We are so excited

about the progress being

made at our new location.

The steel finally shipped and

Kurt Kelly and his crew have

been hard at work. We look

forward to all of the exciting

changes coming our way!

Mar 15, 2013

Volume 2 Issue 3

F O R R E S T C H E V RO L E T C O N N E C T I O N

The steel frame is be-ing assembled and soon work on the roof and then outer walls will be installed. Work on the interior of the building will begin shortly and we are plan-ning on being in our new loca-tion by early Fall.

In today’s automotive market, the average customer trades about every 39 months. Why every 39 months? Ac-cording to JD Power, a global authority on the automotive industry, it has more to do with what the customer owes than a change in lifestyle, needs, or budget. Based on surveys sent to every buyer in America, JD Power has found that when making a vehicle purchase, needs come before wants, but only by a narrow mar-gin. However, if the customer is out of equity (upside down) they usually don’t even bother shopping. Specifically, they found that price isn’t even in the top five reasons why people buy a particular vehicle; it’s more about overall ownership satisfaction. Furthermore, the shorter the contract term, the more likely they are to be satisfied with the product.

So where am I going with all of this? It may come as no surprise to many of our customers, but I’m a big fan of leasing. First, let me tell you that I have five leases under my belt and all of them were three or fewer years. Of the thir-teen years I’ve been involved in this busi-ness, it took me the first six years to even understand what leasing was all about. Why in the world would I want to pay for something and not own it? I failed to realize that by buying instead of leasing, I was working to own a money pit that depreciated at 25 cents for every click of the odometer and drained me on repairs, tires, brakes, and oh yeah…SALES TAX!

At just 36 years old, I remember as a kid when it was pretty common for someone to go into a dealership and buy a new car for around $7,000.00. My parents would put roughly half down and finance the other $3,500 over two years at 13.9%, usually paying off early. To-day, cars cost five times as much, but guess what? Wages have not increased five times. According to the U.S. Social Security Administration, wages have in-creased only 3.5 times. This leaves a gap of nearly $20,000! Given those statistics, many people, when buying a new car, extend the loan terms to mini-mize the payment. What this does is cause severe inequity for the first three to

four years. In addition to their payment, people driving high miles will also have costs in tires, brakes, and other repairs as well. It takes them much longer to be in a position to trade again because they have depreciated the vehicle much faster. In the end, they are counting down the months until they can trade themselves out of it (so much for ownership). Does it make sense to roll the dice on a $40,000 investment when all you know for sure is that you won’t get your money back? There are ways to minimize the damage and if you stick with me for two more par-agraphs, I’ll try to make it make sense.

My “aha moment” was in 2004 when I took a course in leasing. I saw a chart that showed how much money I was potentially throwing away by not leasing. Here was a guy telling me that I could save over $100 per month in payments, over $2,000 in upfront taxes, and I had a price guarantee at the end that gave me peace of mind. Granted, there are the haters. The naysayers. I’ve had a farmer who has paid cash for every vehicle he’s owned tell me I was crazy to suggest that he consider leasing, but when I showed him how leasing could prevent a $8,000 hit if the market went south on a $55,000 Ta-hoe, it got his attention. In the end, he wrote me a check for the sum of the lease and walked away with $33,000 still in his pocket.

Here’s an example of a 2013 Chevrolet Malibu LS-

List Price- $23150.00

Forrest Price – $22350.00

Conventional Purchase

36 month Lease

Sales tax (7.35%) – $1643.00

Lease sales tax $0.00

Payment on a 60 month loan at 2.99%- $402.00

Lease Payment $259.00

Savings per month $0

Lease Savings $143.00

Total savings over 3 yrs $0

Lease Savings $6791.00

GUARANTEED VALUE IN 3 YRS ???

Lease Value $13659

Still Owe $9648.00

On the Lease you owe$0 unless you keep it then you just owe the guaranteed value

This example is a 10,000 mile per year lease. A 15,000 mile per year lease would run about twenty dollars a month more and a 20,000 mile per year lease would be about $369 per month. Either way, you would save money and have a safety net in place in case the market value goes down. In a lease, you have equity rights, meaning you can benefit if the mar-ket is strong, but have no risk if the market is weak when the lease matures. In the above example, if the car is only worth $9,659 at the end of the lease, turn it in and avoid the four grand hit. If it’s worth $15,659, congratulations, you just made $2,000 on your investment. The third option is to buy it out. All we do is complete the purchase and sign the title over to you. As you can see in the example above, if you purchased the car outright in three years, you would still be $2,780 to the good after you factor in what you saved up front.

