it the best buying experience possible.

Thursday, September 14, 2017

Millennials are collecting "classic cars"......from the 80's!

69 oldsmobile cutlass

You know you're getting old when the current main-stream generation is starting to collect "classic cars" from your childhood!! Personally, I'm not sure why anyone would swoon over an 86' Ford Escort, but apparently that's what the "kids" are in to these days!!  This year, for the first time, millennials are responsible for more collectible car activity than the pre-baby boom generation, according to Hagerty Insurance, the largest insurer of collectible cars. And they are changing the idea of what model cars deserve preserving. 

There are some standard cars that remain on the "hot list" for millennials, though. Nearly every generation of Ford Mustang is on the list, along with Chevy Camaros, Corvettes and pickups. Icons like the 1955-57 Chevy Bel Air and ‘49-'80 VW Beetle get plenty of love from car fans of all ages.

But, for the most part, get ready to see more Cutlass Supremes, Land Rover Defenders, Mazda RX-7s, Ford F-series pickups, Datsun 260Zs, Chevy Monte Carlos, BMW M3s and VW Corrados at classic car gatherings and the Woodward Dream Cruise!

Monday, August 28, 2017

NO Dealer Fees. EVER.

"Dealer fees" are charges added to the price of a car. Most dealers place them alongside legitimate state fees, like title and registration. But, don't be fooled. Dealer fees represent nothing but additional, hidden profit to the dealer.

Dealer fees allow dealers to advertise prices far below what they will actually sell the car for, and then tac on these bogus charges after a price has been agreed upon. And how much are dealer fees? A lot! They can range from as low as $299 to well over $2,000! They also go by many different names (just to make things even more confusing): "doc fees", "dealer prep", "dealer services", etc…are all things to look out for.

Here at Southern Auto Liquidators, we work really hard to find great deals on quality, clean cars so that we can pass those savings on to you. We believe in a friendly, no-hassle buying experience and no dealer handling or bogus add-on fees. It's just the right thing to do.

Friday, November 25, 2016

Blackberry Signs Deal With Ford

Big News: Blackberry is still around!! Ok, maybe this was just news to me, but in even bigger news: they signed a deal with Ford to to produce software that could power their first generation of mass-market self-driving cars. The Canadian company has announced that it is dedicating a team of engineers to help the car manufacturer incorporate a range of BlackBerry software — including its QNX Neutrino operating system, its Certicom security tech, and audio processing software — into future Ford cars. In addition to helping Ford utilize existing software, the new deal means BlackBerry can put itself at the center of Ford’s future plans for self-driving cars, helping the Canadian company in its stated aim of pivoting from a hardware company to a software one.

BlackBerry’s days of dominating the cellphone market are long gone but the company’s QNX subsidiary is its most promising hope for future success. How Ford’s self-driving car efforts pan out is yet to be seen — companies like Google, Baidu, and Mercedes-Benz all plan to have autonomous vehicles on roads at least a year before 2021 (Ford's projected date) — but the deal could help BlackBerry score similar arrangements with other manufacturers.

We Probably Should Trust Driverless Cars - But We Don't.

More than 30,000 people are killed each year in car crashes in the United States. In 90% of crashes, human error is to blame. And so most experts agree that self-driving car technology will reduce the number of crashes and fatalities. Self-driving cars could save up to 1.5 million lives just in the United States and close to 50 million lives globally in the next 50 years. Yet in a March 2016 poll by the American Automobile Association, 75% of respondents said they are not ready to embrace self-driving cars. It's understandable that people are sceptical of handing their keys over to an algorithm. But algorithms have come a long way in the last decade: they can take in data, learn, and generate more sophisticated versions of themselves. We rely upon algorithms for many of our decisions and actions these days, from low-risk activities such as deciding what to watch on Netflix or buy on Amazon to high-stakes decisions such as how we should invest our savings. We are even OK with autopilot features controlling airplanes. This current skepticism for self-driving cars thus raises a question: Why do we trust algorithms in some cases, but not in others?

It all comes down to this: people trust algorithms for more objective decisions, and trust them less for subjective ones. font-family: Guardian; font-size: 17px;">Could it be that people are hesitant about self-driving cars because they view driving as a more subjective, personal experience? Consider the findings described by the Wharton School of the University of Pennsylvania: Their research showed that people lose confidence in algorithms much more than in human forecasters when they observe the two make the same mistake. Furthermore, people were less likely to choose an algorithm over a human forecaster even if the algorithm outperformed the human on the whole. In short, we are not very forgiving of mistakes made by algorithms even if we make the same mistakes more often. Maybe we think that an algorithm's mistake is baked into the program and is untrustworthy. The implication is chilling for self-driving car manufacturers and proponents: People might rapidly lose trust in the technology if there are enough incidents, even when the technology is proven to be safer in the aggregate. Early fatalities could turn the general public against self-driving cars very quickly. Manufacturers have to think harder about when and how to introduce driverless features.

As Artificial Intelligence (AI) advances and deep learning – a branch of machine learning that aims to recreate the actual processes of neurons in the brain – matures, algorithms will run a greater share of our lives. That said, scepticism only shows that good technology alone does not ensure success. AI and smart algorithms need to be introduced in ways that win the trust and confidence of their human users.