Saab Story… Whose Car Are You Driving?

Whose Car Are You Driving?

By Abbey Algiers

I ask this, because in my house, this is a big topic of discussion. Actually, it’s not really discussion, because a discussion implies a back and forth type of banter. Rather, I’ve been talking about it… to my husband, parents, siblings, and actually anyone who stops long enough to listen.  It’s been on my mind since the end of March, when I sold my beloved red 9‐3 for a car I should not be driving, for a multitude of reasons. As a result of this lapse in thinking, I am currently driving someone else’s car.

It is bad enough that I sold a car I loved. But, to sell a car, and then make a really poor financial decision… is especially traumatic. What happened? It went something like this.

On a cold Saturday afternoon in March, someone took over my body  and actually signed paperwork  that increased my monthly car payment by over $150.  That mysterious interloper also left me convinced, for a brief moment in time, that I was doing the right thing.

Now, there are instances when the above transaction would be acceptable. For example, say I recently received a sizable raise at work. I got a six figure publishing deal. Or, I thoughtfully budgeted for a more expensive car and purchased something that I really, truly wanted and could not live without… my dream car, for example.  Any of these would be acceptable reasons for what transpired on the afternoon of March 13 at approximately 3:48 p.m., just 72 minutes before the dealership closed for the weekend. I purchased a new vehicle in such a frenzy one would have thought I was purchasing the last car on the face of the earth.

To understand the above, it’s necessary to examine the process of getting a new car in general, and then more specifically for “someone like me.”  First, a decision is made to lease or buy.  If one decides to purchase, then the question is new or used.  This is the bottom of the car‐buying pyramid, and based on the person, the purchase can proceed to be as simple or as complicated from that point on.

For drivers who see their cars as a means to get from point A to point B, car purchases are few and far between, and therefore may take longer to make.  But, in the long run, this person does end up in a good financial position, driving a car they like.

Then there’s a car owner like me, someone who adores cars and really looks for any excuse to buy, sell, or trade.  Flat tire? Small dent on fender that barely chips the paint?  Side mirror broken in garage mishap?  All of these situations at least bring up the notion of trading in my mind. Low on washer fluid? This too could do it.  For this affliction, I blame genetics.  Growing up, I am pretty sure my dad traded his car every single year.  My uncle has been known to go out for an oil change and come back with a new car.   The problem I am facing right now is not my fault… my DNA is responsible for my actions.   You see, I think of my car as more than a means of transportation… I see it as an extension of my identity. When I get into my car, I like it to feel like me.  People like me are why car dealers stay in business.

To illustrate this, might I give a summary of my car purchases post‐college. My first car was a white Toyota Paseo. It was stick shift, which I thought was cool at the time, even though I had never driven stick before. Therefore, I didn’t even test‐drive it on the lot, because I couldn’t.

My dad test‐drove it, for crying out loud.  At the time, all I knew was that I wanted to buy it because, first of all, it was white, and white was my favorite car color. #2 ‐ It looked sporty.  Finally, it had an AM/FM radio AND cassette player… far surpassing my college 1980 Chevette that had an AM radio and reeked of smoke. Who needed Consumer Reports when I had reasons 1‐2‐and 3 to support my purchase?

Well, that little baby saw me through the first years of my first job as well as the first years of my marriage. I loved that car until talk of starting a family swirled around the dinner table.  Coincidentally, this was about the same time that a VERY cool new Subaru Outback Wagon was brought on the scene.   To this day, I’m not sure what came first‐ thoughts of babies, or thoughts of a new, cool car to cart them around in.  This car came complete with cozy, heated, polar fleece seats, and an AM/FM radio with a CD player. Can you say, “Movin’ on up?”  And, again… the car was white. Done deal.

Then, just as sometimes rust attacks cars, unfortunately, rust began to creep in on my marriage.  My then‐husband and I stopped talking kids, and began to question instead whether anniversaries would be in our future. Besides feeling the pain of this impending break up, I realized something almost more traumatic. I might be a divorcee who had… a station wagon.

