From a Lotus slamming into a herd of cows to a sad story of a dream car purchase turning out to be a lemon, the Carsala Contest is underway and will be giving away prizes to the entry with the highest votes!

Last  Monday, Carsala launched a contest inviting consumers to describe their worst used car buying experiences.  Contestants should go to www.carsala.com/contest to enter the competition.

To celebrate its official launch, Carsala is offering  a SIRIUS - Sportster 5 Dock & Play Satellite Radio Receiver with Vehicle Kit + 1yr SIRIUS Everything Subscription for the contestant who receives the most votes for telling his or her worst true used car buying experience. 2nd and 3rd prize winners will receive a 125 GPS Portable Navigation System from TomTom but the goodies don’t stop there! The first additional 25 contestants to reach one hundred votes will receive a Carsala zip hoodie. The next additional 25 contestants to first reach 25 votes will get a Carsala t-shirt.

Everyone is eligible and individuals are invited to register by email on the Carsala web site at www.carsala.com and submit either a text story of up to 300 words, or a YouTube video to which visitors can link from the voting page.

Carsala will screen the stories and post or link them to the web site, where anyone can see them and vote, for their favorite submission. Voters can vote for more than one story, but cannot vote for each story more than once. Contestants are encouraged to promote their entries on Facebook, Twitter and via other social or traditional media, and to ask their family, friends and acquaintances to sign up and vote for their particular entry.

Carsala will blog and Twitter (#carsala) throughout the contest and add regular updates to the Carsala Fan Page on Facebook. The winners and their stories will also be featured on the Carsala web site and in a You Tube video about the competition.

The contest began Monday, July 27th, and will last eight weeks, through Sunday evening, September 27, 2009, at 11:59 pm pacific time.

So, c’mon! I know there are some funny stories out there! Share them and win a prize!

The reasons for buying a used car keep piling on top of each other as if they’re trying to protect us from whatever is at the bottom of pile.  Well, something came out of the pile and it could make you sick… literally.  The highly coveted new car smell turns out to be an unpleasant concoction of chemicals such as arsenic, toluene, and formaldehyde that comes from the outgassing of materials used to make cars  - things you would never use at home to freshen up the smell of your bathroom.

Europe seems to be more progressive in this area, but Europe is working on an entirely different aspect - allergies to common materials.  Removing materials such as latex, chrome, and nickel is great for the allergy sensitive people, but why isn’t arsenic in this list?  Probably because we don’t talk about “arsenic allergies.”  After all, it’s a poison so I guess were all technically allergic to it. Right?

What about Toyota?  They are a progressive car manufacturer and have their environmentally friendly image to preserve.  Bill Kwong, Toyota’s Product Communications Manager, says they “strive” to meet Japans voluntary vehicle volatile organic chemical (VOC) standards set by the Japan Automobile Manufacturers Association by 2011.  It feels like lip service to me, but I will dedicate a blog to praising Toyota if they prove me wrong.

Max Gates, Chrysler’s Safety and Regulatory Communications Spokesperson, says the organizations that independently test cars are using, “scare tactics,” and making claims with, “no data to support any claims of risk.” Wow.  Where do I start?  First, it’s widely acknowledges by the car industry that chemicals gasses such as arsenic, toluene, and formaldehyde are in new cars.  Second, science has shown that these chemicals are harmful to our health.  Third, places like the Ecology Center have found new cars to be the, “most universally contaminated environment that we spend (our time) in.”  Does Chrysler want somebody sit in a car until they get sick to prove that it’s harmful?  Better yet, why doesn’t Chrysler spend $100K on an independent study and put this to rest ?  Lip service, lip service, lip service.

Used cars end up being a great way to reduce your exposure to the harmful chemicals in new cars.  Outgassing, a process where materials release toxic gas, is highest when the materials are new and go down significantly over time.  Buying a two year told car could be a very smart decision if you’re as concerned about these gasses as me.

Don’t be too pessimistic here.  Car manufacturers are really trying to remove these harmful gasses from new cars.  However, with car manufacturers across the globe having a hard time surviving, I’m betting that returning to profitability and developing new fuel efficient cars is a much, much, higher priority than removing chemicals from cars - especially since that most people don’t realize the smell is harmful.  Until I start seeing “Chemical Free” labels on new cars, I’ll stick to buying used cars and get my great deal through Carsala.

