My New Car Shopping Experience

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Laura, Julian and I just bought a Subaru Forester, and I analyzed our shopping experience for my latest MediaPost column (pasted below).

A number of guys out there have emailed me privately, accusing me of buying a “chick car.” I’ll underscore here: Our new Forester comes with good gas mileage, ample room for a mid-size car, excellent handling in the snow and rain, high crash-safety ratings, a reputation for reliability, a huge sunroof, an ipod hookup, a trunk liner you can hose down and easy handling for my wife. Importantly, it’s not so refined that we’ll get bent out of shape if our newborn empties a chocolate milkshake all over the backseat. It’s our parentmobile, and we love it!

Oh, and I’m still keeping my Jeep Wrangler as the weekend-fun-date-night car! Now to my column…

CGM, Interactive Crucial To Car Shopping

August 31st, 2007 by Max Kalehoff

Forrester Research reported this month in a new report (subscription or purchase required) that 29% of new-vehicle shoppers view automotive online consumer-generated media (CGM). Coincidentally, I purchased a Subaru Forester last month, and I fall fully into that 29%, and even the 4% of auto shoppers who create CGM!

Reflecting back on this significant purchase, the role of CGM was not only significant, but inextricably linked to my overall interactive and offline shopping experience. Here’s how it went:

With a newborn son, a new house in the suburbs, and only a two-seater Jeep Wrangler, I had to rectify the situation and invest in a “parentmobile.” My car shopping experience started offline by test-driving all the Crossover Utility Vehicles at the local dealers. The Subaru Forester quickly grew on my wife and me, and that’s when my attention turned to the Internet.

To get a more accurate picture of my online shopping experience, I searched for all activities involving “Subaru” in Google History, a program that tracks most of my Web behaviors on my primary notebook PC. What quickly became obvious is that search, brand Web sites and CGM sources from ratings, reviews and auctions sites played a major role. In fact, I discovered well over 20 standalone Web sessions directly related to researching Subaru across these types of sites in the two months leading up to our purchase.

Here are highlights:

It all started with a series of visits to eBay Motors, to research the market for new and used Foresters, and get a feel from actual owners. I then logged onto Cars.com to check its inventory; I even used that site to begin reading customer reviews, and make contact with a number of local dealers for price quotes. I also began recording prices, models and features from the above sites in the del.icio.us online bookmarking service.

Three weeks into my research, and further leaning to the Subaru Forester, I found myself probing customer reviews pretty heavily. According to Google History, I searched Google for “Subaru Forester review,” which took me to the Subaru car reviews and forums on Edmunds.com, where I returned numerous times. Then, paranoid over space constraints for a new and growing family, I did a Google search for “number of passengers a Forester can hold,” which took me to reviews and customer testimonials on Autoworld.com, About.com Newcars.com and a Subaru press release hosted on PRNewswire.com (who ever said press releases were just for press?). My wife even contacted and polled some fellow members on UrbanBaby.com, a moms’ forum, about the image and utility of the Forester.

Three weeks away from our purchase, and now completely convinced a new Forester was right for our us, I began frequenting the official Subaru.com site, to study all the specs and identify all the dealers in a 15-mile radius. I named the model I wanted and let the three closest dealers make me offers. They were all very similar, so I ended up going to the dealer that was closest, the most professional and courteous. This dealer even prompted us to check with our employers to see if they had any special VIP business arrangements with Subaru. My wife’s publishing company did, which automatically gave us no-haggle dealer invoice pricing. We were sold, and drove away with our new white Forester on July 3!

Interestingly, in the eight weeks since our purchase, the Web and CGM have continued to play an important role in validating and driving value in our car purchase. For example, I still make frequent trips to Subaru.com to study the specs and review the possible accessories. I’ve also reviewed the Wikipedia entry for Subaru Forester to see how the “people’s encyclopedia” depicts our new ride. My wife has even shared with our extended family members numerous pictures of us in our new car.

Additionally, I’ve received two online surveys from Subaru’s CMO thus far. They’re revealing of how Subaru is trying to understand and segment its customers, including me: probing into my lifestyle preferences, media usage, Web and device usage, perceptions of my self-image, social behaviors, what feelings I associate with the Subaru brand, and, of course, my satisfaction with the dealer.