There was NO WAY IN HELL (I gently told my husband one night) that I was going to be driving a STATION WAGON if we were not going to be married. Station wagons were for married people… and if that wasn’t me, well that wasn’t going to be my car.

Enter the new VW Bug, the “Beetle” of the 90’s, which came out just about the same time my marriage was headed for the used car lot. I had wanted a Bug for as long as I could remember.  Though I wasn’t sure at the time whether my marriage would make it, I was sure that I needed that car.  So… my husband and I went shopping for the “all I know is that I can’t drive my wagon and I need a Bug” purchase.  Since nothing was set in stone regarding our marriage, I obliged my husband when he asked that I get a color that he’d at least look “not completely girly” driving.  We settled on a navy Beetle.

Nonetheless, I was driving a car that I felt properly defined my life situation and me. My car did not say “family.” It said “fun.” “Zippy.” It said, here is a girl with a cool car. Period.  I loved that car.

Then, enter the divorce. I still loved that car, but secretly regretted not taking a stand and getting a color I wanted. I realized there were famines and wars, sicknesses and real problems happening all over the world at the same time that car color was occupying my mind.   And yes, I knew that compared to these conditions, car color was quite insignificant.  So I shut it out of my mind.

God must have been on my side, because, due to an engine failure, coupled with an owner failure (I left the sunroof open during a rainstorm), I was left with a nonfunctioning car and the need to trade.  In a true, “I am woman hear me roar moment” I managed to get myself a fabulous deal ($115/month) for another Beetle that I picked based on the fact that it matched the nail polish I was wearing that day (“My Chihuahua Bites” by OPI). I zipped around in my car like a 7th grade girl zips around in her first pair of heels. I was thrilled. I loved that car.

In hindsight, it’s sometimes difficult to remember exactly what event put me in the dealership prior to each of my car purchases.  Having bought my second Bug based on a nail polish color, one would think I’d have been set in those wheels for life. I think, however, that a worn out clutch sent me to the VW garage, and consequently its nearby showroom. Because nearly everyone in the dealership knew me, or knew of me by this point, a salesman latched onto me in the waiting room.  Did I want to take a look around the showroom while they checked out my car?

By the time I had seen about three fabulous potential replacements for my car, the mechanic came out to tell me that for just $1200, my car would be as good as new. A light bulb went on in my head.  I turned my new best friend and salesman to ask, “If I trade, I don’t have to pay for the repair, right?”

The solution seemed to be a no brainer.

I had strict guidelines for my next purchase though.  The car had to be under $230/month… and it had to be a VW, namely because this was the only car in the dealership I thought I could afford that was to my liking.  I test drove several VW Jettas, as these felt like a logical step up for someone now in her early 30’s. Perhaps I was outgrowing the Beetle.

Then my salesman asked, “What about a Saab? Why don’t you just test that red one out?”  A Saab? I would love a Saab… my entire family owned Saabs.  My dad was on his fourth, my sisters were each on their second 9‐3, and my brothers had bought my dad’s “gently owned” 9‐5’s.  At that moment, I decided I wanted in on the Saab revolution too!

Could it work?  I took some deep breaths, and visualized driving home in my new Saab.  After all, my salesman knew my budget.  He knew my trade in value.  He wouldn’t tease me with a car of this magnitude if he thought I couldn’t afford it, right?   Plus, we both knew that from the moment he mentioned “Saab” that I was in. Why did I even need to test drive it?

He insisted on a drive though.  We took it around the block and we both knew there was absolutely no turning back.  This car would be mine.  I must have looked like a crazed animal when we pulled into the lot, because my salesman quickly got out of the car and said, “Don’t worry, we’ll make it happen.”

He came back after what seemed like a lifetime but was actually probably five minutes.  Thanks to some miracle with his calculator and the trade department’s generous quote… I was able to buy the Saab.  For $234 a month!  I loved, worshiped, and adored that car.

