The month of good buys

According to those in the auto loan business, March is the busiest month for new car sales. There’s the obvious surge coming in from all the graduation presents, but many families also prepare for their annual pilgrimage back to the provinces for Holy Week – and nothing makes a stronger statement to that uncle that said you’d amount to nothing than turning up in a brand new car.

Lets face it, superficial as it may seem, buying a car can be one of the most rewarding and enjoyable experiences on the twisty cambered roads of life. But it can also end up like a nightmare on Elm Street, too. Don’t be caught out. Read this page and I guarantee you that out of everything you’ve ever done in your life, this will certainly be one of them.

Now that I’ve lured you in with that last profound statement, let me waste even more of your time by telling you things you already know, but in a way that will make it feel like your first time. Get used to it, because this will be a solid foundation for what’s in store for you when you start visiting the dealerships. Because by the time you’ve reached a buying decision, you would have been able to identify, by name, all the sales tactics employed by car salesmen. Not too mention all the cheesy one liners, too.

If you would like to anesthetize the experience, try out a few of my home made helpful tips on buying a car.

Do your homework... Most people decide on a car by working out how much they can afford first. Shameless plugs aside, I recommend that you pick up C! Magazine’s 300 + page Annual Buyer’s guide which is on sale now at your local bookstore to give you an idea of what’s out there. Once you’ve come up with a figure, make a list of everything in that price range. This will help you save countless hours at dealerships trawling through brochures and drinking cheap pre-mixed coffee. Now, scratch off everything that’s not relevant: e.g. light trucks, farm equipment, unusually configured commercial vehicles from under developed countries, and anything you can’t pronounce. Doing this will ensure that you know exactly what was available during your time of purchase. There’s nothing worse than some annoying office mate that comes up after you’ve mortgaged your soul for your dream car saying, “Ay, for the same money, you could have bought…”

Compromise... You will end up developing a very close relationship with this word in the coming weeks. Actually, in the end, car buying usually almost always comes down to this – unless you’re the type that has more dollars than sense – so you may as well put it up to the front part of the process. Instead of fooling yourself with what you want in your car, try flipping the situation on its head: what can you afford to live without? Essentially, that’s where you will save. Most cars come with four wheels and a steering wheel. It’s stuff like, “Can I live without the V8 version for that trip to Baguio I may end up never taking in the next 43 years?” Be honest with yourself because you pay through the nose for every little luxury. If it’s just the image you’re after, peel the badge of your neighbor’s car and stick it on your trunk.

A case of analysis paralysis... I used to be indecisive, and then I changed my mind. It can be good to listen to friends, but too much of it can end up driving you to drink, too. Unless Facebook comes up with an application that will make the monthly payments for you, who really cares what everyone else thinks? People come in all shapes and sizes and everyone has different priorities. What good is getting a swanky sports car that you need a shoe horn to get in and out of? Work with what’s good for you. In the end, there will always be a better car at a better price somewhere in a parallel universe. You can only work with what you have right now. Be comfortable knowing you made the best decision based on all the variables at the time. Remember, a bad decision is better than indecision.

Don’t forget the boring stuff... It’s easy to get caught up in the whole buying experience when you’re comparing snazzy colors, fancy stereos, engine power and mag wheels etc, but let’s not forget two crucial (though admittedly boring) details: finance and insurance. There’s no point driving from dealership to dealership to save yourself a thousand pesos off the sticker price, only to take finance from the first Joe that hands you an application. Shop around carefully. You’ll be surprised at the savings you can make. A one percent difference in rate can add up to tens of thousands over five years, but because it is hidden into 60 payments or so, it is rarely noticed. Sort this detail out before you set foot in a dealership and you won’t be clouded by emotion once it’s time to sign on the dotted line.

