The Car-Buying Revolution: The Secret Car-Buying Tactics They Don't Want You to Know

By Adriano Marques

Embark on an empowering journey to reclaim your automotive dreams with "The Car-Buying Revolution: The Secret Car-Buying Tactics They Don't Want You To Know." This game-changing guide peels back the layers of the automotive industry, revealing secrets that could transform how you buy, own, and enjoy your veh

• Language: English
• Publisher: Written Odysseys LLC
• Release date: Jun 14, 2023
• ISBN: 9798988439905

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The Car-Buying Revolution

The Secret Car-Buying Tactics They Don't Want You to Know

Adriano Marques

Written Odysseys LLC

Copyright © 2023 Adriano Marques

All rights reserved.

Published by Written Odysseys LLC, Cheyenne, Wyoming, USA

https://writtenodysseys.com   |   [e-mail]

June 2023: First Edition

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To the love of my life and our precious children, whose unwavering love and support turned this dream into reality. Your belief fueled my late-night pursuits. In every word, every page, you'll find a piece of my gratitude. May this book reflect the light you shine in my life. For you, with love.

Prologue

Are you tired of feeling ripped off every time you buy a car? Do you feel like you're constantly losing in the game of car-buying? It's time to take control and join the revolution.

You know the feeling: you want a Honda Accord but can only afford a Civic. Or, you're choosing between the same car's lowest and highest trim level, and the price difference is just out of reach. You resign to what you can afford and hope to upgrade later, but when you do the math, you realize that by the time you pay off your loan, you could have actually bought the car you really wanted.

So, why can't you take home the car you want? Why are you still paying over the price? These questions led me on a journey to uncover the secrets of the car-buying process that dealerships and banks don't want you to know.

In The Car-Buying Revolution, I'll show you how to spot and avoid hidden fees, negotiate like a pro, and finance a car even without a down payment or credit history. You'll learn insider tips and tricks for saving thousands of dollars on financing and other expenses and strategies for getting the car you want at the price you can afford.

This book is written for you. It will empower you to take control of the car-buying process and make the best decision for yourself. The information is presented in an engaging and accessible style, making it easy for readers of all levels of expertise to understand and apply.

So, are you ready to revolutionize your car-buying experience? Turn the page, and let's get started!

Why I Wrote This Book

As you scan the title and author of this book, you might be momentarily taken aback. An Artificial Intelligence Engineer and Entrepreneur writing a guide to buying a car? Yes, it's an unusual blend and, quite frankly, a detour I hadn't planned for myself either. So, before we delve into the intricacies of the vehicle-buying process, let me share my backstory and the unusual road that has brought me here to you.

My name is Adriano Marques. I hail from a city in the heart of Brazil, an obscure place to many unless they have a penchant for historical nuclear accidents. My hometown was, tragically, the epicenter of a significant nuclear disaster. Now, before your mind races to images of nuclear power plants spiraling out of control or nuclear warheads detonating, let me clarify: no nuclear power plant ever existed there, nor did Brazil ever possess nuclear weapons. It was a calamity triggered by a disastrous cocktail of negligence and ignorance - no war, meltdown, or tsunami. A catastrophe birthed from the womb of simple human folly.

But this ominous historical footnote isn't the entirety of my heritage. The city also cradled my inherent curiosity and hunger for understanding. As an AI Engineer and Entrepreneur, I've trodden diverse paths, solving complex problems and building game-changing solutions. Yet, I'm not merely an engineer. I'm a lifelong learner, an explorer whose thirst for knowledge is unbounded and insatiable. My interests, like vines, creep and spread into every crevice of the intellectual landscape, unfettered by conventional boundaries.

From the intricate codes of software engineering to the expansive cosmos of astronomy, no field is beyond the reach of my curiosity. Be it genetics, neuroscience, fluid dynamics, or the study of the economy, psychology, and human behavior, I am endlessly drawn to understanding and unraveling the world’s complexities. Though varied and expansive, my journey is always driven by a single goal: to make a positive, lasting impact on our planet and perhaps even beyond it one day.