So you’re interested in buying a fuel efficient car, but you don’t have $25 grand to throw down on a new Toyota Prius?  You probably also noticed that leasing is dead and great loans can be hard to find.  There’s good news for you.  First, buy a used car and if you’re not sure why, check out my Top 10 Reasons for Buying a Used Car.  Second, you don’t’ have to buy a hybrid to get really good gas mileage.  It’s a myth and it’s propagated by our local, state, and federal governments that do things like give out subsidies for hybrid vehicles or use taxpayer money to help car manufacturers develop hybrid technology.  What’s really important is fuel efficiency - hybrid or not.

To generate this list, Google Trends was used to figure out which high fuel efficiency cars are searched for the most frequently on the web.  Here are the results:

There are a few surprising things about this list:

• 7 out of 10 are foreign made
• Toyota snagged 3 spots on this top 10 list
• Chevrolet nabbed 2 spots on the list (who knew?)
• Chevrolet Volt would be #10, but it’s not in production until 2010
• The Geo Metro and the Geo Tracker came close to making it on this list even though they aren’t in production any longer
• Dodge, Hyundai, Isuzu, Kia, Mazda, Pontiac, Saturn, Scion, Subaru, and Volkswagen should all have something on this list, but none of their cars came even close due to either a low search volume or the complete lack of a high fuel efficiency car

Now that you’ve seen the list, go out and get the high gas mileage car of your choice and make sure you buy one that’s two years old so that you’re getting the best deal, being environmentally friendly, and saving a TON of money using Carsala!

When I’m not writing a post, I am often working to keep my neighborhood a great place to live.  Good schools, safe streets, non-invasive businesses, and minimal traffic are all important.

The problem with traffic is that there really aren’t that many good options.  Stop signs and speed bumps slow people down, but that also means increased noise from cars speeding up and slowing down.  You really can’t win…. UNTIL NOW.

Enjoy the following clip about how to slow down neighborhood traffic and be sure to let me know when you implement this creative solution in your own city!

A friend of mine alerted me to a radio article by NPR about how some new cars are cheaper than used cars.  I’m always up for a good debate, so let’s have some fun and debunk the claim that “Some New Vehicles Selling For Less Than Used Ones.”

Claim #1: “Some new cars are actually cheaper than used…”

• Truth Meter: Low
• Comment: This is true only under certain conditions. As a used car buyer, you CAN always pay more than a new car but you would only do this if you got tricked into paying too much!
• Reality: Used cars are still much cheaper than new cars. The idea that new car prices are plummeting and therefore making used cars relatively more expensive makes little sense. Car pricing is partly based on the price of similar alternatives. Therefore, if new cars prices come down, used car prices follow suit.

Claim #2: “Honda Civic Hybrid” is an example of a car where the new car is cheaper.

• Truth Meter: Even Lower
• Comment: A new Honda Civic Hybrid will cost you about $21,000 plus tax, title, and license. This is more than $3,000 less than the suggested retail price. However, I just used Carsala to do a price check, and I can buy a 2007 or 2008 for $17K (19% cheaper). Even better, I found the following ad on AutoTrader. It’s a Certified Pre-owned (CPO) car and the asking price is $1,000 less than the new car price. CPO means the warranty will be extended by one year and 12,000 miles so it has the same warranty as a new car.

Claim #3: Used cars are getting more expensive because if you’re “not producing as many new cars, then you’re not producing as many used cars.”

• Truth Meter: Very Shaky Grounds
• Comment: The statement if taken entirely literally is true. However, the used cars you want to buy now are two years old (see here for why), and the current decrease in car production will have minimal effect on the used car market. How many people are in the market to specifically buy a used car that is only three months old? Hogwash.

Claim #4: To buy a new car you will have to do some “serious research”, “shop well for financing rates”, and shop for “deals in your area.”

