Updated: Must read if you care about saving money-Why Auto Spies beats Edmunds

Agent001 submitted on 11/23/2003 Auto Spies Photos Timestamp: 11:17:18 PM

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Updated: Must read if you care about saving money-Why Auto Spies beats Edmunds

Who's more accurate?

Why you need to read Auto Spies instead of Edmunds

So...you're shopping for your car and you listen to your friend who tells you to check out KBB or Edmunds.com before you go to the dealer, so you're prepared.

That would be the conventional wisdom but would he or she be right?

The Spies did a little exercise (test done on 11-19-03) on Edmunds.com to see what wisdom they could shed on our potential purchase of a Mercedes-Benz E-class.

First, we looked at the data for the 2003 model. Their supposed "TMV" was $52,949...a discount of about $3000 off sticker.

Is someone asleep over there? Could their researchers be "Sleepless in Santa Monica"?

We actually had lunch a few weeks back with one of their employees and had this discussion over some nice champagne...When we questioned their pricing accuracy, we heard a conundrum full of how many MBA's work there in their research department and how they have all these complex models that help them come up with their numbers. We even mentioned that we would do a story on this at some point and he welcomed the test. Well, it looks like some of these researchers got their MBA's at the University of Mars! By the way, we are not trying to insult the Alma Mater of former Oakland Raider, Otis Sistrunk.

Dudes, you need to get off the beach and do your homework!

For almost a year we've been telling readers (and many of our readers have purchased them) that 2003 E-class cars have been selling BELOW invoice ($1500-$4500 below).

How can they call their numbers accurate?

Lesson learned? Use Edmunds.com as your reference tool and you'll get three grand off on your E-class. Use Auto Spies and buy one for as much as $6,000 BELOW the price Edmunds is quoting!

Then we looked at the 2004 model pricing they're quoting...based on the numbers below, if you rely on them you'll think you're getting a fair deal on an 2004 E-class, if the dealer discounts the car $400.00. NOT! The Auto Spies will tell you that you should not pay anymore than $1500 over INVOICE (about 7% off MSRP) on a 2004 E-class. We're even hearing rumors that the BELOW invoice deals are already starting to happen on 04's if you shop hard enough. Lesson learned? You'll save at least $3K off sticker (minimum) if you use our pricing data during your negotiation instead of Edmunds.com.

Our final exercise was to check how accurate their hidden rebate info was...What did we find out? Not much. They don't even know there is money in the trunk (hidden manufacturer to dealer rebates) on 2003 E-class cars. Use our buying services to find out how much.

Click here to see Auto Spies Services

The moral of this story? If you or your friends are not reading our newsletter, you're paying too much for your cars!

Feedback from a reader:

Hi -

As an avid reader of AutoSpies, I wanted to let you know that you were (as usual) right on the mark re. Edmunds' FMV prices. As another datapoint for you, I just bought a brand-new 4.6 V8 AWD Cadillac SRX in the Washington, D.C. area. Edmunds' so-called "FMV" on this vehicle was set at exactly MSRP -- and the first local dealer (Moore Cadillac) insisted that MSRP is what I'd have to pay "anywhere" for a brand-new and fairly hot car like the SRX. But five minutes of searching on eBay Motors yielded several Cadillac dealers nationally who were all very willing to sell me an SRX for $500 over invoice (including regional advertising fees) -- no quibbling at all. One phone call to another D.C.-area dealer (Lindsay Cadillac) quickly got me a commitment to match that $500-over price. They ended up having to do a swap with another dealer way up in N.J. to get the vehicle I wanted, and even waived all the usual add-ons and "processing fees" as we had agreed.

I ended up paying almost exactly $4000 LESS than what Edmunds thought was "fair", and with literally no haggling or hassles.

By the way, I looked carefully at the FX-45, Mercedes ML, VW Touareg, and the several Lexus offerings before going with the SRX -- something I

*never* thought I would find myself doing before reaching the age of 80! But let me tell you, this is one fantastic vehicle. Incredible acceleration (6.3 sec to 60) from the syrup-smooth Northstar V8, handling very close to that of the FX45, but with an infinitely better ride and a *lot* more room and utility. While there are a few things I'd like to see Caddy do better (mostly regarding interior trim level), I'm astounded and pleased to see a U.S. car company rebound the way Cadillac has done. And when it comes time to replace my '95 SL500 next spring, you can bet that I'll be looking at the new XLR as an alternative for about $25k less money.

Anyway, keep up the good work!

Rob Vonderhaar