Sometimes the dealerships offer good in-house finance; but some experts agree that you are more likely to get a better deal if you secure the financing outside the dealership for the simple reason that you have more options. It costs you nothing to ask. But it will help you to know that banks are practically throwing money around these days and offering some incredible deals at the moment, so you may as well take advantage of it. Unionbank has one of the (if not the quickest) auto loan approvals and will finance just about any car you can imagine, “From a pocket rocket to a limo.” In some cases it is over and done with in three hours. BPI Auto Loans, on the other hand, offers free auto insurance with every approval (including Acts of God) for the entire month of March.

This brings me to another point. Regardless who you go with, make sure that your insurance coverage includes “Acts of God”. Back in 2008, MotorImage Pilipinas made sure that all in house policies included Acts of God for every new Subaru sold. A few complained because the premiums were higher, but after Ondoy, some of their customers ended up naming their children after the salesmen that sold it to them. Another insurance company, Chartis, was the only one to declare Ondoy vehicles a total loss once the water hit the dashboard, no questions asked, and started settling claims as early as a week after.

Be practical... I’ve often said, “Just like when you marry the girl you marry the family, the same should be applied to manufacturers.” Well, I’ve said it again. Go for a brand that you know will be here tomorrow. Check out their service department. Do random checks on stuff like: how much a front fender and an alternator bracket costs. Compare prices of parts and availability. A neighbor of a friend of mine bought a Chinese car solely on the strength of the five-year warranty they offered, but ended up waiting a year for a rear bumper. Just remember, even a ten-year warranty is worth nothing if you need to wait 20 years for the parts.

Before you actually sign, ask them for a price on scheduled servicing for the next two to three years. Some dealerships may shock you with the contrast in pricing. It’s funny, some people will spend forty days and forty nights haggling for a free set of floor mats and cheap tint only to be willingly raped by the servicing department during periodic maintenance. Just like you will inevitably have to spend Christmas, christenings and weddings with your in-laws, you will have to have an ongoing relationship with your dealer. You may as well be upfront with each other.

Have fun... Let’s not forget why you’re getting a car to begin with. Sometimes, with all the hurdles and temptations thrown your way, it’s easy to lose sight of the bouncing ball. Sales people are trained to make you want more. The successful salesman will be able to turn that want into need. The downside is, unless you can make it to the hospital to get a transfusion for your wallet, you end up feeling that you just “settled” for the cheaper model. Remember how much you yearned for it before they showed you the “high-end” model. It’s all relative. Just think: there’s usually some poor punter out there that was upsold to the car they just made you feel bad about. Sometimes you need to take a step back and remind yourself how lucky you really are. There are few things more exciting than the feeling of driving a new car – the smell, how everyone looks at it, and how it makes you feel special to drive it. At the end of the day, you’re never just simply buying a car, you’re buying the mechanical expression of your very soul. Or as others like to call it: freedom.

The very purpose of the Backseat Driver column is to encourage “healthy” discussion amongst us all. That being said, here are a couple of dissenting opinions on last week’s “The woes of unintended acceleration: Can Toyota stop it in time?” by Manny N. de los Reyes. Keep them coming, dear readers... but be mindful of respecting those whose opinions do not necessarily reflect yours…

Every car manufacturer has experienced recalls. The difference with this one is that Toyota is the top car manufacturer at the present time and everybody knows when you’re number 1, a lot would like to overthrow you – that is why this specific recall has been sensationalized all over the world. I guess that’s the price of being on top. I agree with the author that Toyota will recover with this one just like what happened to others as well. Toyota has the biggest share in the car market and they’ve done that because of their reputation of high quality and reliability. One recall such as this won’t deter much of their market share – especially when their main competitors (North American made cars) have a long reputation of poor quality and low reliability. The “familiarity breeds contempt” belief also adds into that which is one reason why people in North America will certainly buy Japanese made cars rather than their own domestic cars. – Pipit

Yes, other car manufacturers have also recalled millions of their products but I doubt any of them tried to hide the fact that their cars were defective. It was arrogant of Toyota to try blame the drivers for the fatal accidents. It’s what everyone in the US finds galling. Toyota was so arrogant to deny the fact that their products were defective. It’s the same thing that happened to Mitsubishi. They went for the cover-up route and look where Mitsubishi is now. – salbelar