• Truth Meter: Finally something true!
• Comment: Buying a new car is a colossal pain. For me, it ranks with getting ALL my teeth pulled - without a painkiller. Read my past post about The Top 10 Things a Dealer Absolutely Won’t Tell You in case you need to be reminded about what car dealers will do and say to make as much money as possible from you.
• Reality: Buying a used car is much easier. With Carsala, all you need to do is (1) choose the car, model year, features and colors that you prefer, then (2) let Carsala find your cars and negotiate a price of up to 25% off Blue Book, then (3) inspect and drive the car in person, with the option of buying at the Carsala price. It doesn’t get much easier than this…

Walk into a new car dealer and your heart is pumping and thumping.  Adrenaline rushes through your body as you see the beautiful car on the showroom floor that has every feature you want and is in your favorite color!  What should you do now???  Turn around, and walk out because you’re about to waste more than $10,000 on a new car - as if it were a 50 cent piece of candy at the corner store when you were 10 years old.  If you don’t have the courage to walk out, then read my Top 10 Reasons To Buy a Used Car to boost your confidence and help you to understand why buying a used is always in your best interests.

1. Car Dealers Are Hurting

• If you haven’t been following the news, car dealers are having a hard time selling new cars. However, cars manufactures can adjust to this change by producing fewer cars. The problem lies in the used car market. People are turning in their leased cars and not buying them back partly because dealers set the buy-back prices too high and partly because people leased more car than they could afford. You can take advantage of this trend by buying a used car at an incredible discount.

2. Certified Pre-Owned Programs

• Imagine this: you buy a two year old used car in perfect condition with 24,000 miles for $10,000 less than a new car and the warranty is extended from 3 years/36,000 miles to 4 years/48,000 miles. Sound too good to be true? It’s not - you just need to read a little more about Certified Pre-Owned cars to understand why they are an amazing deal.

3. Price

• New Cars are expensive and contrary to what a dealer might tell you, they are NOT a good investment. Tax, title, license and depreciation over the first two years on a $25,000 new car will cost you from $10,000 to $15,000. Ouch! When you buy a used car, you avoid steep depreciation and high taxes on an inflated price. Buying the same $25,000 car, but one that is two years old, will cost you about $11,000 less than its new counterpart. Thinking differently, the cost of owning a new car for two years could even buy you a very nice used car!

4. Used Car History Transparency

• Twenty years ago, we had to believe some stranger about the reliability of a used car. Today, services like CARFAX provide us with complete information about a car’s service, accident, or lemon history. We no longer have to worry about a used car’s history!

5. It’s Environmentally Friendly

• A Toyota Prius is a great car to own if you want to save on gas. However, it takes the equivalent of 1,000 gallons of gas to make a new Prius. When you buy a used car, you aren’t putting another car on the road. Instead, you are trading the energy it took to make your old car, with energy it took to make the used car you just purchased.

6. Depreciation

• Cars depreciate the most during their first two years. By my estimate, a typical new car will depreciate about 40% over the first two years. However, don’t take my word for it. Check out Car.com’s great residual value tool and see how much that new car you are considering will depreciate in two years.

7. More for Less

• Are you thinking about buying a Honda Accord, but really want the Acura TL? Maybe a Ford Taurus is on the top of your new car list, but you really want be seen in a Jaguar X-Type? The great news for you is that you get A LOT more car for less money when you choose to buy a used car.  Check it out for yourself with Carsala’s online price quoting tool.

8. Low Insurance Rates

• Insurance rates are partially based on a car’s value and that car’s safety features. When you an equivalent used car, your comprehensive and collision coverage is lower. If you choose to upgrade your car type when you buy used, there may be other insurance discounts for safety features such as a better anti-theft security system, stability control, or VIN etched windows.

9. Used Cars Have Never Been More Reliable

• I’m not saying that every car on the road is reliable. However, modern cars are incredibly reliable and with cheap services like Consumer Reports, we have easy access to information about the reliability of used cars.

10. You Can Use Carsala

• Buying a used car is suddenly easy. Choose the car, model year, features, and colors you prefer and then let Carsala find the car and negotiate the price for you. They will save you up to 25% off of Kelley Blue Book and you still get to inspect and drive the car before deciding to buy it. The car industry is filled with schemes to trick you into paying too much for a car. Carsala is different because what you pay for their service is based on how much you save, not how much you spend like every other car buying service.

Do you think I missed something?  Let me know by leaving a comment!