While the vehicle’s merit most influenced our purchase, there’s no doubt that CGM, search, the brand Web site and the connection to the dealer storefront played a massively influential role in our decision. Of course, this relationship is only beginning, and we’re now entering the owner phase, where satisfaction earns loyalty. I have no doubt the CGM and the interactive experience similarly impact this next chapter, including service, warranties, recalls, upgrades and aftermarket customizations.

I’ll be sure to reflect back in a year to update you on how the experience continues. In the meantime, I really hope to see some return for all the time and effort I devoted to those long online surveys!

How does this compare to your car-shopping experience?

Published by Max Kalehoff

Father, sailor and marketing executive.

Join the Conversation

17 Comments

  1. I’m in the market for a car and also have one kid (at home). I think I’ll push for better gas mileage than the Forester, though (and a used car, too). Saw 27 mpg highway for the standard Foresters. Did you see cars over 30 mpg that looked the least bit interesing to you? Was there a reason you went for a larger car. A dog, perhaps?

  2. I’m in the market for a car and also have one kid (at home). I think I’ll push for better gas mileage than the Forester, though (and a used car, too). Saw 27 mpg highway for the standard Foresters. Did you see cars over 30 mpg that looked the least bit interesing to you? Was there a reason you went for a larger car. A dog, perhaps?

  3. Hi sbaker8380,
    The Forester actually gets slightly better mileage for me; the 27 mpg is the average highway rating. We considered hybrids, though, at least with my friends, a lot of the top hybrids achieve significantly lower mileage versus what their manufacturers’ advertised. Moreover, the hybrids are more finicky and costly from a mechanical and maintenance standpoint — and those were two major criteria for us.

    I also liked the Volkswagen Passat with the diesel engine, but that started to exceed our price range. Why the size of the care we went with — the Forester? Built on the Impreza chassis, it’s actually not that big. But the bottom line is that it had to hold a car seat, my wife, me and one other passenger comfortably. And we wanted enough cargo space in which to easily toss the Baby Jogger stroller, overnight bags, groceries, bikes, etc. Our usage is primarily around-town driving on weekends, though we seem to do a weekend road trip at least once per month. Cheers.

  4. Hi sbaker8380,
    The Forester actually gets slightly better mileage for me; the 27 mpg is the average highway rating. We considered hybrids, though, at least with my friends, a lot of the top hybrids achieve significantly lower mileage versus what their manufacturers’ advertised. Moreover, the hybrids are more finicky and costly from a mechanical and maintenance standpoint — and those were two major criteria for us.

    I also liked the Volkswagen Passat with the diesel engine, but that started to exceed our price range. Why the size of the care we went with — the Forester? Built on the Impreza chassis, it’s actually not that big. But the bottom line is that it had to hold a car seat, my wife, me and one other passenger comfortably. And we wanted enough cargo space in which to easily toss the Baby Jogger stroller, overnight bags, groceries, bikes, etc. Our usage is primarily around-town driving on weekends, though we seem to do a weekend road trip at least once per month. Cheers.

  5. There must be one heck of a busy and rich compact SUV designer. He moved from Honda (CRV) to Toyota (RAV4) to Mitsubishi (Outlander) and then by the time he got to Hyundai (Santa Fe), he was so tuckered out that he used the same design for the Subaru Forester. His twin brother designed all the front grillwork for Mazda (Tribute), Ford (Escape) the Santa Fe and the Forester.

    What a boring family they must come from!

  6. You’ve researched the perfect car to buy and the perfect time to buy it. But have you researched your credit report and credit score? Understanding your finances can save you time and money when shopping for a car. Let me tell you few tips before buying a car.

    Step 1: Review your credit reports
    Failing to check up on your credit early can lead to embarrassing or costly episodes at the loan desk. Even small inaccuracies on your credit data can cause significant changes in your credit score. Here are a few tips to managing your credit:

    Order your credit reports – You need the facts first. Choose an online credit report that will give you all the information you need. A 3-in-1 Credit Report allows you to compare and review your financial information from each of the three credit bureaus: TransUnion, Equifax and Experian. Your Credit Score and Debt Analysis are other vital pieces of information allowing you to look at your credit history from a lender’s perspective.

