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Q:
Jeff, how did you get started in the web business and when?
A:
It was in 1996. Back then, most people did not know what the web
was unless they had it at work. Very few people had a web site, and
even fewer knew how to create one. I was the first person of anyone
I know with a web site. During my honeymoon in St. Lucia in 1996,
I thought it would be neat to create a web site with photos I took for
my family to see online so I would not have to make copies for everyone.
So I created BridalTips.com.
I knew nothing about domain names or how to get a ".com" name, so the site
started out on a local ISP, but the .com name was not reserved until 1998.
I grew BridalTips.com
with advice for other brides and grooms because I saw so many scams, and
nickel and dime fees in the wedding industry, and vendors who make brides
feel like dirt for not buying this or that. I started to get a lot
of positive response from couples going through the same problems we had,
and added sections on DJs, photographers, limos, bridal registry scams,
bridal shop scams, then the idea hit me like a ton of bricks!
The internet is a pretty powerful medium to get your message out to people.
It was time for me to start warning the world about crooked car dealer
scams based on my past experiences with GM. Q:
Some people might think you hate car dealers in general is it true?
A: Absolutely
not. In fact the majority of car dealers know that long term business
relationships are profitable and want you to buy your next car from them
too. Many dealers sell cars to people according to the pricing methods
and negotiating strategies we teach you here. Many dealers thank
me for our site, because we send them educated consumers who know what
the price should be. It's a lot easier for dealers to sell to an
educated consumer than to one with a chip on their shoulder, who haggles
with no idea about what's going on. Just take a look at our successful
$avOmeter Savings Database. It's testimony
that there are hundreds of excellent car dealers who will give you an honest
fair deal on your new car.
We
are not here to trash all car dealers, just the ones who cheat and lie.
Car dealers work hard and deserve to make a profit. They have mortgages,
bills, and mouths to feed, BUT so do you. Somewhere half way
you find a deal that is good for you and provides the dealer with fair
profit. I don't just talk about car dealers. On BridalTips.com,
I wrote a great article called How
To Buy A Diamond Engagement Ring And Avoid Scams. But as
in any business, car dealers have a good share of scum bags as shown by
some of the emails sent to me that I posted on the front page. Yes
they are all real, posted just as I got them. It shows what some
dealers really think of you. You're a life support system for a wallet.
Q:
It must have been pretty bad for you start a whole web site about it. A:
It was indeed! I thought I was pretty smart buying my first brand new car
in 1987, but back then none of us knew anything about car buying, and had
no web sites to research car prices or car loan rates. The problem
is, the most exposure we get to car buying is a few hours every 5 years
or so. But car dealers have had decades to perfect their skill in
selling to you. Luckily I was able to ward off most of the scams.
For example, when I bought my 1988 Trans Am, the selling price was $17,700
and I ordered it from the factory. 6 months later the car arrives
and the Pontiac dealer "lost" my paperwork and wanted to charge me $21,000
because GM also "raised the price of the car". Of course I knew it
was a scam, as cars only increased about $300 from year to year so I spent
4 hours chewing out the owner and sales manager using every threat I could
to get my car at my original price, since I did not "lose" my
copy of the paperwork. I got the car at my price and bought the extended
warranty when they told me I get car rental reimbursement, etc. Things
quickly went down hill from there. The first month I got my first
taste of that "great GM feeling" when my fiberglass rear hatchback started
bubbling. They had the car nearly 2 weeks over a couple of months
as they fought to solve that issue, and fuel pump and fuel tank issues.
The first year I rang up $650 in car rental bills and every one of them
was rejected by GM because of a tiny weasel clause in their extended warranty
contract that says they won't cover "any cost covered by GM's standard
vehicle warranty". This means that since all my repairs were covered
by the standard warranty, I was not entitled to rental reimbursement with
my extended warranty, even though the salesman assured me when I bought the
useless warranty that I was covered. It was the stupidest thing I had ever heard. That's why I drive
a Lexus now, never look back.