You have been looking for a nice car in your price range for a month and your heart starts to beat a little faster as you walk up to a shining used car that is in perfect condition!  Or is it in perfect condition?  Inspections are tricky and if you think intuition will guide you to a good car, you’re wrong.

First of all, there is no replacement for having a mechanic look at a car before you buy it.  Make sure somebody has put the car up on a lift, checked out all the mechanicals, and given you a full report on the cars problems (or not).  Mechanics will be able to find leaks, wear, and problems that aren’t visible to an untrained eye looking down at an engine with the hood up.

Now that the mechanic has done his or her job, it’s time for you to do your own inspection and make the final decision.  After all, it’s your own money.  Bring a small magnet,a rag or box of tissues (to clean your hands), and a print out of this blog so that you won’t forget about the insider tricks that will help you make sure you’re getting a quality car!

A. Rust

• Rust is cancer so finding it is important.
• TRICK 1: Magnets will not stick to car body fillers, so use your small magnet to check panels, wheel wells, fenders and door for rust and body damage.

B. Body

• TRICK 2: The factory alignment of exterior car panels is extremely precise. Look at the gaps between panels, doors, hood, and trunk. If the gaps are not even, this could be a sign of major damage.

C. Paint

• A new paint job is a sign of past distress for a car.
• TRICK 3: Open the hood and look for overspray in the engine compartment. Also, lift the molding edge on windshield at the paint line to check for repainting.

D. Tail Pipe

• TRICK 4: Check the deposits in the inside of the tail pipe with your finger. If it’s white or gray, everything should be okay. Black and sooty may mean a tune-up is needed. Black and gummy means something is wrong and the car is burning too much oil!

E. Oil

• TRICK 5: Oil that is murky brown, gray, or bubbly has water in it and is a sign of a cracked engine block.
• TRICK 6: Feel the oil with your fingers. Grit or gum means the oil hasn’t been changed often enough.

F. Doors

• TRICK 7: Open and close the doors without slamming them. If they hit and bounce or just don’t close easily, this could be a sign of major damage.

G. Trunk

• TRICK 8: Lift up the mat in the trunk and look for signs of rust while you are checking out the spare tire.

H. Hitch

• TRICK 9: Check for signs of a hitch being attached the car. Towing can be ruinous to an engine and transmission.

I. Tires

• TRICK 10: Look at tires for even tread wear. Uneven tread wear could be a sign of major damage.
• TRICK 11: Make sure all four tires are the same tire. If tires are rotated frequently, properly inflated, and there is no damage to the car, all four tires will always be replaced at the same time.

J. Shocks

• Check to see if any of the shocks are leaking.
• TRICK 12: If you bounce the car five times, it should only bounce once after you stop.

K. Seats

• Sit in every seat and make sure they aren’t lumpy. Look for tears, damage, and that they don’t move when they are locked in position.

L. Floor Mats

• TRICK 13: Look under all the mats for signs of rust.

M. Pedals, Armrest

• TRICK 14: Check to make sure the wear on the pedals and the driver’s side armrest look appropriate for the mileage on the car.

N. Smell

• If the car is has a very strong deodorant, it may be covering up a musty smell that resulted from water damage, leaks, or something worse.

O. Instrument Panel

• Make sure everything works - radio, heater, AC, clock, horn, etc.
• TRICK 15: When you turn the car on, make sure ALL the lights on the dashboard light up. Lights that don’t work could be burnt out (usually not easily replaceable) or could have been disconnected to hide a problem.

P. Lights

• Check to make sure all lights work (brake, turn, reverse, headlights, interior, etc)
• TRICK 16: Make sure the signals self-cancel after turning.

Q. Windows

• Check that all windows operate smoothly and don’t make any unexpected noises.

R. Glass

• Check for broken or cracked glass.

S. Transmission Fluid

• TRICK 17: Low fluid means a leak, brown means no maintenance has been done on the transmission, a burnt smell means the transmission has a lot of wear, pieces of metal in the fluid means the gears are being ground off.

T. Engine

• Check for leaks.
• TRICK 18: Steam cleaning and engine is a way to hide leaks. Make sure the car has been driven enough after the cleaning so that leaks can still be identified.
• TRICK 19: Squeeze water hoses to make sure the soft and flexible as compared to hardened and cracked.
• TRICK 20: Make sure there isn’t too much play in the fan blade which can mean the water pump drive shaft may fail soon.

