How Can I Use the Kelley Blue Book to Buy a Car?

The Kelley Blue Book is a great reference tool compiling information from thousands of dealerships across the nation to determine estimated pricing for buying and selling new and pre-owned vehicles.  The Blue Book presents different types of pricing, and it’s helpful to know the difference between them:

For New Vehicles:

• Manufacturer Suggested Retail Price (MSRP): The selling price the manufacturer suggests for a new vehicle.
• The Dealer’s Cost:  The price the dealer pays the manufacturer for a new vehicle.
• Pricing for additional options

For Pre-Owned Vehicles:

• Retail Pricing: This is the price you might typically pay for the vehicle at a dealership.  It factors in dealership costs, such as preparing the vehicle for you, and any reconditioning or work that may need to be done on a pre-owned vehicle. 
• Trade-in Price: This is a typical price you might receive for trading in the make and model.
• Private Sale Price: This reflects the price you might receive for selling your vehicle to another individual privately.

These prices are estimates based on research on new vehicle sales across the country.  Pricing for pre-owned vehicles is based on an estimate of the depreciation of a particular make, model and year, extra options, mileage and the condition of the vehicle.   The Blue Book is meant to be used as a guide and actual prices may vary based on a variety of factors including supply and demand, mileage, options on the vehicle, condition of the vehicle (for pre-owned vehicles).

If you’re buying a pre-owned vehicle, make sure to review the vehicle’s history. Ask the dealer to give you the following:

• CARFAX Vehicle History Report — listing the number of owners, service intervals and accident history.
• A copy of the work order indicating any repairs that the dealer has made to the vehicle prior to putting it on the lot for sale.

At Jaffarian, we use our own Evidence Manual that contains copies of the above, along with any prior service history if the vehicle was serviced at Jaffarian.  If a vehicle for sale has had all its required maintenance performed by us, we market it with pedigree papers.

Use the Kelley Blue Book as a guide in the process.  At Jaffarian, we are here to assist you helping you make the best decision in buying a vehicle and/or trading in a vehicle.  We want to make sure you always drive away happy!

-Gary

ASK GARY: Is There a Shortage of New Toyota Vehicles?

No, the shortage is over.  I’m happy to report that production and distribution have bounced back to normal levels and we’re getting truckloads of new Toyotas every week.  We’re excited about all the 2012 models, including the new Camry.  If you are interested in a new vehicle, don’t be fooled by claims that there is a shortage.  We have plenty of new and pre-owned vehicles, so browse our inventory or come in to take a test drive.  We’d love to see you.

Happy driving!

-Gary

I Heard About GAME ON. What is It?

We have just launched GAME ON, a program to support high school athletic programs in 14 towns, and 8 school districts.  We are donating a portion of our profits to help ease the financial burden of user fees and help make high school athletics more affordable for teens and their families.

My family has been a part of the community for generations and we’ve always had a strong commitment to supporting athletic programs for children and teens.  We want to increase our involvement now to help families in these tough economic times.  In the GAME ON program, for every new or pre-owned vehicle bought or leased by a resident of a participating town, Jaffarian will donate $50 to the school’s athletics program. Friends and relatives who are outside of participating towns can indicate their affinity for one of the participating schools and the funds will be tracked accordingly.  

GAME ON is designed to help the high schools in the surrounding area where athletes and their families pay athletic user fees.  Through this program, we’re working closely with athletic directors to support high school sports in the following school communities: Amesbury High School, Andover High School, Haverhill High School, Masonomet Regional High School (serving the towns of Boxford, Middleton and Topsfield), Newburyport High School, North Andover High School, Pentucket Athletic Association (supporting high school athletics for Groveland, Merrimac and West Newbury), and Triton Regional High School (serving the towns of Newbury, Rowley and Salisbury).

Jaffarian developed marketing materials for each participating school and tracks all proceeds at the dealership.  By the end of August – just a couple of months since we started collecting the proceeds and before we began to really promote the program – we’ve already collected $5,000 in proceeds for the schools.  Check presentations for this ongoing program will be made to the athletic programs throughout the year starting this fall.

We at Jaffarian value the importance of sports in the lives of our youth – in promoting health and fitness and giving teens the opportunity to develop life-long, character-building skills such as team work, leadership, and discipline.  By working closely with athletic directors and members of the community, we can make these high school athletics programs more accessible to all students.

Together, let’s drive down the costs of participating in high school sports!

 

- Gary

 

 

ASK GARY: Should I Buy a New or Pre-Owned Vehicle?

The answer to this question is: it depends. There are several considerations to think about when deciding whether to buy new or pre-owned. Here are four questions that can help guide you through the decision-making process: 

• What model year and price point are you interested in?  If you’re interested in a newer model, then a pre-owned vehicle could cost you more in the long run, factoring in maintenance fees and the higher financing costs of pre-owned vehicles.  While new vehicles carry manufacturer warranties, pre-owned vehicles in Massachusetts are only covered for 90 days, and those in New Hampshire are sold “as is” without any warranty.  In contrast, for example, Volvo is currently offering a 5-year/50,000 mile bumper-to-bumper warranty on new vehicles covering all manufacturer-recommended maintenance and wear and tear items (e.g., brakes), with the exclusion of tires. That translates into thousands of dollars of savings for new vehicle owners, not to mention the peace of mind and reliability that new vehicles offer.  On the other hand, if you have a very limited budget and are looking for an older vehicle, then pre-owned would make the most sense.

