If you’re a buyer in position to do some interstate car shopping, you may have seen some cheesy newspaper ads and radio spots talking about how “the deals are better in (whatever neighboring state)!”. As bad as these attempts are to sway your opinion of buying a car outside your home state, there’s actually a lot of validity to the argument. If dealers took the time to educate their consumers rather than push big bubbly ads on them, the concept could actually be of value to many buyers out there.
Well, if you want something done right, I guess you’ve got to blog it yourself. So here we go.
You should first understand that there are several key elements of car buying which vary from state to state:
- Supply & Demand
- Manufacturer Programs
- Dealer Legislation
- Credit & Loan Legislation
Why should you concern yourself with such matters? Because driving to a dealer across state lines could mean getting a lot more car for your money, and that’s what it’s all about.
For one thing, making the trip across the border can easily land you in a different demographic region if you go far enough, where the car you thought was so hard to find (and even harder to get a deal on) turns out to be readily available. I helped a few friends with their purchases last year, and they experienced this phenomenon first-hand. A three-hour drive from South Jersey to Maryland meant the difference of $1,000 in the price of a 2007 Acura TL, simply because the market wasn’t as hot there. Even more interesting was the market for the G37 Coupe; brand-new at the time and in extremely high demand in northern New Jersey. Dealers there refused to take more than $1,500 off the MSRP, and even that offer came about after a lengthy negotiation. We decided to try our luck with a New York dealer only 40 minutes away, and found that they had no qualms about letting go of the G37 at $300 over invoice because no one in their snow-ridden area was biting on the rear-wheel drive car. 40 minutes driven, $2,500 saved. Not bad.
You also have to consider the legislation of all the states in your area. We’ll stay with the New York/New Jersey theme as there are some great examples there.
We’ve all seen that mystery fee on our vehicle purchase forms referred to as “Document Fee”. You see, in New Jersey, it’s state law that you can charge whatever you like for Doc Fee, as long as you charge everyone the same amount. In NJ you could easily find yourself paying a $300 Doc Fee… though I suppose you can rest easy knowing everyone else got as screwed as you. And what about New York? Turns out that NY mandates a $45 Doc Fee for all dealers. Figure that one out.
Then there’s the matter of Gap Protection. Gap Protection is often sold as insurance, covering your first few years of ownership when you owe more on the car than it’s worth (hence the “gap” in your investment’s value). Gap Insurance is great for peace of mind, but it will run you upwards of $500 - depending on what a dealer decides to charge - on a financed vehicle in New Jersey. In New York however, Gap Protection is gratis… no need to purchase the insurance.
You’ve got the Internet as a great resource for gathering this information. Now you just need the time (and the patience) to shop for your best purchasing opportunity.
{ 0 comments… add one now }