U. Belts

• Check for frayed, cracked, and loose belts.

V. Steering

• TRICK 21: Look out the window at the wheel when you are turning the steering wheel. If it doesn’t turn in the first two inches of steering wheel movement, there may be major suspension problems.
• With a power steering car, turn and lock the wheel in both directions. There should be no screeches or bouncing.

W. Exhaust

• TRICK 22: While you’re driving, check the exhaust. Blue smoke means excessive oil burning, black smoke means it may need a tune-up, white smoke on startup is just water in the exhaust line, and white smoke while driving means there is water in the cylinders.

X. Brakes

• TRICK 23: Make sure there is at least two inches between the pedal and the floor when the brake is fully applied.
• TRICK 24: Brake suddenly when driving and listen for screeches. A car that pulls or dips to one side means brake or potentially costly suspension problems.

Y. Leaks

• TRICK 25: Drive the car through a car wash to check for water leaks.

Z. Underneath

• If you really want to picky, TELL the salesperson to put the car up on a lift for you to take a look. Look for engine leaks, transmission leaks, brake line leaks, shock absorber leaks, accident damage or repair, frame welds, and rust.

Thanks to Massey for writing an excellent and well hidden article titled “Inspecting Your Purchase - Six Ways to Identify a Lemon” which has a lot of great information about inspecting cars.  Also, if you think I have missed something in this list or want to discuss the inspection process then please leave a comment!  Thanks!

Selling a car can feel like a major drag, but it’s actually simple and straight forward if you have a good process.  If you’re short on time, finish each step individually until you’re fully prepared.

Research the Market

• Expectations about how quickly or slowly your car will sell can be mitigated by doing some online research and will help to lower any potential frustration. Look at Craig’s List and online marketplaces such as AutoTrader.com to see how many cars of your type are for sale. A lot of cars will mean that you need to be flexible in price and a few cars will mean you are in the power position when it comes to negotiating.

Price Appropriately

• Since you are a private seller and not a dealer, don’t expect to sell your car for as much as a dealer. Dealers offer things such as extended warranties that have extra value to buyers. When you are completing your market research, note the prices of similar cars. Next, price your car at a comparable price to other similar cars (not lower!). Find your car’s Blue Book value and figure out how much of a discount you are offering off of Blue Book, if any. This is an important number to buyers.

Clean Your Car - Please!

• A clean car is a sign of car and well keeping. You can usually get your car cleaned really well for less than $30 - and it is worth every penny. If your car’s paint is looking a little flat, also consider paying to have your car waxed by hand. Waxing usually costs around $50-$75. The money you spend on cleaning your car will easily be recovered by either the price you get for your car or how quickly you are able to sell you car.

Take A Million Photos

• Buyers HATE going to see a car and then find there is unexpected damage. Take a lot of photos and email them to your perspective buyers so they aren’t surprised when they arrive. Here’s a quick list of important photos. Exterior: all four corners, bumpers, all four wheels, tire tread (if possible), hood, doors, fenders, roof, front grill, license plate (with current registration sticker). Interior: driver’s seat, passenger seat, back seats, odometer, vehicle identification number (VIN), dashboard controls, transmission stick, floor mats, inside trunk, spare tire.

Advertise

• Picking your advertising place and creating the advertisement may be one of the hardest parts of selling a car. Look at other listings to see how those advertisement are communicating the cars features in a succinct but clear manner. Remember to think about the buyer’s perspective as your creating the advertisement. For example, people shopping on Craig’s List are looking for a hidden gem from a private party. Making your advertisement look like a dealer’s advertisement may actually scare some people away.

Get the Records In Order

• Just like a clean car, having all your car’s record together and organized is a sign to the buyer that you organized and took good care of your car. Part of the records should also be the pink slip in case you find a willing buyer!

Be Ready to Negotiate

• Everybody has their price. For a seller, I define this price as the price where if the buyer offers you $1 less, you will feel good about walking away after they leave. Don’t let your emotions get in the way during negotiations. Know your price before hand and stick to it.