As an eternal student and dreamer, my fascination is not just for the abstract and remote but also for everyday life’s immediate and tangible aspects. My relentless thirst for understanding compels me to explore the vast ocean of knowledge, armed with an insatiable curiosity as my compass. Yet, my role as a creator brings a different dimension to my journey. I'm not merely content with understanding the world—I strive to improve it.

As relentless as it is expansive, this pursuit fuels every venture I undertake. It drives me to bridge the gap between the enigmatic realms of cutting-edge technology and the dynamic, everyday concerns of how people interact and behave. This interplay, this dance between the theoretical and the practical, the cosmic and the commonplace, drives my passion. My purpose lies in quenching the fire of every burning question, navigating the boundless sea of understanding, and making a tangible difference in the world.

In one of my many explorations of how the world works, I found myself engrossed in a conversation with my long-time friend, Thales Ribeiro. We discussed a surprisingly universal hurdle: the seemingly insurmountable difficulty of obtaining credit for a car purchase, particularly for non-citizens or those with a poor or non-existent credit history.

Owning a vehicle isn't merely a convenience or a luxury; it's the embodiment of freedom and empowerment. It's more than a device that takes you from point A to point B—it's a symbol of independence, a means to new experiences, and an extension of our identity. But unfortunately, for too many, this crucial stepping stone to self-sufficiency becomes a sinkhole of despair, thanks to predatory auto loans. Instead of empowering people, the process of acquiring a vehicle often traps them in a cycle of misery, exacerbating their hardships.

It's a disturbing contradiction. Those who need assistance the most receive the worst deals, while those who are well-off access the best offers. I hold no resentment against the wealthy, and this isn't about penalizing the rich to benefit the poor. That's not how it works. The wealthy have often worked hard to secure their status, and they absolutely deserve their success. The issue is the rampant exploitation of the disadvantaged, especially by predatory lenders who thrive on their vulnerability.

These opportunistic entities are a bane, offering the only helping hand to those with a troubled credit history, trapping them in a vicious cycle of debt. A high-profile entrepreneur like Elon Musk or Bill Gates would never have to resort to a buy-here-pay-here dealership or a payday loan. These practices exist solely because the financially challenged have no other alternatives.

While it's true that the US is home to over 13 million undocumented immigrants, millions more Americans have experienced financial distress—bankruptcy, foreclosure, or other monetary hardships—that tarnishes their credit history. These individuals are just as deserving of fair credit to pursue their dreams and secure their independence. The unfair lending practices are not limited to immigrants; they're a nationwide issue, affecting countless Americans. The struggle for equitable lending practices is a fight for everyone who believes in the promise of fairness and opportunity—a promise deeply ingrained in the American ethos.

As an individual who believes strongly in the principles of equal opportunity, freedom, and fairness—values that America champions—I am not one to sit idly by while predatory practices exploit those in vulnerable positions. This issue, so far removed from the ideals of the country I've chosen to call home, struck a chord deep within me. It reminded me of a system that is commonplace in Brazil and other nations but remains notably absent in the United States: the savings clubs. I envisioned the lasting and transformative power such a system could bring to the American financing landscape if introduced properly.

Motivated by this vision, I embarked on a journey fueled by persistence and a deep desire to effect positive change. Countless conversations with professionals, dealers, bankers, regulators, and attorneys, along with the unwavering support of my team at XNV and our loyal investors, enabled me to create the first all-American Savings Club administration company for auto loans in the country. This journey was challenging, to say the least, but I gained invaluable knowledge far beyond what I initially anticipated.

Recognizing the power of this knowledge, I made a decision. I wanted to share what I had learned to help others navigate the treacherous landscape of the automotive industry. And so, in my spare time, I wrote this book. It was written for my fellow Americans and those still on their journey to becoming Americans, hoping to foster unity and promote the shared American dream of freedom, opportunity, and the thrill of the open road.

