Acknowledgments
Thanks go first to Dr. Mary Abbott Waite, my cohort in many adventures for over twenty years, and to J. C. Pierce, director of the Consumer Task Force for Automotive Issues. It is a very lucky thing to have the type of trusting, inquisitive, and thoroughly pleasant working relationship Mary Abbott and I have had for all these years.
J. C. Pierce, one of the countrys leading authorities on auto issues on the Internet, provided both the impetus for this book and good portions of the technical observations, knowledge, and conclusions that permeate it. Remar, youd really better watch whats happening on the Web, J. C. said some years ago, its getting scary out there.... How right that observation was!
Dozens of consumer, technology, and legal experts have also contributed important facts, observations, corrections, and ideas to this book. Im not going to try to mention them all, but in particular I would like to thank in no specific order, but with equal credit: Clarence Ditlow, president of the Center for Auto Safety; David Szwak, an expert on Fair Credit Reporting Issues; John Richard, director of Essential Information (Ralph Naders umbrella organization); Jon Sheldon, director of the National Consumer Law Center; Pat Sturdevant, president of the National Association of Consumer Advocates; Ralph Nader; Garry Desjardins, Deputy Attorney General of Connecticut; Terry OLoughlin, lead investigator in the Florida Attorney Generals Office; Andrew Schwartzman, president of the Media Access Project; Tom Domonoske, Duke University consumer rights specialist; Jack Gillis, author of The Car Book; and A. J. Hiers, a friend and Florida automobile dealer who isnt afraid to speak his mind on both the good and bad parts of the auto business. I buy my cars from A. J.
Id also like to thank the hundreds of consumers around the country who, each year, help me and my staff stay abreast of the lightning mutations that always make the auto business fascinating but oh so dangerous to the pocketbook.
Appendix
How to Figure Loan Cash from a Payment
Payments dont buy a vehicle, they pay for a lump sum of cash. Using the chart in this section, its easy to figure how much cash a payment will yield at various interest rates. Using a calculator will save you some time and long division, but it isnt necessary.
First, Ill demonstrate how the process works using an example. Lets say that you have decided that you can afford a payment of $300 per month for four years (forty-eight months) and that your best interest rate is 7 percent. How much loan cash will that payment buy?
To begin, look at the chart and find the payment per thousand borrowed at the APR (7 percent) and term (four years) you selected. That figure is $23.95. To determine how much cash your payment will buy, divide your payment of $300 by the payment per thousand of $23.95 as listed on the chart. In our example $300 divided by $23.95 yields 12.526 thousands, or $12,526. (To convert the answer into dollars, you multiply by $1,000just move the decimal three places to the right.)
Using the chart and this simple math, you can find out how much cash any payment at any interest rate will buy.
Chart for Use in Figuring Loan Cash or Monthly Payments
Using the Chart to Determine Payments When You Know the Lump Sum
You can use this same chart to determine what the payments will be on a lump sum of money. Why do you need to know this? If you are lucky, you may negotiate a final price on a vehicle that is less than your Loan Cash. If you do, this technique will provide a quick way to compute your new payment. It will also allow you to check the other guys figuresthats handy and protects you.
The technique will also give you flexibility. If, for instance, you decide to spend $16,000 on a car, but then find a red dream machine for $16,800, the chart will let you quickly determine your new payment. And, finally, it can bring you to your senses should you accidentally fall in love with some beauty $3,000 or $5,000 over budget.
Heres how to use this simple technique when you know the lump sum you must pay plus the term you want to finance and the interest rate (APR). For an example, lets say you need to know what the payment will be if you borrow $15,000 at 7 percent for four years. First, using the interest rate and term of your loan, locate the monthly payment per $1,000 figure on the chart. In our example, that figure is $23.95. Now divide your lump sum by $1,000 (just move the decimal three places to the left): $15,000 divided by 1,000 is 15.000 or 15thats the number of thousands in the lump sum. To find the monthly payment simply multiply $23.95 by 15. The answer is $359.25.
This approach works as easily even when you dont have a nice round figure. Lets say that you need to know the payment for borrowing $15,627 at 7 percent for four years. Divide $15,627 by 1,000 to get 15.627. Then multiply that figure by $23.95. The result: 15.627 x $23.95 equals a payment of $374.27 per month.
Web Site Addresses for Automotive Manufacturers
Acura Division, American Honda Motor Co. Inc. www.acura.com
Adam Opel AG www.opel.com
Alfa Romeo Automobiles www.alfaromeo.com
American Honda Motor Co. Inc. www.honda.com
American Suzuki Motor Corp. www.suzuki.com
Aston Martin Lagonda Ltd. www.astonmartin.com
Audi AG www.audi.com
Audi of America Inc. www.audiusa.com
Automobili Lamborghini S.p.A. www.lamborghini.com
Automobili Lamborghini USA Inc. www.lamborghini.com
Automobiles Citron www.citroen.com
Automobiles Peugeot www.peugeot.com
BMW AG www.bmw.com
BMW of North America LLC www.bmwusa.com
Buick Motor Division, General Motors www.buick.com
Cadillac Motor Car Division, General Motors www.cadillac.com
Chevrolet Motor Division, General Motors www.chevrolet.com
Chrysler Division, DaimlerChrysler www.chrysler.com
Daewoo Motor Co. Ltd. www.dm.co.kr
Daihatsu Motor Co. Ltd. www.daihatsu.com
DaimlerChrysler AG www.daimlerchrysler.com
DaimlerChrysler Canada Ltd. www.chryslercanada.ca
DaimlerChrysler de Mxico, SA www.chrysler.com.mx
Dodge Division, DaimlerChrysler www.dodge.com
Ferrari North America www.ferrari.com
Fiat www.fiat.com
Ford Division, Ford Motor Co. www.ford.com
Ford Motor Co. www.ford.com
Ford Motor Co. Ltd. www.ford.co.uk
Ford Motor Co. of Canada Ltd. www.ford.ca
General Motors www.gm.com
General Motors de Mxico SA de CV www.gm.com.mx
General Motors of Canada Ltd. www.gmcanada.ca
Honda Division, American Honda Motor Co. Inc. www.honda.com
Honda Motor Co. Ltd. www.honda.co.jp
Honda North America Inc. www.honda.com
Hyundai Motor Co. www.hyundai.com
Infiniti Division, Nissan Motor Corp. USA www.infiniti.com
Isuzu Motors America Inc. www.isuzu.com
Isuzu Motors Ltd. www.isuzu.co.jp
Jaguar www.jaguar.com
Jeep Division, DaimlerChrysler www.jeep.com
Kia Motors America Inc. www.kia.com
Kia Motors Corp. www.kia.co.kr
Land Rover www.landrover.com
Lexus www.lexus.com
Lincoln Mercury, Ford Motor Co. www.lincolnmercury.com
Lotus Cars www.lotuscars.com
Mazda Motor Corp. USA www.mazdausa.com
Mercedes-Benz www.mercedes-benz.com