Have the Motor Vehicle Department Paperwork

• How bad would it be to have a willing buyer, and lose the sale because you don’t have the right paperwork ready? Call your local Motor Vehicle Department or check online to get al the right paperwork to transfer your car to a new buyer during a sale.

Cancel Your Insurance

• Once your car is gone, there’s no need to spend $2-$6 per day on insurance. Cancel your insurance and stop spending money on a car you don’t even own.

This blog is often about buying cars. Specifically, buying used cars using Carsala, instead of spending too much on an overpriced new car and having to deal with the deceitful tactics of car sales #%@!s. But what about only using public transportation because it is sooooo good? How revolutionary would that be?

Well, take a look at the first public transportation system that may actually fill that need. London’s Tube is pretty good, but this is so much better. In Abu Dhabi, they are developing a “personal rapid transit” system. Individual pods will take you to exactly where you want to go. Notice in the picture that there appears to be four cables that lower the car down to street level. Theoretically, it could stop anywhere, lower you down, open the doors, and out ya’ go.

One of the keys to this system is that it runs on a grid instead of tracks with pre-defined destinations. The cars can move around the grid to get to exact locations in the minimum amount of time. There are still a lot of issues to work out such as how to power the different pods. Currently, the plan is to have them battery operated. This may be a good idea for the future, but right now battery technology is desperately lagging behind the needs of the consumers and businesses.

This idea has actually been explored before. France spent 18 years trying to create a similar system and ultimately canceled the project because of safety issues. France’s crime-phobic public didn’t want to get mugged in a private car and they apparently could figure out a way to increase safety. Security cameras have been in use since 1968 and police departments have existed since… forever?

The biggest hope for updated public transportation in America probably just happened and it’s included in the new U.S. economic stimulus bill. Here’s what was allocated to public transportation:

· High-speed and inner-city rail: $8 billion

· Public Transit: $6.9 billion

Sweet! This is the answer, right? Unfortunately, no. As an example, the San Francisco Bay Area’s BART system costs $200 million per mile of new track.  That means the entire allocation for public transportation could only build 75 miles of new track - for all of America. Oh well.

So, when will cars be obsolete? Not in our lifetime. Just make sure you don’t spend too much on the car you’re driving while dreaming about getting home in a personal pod.  Make a comment about your dream public transportation system!

Trying to be “most environmentally friendly” car in the auto industry is like playing a game of hot potato.  As soon as a car manufacturer makes this claim, they’re strangely disadvantaged because somebody else is using their PR machine in an attempt to beat them down.  It was even claimed that at Hummer was more environmentally friendly than a Toyota Prius!

While car manufacturers go to war over who is making the most environmentally friendly new car, nobody is arguing over the fact that buying a used car is much better for the environment than buying a new car.  The core of the logic is that it takes energy to make a new car - so if you buy a new car, you then have to offset that energy expense somehow.

Consider a Toyota Prius for example.  It takes 113 million BTUs of energy to make a Prius - that’s the equivalent of 1000 gallons of gas.  When you buy a two year old Toyota Camry it doesn’t take any new energy to make that car.  Think of it as trading the energy it took to make your old car with the energy it took to make the used car you just purchased.  Buying a new car puts another car on the road, even if you sell your old car.

Since I’m a bit of an analysis nut, I thought I would compare the new Prius with the used Camry.  Here’s a table with the results:

The Prius price was generated by estimating what a buyer might actually pay, out the door.  The Camry price was generated by using Carsala’s new quoting tool and adding for tax, title, and license.  Gas prices are low right now, but I used $3 per gallon since that is probably more realistic longer term.  I did not include the time value of money in the table calculations.

The end result is pretty amazing.  After 75,000 miles, the Prius saves 328 gallons of gas compared to the Camry, but costs $5,570 dollars more.  Ouch!  Add in a 5% interest rate the dollar difference becomes $7,784 after 5 years.  Yowsa!

If you are really sensitive to your environmental impact, and the extra 328 gallons of gas is really bothering you, I have a suggestion.  328 gallons of gas in the Camry will drive you 8370 miles.  The carbon offset for driving this far costs $56.  That’s it.  Buy the used car from Carsala, buy your carbon offsets from Offset Consumer, and live a better environmentally friendly life with your extra cash.