Charlotte, NC – Mark Norton of Charlotte, North Carolina has joined Women’s Automotive Solutions as a licensed, independent consultant – a.k.a. a “car chick”.

Women’s Automotive Solutions is a unique car buying service dedicated to helping women through the entire car selection and buying process, enabling them to save hundreds to thousands of dollars on a new or pre-owned vehicle without the frustrations the come with traditional car shopping.

Mark decided that he wanted to become a part of Women’s Automotive Solutions after seeing the company’s logo-wrapped Mini Cooper in a local bookstore parking lot. “I was intrigued by the hot pink and green branding and impressed with the unique business concept. I know so many women who hate car shopping.” Mark was surprised to learn that 60% of Women’s Automotive clients are men.

Entrepreneur and automotive expert, Michelle Lundy, founded Women’s Automotive Solutions in 2004 after observing thousands of smart, successful women shy away from the car buying process. Together with her partner, LeeAnn Shattuck, Lundy has taken Women’s Automotive Solutions from a kitchen table idea to a national consulting firm with consultants in five states, coast to coast.

Mark is the fifth independent consultant to join the Women’s Automotive Solutions team. The company also has offices in South Carolina, Colorado, Washington and California and serves clients in all 50 states.

Visit http://www.WomensAutomotiveSolutions.com to learn more.

Several blogs have posted that the recent “clunker” rebates are taxable.  Right Wing News writes, “Yep, you read that right. In many states car buyers that turned in their “clunkers” for up to $4,500 off the cost of a new car are finding out that they have to pay state sales tax on the $4,500 too. And still others just might find out next year that they’ll have to pay income tax on that “free” government money. “

It’s true that the clunker money is subject to sales tax in most states.  The government’s official website for the CARS program clearly states in the FAQ section that the CARS credit may be subject to sales tax and encourages customers to check the laws in their state or to consult with their tax advisor. 

Why is the clunker money taxable?   The clunker credit is a REBATE.  Rebates, by definition, come off the bottom line - after taxes have been assessed on the selling price of the car.  The cash rebates offered frequently by the car manufacturers work the same way.  So do rebates on other products like soda, toilet paper and refrigerators.  Look at your grocery store receipt the next time you use a rebate coupon.

Perhaps the confusion stems from the fact that most people perceived the clunker money as a trade allowance instead of a rebate.  In most states, the sales tax on a car is assessed on the sale price minus the trade allowance (the amount the dealer gives you for your old car).   For example, if you purchased a new car for $20,000 and traded in your old car for $4,500, you would only pay sales tax on the difference of $15,500.  With the clunker rebate, you pay sales tax on the full $20,000, and THEN the $4,500 rebate is applied. 

The claim that consumers will have pay income tax on $3,500 or $4,500 rebate is completely FALSE!  The official CARS government website explicitly states that the CARS credit is NOT considered taxable income for the consumer.  It is, however, considered part of the dealer’s gross income.

Unfortunately, some blogs are spreading mis-information about the clunker program in an attempt to schmear the current administration as well as bash the car dealers.   Politics aside, I hope this post sets the record straight and eases people’s minds about the clunker money and taxes.

Should I buy a new car or a used one?  This is an age-old car buying dilemma for most consumers.  Most financial experts say that it’s always smarter to buy used.  Let someone else pay that initial depreciation!  Seems like a pretty easy decision, huh?  Unfortunately, like most things in life (and the car business), it’s more complicated than that.  Here are six factors to consider when deciding between new vs. used:

1.  Your Budget – Your budget may make the decision for you.  If you can only afford a $10,000 car, you will most likely have to buy used.  While you can occasionally find new cars in this price range, you will end up with a base model econo-box with poor quality ratings and minimal convenience options and safety features.  You are better off buying a used model that was a safe, reliable vehicle to begin with.  Don’t be tempted to buy new and use a long loan term to fit the monthly payment into your budget – that can get you in financial trouble and cost you much more in the long run.

2.  Depreciation – The average vehicle depreciates at least 20% in the first year of its life.  Some vehicles depreciate as much as 40% or more (i.e. Range Rovers, Escalades, and pretty much anything wearing a GM or Chrysler badge these days).  Other vehicles, like Hondas and Minis, hold their values very well.  If your desired vehicle has a high depreciation rate, then it makes sense to buy “slightly used” and save yourself a good chunk of change.  However, if your dream car holds its value exceptionally well, then you might want to pay just a couple thousand more for a new one with a full warranty.

