Tips on Buying Cars: How Much Should I Pay, orrin gordon, consumers reports

Question
QUESTION: Hi Roger:

My Wife & I need to purchase another Used Car.

The two candidates are a Used 2003 Honda Accord Sedan EX (Mileage: 89.5 K) (Price: $9,700) & a Used 2007 Honda Accord Sedan LX (Mileage:  83K) (Price:  $10,475).  My mechanic tells me 2007 is a good car and I will be happy with it.  I am concerned about Honda's recent Brake issues and reports that on long drives the driver's seat can be uncomfortable on the 2007.  Assuming I can get thru that; here are the particulars.  Approximately how much should we pay here in Central NJ.

4 Door Sedan (2007)

2.4L DOHC MPFI 16-valve i-VTEC I4 engine

5-speed automatic transmission w/OD

4 Door Sedan (2003)

2.4L I4 DOHC i-VTEC 16V

5-Speed Automatic with Overdrive

I could provide much more details, just might make this very long.

My Wife likes the idea of the 2007 as it is a newer car more advanced Technology.  I like the idea of the 2003 having less mechanical issues per Consumers Reports, yet, I remain open to the 2007.  I would appreciate any guidance you can provide and pricing suggestions.

Sincerely,

Orrin Gordon


2003 EX  
2007 LX   ANSWER: Hi Orrin,

Sounds like you have done your homework. I am assuming that the EX accord you are considering also has a four-cylinder engine. Just so everybody is clear the accord comes in three basic trim levels; the DX the LX and the EX. The DX Accord is the only model that does not offer a six-cylinder upgrade for the engine. You are comparing the LX with the EX and the difference starts with the price where the EX package is an additional $2700.00 over the LX. I don't know how long you generally own your cars but the EX will continue to have a higher resale value right up until about 200,000 miles. The brake problems you hear about on the 2007's have been greatly over stated. I wouldn't give it a second thought. Seat comfort is a consideration and differs from one body type to another ...drive each one and see which one fits your body type the best.

The 2007 LX you described to me has the following values:

Suggested retail value: $12,142
Wholesale Value: $9642
Auction Value: $8692
Trade-In Value: $7842

These values are after a $950 deduct for miles

The 2003 EX accord you described to me has the following values:

Suggested Retail Value: $12,524
Wholesale Value: $9274
Auction Value: $8549
Trade-In Value: $7774

These values are after a mileage adjustment of a positive $1725

Remember when looking at the auction value that the dealer also has to pay a buy fee, and in arbitration fee to have the vehicle inspected for frame damage before the deal is final. Generally a couple hundred dollars. These cars are as strong as death because they are both highly sought after vehicles by consumers. If you could buy either one of these cars for its wholesale book value you've made a good buy. Out here on the West Coast Honda Civics and well-maintained records often times sell at a premium to their book value. You didn't say whether or not these were being offered by a dealer or a private party and the answer matters, mostly in terms of how much you will be able to negotiate off the price. If this is a dealer car, the best way to buy it is to go into the dealership, drive the car, then leave and do all of your negotiating via e-mail and telephone. Never negotiate sitting on the showroom floor. Read that last line again and take it to heart. If you decide to buy it the smartest way, then you will also not have a trade and will either be paying cash or financing through your own credit union. I can tell already from your question that you probably have all of that part figured out already.

Let me know if you have any additional questions and feel free to ask as many follow-ups as you need until you are completely satisfied with the answers and are able to give me perfect survey scores after we are done. My personal e-mail address is roadloans@Gmail.com... Which is the best way to contact me for a quick response. I hope this helps good luck and happy hunting.

Roger
The Car Guy


---------- FOLLOW-UP ----------

QUESTION: So when I put a bid either by e-mail or a button on a dealer web site with an Price Offer.   Will I be allowed to take the car to my independent mechanic for him to go thru the car?  Or if the dealer & I come to some agreement, Have I purchased the Car?????

Answer
Hi Orrin,

First off let's talk about those offer buttons...

1) No matter what you offer ...if it's over 500 less than the posted price you will get a counter offer

2) When you make those offers most of the time you are negotiating with 'deal negotiation software' like 'Wide Storm' from Dealerpeak so even the satisfaction of sliding in a hard curve ball to the groin isn't any fun.

http://www.automotivedigitalmarketing.com/group/onlinenegotiation

3) Because of the realities of #1 and #2 above you should "Just Say No!" and refuse to play the game.

Remember this whole process is about who is in control of who. They want you to negotitate in their show room or against their negotiation app...Just say no.

They want you to finance through them so they can mark up the rate and pad the back end profits of the deal ...get your own credit union involved before you buy then just say no!

They want you to drive the car then go inside to 'work the numbers' ...you go to the dealership to see and drive the car and then you go home and negotiate with a real person by email in the comfort of your home.

When you make your offer you make it conditional upon your mechanic having a look first...You don't own the car until you sign a cashable contract and drive it off the lot ...period

Let me know how I can help further but you don't want to wait too long because both of those cars are the kind that sell quickly


Roger
The Car Guy