Car Buying Tips and the Car Dealer's Little Black Book

Typically a Little Black Book denotes social clout, secrecy and nuances of popularity. However, in the car business, black books, blue books and NADA reports disclose the dirty little secrets of the dealers. (Not really, but it sounded intriguing and kept you reading.) Actually, these bearers of private information disclose estimated vehicle values and two of these sources are available to the public.

NADA

This report is updated monthly by the National Automobile Dealers Association, a trade group of over 16,000 new car and truck dealers. NADA represents dealers, both foreign and domestic, in the media, general public and on Capitol Hill. The NADA report is compiled from information acquired from NADA's dealer members and boasts the largest database of vehicle transactions.

Many financial institutions use NADA to determine loan amount. So even if you don't base your vehicle value on the NADA guide, it's still a good resource to determine how much the bank is willing to lend for that vehicle.

Kelley Blue Book

Kelley Blue Book has gained considerable popularity over its 18 year history, due in part to its early online venture in 1995. When the web was just introduced, Kelley Blue Book launched www.KBB.com, making their insider information available to the public. According to Kelley Blue Book, their site currently serves well over 7 million users a month.

Kelley Blue Book acquires its information by attending auctions throughout the country, categorizing vehicle values according to Excellent, Good, Fair and Poor. Kelly Blue Book claims their vehicle evaluations are so comprehensive that they are applicable to dealerships nationwide.

Black Book

The exclusive little Black Book of the auto dealer may be hidden within the folds of his white suit. Watch carefully when his ringed fingers dip into his breast pocket. For once they emerge, their contents could contain your destiny. (Dramatic, I know, but you get the picture.)

The car dealer's elusive Black Book is not available to the general public. The vehicle values disclosed therein are for dealer eyes only. Updated daily, this resource garners market values from dealer auctions across the country and offers values for trade-in, retail and leasing, with a specialty in wholesale pricing.

3 Ways Car Dealers Will Reel You In

Most people assume that the police are obligated to tell the truth when interrogating a suspect. But that is, in fact, untrue. Tey can lie all they want. It's the suspect who is expected to tell the truth.

Car ads are sort of like that. We all assume that they are required by law to tell the truth. Which they are, but we all know how the truth can be...stretched. Wondering what some of the most common ways that carmakers stretch the truth are?

First off, we have the fast-food switch. It only takes one trip to a fast-food joint in America to realize that the burger you see on TV is not the same one that you get for five bucks at the counter. The advertisement features a fresh-looking, bulging burger with lots of extra toppings like guacamole and double cheese, while the burger you actually end up with is usually a patty with some mustard smeared on it. Auto manufacturers use a twist on this idea: they'll show you a picture of the top-of-the-line, deluxe model with all the extras, but flash the price on the screen for the lowest of the low models that doesn't even come with a stereo.

They also stretch the truth by claiming that "your mileage may vary." Don't you just want to laugh when you hear that one? Meet Wayne Gerdes, winner of last year's Hybridfest MPG Challenge with an amazing figure of 180 mpg! He can get nearly 60 mpg out of a plain Honda Accord due to his driving style. But that's probably not the kind of variance car ads have in mind when they say this; more likely it's the kind where you drive from home to the gas station more often than anywhere else. Just be sure to pay attention to the EPA combined mpg figure, not just the highway mpg one. And if you really want a car that hits 40 mpg, try looking at the 2012 Ford Focus, 2012 Honda Civic, or the 2011 Chevy Cruze.

Used Auto Dealers Are Awesome

Used auto dealers are awesome when it comes to selling used cars. They are the professionals that truly know how to sell a used car. Because used cars are their business, you may want to have them sell your car for you. After all they do this everyday for a living.

If you are in need of selling your used car, there are consignment programs offered through some dealerships they may be able to help you. These guys know their stuff and can save you a lot of your precious time as well as get big bucks for your car.

Consignment programs for cars work similar to antique consignments. The dealership will take your car and sell it for you for a minimal fee. And trust me; it will be well worth the money!

The fees that you pay will be described in the Consignment Agreement. Sometimes the dealer will charge you a percentage of the sale price. Most times it will be a flat fee dependent on the sale price of your vehicle. The best case scenario is if the flat fee that slides with the amount you are selling the car for.

Trader secret: beware of the dealerships that offer to take a car on consignment for a flat fee, I have heard of dealers that charge $3,000 whether the car is worth $8,000 or $15,000. Obviously this could seriously hurt your wallet.

The fees charged will include the advertising of your vehicle. The dealership will market your car through many resources so that those looking for a used car will take notice of yours. Because these folks are professionals, dealers have marketing avenues you wouldn't even know about, this will help your car sell more quickly.