This is what I was in, until just a few months ago, on that blistery day in March. Only I was in a new situation‐ I was driving a car that had passed its three‐year warranty.  This had never happened to me before.  I didn’t quite know what to do, without the guarantee that the dealership would fix anything that went wrong with my car, and offer me a free loaner when I had an oil change or routine work scheduled.  Would I need to… pay for repairs? Replace tires? And brakes? All of these things were too much for my frequent trader mind to grasp onto.

Enter the frenzied trip to the dealership and the subsequent purchase.

What was that purchase? It was a mistake of gargantuan proportions.  Note that it is a fine car, with a beautiful leather interior and a fabulous sound system.  There is nothing wrong with this car. It’s just that it doesn’t suit me. The frame of my new Mazda 3 cries Nascar meets Matchbox, complete with a hatchback spoiler.  This is something I never imagined myself driving.  But the biggest problem with this car, you see, is that the wrong name appears on the title.  The title should tout Kyle’s name.  Who is Kyle you may wonder?

Kyle is 22 years old and lives in the newly remodeled basement of his parents’ house.  It’s actually quite a great set up, because his parents travel often, giving him pretty much 100% use of the house, that happens to be on a lake.  Which is also great, because Kyle and his friends are really into their water skiing and wave runners.  In addition, Kyle has a lot of parties during the summer, and his car is the perfect size to zip into town on beer runs.  After all, it’s not a huge car, but the hatchback conveniently fits a keg and ice.  Kyle also appreciates the fuel efficiency of his car, which takes him on a 30‐minute commute to his job at a marina. He doesn’t mind the drive, because his car has an excellent sound system; on which he can blast songs provided to him by his high school sweetheart. Stephanie. He also doesn’t mind the drive because his job pays “good money” which he needs, since Stephanie is expecting a ring soon. He’ll need to save for a ring and a place of his own. Thank goodness Kyle’s dad paid for half of his car; at least he doesn’t have a huge car payment.

So, there you have it. Every day, when I sit down behind the wheel of my car, I check the back seat to see if Kyle is there, waiting, to demand I return his keys. For once in my life, my car does not match my identity one bit. And, perhaps this is the true reason behind my discontent with my car.  In addition to its hefty price tag and representation of the fact that I let go of something I really liked… it is like wearing someone else’s clothes every single day.

I will continue to drive Kyle’s car until I can figure out a way back into the Saab family again.  I feel like a wayward daughter who hastily left home, and then realized how good she had it.   Whether it involves convincing my dad that he needs to buy a new 9‐5 and sell me his, or purchasing a new one for myself, I will be back.  Because Saabs… are in my blood.  And Kyle, is getting tired of walking.  He needs his car back.

Copyright 2010

Whose Car Are You Driving?

By Abbey Algiers

What’s Old is New Again…

The fact that I do not have a shot of a shiny new car pasted on this blog should be your first hint that the saga continues.  After my trip to Carmax, I went over the numbers my new friend Matt the Salesguy had given me.  The solution of buying a new car and tacking my loss onto a new monthly payment sounded good at first, but when I looked at it closely, it felt very painful. It was, in fact, not a solution to my problem, but an extension of my problem…the equivalent to a house project that starts with one buying a new toilet, and then destroying the floor while tearing out the old toilet. This leads to a series of events that include upgrading to a tile floor, and heck while you’re at it why not heat the tiles.  Then you decide to add a new shower which after some thought becomes a spa shower.  And if you have all of that, you’ve got to get the matching sink too, right?  In the end, that $250 toilet costs you $20,000 because you’ve now decided to paint the whole house too.

That, in a nutshell would’ve been my Carmax purchase had I gone with the option to, “Buy a car you really like, for just a tad (like $40) over $500 per month.”  Well, sorry, Matt, unless that payment came with some therapy sessions, I don’t think so.

