Everyone wants the best price on a used car. Up to 80% of used car shoppers are looking for their next deal online; shoppers visit over 10 different car sites before even visiting a dealership. Knowing this, a consumer may ask why car dealers don’t try harder to price their inventory more competitively.  A new company is shaking up the used car market with the first and only solution to an old problem.

Only three years old, vAuto is making a strong impact on used car dealers. Their revolutionary system helps dealers price, appraise and stock pre-owned vehicles. The winners? Dealers AND consumers.

I spoke with vAuto’s Chairman and Founder recently, Dale Pollak. His enthusiasm, knowledge and passion for changing the used car industry rings loud and clear. 

WhyBuyUsedCars: What was your driving motivation in creating vAuto’s used car pricing solution?

Dale Pollak: I quickly saw the huge disconnect between the way traditional dealers price their vehicles and how consumers compare car prices on the Internet.  Most dealers mark up their acquisition costs by $3,000 - $5,000 and place the vehicle on the Internet at that price.  Consumers, on the other hand, can (and do) easily sort and search for the best values in the market.  This renders the majority of the used cars on the Internet as uncompetitive from the customer’s perspective. I saw this as a really big problem and one that needed to be solved…so I created the vAuto solution.

WBUC: How have dealers responded to vAuto - what’s the feedback so far?

DP:  Very positive right from the start; our sales have soared. The next phase will be exciting as dealers begin to see their own sales pick up as a result of working with us.

WBUC: What was the buzz like at NADA this year in San Fran?

DP: Our traffic at NADA was over the top; we had standing room only for nearly the entire show.  I think dealers have figured out we have something really special to offer.

WBUC: What opportunities do you feel dealers are missing?

 DP: Although dealers are eager to acquire our tools, they still have significant cultural challenges in using them correctly.  Specifically, most dealers want to price their vehicles to make the biggest margin possible rather than to price them to market.  It takes a lot of discipline for a dealer to price vehicles to what the market will bear rather than to a higher, pre-determined profit margin.  Progressive operations, such as Auction Direct USA serve as important models of how to successfully serve the used car market. 

WBUC: Notice any trends developing within the industry?

DP: The used car market has become efficient and transparent.  In my opinion, dealers must price used vehicles according to the market if they expect to see buyers show up at their door.  As more dealers catch on, there will be less negotiation and in many cases, none at all.  I therefore believe that whether dealers recognize it or not, negotiation-free selling is in their future.

Thanks for the comments Dale, keep up the great work!

Dealers - If you haven’t seen it yet, check out their used car pricing solution.

Consumers - Keep searching for the best used car prices. If Dale has anything to do with it, it’ll probably be easier in the near future.

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Take Care Of Your Oil If You Want To Save Gas!
by Scott Siegel

A vehicle that performs at it’s peak will realize the best fuel economy.  If something interferes with peak performance it will decrease gas economy and will cause you to use more gas and spend more money.  For that reason proper management of the oil in your engine is a critical component of good fuel economy.

You need to make  scheduled oil changes a priority in maintaining your car. Following the auto producers oil change recommendations is a major component of keeping your car running at its peak and keeping your gasoline economy at its best.

The job of the oil in your car is to lubricate the moving parts of its engine, minimizing friction. preventing metal- to-metal contact and carrying away excess heat. All of those functions promote better gas efficiency.

Another major function of oil in your engine is to remove dirt, metal shavings and other impurities which are then captured in the oil filter. In addition to negatively affecting fuel economy, neglecting the oil in your car could lead to replacing the engine itself.

You should follow the manufacturers recommended maintenance schedule for oil changes.  If the manufacturer says to change the oil every three thousand miles or every three months, do it.  If oil is not replaced at the proper time it becomes saturated with impurities it is supposed to remove from the engine.  If it becomes saturated with these impurities, sometimes called dirty oil, it will be less efficient in doing its job.  That will cause the engine performance to decline and your fuel economy will decline with it.

Make sure that you are using the right grade of oil that is required by your car or truck. By using the lowest multi grade of oil recommended in your owner’s manual, you can improve the fuel efficiency of the engine, particularly when starting it cold.

Using the wrong grade of oil may cause your car to run poorly as the weather changes. The wrong grade will get thick and heavy in cold weather. Oil that is too thick and heavy requires the engine to work harder because the thick and heavy oil’s resistance is greater.  The harder the engine works the more gasoline it will use. The wrong grade of oil can cost you 1 to 2 percent of your gas economy.

If you use, for example, 10W-40 motor oil in an engine designed to use 5W-40 it can lower your gas mileage as much as the two percent mentioned earlier.  In addition if something goes wrong with your car, and the manufacturer can show you used the wrong oil, it could void your warranty.

