Tue Nov 25: so I got a car

Deciding on the type of car
It's not unusual to find different qualities of salespeople depending on the brand of the car. I had a decent but somewhat humble budget, and I was looking for a new SUV. Humble budget and new  don't go very well together.

I could go for a recently used car. I did start out looking for one. There are generally 2 options for a used car: get it from the dealers, or get it direct from the seller (eg. through Craigslist).

The thing about dealer prices is that they tend to be the highest among the various options available. The margin between a used and new car's MSRP (Manufacturer's Suggestion Retail Price) is about a $1000-odd, tops $2000. For say $2000 less you drive a car that's a year's old, and with warranty that runs out a year earlier. Sounds reasonable. Throw in the unknown that is the history and current condition of the car, that's when I decide to avoid the risk.

2015 model cars cross an interesting threshold: all cars are required by law to come included with a reverse camera. I drove a Hyundai Avante (Elantra) for almost 5 years without a reverse camera nor sensor, and I was fine. Since this car will be driven primarily by my wife, plus the fact that it is a bigger car I was motivated to get a reverse camera. Don't get me started on the tragedies of mothers who unknowingly reversed into children.

Conclusion: it's got to be new, it's got to have a reverse camera, and yes I'd like to own a SUV once in my life.

Coming back to the humble budget, Japanese cars like Honda and Subaru are unfortunately out of my reach. American cars are the only bunch that fit my budget (avoiding Korean for now). Among the brands Ford seems to be better rated.

Conclusion: it's got to be the Ford Escape.

The auto landscape
Hollywood and popular literature paints car salesmen as greasy people out to sell you more than what you need. It's kind of true, but in a different sense.

Car salesmen in the States are salespeople who don't really know much about cars. Really. This is witnessed in Ford, Honda, Toyota, and if I remember correctly Subaru dealers. Not all salespeople are that clueless - it's possible but not common to be met with a more experienced one.

Their job is not to help you find the right car, but to assist in finding a car. These are two different things. They can help if you know what you want specifically. If you get technical they'd be lost. If it's not in the computer or printed on a page they can't do much. So what can they do without a computer? Pull u out the car for you to test drive. Help you locate the car in the huge parking lot. In my visits to the dealers I met with more I-just-joined salespeople than any seniors in the job. Turnover sounds high. The guys are selling cars to make a quick buck with little marketable skills. Nothing wrong with that. Just makes the customer's experience a lousy one.

Pricing
Prices in the auto industry is so fluid. There are 2 kinds of salespeople: the one who starts off with the higher price (the MSRP) and throws out tidbits of 'discounts' to get you to commit on the spot. Depending on how gullible you are, once you are hooked onto the latest 'steep discount' offered by the slick salesperson the rest of the discount cards he holds back becomes his extra profit.

Then there's the no-haggle dealers who offers the discounts upfront and leaves it there. If you like the price and the service from the salesperson, you make the decision to buy. There can be more than one no-haggle dealer in the broad radius of the city you live in, but technically they are on different ends of the radius. For example in Seattle there's one in the east, one in the south, and possibly one in the north.

I cannot state enough the importance of doing homework on the cars. It's not clear what exactly to research on until one visits the dealers to discover the variables.

Cars typically come preconfigured by the manufacturer. Few cars are configured exactly the same way. The only way to know the configuration is to read off the big piece of paper on the car, where all the features are listed. Even then it's not possible to recognise the features because eg. a touch screen dashboard is displayed as Model 201A, where 201A represents a set of features that includes a touch screen.

So car configuration affects pricing. It's easy to understand why, but it's not easy to play spot-the-difference.

The other factor that's odd is the duration the car has been on the lot. A new car that sits unsold will get a bigger discount than another which just came in, even if they have the same MSRP and similar specs. Sometimes the only difference is the color. My guess that every day the car sits in the lot, the dealer is paying a loan company interest. So the sooner it's out, the sooner the interest paying stops.

The last factor is the season. Summertime sees more people relocating. People coming into the city may need a new car. So cars and accommodation goes north. Close to December sales is slower. Prices go down. Sounds logical.

One last thing to remember: cars are taxable. In Washington state it's 9.8% - compared to 9.5% on normal sales tax. Tax dollars can add some $3000 extra to the total buy/ loan price. I've been told that should I sell my car in future, I can get back some of those tax dollars. Until then, the bank gets the last laugh as they make more on the interest until the car is sold.