Car, Apartment … Still No Darth Tater

Warning, long-winded post.

Here’s an approximate picture of my car, a 2005 Honda Civic LX-G

Once I get my camera back, I can take some real shots of my new toy. For more details than you could possibly want to know, check out this link for all the specs. (In a nod to Dean, you’ll be taken to a dealer’s site in Timmins … I’m impressed they have car dealerships up there, let alone know about this interweb thing. I also wonder if that pic with the hockey sticks is an official Honda marketing image, or a Timmins special).

The car research process was fairly exhausting, particularly fitting it with school work and job hunting. Here are a few points which I found invaluable:

• Start your research as soon as possible. It took me about a month for things to really come together, from initial reading to deciding on a model and price I’d be willing to pay. Obviously, the earlier the better and hence the more time you have at your disposal to find the right deal.
• Read plenty of reviews. Google is your friend.
• This site is a must read. The author, Jeff Ostroff, is a little fanatic, but the information is great. Some of the points below are based on info from here, but in a Canadian context. When the time comes, I’ll surely check out his related pages on weddings, houses and babies. That better not be anytime soon, though.
• Know your credit score. You can obtain a copy of your credit report from either of these sites: TransUnion or Equifax; free by mail or you can order online, depending on urgency (see point one and you can save some cash). Note to self: do not name any children after me, it can lead to erroneous credit report entries (hmmm, I’m thinking that credit card account opened six months after I was born probably belongs to my dad). In case corrections need to be made, another reason to keep point one in mind.
• Unfortunately it’s not as easy in Canada to obtain dealer invoice prices. Well, it’s just as easy, you just need to pay for it (usually — see below). Two sites can be of use: CarCostCanada and Automobile Protection Association. Find out what the dealer actually pays the manufacturer for a car, and what incentives (possibly unadvertised) are available. Bargain with these figures in mind.
• The CanadianDriver site has a great forum where you can get lots of advice and information. Find out what others are paying for the model you have your eye on. In particular, you might find out the dealer invoice prices without shelling out cash for the info. Find similar car forums.

As a first time car buyer, Jeff’s site was particularly useful. It’s a long read (and I recommend going through it twice and taking notes) but well worth it. There’s lots of horror stories and such that might make you defensive going into the dealership, but that’s not the point he’s making. Just know your facts and be prepared.

I dealt with Waterloo Honda (in particular, Wendi) and was very pleased. Mark had bought his Odysseys there, and Erin from the consulting centre also had good things to say. Of course, they recognized that I was someone who was properly researching my purchase so maybe they take a different approach with someone who walks in off the street and asks “what cars do you have in red?” I’ll give them the benefit of the doubt, though.

There was no pressure. When I took my test drive, I said I’d prefer taking it out for a spin on my own. Afterwards, Wendi gave me her card and more information, and said to call her at anytime. Didn’t ask for my phone number, so I knew I wasn’t going to be hounded with a follow-up.

During my initial visit, I was told they didn’t try to pass off admin fees and the like. True enough, nothing was ever mentioned about fees for admin, prep, advertising, etc. VIN etching was free, as well.

Every time I had a question, I was given straightforward answers and that was much appreciated.

There were a few instances that had me thinking of Jeff’s site:

While negotiating price, Wendi tried leveraging the grad rebate into how much below list price we were going to go (being in a university town and looking like a university student, it was clear I would be applying for the rebate). I said that’s a separate issue altogether; it comes from the manufacturer to me, on top of whatever gets negotiated.

Once we reach a deal, I then get to speak with the financing manager. He really did give me the stereotypical line, “Well, now the hard part’s over.” He gave me various spiels. Extended warranty: one of the reasons I’m buying this car is for its reliability; if I’m satisfied in a year, plan on keeping the car for many more to come, can get a good deal (the margin on warrantees are obscene), then maybe. Rust proofing: impressive amount of jargon, and the chemicals are so safe for the environment that, well, I’d practically be hurting it if I *didn’t* get this package. Sorry, I’ll pass. Ditto on paint protection and optional insurance. All this stuff can be obtained elsewhere and at much more reasonable cost.

A few days later, after arranging insurance (I’ll save that for another time, this is already a long story), I did the final paperwork and drove my car home from the dealer! Kick ass!

All in all, I’m very happy with the deal I got. Markup on this class of vehicle is about 7-8% or more. I paid less than 4%, plus an additional $500 off for the grad rebate. Sure, there’s probably better deals to be had out there, but I think it was fair to both sides and there’s something to be said for that.

It’s funny, this whole negotiating process. The relative amounts the buyer tries to save just doesn’t seem all that worth it compared to what you pay in the end. But that’s how things work, and you don’t want to buy a car and find out that the dude after you was able to get it for $500 cheaper. Five hundred bucks is five hundred bucks.

Anyway, my first little road trip was to Mississauga to sign the lease for my apartment on Saturday! A car one day and an apartment the next … not bad for about a day’s work. Too bad the Toys “R” Us I stopped at in Mississauga didn’t have the elusive Darth Tater, that would have really capped things off!