Yes, I'm an engineer, and no, I've never worked at a dealership. The only financing company I've worked for is the one I founded. Some may see this as a hurdle, but I see it as an advantage. This unique perspective, free from industry bias, is perhaps what makes me uniquely suited to write this book. After all, it's unlikely that help will emerge from an industry that benefits from these exploitative practices. The only way to instigate change is to arm people with the knowledge to avoid these traps, thereby forcing the industry to adopt fairer and more honest practices to retain its clientele.

I wrote this book because I want to contribute positively to the world, to create a wave of change that extends beyond borders. Although rooted in the American experience, much of this advice is universally applicable. Having lived and owned vehicles in three different countries, I can confidently say that the workings of the auto industry share striking similarities worldwide, with minor cultural variations.

If you read this book and adopt even just a handful of the suggestions I put forth—even the most passive ones—I can assure you that you'll save a considerable sum over your lifetime of vehicle ownership. Perhaps you'll even save tens of thousands of dollars, funds you can then use to enrich your life or the lives of those you care about.

When you do save, when you do succeed, reach out to me, shout it out, and celebrate your achievement. I'll be waiting for your howler with open ears and a happy heart. And then, I implore you to pay it forward. Share this book, share your success story, and share the wisdom you've gained. Pass it on so others can benefit from your experience and contribute to the ripple effect of positive change.

It is my fervent hope that this simple act—sharing knowledge and empowering each other—will spark a transformation. A transformation that rekindles our collective love for vehicles, that breathes new life into an industry that touches all our lives. An industry that, I believe, can and should be more fair, more honest, and more equitable.

I wrote this book for change, for progress, for you. Let's embark on this journey together, and let's reshape the way we experience one of life's most fundamental and liberating purchases: owning a vehicle.

Contents

Title Page

Copyright

Dedication

Prologue

Why I Wrote This Book

The Car-Buying Manifesto

Introduction

Status-quo

Chapter 1 - New vs Used

Chapter 2 - The car-buying revolution process

Step 1 - Understand the need

Step 2 - Decide on a budget

Step 3 - Make your vehicle short-list

Step 4 - Secure the financing

Step 5 - Shopping for a vehicle

Step 6 - Negotiate the vehicle price

Chapter 3 - Mandatory Expenses When Purchasing a Vehicle

Chapter 4 - Non-Essential Expenses When Purchasing a Vehicle

Chapter 5 - Bogus fees that dealerships will charge

Chapter 6 - Cash isn't King

Chapter 7 - Don't trade-in your vehicle

Chapter 8 - Dealership deceit techniques

Chapter 9 - Things you must know

Chapter 10 - Vehicle depreciation

Chapter 11 - Financing alternatives

Chapter 12 - Savings Club

Chapter 13 - You got the car, now what?

Chapter 14 - How to sell your vehicle

Chapter 15 - Getting from a Civic to a Lamborghini

Conclusion

Bonus: Section 179

Bonus: Best practice when parking

Bonus: Word About Total Loss And Insurance

Bonus: Electric Vehicles

References

The Car-Buying Manifesto

Cars and Motorcycles have long been the ultimate symbols of freedom. Vehicles allow people to control their own life and time by deciding when and how to transport themselves, others, and whatever else is needed.

They are the primary tool for a more self-sufficient individual and a key to enabling people to become more productive citizens. It is impossible to overstate the positive impact that the automobile's creation has caused humankind. It is one of the early exponential technologies upon which many more became possible. It has enabled the freedoms and benefits that are abundantly enjoyed by the society we currently live in.

Vehicles are not just modes of transportation. They are symbols of freedom, empowerment, and possibility. They allow us to take control of our lives, chart our own course, and chase our dreams. With them, the world is our oyster, and the sky's the limit.