GM's warranty
weasel scam clause is of course the exact opposite of the lies the GM salesperson
told me in order to sell the contract. Later on, GM's Palm Pontiac dealer repaired
my leaky gas tank with a U.S. copper penny, causing it to eventually corrode
through and leak, risking my life as well as others. I can't imagine
that being legal in the eyes of D.O.T. or the EPA. Of course like
always, GM's toll free Customer Circus center was a joke, always siding
with the dealer. They offered to "replace" the tank for $500, when
it should have been free under the warranty. How generous.
Once I got the State of Florida Attorney General's Consumer Affairs Division
after the dealer, they reimbursed me only $300 worth of parts for my car,
even though I spent hundreds on car rentals and a new tank. I tell everyone
to avoid calling a car maker's Customer Circus center, they are such jokes
and are nothing more than facades to make it look like they care about
you. By the way, that Pontiac dealer is no longer there. If you have been wronged and want results, your best bet is
the consumer reporter for your local TV station. In early 1997, CarBuyingTips.com
was launched as a stand alone site based on all my experiences, but the
".com" name was not reserved until 1998. Over the years it has grown
based on the input from car buyers, salespeople, math professors, authors,
our own research, consumer advocates, and other industry insiders.
Q:
Jeff, you're an engineer. What makes you an expert on car buying?
Give us a break! A:
Once in a while I get angry email (from car dealers) who arrogantly tell me that
I have not worked in the industry for 20 years I don't know what I'm talking
about. Oh really? So how is it that every day people email me that they
saved $3000 on their new car after using our site and they told everyone they
know about us? Car buying is not a rocket science requiring years of
insider expertise. In fact, I get email all the time from sales
managers thanking me for sending them educated customers, who are the easiest
ones to sell to. Basically car buying is nothing more
than adding and subtracting, with an occasional multiplication thrown in
for good measure. It's also about spotting the hundreds of scams
that some car dealers have in their arsenal. The true art of car buying
has nothing to do with any science of the industry, it's 90% negotiating
skills, and 10% research before negotiating. I have the skills necessary
to negotiate with the toughest car salesperson. I've always had the
ability to smell a scam from a mile away. I have a file cabinet full
of leases that I've analyzed over the last few years and I've seen more
leases than most car salesmen. I've seen and heard of every scam
there is, and helped lots of our visitors get out of some real sticky lease
scams. I know what I'm talking about. In fact ask your car
salesman to recite the formula for depreciation, bet they don't know it.
But I do. In fact I have created several
excellent spreadsheets used for leases, 4 way car loan scenarios,
bill of sale forms, and buyer's offers that have all stood the test of
time. People have used my lease spreadsheet on their laptops at the
dealer and caught them lying about money factors and packing monthly payments.
I'm more qualified than most to give out advice. I've personally
helped several hundred friends, coworkers, and visitors to our site get
through their car buying ordeal. I also find it funny that salespeople
will tell us our information is incorrect, but they don't tell us what
is incorrect. It's most amusing that some morons still email me saying
that holdback does not exist, yet other car dealer web sites actually list
the holdback on their web sites! Many of our visitors are able to
get dealers to give up some or all the holdback. Also, I have received
an enormous amount of tips from current car salesmen, former car salesmen,
authors, sales managers, industry insiders, and well known consumer advocates.
I go to the NADA shows, I take the same training the that car dealer finance
managers take. We get email from salesman who are sick of the deceit & scams at their
dealer and want to tell all. Sales managers tell me our research
is right on. This dynamic site has the daily pulse of the car buying industry,
and dynamically grows with each report from the field. My
$avOmeter
speaks for itself. Q:
Jeff, do you get paid by any of the companies you recommend on CarBuyingTips.com? A: Yes we do, we get paid by
sites like InvoiceDealers,
Yahoo!Autos,
Autos.com,
Edmunds.com,
MyRide.com and
CarsDirect.
I'm what you call a real world consumer advocate. I don't like to
just dispense vague and generic advice like consumer interest groups do.