Many drivers make the mistake of procrastinating in getting the oil changed. The more a driver puts off changing the oil the worse the fuel economy will be. Using the proper grade and changing the oil on time will help you get better gas economy, especially when you buy used cars.

Tip of the hat to Scott Siegel who wrote a 143 page manual of automotive industry insider secrets on how you can learn to get better gas mileage. 

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Unless your name is Paris or you work for a major oil conglomerate, you’ll want to take notice. This is really simple: Stay away from the manufacturer’s “Value Packages.” 

Between gas prices, credit crunches and the threat of a recession, here are some incredible examples of the savings spread available between quality used cars and and new cars with value packages. Of course, most consumers don’t pile on value option like condiments on a burger - but here’s what can happen if you did…

Looking for a sharp C-Class Mercedes? Two options to consider:

• A new Mercedes-Benz C300, filled to the brim with the best Value Packages Niederlande has to offer: $57,944.
• A used 2007 Mercedes Benz C230, with enough valued added options to keep you smiling all the way to the Oktoberfest, $27,922.
• Savings: $30,022.

How about a fun Porsche Boxtser?

• A new Porsche Boxster; and this is just for the standard model. Go nuts with the Build a Boxster feature & suddenly you’re at: $118,295.
• A used 2000 Porsche Boxster, that will still get you to 60 mph in under 6 seconds:  $15,278.
• Savings: $103,017. 

Even the Lincoln Town Car wants to get in on the action.

• A new 2007 Lincoln Town Car Signature Sedan: $50,645.
• A used 2007 Lincoln Town Car Signature Sedan: $23,960.
• Savings: $26,685.

Rather than buy the new Lincoln, buy the used Lincoln & the Boxster…then stash the extra 11k for another great find on the best used cars. 

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This is what happens when several German car designers spend too much time in Italy. Audi wanted more than just a piece of the super-car fame - so they bought Lamborghini S.p.A. and cranked out the Gallardo inspired Audi R8.

If you were one of the nine people NOT watching the Super Bowl this year, you caught a glimpse of the Audi R8 in the coveted first commercial slot. I missed the entire first quarter Tivo’ing the commercial.

Super car enthusiasts around the world have blessed it as a wunderkind. It showed up the 911 Carrera 4S, Aston Martin V8 Vantage and BMW M6.  Autocar, Top Gear & Automobile magazine all fell in love. They named it the Best Handling Car, Car of the Year and Automobile of the Year respectively.  Hugh Hefner knows a thing or two about beauty; Playboy gave it Car of the Year honors.

Here’s the complete 2008 “Best of” list from MotorWeek. These Driver’s Choice Award winners provide a nice glimpse of the future’s best used cars.

1. Best Small Car - Scion xB
2. Best Family Sedan - Honda Accord
3. Best Minivan - Dodge Grand Caravan/Chrysler Town & Country
4. Best Convertible - Chrysler Sebring Convertible
5. Best Luxury Sedan - Mercedes-Benz C-Class
6. Best Sport Sedan - Cadillac CTS
7. Best Sport Coupe - Infiniti G37
8. Best Performance Car - Volkswagen R32
9. Best Small Utility - Nissan Rogue
10. Best Large Utility - Chevrolet Tahoe/GMC Yukon
11. Best Crossover Utility - Buick Enclave/GMC Acadia/Saturn Outlook
12. Best Pickup Truck - Ford F-Series Super Duty
13. Best Eco-Friendly - Chevrolet Tahoe Hybrid/GMC Yukon Hybrid
14. Best Dream Machine - Audi R8/Bentley Continental GT Speed/Lexus LS 600h L

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A lot of people dream of owning a Cadillac - especially since the redesigned CTS, STS & Esclade hit the streets. Strong grills, luxurious interiors and technological improvements to boot have pushed up their demand.

The Patriot’s Tom Brady may have another Cadillac parked in his driveway after tomorrow’s Super Bowl game. This would make Caddy number three.

After winning the MVP in 2002 he drove home the stunning XLR convertible. His MVP prize in Super Bowl XXXVIII was a cool Escalade. Hines Ward grabbed a 2007 Cadillac Escalade for his MVP performance in SuperBowl XL. [That’s 40 for the Roman Numeral impaired]

Funny thing about his second Cadillac - the dealership responsible for delivering his new ride didn’t get it to him for over six months.

GM has a couple of gems to offer up this year’s MVP recipient - maybe they’ll use the Super Bowl to showcase the new BLS Sedan or even the fierce supercharged STS-V model with 525 HP.

Not sure who will win the MVP (Brady is the top pick), but I have a feeling this year’s prize will be parked somewhere in the New England area.

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