This left me a little discouraged. Yet I continued on.  I realized that in order to make up some of the loss of selling a new car, I’d probably need to sell it on my own.  Enter Craig’s List and Facebook Marketing. Could I wow a potential buyer with my witty ads? Would this bring them in?  Apparently, money talks more than a catchy headline. After four weeks of online advertising, I got two replies.  “Are you fixed on the price?”  (Of course not, let’s talk. I never heard from them again.)  and “Is your car turbo?” (Quite honestly, when I got this question, I had to call to my husband in the other room. “Honey, is my car turbo?” I took his “Are you serious?” as a no.) Editor’s note: when you buy a car in 72 minutes, you can forget some of its features, so cut me a little slack… it goes fast, so I did think it was Turbo.

With my ads circulating, I also wanted to do work on my end to find my next car.  I remembered what my mom had asked me, “Why don’t you sell your car and get a used car that’s less expensive?  You don’t like your car anyway…”  As usual, my mom had a point.  I began to look at the “pre-owned” inventory of my favorite dealers.  I saw a lot of cool used cars listed at probably the same price that my Saab had sold for months earlier.  This fact made me more than slightly sick to my stomach. The irony of selling a car because it was getting old, only to then sell the new one for something old… was a little much.  However,  I did manage to find a “sweetheart of a deal” in the form of a 2003 Mercedes wagon. It was classic, big enough for my family, and just plain cool.  All for just a little over $10,000.  That might work.

Better yet, it was at the dealership that my friend’s husband managed.  I emailed my friend’s husband, Larry.  Larry confirmed that it was a great car, and told me to come to the dealership the next day.  I was beyond excited. Was my battle ending?

I wanted to be prepared for the transaction should I decide to go ahead with a deal, so I called my bank to ask about financing.  The woman on the phone told me she had some rates for 3.6%.  “Really? Even for a used car?” No, the used car rates were something like 4.2, but, “Only if the car is less than 7 years old.”

Deluded, I said to the woman, “Well, this is a 2003, so that’s just 7 years.  That could work, right?” I believe she pressed her cough button to cover the first part of her response of, “No, idiot… 2003 means the car is older than 7 years.”

“So, you won’t finance a 2003 car… at all?”

“No, ma’am,  not at all.”

I decided to proceed and figure out alternate financing later.  At the dealership, Larry took me on a test drive and showed me all of the features that come with a Mercedes.  He assured me that while it was a 2003, it was “a Mercedes-Benz… and you really can’t go wrong with that, especially at this price.”  He was right- it was great, and he worked so hard to come up with a fabulous financing, trade-in, and used car warranty deal that I could live with.  He even reduced the price since there was some major maintenance coming down the bend on this car.

Well, as I mentioned earlier, there is no shot of a new car on this posting.  In the end, it turned out that even with all of the factors falling into place thanks to Larry’s great deal, my payment would have been just $37 less per month than what I’m paying now for my brand new car.  Further, the car I’d be buying would be the same year as my husband’s car, and during the moment I was thinking of buying the Mercedes, my dad pointed out, “You’re selling a new car to buy another used one, so now both of you have cars that will need repairs?”  He didn’t say, “What are you, nuts?” but I heard it in his voice and came to my senses.

After a lot of thought, I decided to forgo the 93,000 mile wagon with an unknown future and stick with my little car that at least had a warranty to handle things for a while.  It was a painful decision which I recovered from just five or six days later.

I’m okay now, though, and still have not given up.  Stay tuned for more insights such as:

*  What to do when your husband’s car needs major work?  Propose a double trade in deal, of course…

* The 10 Things that are easier to do than successfully trade a new car

In the meantime, wear your seatbelts, everyone… and always phone a friend before making any major purchases.

Copyright 2010

by Abbey Algiers

imcarchica.wordpress.com

I like TJ Maxx… so I gave Carmax a try too

I am still trying to figure out what to do with my car. A few weeks ago, I decided to look outside my comfort zone (I’ve worked with the same dealership for about 6 years) and check out some other options.

The option I will discuss was sparked by my mom’s advice, “Why don’t you try to find a used car you like that is cheaper? It’ll solve your problem for now, and it doesn’t have to be forever…” (Translation: Daughter- for the love of Pete, just do something so you will stop talking about this fiasco.)

