Car-buying tips to save your sanity
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NEW YORK -- Buying a new car isn't what it used to be. It's a lot easier. Or at least a lot fairer.
Consumers have far more information today than in the past. For instance, you can browse different models online and customize them by color or accessories. You also can find ratings, specifications and even the price paid by dealers to their manufacturer, an important baseline for beginning negotiations.
But buying still means heading to the showroom, taking a test drive and haggling. The better prepared you are, the better a deal you're likely to get. Here are some tried and true tips for getting a good deal:
Do some research. Between Web sites such as Edmunds.com, Cars.com, Kbb.com (Kelley Blue Book) and manufacturers' sites, there's a lot of information out there, including ratings, prices and reviews. Have an idea of what you want and how much you want to spend.
Take it a step at a time. Negotiate each part of the deal -- car price, financing and trade-in value -- separately so you know what you're paying, or being paid, for each. Shop for a car loan before you get to the dealership by checking out rates at your local bank, credit union or online. Find out what your used car is worth to several dealerships.
Know how to bargain. You can't compete with pressure sales tactics, but you can arm yourself with information. Ignore the manufacturer-suggested retail price, or MSRP. Instead, look up the dealer-invoice price on the Web. Figure on paying 4 percent to 8 percent above that, says Consumer Reports. Pay attention to factory-to-dealer incentives (also found on the Web), which could lower your price as well.
Know when to shop. Because of slumping sales, American automakers have repeatedly discounted many models with rebates, low- or no-interest financing or with such gimmicks as free gas. If you're willing to take this year's model instead of next, you might save a bundle. You also may get better deals toward the end of the month, when sales quotas need to be filled.
First Published July 23, 2006 12:00 am
