Remar Sutton, author of Don't Get Taken Every Time.
Remar Sutton, 65, is an advocate for auto buyers and the author of Don't Get Taken Every Time, an insider's look at the auto-selling business told through the eyes of ace salesman Killer Monsoon.
What are some common problems people 50 and over face in buying cars, and how can they be avoided?
You know, hopefully people by that age are going to belong to a credit union. If not, they should join one. Most credit unions have dealer education programs to help people who are insecure.
There are also some free sites - try dcu.org, click on Streetwise, which is hosted by me. It has an online interactive car-buying guide.
Think about buying used. These days you can buy so much more car - a low-mileage 1-year-old car.
I know my dad always said not to buy used, that you were buying someone else's problems. Do you agree?
Buying used requires different techniques, but for most people these days buying used makes a lot of sense.
Car dealers generally charge much more interest for a used-car loan than a new-car loan. Most people have learned how to buy a car cheaply. Dealers have learned to make money on the financing.
A smart buyer will get approved at a credit union and then compare the rate to the one the dealership offers.
At University Federal Credit Union in Austin, Texas, we refinance people who have already financed a car at a dealership. We've worked with 10,000 people and handed them back on average $2,100 in interest they had overpaid.
Dealers, particularly if you're older, are going to do their best to get you take that car home that day. Don't ever do that. It's a trick.
They'll take an unsuspecting person to drive a car. "We know you, just take the car home today," they'll say. They don't know you, but they pulled your credit report.
A week later they say they weren't able to refinance on your terms and that you need to give them $2,000 more. Most contracts have a clause called a "writ of rescission" that allows the dealership to do this yo-yo selling.
Don't get talked into going longer months - the longer your loan, the less car you buy. Fight hard to go for the shortest months you can afford.
What about hybrid cars?
Hybrids are not making that much of an impact yet. Dealers won't discount them. You're probably not going to save much money, and maintenance is higher. It's an expensive way to be green.
What if you really hate the idea of all this haggling and negotiating and having to be vigilant against scams?
If you think you have any type of credit problem, know your credit before you go near a car dealership . Car dealers want people who think they have bad credit because they will make thousands of dollars more. It's in a dealer's vested interest to tell you your credit is not good.
Are there any honest car dealers?
Most car dealers are honest, but they can't answer the questions you want them to answer. The business model of dealerships is to maximize profit on every single customer. You need to know the answers before you go to the dealership.
What about shopping for a used car?
Never pay the asking price for the used car - pay something close to its loan value. Most sellers don't have more than that in the car when they put it out on the lot. Ask the credit union to look it up for you.
Never buy any used car without having it checked out by a mechanic, diagnostic center. Spend the $100.
All dealerships are going to tell you that car is wildly popular even if it's covered in cobwebs. Don't show you want it. Give them a reason to want to cut their price.
What do you drive?
I drive a Mitsubishi Montero SUV in the British Virgin Islands and An Audi A4 Estate Wagon in Denmark, where I live in the summer. I bought the Mitsubishi new (used cars on islands aren't very good), and I lease the Audi (leasing is something I don't recommend for the average person).