The impact that automobiles have had on humanity is nothing short of extraordinary. They have transformed how we live, work, and connect, opening up a world of possibilities and opportunities that were once beyond our reach. They embody human ingenuity, creativity, and resilience, inspiring us to push the boundaries of what is possible.

They bring countless benefits - from increased mobility and accessibility to greater economic growth, improved safety and security, and enhanced quality of life. And with the advent of electric and hybrid vehicles, they are becoming even more sustainable, helping to preserve the planet for future generations.

A financial system designed to enslave individuals for life has tarnished the beauty and freedom of cars. The very vehicles that once represented liberation have become symbols of debt and financial turmoil.

This problem is rooted in a lack of financial education, limited financing options, and an industry that profits from exploiting the vulnerable. But we will not stand idly by and let this continue. We will fight back.

America is the land of the free, and it is our duty to reclaim our financial independence from the clutches of the auto financing industry. We will do this by educating ourselves on smart financial decisions and taking control of our purchases instead of being at the mercy of the industry.

This is our call to arms. It's time to rise up and break free from the bonds of debt slavery. It's time to reclaim our financial freedom and take back control. So let us rise to the challenge and seize the opportunity. Let us harness the full power of cars and motorcycles and use them to create a world where every individual has the power to control their own transportation and financial destiny.

Join us in this revolution, and let's create a future where cars truly represent the ultimate symbols of freedom and empowerment.

Adriano Marques - Austin, Texas, March 2023

Introduction

Status quo, you know, is Latin for 'the mess we're in'. - Ronald Reagan

Isn't it striking how we spend countless hours learning algebra, analyzing Shakespeare, and even dissecting frogs but never receive a single lesson on one of the most significant financial decisions we'll make in our lives — buying a vehicle? Don't even get me started about buying a house (I'll have to take care of that in another book in the future). It's baffling, really. Most of us don't have the foggiest idea of how to navigate this treacherous terrain, so we naturally turn to the so-called experts: car dealerships. This innocent act, my friends, is where the real trouble begins.

Let me be the first to shake you out of your blissful ignorance and open your eyes to the truth: when you walk into a dealership, you're stepping right into their meticulously orchestrated game. And guess who's winning? Spoiler alert: it's not you. Everything about the traditional car-buying process, from start to finish, is designed to keep you at a disadvantage, powerless, and vulnerable to their tactics. But fear not, for the first step toward reclaiming your power is understanding that you've been playing by their rules all along.

Take a deep breath, and let this revelation sink in. Once you grasp the fact that you've been under their control, you'll begin to see the tricks, deceit, and traps lurking in the shadows. This newfound awareness will be your guiding light, empowering you to forge your own path, where you hold the reins and steer the course of your car-buying journey.

No more will you be a puppet dancing to the tune of someone else's profit margins. From this moment on, you'll be armed with the knowledge and strategies to triumph over the car-buying process and come out on top. So buckle up, dear reader, for the ride of your life is about to begin. Together, we'll revolutionize the way you purchase vehicles and ensure you emerge victorious in every negotiation. Let the Car-Buying Revolution commence!

Status-quo

Isn't it fascinating how so many of us share a common thread in our car ownership experiences? Most people's first foray into the world of vehicle ownership is riddled with complications, unexpected expenses, and a general sense of being in over their heads. Mine was no different.

When I was in College, back in Brazil, my first car was a used 1996 silver Ford Escort. That car was previously owned by a relative who owed my grandmother some money, so my father decided to take on his debt in exchange for the vehicle and pay back my grandmother in the process. Yeah, my story was convoluted alright. The first box was checked. Oh, I forgot to mention that my father wanted that car because I bought a motorcycle instead, and they had strong feelings against me driving all over the place, using my face as a bumper. Their quote, not mine. I love motorcycles.

