Car Buying with an Edge w/ Ray & Zach Shefska #845
Jun 26, 2024
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Ray Shefska and Zach Shefska, the dynamic duo behind CarEdge, offer savvy insights into car buying. They discuss how pandemic-induced supply chain issues have changed the auto market and share negotiation tips to get the best deal. Learn about crucial timing for purchases, the real impact of fees, and the importance of focusing on the out-the-door price instead of monthly payments. They even delve into the benefits of being flexible with vehicle options and navigating the complexities of warranties.
The recent stabilization in the car market, due to increased inventory, provides consumers with better purchasing options and price reductions.
CarEdge aims to improve transparency in the auto industry by helping buyers navigate the often confusing negotiation process and fees.
Timing your car purchase, especially around year-end or month-end, can significantly enhance your chances of securing favorable deals.
Deep dives
The Evolving Car Buying Landscape
The recent shift in the car buying market stems from pandemic-related supply chain disruptions, which previously caused car values to rise sharply. Now, the market is beginning to stabilize as inventories increase, leading to improved conditions for consumers. Previously, conditions such as low inventory and high demand created a scenario where cars appreciated rather than depreciated. With a current inventory of about 2.8 to 2.9 million vehicles, buyers now have more options and are starting to see price cuts across various automaker brands.
The Importance of Transparency
The auto industry is often characterized by a lack of transparency, leading consumers to make emotional rather than informed decisions. Ray and Zach Shefska emphasize that their company, Car Edge, aims to disrupt this opaque environment by providing clear information about car buying. By educating consumers and encouraging straightforward negotiations, they help buyers make informed choices rather than falling for emotional sales tactics often used by dealers. The duo's background in the auto industry fuels their passion for transparency and positive customer experiences.
Navigating Negotiation and Fees
When negotiating at car dealerships, understanding the out-the-door price is crucial for consumers. Dealerships often obscure fees by focusing on monthly payments instead of total costs, which can lead to overspending on vehicles. Furthermore, fees such as dock fees can be negotiated as they are not mandated by the state and can significantly affect the total price. Consumers are advised to insist on seeing a breakdown of all fees to better navigate the negotiation process and ensure they aren’t being saddled with unnecessary costs.
Considerations for Buying Used Cars
The used car market has become increasingly complex due to fluctuations caused by pandemic-related production shortages. Consequently, many high-quality used cars are in limited supply, leading to higher prices and less negotiability. With more people returning to the market for vehicles, buyers should consider the sales tax benefits associated with trade-ins while judging offers they receive for their vehicles. Understanding how these dynamics work is essential for buyers looking to make smart financial decisions when purchasing used cars.
Timing Your Purchase for Optimal Savings
Timing plays a significant role in securing the best deals when buying a car. For new cars, the end of the year, particularly between Christmas and New Year's, presents an ideal opportunity for buyers due to increased dealer incentives and inventory. Similarly, shopping at the end of the month or quarter can leverage dealers' desire to meet sales targets. Understanding when to shop can lead to considerable savings as dealers are often more willing to negotiate prices during these pivotal times.
One of the reasons we’re pumped to have our guests joining us today is because it might finally be time for you to buy a car! Supply chains were snarled during the pandemic leading to auto values actually increasing pretty much across the board. It was a terrible time to buy a car – prices weren’t depreciating, they were appreciating! But regardless of the macrotrends, cars are expensive, transportation is a massive line item on most American’s budgets, and here to talk to us about how you can spend less on that car is Ray and Zach Shefska, the founders of CarEdge. CarEdge is a customer-centric buyers agent that gets you the best deal possible, and the founders are going to share their secrets on how you can pay the least for your new ride. Combined they have over 40 years of experience in the car business and we’re going to discuss the questions to ask dealerships, the fees to push back on, and timing it just right to ensure you snag the biggest discount.
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