A novel concept. Purchase a used car that I like, and have lower car payments too. Ironic too, seeing that the main reason I got into this mess was because my “old” car was just approaching its fourth birthday and I feared unknown maintenance problems.

In a nutshell, my story could be described as this.  Girl buys new dream car. Girl loves dream car. Girl drives dream car for years and knows all of its quirks and nuances., Girl then ditches dream car when warranty expires.  Girl buys new car she does not like, then looks for someone else’s used car with unknown history or future.

The funny thing was, as messed up as my story is/was, looking for a used car at didn’t even phase me.

Enter Carmax.

I took my car to Carmax to see how much I could get. I liked that their “…specially trained appraisers take into consideration your car’s specific condition. And while online estimates may only provide you with a ballpark figure from market data, we’ll actually buy your car after it’s appraised.” Fairly appraise my car and then buy it? Sign me up!

At Carmax, I became hopeful that perhaps my solution would be found in the literally thousands of cars in their inventory. Once inside the dealership, I was amazed at its size, organization, and just plain enterprising business plan. I was told that Matt would help me, and was promptly led to one of the over 30 cubicles sporting the “trained sales staff.”  Matt proceeded to recite page 32 of the Carmax manual, where he told me a lot of facts about their A-rate appraisers.  Bottom line I understood that the appraisal process would take about 30 minutes, and when they came back with their number, that would be it. I wouldn’t be able to beg them for more money.

As he talked, I looked outside his cubicle window at the wonderland of automobiles all safely nestled in the Carmax lot.  Note that you have to actually enter the Carmax showroom, talk to a sales guy, and then be let out to the lot to browse.  Not just anyone gets to peer inside Carmax’s autos.

When Matt was done with the appraisal shpeel, I had some questions. Since this was the first time I was in a situation of severe “negative equity,” I wanted to know if I could roll the excess of my existing loan into a new loan, should I choose to buy and sell at Carmax.

“Of course you can, I do it all the time,” Matt told me. He went on to explain that I had basically two options for financing. If I chose a used car, Matt would be able to get me at least 6 bank rate quotes within just minutes. (For the record, I had never thought about bank rate retrieval speed being a factor in my car purchase processes, but hey if this would help me get out of my car more quickly, have at it, dear Matt.) Option two- if I chose to purchase a Toyota, the only new car this Carmax branch sold, I could possibly get in on their 0% financing option.

Next, I wanted to know about the manufacturer’s warranty I had purchased with my Mazda. Would this $1500 be lost? “Oh, no, call the manufacturer,” Matt told me.

Who knew I could get this back? Apparently, they will pro-rate the warranty and return it to me with the sale of my car. Good news!

So, armed with that info, Matt opened the pearly gates and let me loose among the cars.  (A side note: If you are looking for the MECCA of every car ever made, then come to Carmax.) From Audi’s to VW’s to Suburu’s… you name the car, they are bound to have it.  And, if they don’t have the specific make, model, year you’re looking for, no worries. They’ll find it for you online in their GIGANTIC inventory.

As I walked the aisles of cars, it was looking like there might be some hope after all. For a moment, I forgot that I’d been told that cars depreciate $5-6,000 almost immediately. I thought Carmax might not have heard about this.

Nope. Carmax got that memo too. The appraisal came back at about $6,000 under what I’d paid. Press buzz kill button now.

I needed to do some thinking.  I had the financing information that Matt have given me earlier, and now I had several cars that I had seen and liked. Yet, the financial side of the equation still wasn’t too pretty. I had some decisions to make.

Should I just keep my car and suck it up? Or, purchase one of the cars I had just seen, realizing that the car payments would be significantly higher than I was paying now?  Yikes, I was already paying a lot (with emphasis on the lot) each month.  To raise my payment even more, it would have to be a car that I absolutely loved… or this whole car thing would give me one big ulcer.

Luckily, the Carmax people give you 7 days within a written offer to think about the deal. Maybe they’re onto the fact that car decisions should be considered carefully… a fact I was slowly learning.

