Save on Your New Car: Send Mom, Not Dad, to the Dealer

Catherine Lutz and Anne Lutz Fernandez — Fri, 06 Aug 2010 12:00:07 +0000

Some people just shouldn't go car shopping on their own — like Chris, who drove home to his horrified family in the garish chartreuse coupe on which he got "a great deal." Chris should have never walked alone through the auto dealer's doors, not only because he is colorblind — but because he is a man.

In generations past, buying the family car was considered Dad's job, but women now account for just over half of all automotive buys and play a big role when the family chooses a car. And that's a darn good thing for the household budget. Ahead of your next trip to the new car showroom or used car lot, you'll want to know what the automakers and dealers know about gender differences in car buying:

Although on the whole more knowledgeable about cars — how they work, who makes what model, how Road and Track rated a new vehicle — men tend to be less rational about their purchases than are women.
While men in a recent market research survey put "styling" on the top of the list of attributes they found most important in a car, women ranked it 11th. Women placed practical items like "visibility from the driver's seat to both the front and rear" high on their list.
Men are more likely to carry into adulthood the unshakable desire to own their childhood "dream car." Whether or not it is a practical or affordable purchase, they may well go ahead and snap it up. A man can overlook the difficulty of getting the kids in and out of rear car seats when he test-drives the gleaming model whose poster was on his bedroom wall as he grew up.
Unlike women, who approach salespeople with a set of questions, men are more likely to display their knowledge at the dealership rather than test or build on what they think they know.
Women are more focused on cost, using dealer incentives like rebates to reduce the overall amount they will pay while men generally use them to buy a more expensive car.
Men fall out of love with vehicles at mach speed. Research shows that it takes only four months for the average man to grow bored with his car and become susceptible to advertising and sales pitches to buy a new one. Women bask in the pleasure of their new purchases more than three times longer (though still not terribly long).

Knowing all of this, you may decide it's sensible to send Mom, not Dad, to the dealer next time. Of course, these are generalizations. There are men who buy cars pragmatically and women who buy them impulsively. (Unsurprisingly, it is an industry goal to turn women into more emotional purchasers.)

Nevertheless, car shoppers of both genders would benefit from following a dispassionate process that involves these steps:

Ask yourself whether you really need a new car or just want one. Owning your current car a year or two longer could save you thousands.
Make a checklist of realistic, everyday needs before researching models that fit those criteria. Avoid buying for peak cargo, passenger, or terrain needs; instead plan on renting a vehicle for these occasions.
Conduct research online and view vehicles at an auto show before entering the high-pressure setting of the showroom. Try to avoid the pitfall of using research to justify an emotional decision rather than to help make a reasoned one.
Rely on trusted sources for comparative information that don't accept advertising from the car companies, such as Consumer Reports.
Bring your most frugal friend or family member with you to the dealer to help you stick to your needs checklist.
Know how much a car will cost you to own, not just to buy. A car with a higher sticker price can cost you less to own over the first five years based on, among other things, its depreciation rate, repair costs, miles per gallon, and cost to insure. A good site for this data is Edmunds True Cost to Own™.
If you cannot save up before buying, secure financing before going to the dealer. Understand how much you need in total (roughly two times the monthly loan payment) to own your car. Dealers know how easily payment shoppers can be convinced to buy more car once in the showroom.

Guest Post Blurb:

This is a guest post by Catherine Lutz and Anne Lutz Fernandez. Catherine is an anthropologist at Brown University’s Watson Institute, and Anne is a former marketer and banker. They are the authors of Carjacked: The Culture of the Automobile and its Effect on Our Lives (Palgrave Macmillan). Read more by Catherine and Anne:

This article is from Catherine Lutz and Anne Lutz Fernandez of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Mom and Dad, Your Financial Decisions Matter

Sarah Winfrey — Tue, 19 Jun 2007 17:09:40 +0000

With Mother's Day in the recent past and Father's Day two days ago, I wanted to give credit where credit is due and encourage all the parents out there who are trying to teach their kids about money. Those things you're doing at home? They're working. Your kids are hearing it! Read below for some more suggestions as to what you can do to teach your kids about money. They worked on me!

I don't know why you care about money (though I'd love to hear it in the comments), but I care about money because my parents cared about money.

Really, it's that simple. When I was growing up, my parents both showed me and taught me that my money and how I chose to spend it was important. They gave me an allowance, but they both encouraged and reminded me to save some. They helped me choose toys that I wanted (and could eventually get) to save towards. When I was old enough, they got me a savings account so that I could get my bank statement in the mail each month and see my money making money (and so I could feel like a big person, and associate that "grown up" feeling with "saving," I suppose). Later on, they co-signed so I could open a checking account and taught me how to write a check, use my ATM card, and balance my checkbook every month.

Beyond all of these things, though, I saw my parents value their money. I saw my dad (and later my mom) go to work every morning so that we would be able to have the things we needed and wanted. I saw dad sit down with his checkbook every month and balance it. I saw him write checks to pay the bills and I saw the little stamped envelopes go out in the mail. I heard him on the phone with different financial planners over the years, sorting out investments and retirement funds.

I saw my mom buy things that were a good deal and skip the things that weren't, even when she wanted them. I helped her fill produce bags and weigh them, and then I helped her calculate what she'd pay. I sat down with her to learn how to write a check and I saw her resolve the discrepancies in my checkbook that I didn't understand.

I also saw the fruits of their labors. I watched them buy a car with cash. I went on vacations that we couldn't have taken without their careful saving. I saw the things that they could buy for each other and for us that wouldn't have been an option if they didn't have a financial plan.

So to Mom and Dad (and to all the moms and dads out there who care about money and who are trying to teach their children to do the same), thank you. Thank you for showing me not only that making wise decisions about my money was important, but how to make those and what the results could be.

Now it's your turn. Why do you care about money? Did your parents do anything that helped or hindered your relationship with money later in life? Please share: I'd love to hear!

This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

mom and dad

Save on Your New Car: Send Mom, Not Dad, to the Dealer

Mom and Dad, Your Financial Decisions Matter