Forum Post: how to purchase conscientiously?
Posted 12 years ago on Nov. 26, 2011, 9:36 p.m. EST by ithink
(761)
from York, PA
This content is user submitted and not an official statement
so, I just found out I have to buy another vehicle, as mine just died of old age. I am dreading this process. I made up my mind to be hyper conscious about where my dollar goes. I want to support the companies that are doing good things for the world. I know they are out there, perhaps just not well known? Any Ideas?
Very good questions.
If other options don't work for you and you need a car, here are some ways to help ensure you get the best deal without feeding the Wall Street greed-mongers.
Buy used, directly from the owner
Avoid auto dealers -- many are part of huge chains that are publicly traded on Wall Street. The loans auto dealers -- even corner car lots -- originate get packaged, securitized and sold on Wall Street. (eg, Bill Gates owns stock in AutoNation, which took in over $10.9 billion in 2009)
Auto dealers are also the #1 source of consumer complaints to state and local consumer protection agencies and the Better Business Bureau.
Auto dealers got a special exemption from Congress, from being regulated by the new Consumer Financial Protection Bureau.
Auto dealers charge hidden "markups" on auto loans -- basically, undisclosed kickbacks from the lenders. In 2009, dealer "markups" on auto loans cost car buyers over $23.8 billion in added charges.
Either pay cash (via cashier's check or wire transfer) or get lending from a community-based credit union. Ask the credit union to help you figure out how to improve your credit score, before you get a loan. Sometimes simple things can raise your score and save you a bundle.
Beware of curbstoners (dealers posing as owners). Make sure the owner shows you the title, registration, and work orders from past repairs.
Insist on getting the car inspected by a reliable auto technician BEFORE you buy. Car Talk's Mechanics Files -- where customers rate mechanics -- is a good resource. If the seller balks, walk away -- there are plenty of good deals out there.
Avoid "certified" used cars. Many dealerships are charging a lot extra for damaged / flood vehicles, rental cars, taxis, police cars, and other vehicles that are worth less than Blue Book, claiming they are "certified" and passed a "156-point inspection." Instead, get your own independent inspection.
Instead of paying for high-priced, mostly worthless add ons like GAP insurance and extended service contracts (usually full of anti-consumer loopholes), get important features that make the car safer and cleaner-running. Among the most important safety features: electronic stability control, side air bags.
Check out the car's history at vehiclehistory.gov (established by US Dept. of Justice). Keep in mind that all databases have gaps, and none are a substitute for a thorough inspection by a trustworthy mechanic -- of YOUR choosing.
Do the title transfer with the seller, at your local DMV or AAA office.
Happy, safe driving!
thanks for the info and tips!
Only buy if you absolutely need one. Is there public transportation available? Can you walk / bicycle instead? For occasional auto use look at ZipCar.
If you have to have a car, buy privately. This puts money directly into the hands of a person in your community rather than a corporate franchised auto dealership.
After you have found a vehicle that suits your purpose and seems to be in good condition, have an independent mechanic thoroughly inspect the it and prepare a written report and estimate of any necessary work. This will help assure you of the quality of your purchase and assist you in a making a fair negotiation.
There are resources online to help you find mechanics in your area, and some have reviews.
Yeah I agree with me2. Buy used, pay cash. The informal/black market is sometimes a good option to keep money out of the hands of the big corporations and banks. It's pretty hard to buy something like a car without feeding the beast any other way.
EDIT, just reading I think Mooks has good point too. I like the informal market but I haven't owned a car for about 20 years (just discovered I don't need one, really) so I'm not the best to give advice on cars, specifically. But for lots of other stuff the informal/black market is a really good option.
check out www.profitdonationcapitalism for a new system of democratically making sure the profits from our purchases are used for the benefit of the 100%, rather than just the 1&
oooh.. very interesting. Will definitely look into this more.
There's no companies doing good things for the world. Just forget that idea right off.
Buy a used car from a private party. Avoid dealers. And if you can afford it, pay cash instead of borrowing. That is the only way not to feed the auto industry, or the financial services industry.
Otherwise, don't sweat it. You need a car, worry about getting a good deal on a good car that's going to fit your needs, and don't feel guilty about it for one split second. Seriously.
my purpose is not to encourage existing companies to donate their profits to the public good; it is to encourage us to create these new profit-donating business to compete with traditional businesses for consumer dollars. We can create a brand new economy in this way where profits go to the people instead of the 1%.
Sweeping generalizations do more harm than good.
There are companies doing good. I have a small business that I run with high moral and ethical standards, and I know many people who do the same.
True, I was being flippant. I don't suppose you happen to sell cars do you?
yes, that sounds good actually. at least I will be helping someone else out. thanks!
Just because they are not a big bad corporate dealer does not mean they are not greedy. Buying used from a private party is risky business. I would look into certified pre-owned. You get a fairly new car for a deep discount off the price of a new one and often has the manufacturers warranty extended. You won't get that buying from a private party.
ah, that's a good point..
I second the used vehicle thing. And try to get something that isn't a gas guzzler. If you have to borrow, go for a credit union.
No, car companies are in it for the money. Anyways, this is one company I would avoid.
http://occupywallst.org/forum/something-to-think-about-part-2/
The Revolution starts here!