To sum it all up, when you agree to a lease, you are typically going to save 20% or more monthly, have no maintenance expense, no sales tax, and lower personal property tax. You’ll know what the vehicle is going to be worth at the end of the lease and have the ability to change or upgrade every two to three years. I haven’t even mentioned the best part about the whole thing; we stand in line for you at the DMV to get your plates for you. That’s enough right there for most people to be convinced.

-Matt Stephens

Leasing vs Purchasing your new vehicle

Page 2

Forrest Chevrolet Connection

BringGo The BringGo† navigation app† offers plenty of easy-to-use features that let you revel in the fun of discover-ing new destinations without the stress of getting lost. Explore with the conven-ience of 3-D maps with lane suggestions, live traffic data, local search via Google™, a Where Am I? Locator and other features that help you stay in the loop

Siri Eyes Free Chevrolet is the first vehicle manufacturer to offer Siri Eyes Free† to iPhone users. Siri† lets you take charge with your hands on the wheel and your eyes on the road. Complete an array of hands-free tasks like com-posing text and email mes-sages to stored contacts on your phone by directing Siri through voice command. Simply connect your iPhone

4S or iPhone 5 with availa-ble Chevrolet MyLink† via Bluetooth†, then use the steering wheel voice activa-tion button to begin TuneIn Experience a new level of entertainment on the go with access to over 70,000 radio stations from around the world. Just download the free TuneIn† app to your compatible smartphone and connect it to available Chev-

Jon V. Barfield was born in Jefferson City Missouri at St. Mary’s hos-pital on October 07, 1976. He has two older

A HIGH-TECH MOBILE TRIO

Meet Our Employees Jon Barfield– Parts Advisor

COMMUNITY CALANDER

2013 Job & Business Expo will be held at the Cen-tralia Intermediate School 550 W. Lakeview St on Satur-day April 6, 2013 from 9:00am—11:30am. Join the third annual Centralia Business Expo, Where you’ll have the opportunity to meet Centralia Missouri businesses and em-ployers, interact and attend mini seminar sessions. This year executive advantage will pre-sent on “Recruiting Star Per-formers”, “Putting Your Best Foot Forward” and “Keeping

Centralia City Wide Clean Up: Take pride in our city and join in by participat-ing in the Centralia City Limits Spring Clean up April 13th-21st. If you have any ques-tions please call 682-2139 2013 Centralia Friends of the Park Father/Daughter Dane. April 6, 2013 6:00pm– 9:00pm at the Cen-tralia High School. Registra-tion Deadline is March 22nd. For questions contact Heather Lockette at 682-7267

Page 3

Volume 2 Issue 3

Happy St. Patrick’s Day from your friends at Forrest Chevrolet!

Your Best Foot Forward”, de-tailing business strategy in hiring, employee resume skills, and how to thrive in a business environment. Annual Chamber Din-ner The Chamber Annual Din-ner will be held on Thursday, April 11, 2013, in the multi-purpose building at Holy Spirit Catholic Church beginning at 5:30 with a social time fol-lowed by dinner. The Chamber is asking for nominations for Citizen of the Year, Ambassa-

dor of the Year, Business of the Year, Community Better-ment and Agricultural Person of the Year. Nominations are requested in written form and submitted via email to gin-ny@midamerica.net or mail to the Centralia Chamber of Commerce, PO Box 235, Cen-tralia, MO 65240.

sisters Kim who lives in Geor-gia and Cristina who lives in Holt Summit. Jon graduated from Jefferson City High School home of the Jays! As a kid he enjoyed spending time with his grandmother in Cali-fornia Missouri. Joh has been a part of the Forrest Chevrolet team for two years as the parts advisor. Before coming to Forrest Jon worked for Scholtes IGA, Mordine MJF, and Royal Chevrolet. Jon de-cided to move to Clark Mis-

souri to get away from the “Big” city. When he is not fill-ing parts orders, he enjoys anything to do with the out-doors. He enjoys hunting, fish-ing, being on the lake, BBQ, truck and tractor pulls, dirt tack racing, NASCAR and Cardinals baseball. He enjoys his career as the Parts Advisor and invites you to stop in and say, “Hello”.

rolet MyLink†. Then sit back and enjoy a selection of live, local, international and Internet radio from every corner of the globe

Valued Customer:

Forrest Chevrolet

P.O. Box 106

Centralia, MO 65240

400 N Rollins St P.O. Box 106 Centralia, Missouri 65240

Phone: 573-682-2146 Fax: 573-682-5371 E-mail: bdforrest@forrestchevrolet.com

F O R R E S T C H E V R O L E T

Forrest Chevrolet Hours: Monday-Friday 8:00-6:00 Saturday 8:00-3:00

Forrest Chevrolet Service Hours: Monday-Friday 8:00-5:30 Saturday 8:00-1:00