3.  Availability - If you want a model that just came out, then you will obviously have to buy new.  But, if you are considering one that has been out for at least a year, then check the availability of used models in the secondary market.  In today’s economy, people are holding on to their vehicles, which is reducing the supply of used cars on the market and increasing used car prices.  Some models are hard to find and priced so high, that it makes more sense to buy new.  However, if you are looking for a model that is popular with the rental car companies, then you should have plenty used ones to choose from.

4.  Interest Rates – Finance rates for used car loans are typically 2 points higher than for rates for new cars.  Why?  Because banks consider used cars to be a higher risk.  If you are considering a “slightly” used car that holds its value well, do the math to calculate the total cost of financing the car over time and see if buying used will really save you money. 

5.  Risk – No matter what, buying a used car comes with some degree of risk.  A used car, by definition, has been subjected to a certain amount of wear and tear, not to mention someone else’s driving and maintenance habits.  Some vehicles have spent most of their life on the highways, others in more strenuous stop-and-go city traffic.  Some vehicles have been garaged and maintained religiously according to the owner’s manual.  Others have been left out in the elements and have never tasted fresh oil.   While a Carfax report may reveal obvious signs of abuse such as accidents, theft and flood damage, it may not show everything - especially if the “accident” was between the car and its owner’s mailbox. 

6.  Maintenance Costs - The maintenance required during the first year or so of a vehicle’s life is usually limited to oil changes, tire rotations and other relatively inexpensive items.  Some manufacturers even cover the cost of these routine maintenance items for the first few years.  A used vehicle, on the other hand, may require the replacement of more expensive parts such as tires, brakes, a battery or worse.   When you purchase a new vehicle, those expensive repairs often don’t come along until you have already paid off the vehicle loan (assuming you financed it properly).  On a used vehicle, expensive repairs can pile up on top of your monthly loan payment, straining your budget.  And, by the way, most repairs are “routine maintenance” and are NOT covered by an extended warranty.

Ultimately, the decision to buy new or used comes down to what you car love, what car you can afford, and what will give you peace of mind.

Still not sure which way to go?   Call Women’s Automotive Solutions for a complimentary consultation.  We’ll look at your unique situation as well as the current car market to help you decide which option is right for you.  And, no matter which way you decide, Women’s Automotive Solutions will get you the best deal!

The Senate approved the extension of the Cash 4 Clunkers program today in a 60 - 37 vote.  President Obama gave it his official signature shortly afterwards, funneling an additional $2 billion into the program. 

Over 220,000 new vehicles have been sold under the Cash 4 Clunkers program since it officially began on July 1st, with the top seller being the Toyota Corolla.  Opponents of the program expressed concern that it would favor the Asian automakers, but approximately half of the vehicles sold so far have been American brands.

Not sure if the vehicle you have qualifies as a clunker?  Not sure if the new vehicle you WANT qualifies under the program?  The official CARS site (www.CARS.gov) has a nifty (if somewhat slow) tool that will tell you!  Check it out the CARS eligibility calculator at http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml

If you do take advantage of the program, be prepared for extended wait times at the dealerships, which have been overwhelmed by the demand.  Also be prepared to provide additional paperwork, including the title to your clunker , your current registration card, and a detailed letter from your insurance company proving that the vehicle is and has been properly and continuously insured.  

Don’t want to spend hours at the dealership?  Want to get MORE than just the $3500 or $4500 rebate?   Let the car chicks at Women’s Automotive Solutions car buying service help you get the best deal without all the hassle! 

It looks like the wildly popular Cash 4 Clunkers program may continue - at least for a little while.  The House voted late Friday to funnel an additional $2 billion into the program.  (This may be the fastest bill ever passed by Congress!)  However, it still has to pass in the Senate this week, where Republicans who oppose the program may try to kill it.  If approved, tThe funds would be diverted from an energy program that was part of the economic stimulus package approved earlier in the year.  How long will this $2 billion last?  Who knows. 

If you have a clunker to trade in on a shiny new, more fuel-efficient model, contact Women’s Automotive Solutions car buying service  today, and let us help you get the best deal - no matter what the government decides!

