Purchase experience

[48-remi]

Hi, This is the letter I send to the Ottawa Citizen, following the article "Bottom line bulge" published on 3 feb, which showed how the price can add up. My letter made it in the Driving section of today.Bottom line bulgeBuying a new car can be a frustrating experience. At one purchase every six years, you are an amateur facing a professional salesman . But doing your homework can save you a lot of money.After replacing our 5th wheel trailer with a motorhome, it was time to ditch the ¾ ton truck in favor of a runabout that would be towed behind the MoHo. I needed something light, flexible and towable on its four wheels. The Toyota Yaris was the top contender but I found out that I could put the bikes inside a Toyota Matrix. I priced the Matrix on the Internet and added the various fees provided by the salesman, including documentation fee, transport and PDI,( a 420 $ glorified term for a wash job, installing the antenna and hubcaps?).However I studied the Pontiac Vibe which is basically the same car as the Matrix, built on a Toyota Corolla chassis. The GM Website confirmed that a rebate of 1500 $ from my GM Visa points was applicable. I also remembered about a 500 $ military rebate applicable to retired personnel. Finally the OnStar contest garanteed a minimum rebate of 500 $. (I got 650 $) The Vibe although having a higher retail price than the Matrix came out around 1000 $ cheaper once the various rebates were applied. Now it was time to cut the deal with a possible trade-in. The first offer for my pristine ’99 GMC came in at 10 000 $. I showed up with a file containing all oil change and other maintenance bills since brand new so they knew they were getting a good truck. I remembered that the Daimler Chrysler website has a link to the Canadian Black Book. My truck had a listed value between 10 500 $ and 12 000 $. Back to the dealer with these figures and the value of my truck jumped to 11 000 $ ! Another 100 $ was taken from the Admin fee and the deal was made. I saved a lot of money by opting out of an extended warranty. This car will spend a lot of time being towed behind a motorhome and it is a Toyota underneath, one of the most reliable car on the planet. A set of 15 inch. Corolla rims with winter tires were procured, way cheaper than putting 16 inch winter tires on the original 16 inch rims. With a bit of work, you can save a decent amount of money. One last point: the 100 $ excise tax on A/C and the Ontario gas guzzler taxes are subject to PST and GST. This is triple taxation which should be outlawed!Rémi GuertinCarlsbad Springs ONBase Neptune, 5-speed. P-Pac

[Mavrik]

enjoy the Vibe and sounds like you made out ok with that one. Also your Vibe has a 100,000 km powertrain warranty.

[48-remi]

Coming back to the extended warranty, the F&I guy offered me a "deal": bumper to bumper for six years, but same milleage, at the special price of 1200 $ in lieu of 1700 $ (employee price). I never bought an extended warranty. My '99 GMC did not cost me a penny except for a window regulator. The wife's 2000 Maxima required the replacement of the Mass Airflow Sensor at 900 $. That's it that's all!Extended warranties are a money maker. Take out the profit and the expenses for admin and there is maybe as little as 50 % left for actual repairs! No good to me anyway as I intend to to tow the Vibe to Mexico where the warranty is not enforceable...Rémi

[Mavrik]

it is a money maker for them but extended warranty can also be handy. I've delt with people were purchacing it was the best thing they ever did because of the repairs performed after the vehicle was out of its new car warranty. I've delt with people who wished they could turn back time and buy one. I've also delt with people who never ever needed to use it at all. Its like placing a bet. Plus if you buy it and never use it, you can get your money back.