That car was pretty swell initially, but soon it started to break down. A lot… First went the transmission, then the engine, then the suspension, and small parts kept breaking randomly every few months. That car was my financial ruin - the definition of a Trojan horse. Except that my father had only good intentions giving me that car. But after 18 months of ownership, I looked back and was shocked at the tally of all expenses this car had incurred me, and I realized this: I spent more money on fixing that car than my father spent purchasing it. And bear in mind that I bought a motorcycle because I didn’t have the money to purchase a car.

Raise your hand if you have a similar story. Wait, actually, don’t do that. People might think you’re crazy for raising your hand while reading a book. But if you somehow recognized yourself and your car ownership experience with my story, please know you’re not alone. We all mess up when purchasing a vehicle. And that happens because we often purchase a vehicle without proper planning and are often propelled by emotions. As we all know, things that happen without proper planning and are fueled by emotions usually end about as well as a game of Jenga in an earthquake.

Well, after that experience, I vowed to do better. And for the most part, I’ve been doing pretty great - never again have I landed a vehicle that cost me more to maintain than the value I purchased it. That’s a good start, right?

Since then, I’ve owned several other vehicles from multiple brands and nationalities. French, American, Japanese, and Italian. Sedans, Hatchbacks, SUVs, Minivans, and Pickups. And have owned vehicles in three different countries (Brazil, Belgium, and the United States of America)! Here are a few things that I also managed to pull off: own a vehicle for a couple of years and sell it for the same price I purchased, and my last sale, I managed to own the vehicle for a year and a half and sold it for $2,000 over the price I bought it. Once you learn the tips and tricks I’ll share in this book, you will learn how to plan your vehicle purchase better and stop losing so much money every time.

Unfortunately, most people don’t plan their auto purchases ahead of time in an appropriate manner. This is not just about saving enough money to give as a downpayment or to pay for the vehicle outright. It involves a lot more than just saving up for a purchase, and the vast majority of vehicle owners today, don’t go through half of the planning steps needed to make an educated and confident purchase that will keep them on the right financial track.

The status quo today is that when an individual notices that they need a vehicle, they try to get together as much money as they can afford for a downpayment, go to a dealership and try to find something that will probably solve their problem and which they can fit in their budget. While talking to the seller, they divulge all the sensitive information that will put them at a negotiating disadvantage. Then, they don’t do the math or understand how much they’ll need to pay to drive the car out of the lot, and towards the end, give up on saying no and take all of the add-ons and extended warranties that the dealer had to offer and accepted a monthly due that will create financial stress for the next 5 to 7 years.

This is a reality for the vast majority of people in the United States and most other countries. I’m sure that you recognize yourself having done some or all of these steps in the past. Buying a car is something that most of us do only once every 4 or 6 years, and every time we do it wrong because nobody educates us on what is the proper way to purchase a vehicle and not be taken advantage of. But the dealer does this for a living every single day! They know how to handle everything that you throw at them, and they know how to maximize their outcome every single time. It is hopeless to win this battle if you don’t take this seriously and learn the strategies that you can employ to counter the dealer and maximize your outcome the next time you go to the dealership. And this is what we’re going to do with this book. I’m going to teach you everything you need to know to excel in this and make sure that the next time you leave the dealership, you’ll have no regrets. I’ll even teach you how to find the cheapest financing alternatives out there, how to avoid unethical dealership practices, how to keep a low cost of ownership in your vehicle, how to sell, and give you steps on how to go from a Honda Civic to a Lamborghini. Are you ready?

Chapter 1 - New vs Used

When buying a used car, punch the buttons on the radio. If all the stations are rock ’n roll, there’s a good chance the transmission is shot. - Larry Lujack

Before diving deeper into the car-buying process, let's address a common question many buyers face: should you purchase a new or used vehicle? This decision can significantly impact your overall car buying experience, so it's crucial to understand the advantages and disadvantages of both options. Remember that there is no universal right or wrong answer; the best choice depends on your needs, preferences, and circumstances. In the following sections, we'll explore each option in detail, providing you with the insights and perspectives needed to make an informed decision. By the end of this discussion, you should understand which path better aligns with your personal requirements and expectations.