The Cash 4 Clunkers program was suspended last night after just 6 days because they had already run through the $1 billion that was allocated for it.   At first, I was astounded that the program lasted less than a week, but then I did the math.  At $4,500 per deal, that’s about 222,000 cars.  With over 16,000 franchised car dealerships participating in the program, that’s only about 13-15 deals per dealership.  I’m actually surprised the money lasted that long!

But, it may not be over yet.  The government is reviewing the backlog of cars that dealers have already registered for the program to make sure they still have sufficient funds to pay for those cars.  President Obama announced that the program will run through the weekend, but dealers are still unsure if the money will be available and have stopped making deals until the White House confirms that additional funds will be available.  The car dealers are also lobbying congress to approve more funds to extend the program and help out the struggling automotive industry and overall U.S. economy.  

Will the Clunker program be extended?  We’ll just have to wait and see.  But, if you still have a clunker to get rid of, Women’s Automotive Solutions can still get you the best deal!  Just contact us at 704-248-8706 for a complimentary consultation to discuss your options!

The government released the final and official rules for the Cash for Clunkers (CARS) program today, and they included some much-need clarifications!  The good news is that the $45,000 price tag limit for the new vehicle to be purchased (or leased) applies to the base MSRP, not including optional equipment, dealer accessories, destination charge, taxes, tag fees, or doc fees! 

To learn more about the program and to see if you are eligible to take advantage of it, contact Women’s Automotive Solutions or visit the official government website, www.CARS.gov. 

My business partner, Michelle Lundy, spent over 20 years running car dealerships before she started Women’s Automotive Solutions.  She watched hundreds of smart, successful women walk into her dealerships to buy cars.  These women were doctors, lawyers, bankers, and business owners.  They owned homes, managed their family finances, and negotiated business deals.  Yet, most of them felt like they needed to bring a man with them to buy a $30,000 car.  But why?

If you ask a random sampling of women how they feel about car shopping, most would rank it right up there with a root canal.  Many women say that the dealers “take advantage” of them or don’t treat them with respect.  Others are uncomfortable with the high-pressure negotiating process.

Research shows that women pay $500 - $1,000 more for cars then men.  In fact, women pay 46% more for goods and services in general than men.  (Similar statistics are true for Blacks and Hispanics.)  Think about it.  We pay more for hair cuts.  We pay more for clothes.  We pay more for dry cleaning.  And, we pay more for cars.  Why?  Because we allow it!  We DON’T ASK for a better deal. 

In her book, “Women Don’t Ask”, author and economist, Linda Babcock, reveals some interesting statistics:

• 2.5 times more women than men said they feel “a great deal of apprehension” about negotiating
• Men initiate negotiations about four times as often as women
• When asked to pick metaphors for the process of negotiating, men picked “winning a ballgame”, while women picked “going to the dentist”
• Women will pay as much as $1,353 to avoid negotiating the price of a car

So, why don’t women like to negotiate?  Are we just wired differently than men, or is negotiating an acquired skill?  According to experts, it’s a little of both.  Women are more relationship-based than men.  When we spend time with someone, even a car dealer, we think that a relationship has been established.  We feel guilty if we don’t give them our business.  Men are better able to separate the relationship from the negotiation.  A male customer and a salesman may get to know each other during the negotiations, but if the numbers don’t work out, the male customer walks away from the deal - guilt-free.  

Babcock believes that society is to blame for teaching women that it is not appropriate or “lady like” to be assertive.  We are supposed to put the needs of others before our own.  Young girls are encouraged to play “house” and other cooperative, compliant games while boys are encouraged to compete and to “win”.    When a man displays initiative, he is considered a “go-getter”.  A woman displaying the same behavior is considered “pushy” and “aggressive”. 

Does this mean that women are less capable negotiators than men?  Hardly.  Women simply take a different approach, one that is more “collaborative” than “competitive”.   Women are more likely than men to listen to the needs and concerns of all parties involved and look for a win-win scenario.  This approach allows women to develop long-term relationships without burning as many bridges as men, who tend to focus on short-term gains.  

Unfortunately, this collaborative approach does not always serve us well in the car buying process, which is short-term and adversarial by design.  What can we do to be better car negotiators?  Stay tuned for our next article, “5 Tips for Tough Negotiating”.