I like to go one step further and review each business that we recommend,
telling you how to get the most out of them, and what's in it for you.
Keep in mind that although they pay us, I would not recommend a site that
I thought would not do good by you. There are some well known companies
that are not mentioned here because I don't think they are very good.
If you don't see them here, they probably are not worth it. Before
you claim that I'm just in it for the money, keep in mind that 80% of this
site in its current form was already up and running at my own expense,
long before we had our first advertiser, long before I knew what an affiliate
program is. I also answer over 100 emails every day for free, helping people
out of some tight situations, and I've analyzed more car dealer lease contracts
and invoices than many salesmen. See if CarPoint has an email link
where you can ask them questions. I work hard on this site, I update
it all the time with the latest scams, and I devote an enormous portion
of my time to answering the email of complete strangers who need my help.
Also, I have upper management of all these sites in my Rolodex. I know
more CEOs of auto related companies than any car dealer. I
have worked closely between consumers and these companies to successfully
resolve issues, and have worked closely with the business development people
of many of these sites supplying them with ideas to make consumer lives
easier. No other car buying web site can claim that. So yes
I deserve some kind of compensation. Besides, most buyers email me
back stating that I saved them on average between $2000 and $4000.
Not bad for a free web site. That's really what makes it all worth while.
My $avOmeter crossed the $1million mark by the end of 2000. The companies
who advertise on our site know that our visitors come first and everything
else is secondary. With the business we send them, they don't seem
to mind.
Q:
Jeff, what do you think of all these other copycat "car buying guides"
that look similar to yours? A:
I guess I should be flattered that they want to emulate us. Some
of them have even imitated my $avOmeter on the front page. Most other
car sites are very unoriginal. We have catch a copycat site
actually cutting and pasting text from our site every other month, a testament
that we are the best. A quick email from our legal team to their
ISP's legal department usually straightens it out. In 1997, there
was only Edmunds and our site. Then once the concept of affiliate
programs took off, it was only a matter of time before everyone wanted
to be the next CarBuyingTips.com. The only problem is, most of these other
sites just slap a bunch of banners up and call themselves "the web's best car
buying site", when in reality, they have no content at all. On the other hand, I
have over 100 pages of the best and most useful award winning content anywhere,
more than enough to fill a book. Also, we are the first car buying site to
feature more than one car buying service, as our strategy since day one has been
that competition gets you the best price. So we were listing several
different car buying sites to use when other "car guides" were affiliating to
the one car buying company who paid them the most money. Because of our clout, we were
instrumental in removing exclusivity clauses with most of these companies, which
were forcing car sites to advertise only one company. You get an honest
opinion from us, not a hyped up sales pitch to the site who pays us the most.
Once we started listing multiple companies, the other sites followed. I've
noticed when I add a particular story or add a style of writing, something
suspiciously similar appears on some of the "clone car guides". Of course
other "car buying guides" out there try to claim that they were the first to
have multiple vendors or they have false dated copyright statements to make it
appear they have been around since Christ. But a quick lookup of their ".com"
name quickly reveals how much newer
they all are than CarBuyingTips.com. Even though we registered our
name in early 1998, this site has been under development since 1996.
There have been other sites trying to ride off our coat tails by registering
variations of our domain name as well. One final point: see how many
of these copy cat sites give a link for you to email them to ask for help
when you get into a bind. Most are zero content cash registers that
want you to click their banners, and never want to hear from you.
Everyone should start in the buyers
guide whether you are buying or leasing cars.
Haggling tips,
car loans, dealer scams, dealer invoice, look up new car prices, used car
prices, auto trader tips, fix your credit, financing,
all about
Warranty
Direct and extended warranties, lying ads,
everything you need to get the best deal possible. We'll review car buying sites like InvoiceDealers,
Yahoo!Autos,
Autos.com,
Edmunds.com,
MyRide.com and
CarsDirect
to find out what dealers pay for new cars, and get free purchase quotes on new cars.
Visit
Some Of The Other Sites That We Also Created:
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