Buying New

The allure of the new car smell has long captivated the senses of car buyers, enticing them to indulge in the unique experience of driving a brand-new vehicle. This intoxicating aroma, a product of various synthetic materials and chemicals used in manufacturing, weaves a spell over us, tapping into our desires for luxury, cutting-edge technology, and exclusivity. In a way, the new car smell symbolizes the thrill of achieving a dream and the pride of ownership.

Throughout my life, I have predominantly owned used cars. However, I have also had the privilege of purchasing new cars on four separate occasions. Each time, I found that the experience of buying a new car was far more exhilarating and enjoyable than settling for a pre-owned vehicle. As the first owner, you have full control over the car's maintenance and the satisfaction of preserving that new car smell for months. Moreover, a new car comes with a comprehensive manufacturer's warranty, offering peace of mind in case mechanical issues arise during the coverage period.

However, the enticing benefits of owning a new car come at a substantial cost. Within the first year of ownership, a new car's value can plummet by approximately 15%. Over time, depreciation and interest rates can erode your investment, sometimes leading to losses as high as 70% of the vehicle's value between the time of purchase and the loan payoff. To minimize these financial risks, buying a new car is prudent only if you can pay it off within the first year or two of ownership. Focusing on vehicles with higher resale values can also help protect your investment. Additionally, driving a car until it becomes inoperable can lead to lasting financial consequences, regardless of whether it is new or used.

You might find yourself torn between the enchanting allure of a brand-new car and the practicality of a reliable used vehicle. By considering the long-term implications of your choice, you can ultimately make a well-informed decision that satisfies both your desires and your financial priorities. Remember, the road to car ownership is paved with possibilities, and the key to a satisfying experience lies in striking the right balance between your dreams and your budget.

With that said, let's take a look at the pros and cons of buying a new car:

Pros

Warranty: New cars come with a manufacturer's warranty that covers most repairs and maintenance for a certain period. This can provide peace of mind and help save money on unexpected repairs.

Reliability: New cars are generally more reliable than used cars, as they have not been subjected to wear and tear or other issues that can affect the performance and longevity of the vehicle.

Customization: When buying a new car, you have the opportunity to customize the car to your specific needs and preferences, including choosing the color, features, and options that you want.

Latest Technology: New cars often come with the latest technology and safety features, which can improve your driving experience and keep you safe on the road.

Financing: Dealerships often offer financing options and incentives for new car purchases, such as low-interest rates or cashback offers, making buying a new car more affordable.

Cons

Depreciation: New cars lose value quickly as soon as they are driven off the lot, meaning you can expect to lose a significant portion of the car's value in the first few years of ownership.

Higher Price: New cars are more expensive than used cars, making them unaffordable for some buyers. Additionally, some features and options may come at an additional cost, further increasing the price of the vehicle.

Insurance Costs: New cars often come with higher insurance premiums due to the cost of the car and the need for comprehensive coverage.

Limited Selection: When buying a new car, you are limited to the models and options offered by the manufacturer, which may not meet your needs or preferences.

Potential for Recalls: New cars may be subject to recalls or other issues that have not yet been identified, which can be a hassle for the owner and may require additional repairs or maintenance.

As previously discussed, the new versus used car debate doesn't have a universal solution. Nevertheless, if you're starting out and working with a limited budget, it's worth considering an affordable used vehicle as your initial purchase, gradually progressing towards a new car over time. This approach can significantly improve your financial standing, particularly if you concentrate on used vehicles that retain their resale value well and steer clear of those notorious for high maintenance costs. Ultimately, the decision to buy new or used hinges on your individual needs, preferences, and financial circumstances, making it essential to consider your options carefully.

It's important to remember that a vehicle is more than just a mode of transportation; it's also an investment