Of course, we must be careful not to make too many generalizations.  Not all women are intimidated by the negotiation process.  (We car chicks obviously don’t mind it!)  Nor do all men enjoy haggling.  After all, 60% of Women’s Automotive Solutions clients are men!

If you don’t like to negotiate, that’s ok!!!  You don’t have to.  You have “people” to do these unpleasant things for you.  Just call Women’s Automotive Solutions, and we’ll do all the haggling and get you the best deal.   We make car buying easy!

If you think the new “Cash for Clunkers” program is going to help you buy a new car, think again.  Our government’s latest, misguided attempt at saving the environment and boosting the economy isn’t all it’s cracked up to be.

What is the “Cash for Clunkers” Program?
 
Cash for Clunkers, officially known as the Car Allowance Rebate System (CARS), is a federal program passed by Congress and signed into law by President Obama will provide a voucher worth up to $4,500 to consumers trading in an old gas guzzler for new, more fuel efficient vehicle.  The program is effective beginning July 1, 2009 and ending on November 1, 2009 (or when the funding runs out, whichever comes first).

Sounds pretty good, huh?  Well… maybe not.  The government vouchers for $3,500 or $4,500 are in replacement of — not in addition to — the ordinary trade-in value of the vehicle.  If your trade is worth more than $4,500, forget it.  If your trade is worth less than the voucher, then the program might benefit you.  But, it’s only good for purchasing a new car, not a used one.  Purchasing a good, used car will likely save you more money overall than buying a new car with the voucher.

What’s the Catch?

Your trade must also be drivable, must have been made in 1984 or later, owned, insured and operated by you for one year, and must get 18 mpg or less city/highway combined.  The trade vehicle must be crushed, not resold.  (The idea is to get them off the road) If that’s not enough restrictions for you, there’s more!  You must purchase a new vehicle with a sticker price of $45,000 or less.  If you buy a new passenger car, it must get at least 4 mpg MORE than your trade vehicle.  If you buy a new SUV, minivan or small truck, it must get at least 2 mpg more than your trade.  (Larger trucks have different requirements and restrictions.)  Only one voucher is allowed per person.  Confused yet?  Visit the government’s website (www.cars.gov) or call a Women’s Automotive Solutions consultant for more information.

Who could benefit from this program?

Critics of this program (myself included) argue that this program won’t benefit most consumers. It doesn’t apply to used car purchases, and most people who drive “clunkers” do so because they can’t afford a brand new car in the first place.  However, there are a few folks who could take advantage of it:

1.  People who buy a new vehicle once in a blue moon, drive it until it almost dies, and then buy a new one again.
2.  Students or young professionals driving an old, college clunker who now have a good job and are ready to buy their first, new car.
3.  Parents who bought their teenager a piece of junk and now want a shiny new car for themselves.

The good news is that the voucher is in addition to (not in lieu of) any dealer incentives and rebates available on the new vehicle.   If you are thinking about taking advantage of this program, contact a Women’s Automotive Solutions consultant to see if you qualify and if the program is right for you.  Even if it’s not, Women’s Automotive Solutions will get you the best possible deal no matter what vehicle you buy – or what you trade in.

This email was sent to us from a future client, Adam Pack.  It really hits the nail on the head, so I wanted to share it (with Adam’s blessing, of course).  Thanks, Adam!

LeeAnn,

I like your style and your message.  You’ve got a kicken business model.  I checked out your site.   I like it all.  I will definitely use you when I go to buy or lease. I’ll also refer to anyone I know that is looking as an option to consider.  I’m sure you get objections like….”I can do that I’m in sales, etc. etc.”  I say bs.  It is much like getting a job.  Anyone may be good at business, sales, or just have good common sense but unless you eat, sleep, and breathe you are not in the know and are in a risky position to get taken advantage or innocently miss out.  A service like yours is golden cause you know how the system works and you work it each day.  Were someone going to get a car does it once every 3-10 years.  No one is good at doing something when they only do it once every 3-10 years.  Not only are you saving your clients $$ but you are giving them piece of mind.  I’ve bought cars in the past that from the moment I signed the paperwork I was haunted with the feeling that those [guys] screwed me over.  It stuck with me for years.    Car salespeople and dealerships are one of the least trusted people in the world.  So why would anyone chance a large capital expenditure that they will keep for years to trying to do it on their own.  You are an equalizer my friend whose purpose is for common good for man/woman kind!

 - Adam Pack