• How much driving do you expect to do?  If you’re planning to drive a moderate amount – less than 12,000 miles per year – then leasing might be a good option.  In this situation, leasing often carries lower monthly rates than the monthly fees to finance a late-model (newer) vehicle – providing you with better cash flow.  In addition to cost considerations, if you’re putting in a lot of miles, then you’ll likely want the reliability of a new vehicle. 

• How long do you expect to own the vehicle? If you plan to drive a new vehicle for 10 years, then it’s more economical to buy a new vehicle.  If you plan to drive it for fewer years, you might consider a pre-owned vehicle – or depending on the model year and price you want to spend – you might want to lease a new vehicle every few years.

• Do you consider your vehicle more than just a mode of transportation?  Many people have an emotional attachment to their vehicle and see it as a way to express their interests and personality.  They get joy from driving a brand new vehicle with all the features they want.

So whether you opt for new or pre-owned – or you’re considering leasing instead of buying – it’s important to work with a dealer who will discuss all your options and help you find the vehicle that’s right for you.  If you’re buying pre-owned, be sure to review the vehicle history and safety record – something that we always provide you with at Jaffarian Volvo Toyota Scion.

Happy and safe driving!

-          Gary

ASK GARY: When Will More Toyota Vehicles Be Available?

Availability of Toyota vehicles has significantly bounced back since the earthquake hit Japan in March, and I’m happy to report that we will be back to our full inventory in August! Toyota production is now at 100% for cars – and about 90% for all Toyota vehicles in the U.S., including SUVs, trucks, hybrids, minivans, etc.  Also, the Toyota Prius, which is completely manufactured in Japan, is now back in production.

Despite the shortages, we at Jaffarian have worked hard to maintain inventory even during the lean month or two. If customers wanted something that we didn’t have in stock, we checked around and made sure that we got exactly them what they wanted.

August will not only be a great time to see a fully stocked Toyota inventory, but it’s also a particularly good month for getting deals. It’s typically a clearance month when dealerships try to make room for the new models that will be arriving in the fall. So if you’re in the market for a Toyota vehicle, this will be a good time to get it at a good price.

-          Gary

ASK GARY: Does it Matter What Type of Gas I Use?

There are more things to consider at the pump than just the price.  The first thing to check is that you’re using gas with the proper octane rating.  If you go lower or higher than the manufacturer’s recommendation your combustion system may not operate properly, putting added wear and tear on internal parts. You might even hear a knocking sound as the fuel moves through the engine.

Also, it matters where you buy gas because the additive package varies.  In a similar way that junk food isn’t as good for your body as healthy alternatives, lower-quality gas isn’t as good for your vehicle as brand-name options. Lower-quality gas can stress your internal engine components, causing parts such as valves, cylinder heads and spark plugs to wear out quicker.

Think of it this way, you might save three cents per gallon with discount gas.  Since the average person drives 15,000 miles at 30 per miles per gallon, that might amount to a $15 a year savings with discounted gas. A new spark plug could cost even more – around $20 – so you’re not really saving any money, and shortening the life of your vehicle’s internal components.  Given the consequences, next time you need gas, you might want to skip the discount stations and instead opt for higher-quality offerings.  

By using the right gas for your vehicle, you can get better mileage, improve performance and potentially save money in the long run.  Sounds like a winning formula.

Happy driving!

-          Gary

ASK GARY: How Should I Maintain My Vehicle in the Summer?

Any extreme weather – hot or cold – puts added stress on a vehicle, and summer months can be just as brutal as winter ones.  Keep in mind that while maintenance schedules in your owner’s manual are based on average conditions, most manufacturers recommend that mileage intervals are decreased to accommodate extreme driving or weather conditions, such as hot and humid summer weather.

Here are some tips for keeping your vehicle running well during the hot summer months:

• Flush the coolant system.  Coolant failure is a main cause of breakdowns during the summer. The radiator and coolant system absorb and dissipate heat produced by the engine, so it’s important that they are in prime working order. Flush your coolant and check the radiator, heater hoses, water pump and fan clutch.
• Check the air conditioning.  Make sure that your air conditioning is working efficiently.  Check the system for leaks and make sure your vehicle is getting the right amount of refrigerant.
• Check your fluids. Oil, transmission, brake and power steering fluids should all be clean.
• Maintain your tires.  Tires are critical for maintaining a safe and well-functioning vehicle.  Underinflated tires won’t disperse heat properly and overinflated tires cause the tread to wear out quicker. The right tire pressure for your vehicle can be found in your owner’s manual as well as the driver’s side door jamb or glove box.  Also check your tires to make sure they still have good tread.
• Take your vehicle for a tune-up. Make sure your vehicle has had a recent tune-up to ensure that parts such as spark plugs and the fuel filter are in good working order.

By maintaining your vehicle properly before summer road trips, you can avoid unplanned delays waiting for a tow truck and enjoy your summer.  Happy and safe travels!