I left the dealership with much to consider and an entire inventory of cars to explore at the Carmax website.

Which I did.

That, as I mentioned, was a few weeks ago.  What did I decide?

Stay tuned.

Copyright 2010

imcarchica

by Abbey Algiers

Car Depreciation 101

WHO KNEW?

There are certain things we hear about, believe they are false, and then go ahead and do them anyway, shortly after realizing that what we heard was right.

For example, teenage girls are told of the dangers of tanning and what it will do to their skin later in life. Yet, many girls continue to hit the beach and tanning beds, thinking the sun damage won’t hit them. Take a poll of my thirty something friends and I’m sure we’ll all agree we wish we would’ve pulled out the sunblock sometime in the 80′s.

College students receive the hint that they really should attend class, not party too much, and study perhaps a bit. Then, semester after semester, co-eds learn the hard way that passing a class requires some effort.

There are many important facts that we simply do not listen to, for one reason or another.

Which brings me to a lesser discussed, but highly important fact, that really should be added to high school curriculums throughout the land. (drum roll please) Cars really do depreciate the minute, maybe even second they leave the dealer’s lot. If you don’t believe me, trust the folks at bankrate.com

This fact isn’t discussed a whole lot mainly because most people actually like the car they buy immediately, and for at least a year or so thereafter. Further, most people have an idea of the kind of car, and specifically, make and model with data to support their negotiating strategy before they go to the dealership. Most people… do not treat buying a car in the same way they consider buying say, an ice cream cone at 31 Flavors. “Will I take the white Mazda 3 or the blue VW Jetta? Hmm… I’m feeling like a white Mazda today…”

Yet, as I have mentioned before, I am not like most people when it comes to buying a car. (See “Whose Car Are You Driving?”) Since the purchase of my car, just over three months ago, I have gone through a process similar to that of grief. At first, I was in denial that I had actually sold my Saab, and purchased a new car. Each day, I thought it would be waiting for me behind my house. Initially, I told no one of my dislike of my new vehicle; I was embarrassed at my rash actions and just wanted to see if my little problem could work itself out in the form of a miracle or lottery win. When those things didn’t happen, I thought maybe what I had heard about depreciation was an old wives’ tale. Certainly there’d be a way of working out some even-Steven trade with my sales-guy at the dealership. Maybe I could even return my car like a pair of jeans at the Gap.

Right.

When I approached my sales-guy, he kindly, sadly, told me that he was very sorry I was unhappy, but it would be best for me to try to enjoy the car I had bought. It would be “an economic disaster” to do anything so soon after the purchase.

Deflated, I drove home and tried to like my car. I put my marathon bumper stickers on it, and filled the CD player with my favorite tunes. Nice touches, but I still looked longingly at other cars when I drove to work.

At night, I found myself surfing the web, looking for cars online. I found one I liked at a nearby dealership, and gave them the article I had written about my situation. I was hoping they’d maybe BUY the article, and financially rescue me. No such luck. Instead, they told me that while they “got a kick out of my writing,” the best they could do was purchase my car for $5,000 less than I had paid just one month ago! I thought they were lying, and tried my luck with another dealership. Their offer was $6000 less.

I was appalled. How could this rapid depreciation be even legal? Defeated, I temporarily put my new car quest to rest. With the exception of occasionally leaving my car running and unlocked in front of my house, I did nothing. I just hoped I’d learn to like it.

And I tried to like it, I really did.

And… I am still trying to like it. But that doesn’t mean I can’t do everything in my power to find a new car, right?

Since those initial inquiries, I think I may have learned a few things. Stay tuned for fun lessons on:

* Shopping for a car at Carmax

* Exploring the Used Car Market (or rather, “Pre-Owned”)

*  Advertising on Craig’s List

* Trying to sell my car to my stepdaughter’s friend’s sister… (Hey, the friend may be 14, but the sister is a college graduate! Right?)

Stay tuned, this chica isn’t going to give up easy!