    Watch for errors – Check your credit reports for inaccuracies in your personal and financial information. If there’s a mistake, you should report it immediately. If there are significant inaccuracies on your credit reports, consider delaying your purchase until the issues are resolved.

    Minimize – Reducing your credit card balances or paying off small debts can sometimes boost your credit and save you money on a loan. Lowering your debt-to-income ratio can also increase your borrowing power.

    Avoid excessive inquiries – You can check your credit reports as often as you like without penalty, but if too many creditors or lenders check up on you, it can lower your credit score. Make sure that you really want the loan before you apply.

    Pay your bills on time – Even a few months of prompt payments can improve your credit reports. Make sure that you pay on time and check to see that your creditors record your good behavior. You can manage your progress with an online credit monitoring service.
    Step 2: Porsche versus Pinto. Calculate how much you can afford
    Brand new sports car vs. used rattletrap? It all depends on your financial situation. Before you decide that a car is right for you, it’s a good idea to evaluate your balance of debts and assets to see how much you can really afford.

    Check your inventory – First evaluate what you already own. Do you have a trade-in or down payment to help you pay for the car? These assets can help you negotiate a better rate with lenders and can be especially important if you have problem credit.

    Do the math – Calculate your debt-to-income ratio. Divide your monthly payments by your gross monthly income. Lenders look at this percentage to determine how much you can borrow. A ratio of 40% is generally the maximum that lenders will accept. Add in your estimated monthly car payments to see how this figure will change after you buy a car.

    Troubleshoot – Use the information you gathered from your credit tune-up to correct inaccuracies and pay-off small debts before you apply. Closing inactive credit card accounts can improve your loan rate. If you have a lot of debt, weigh the advantages and disadvantages of adding another loan to your financial portfolio.

    Age matters – Decide if you want to buy a used car or a new car. Buying a used car can save you a heap of money if you do your research. Since new cars generally depreciate 10-35% during the first two years, it’s a good idea to check the depreciation rate on the car you’re interested in by looking up the current price and the price for the same car made two years earlier.
    Step 3: Fabulous financing
    Applying for an auto loan doesn’t have to be stressful if you arrive prepared and armed with your personal information. Investigating your financial history and borrowing power before you start to shop for a new car can save you both time and money.

    Think like a lender – Lenders look at a variety of figures to determine your borrowing power. Your income, occupation, home ownership and credit history are key points that gauge your financial security. Go over your personal information before heading out to the dealership.

    Do your homework – When you’re ready to talk to lenders it’s a good idea to shop around. Visit your local bank or credit union to discuss applying for an auto loan. Financing with the car dealer can sometimes be more expensive, so pricing out your options is a good idea.

    Dig through your options – Depending on your financial situation and credit history, you’ll have several options for the loan term and down payment. Choose the financing option that is best for your budget. Make sure that you understand the factors lenders will research so that you can negotiate the loan rate you deserve.

    Problem solving – If you’ve had credit problems due to divorce, illness or loss of job, it may help to explain your situation to a lender and show how you are repaying those debts. Lenders can be understanding about the impact personal problems have on your finances as long as you can prove to them that you’re getting back on track.

  7. Thanks for the tips, I am making plans for a new acquisition myself, I am thinking about Volkswagen parts, at this moment it's the right thing for my specific needs and also this is what I can afford without making any compromises.

  8. The functional hood scoop on the XT has a smaller bulge than before, but its opening is no less wide, thanks to a redesign of the turbocharger intercooler opening, and the steeper slope of the hood.

  9. The functional hood scoop on the XT has a smaller bulge than before, but its opening is no less wide, thanks to a redesign of the turbocharger intercooler opening, and the steeper slope of the hood.
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  10. This sounds like a perfect car for children, just ignore anyone who says it isn't manly, I prefer safety and comfort for my family over anything else! I found a great used cars Salt Lake City dealership last year and brought a really nice family car.

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