Last updated on October 15, 2004
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CAR BUYING
Get the Best New Car Deal
Whether you're out to lease or buy, your primary goal is to negotiate the lowest
possible price. And to get the best deal, you must drive a hard bargain and be willing to
shop till the price drops.
Shop the Internet
The Internet offers instant access to a wealth of pricing and leasing information. For
example, Edmunds.com offers prices, reviews and an up-to-date listing of
rebates. Manufacturer sites will show off the latest incentives and list local dealers.
You'll even be able to shop financing and insurance rates online. (See Useful
Car Links.)
If you're not comfortable haggling over price, hiring a buying or leasing service
could be a sound investment. You can order CarBargains, a national buying service for $190,
and LeaseWise, its leasing counterpart, for $335, both from the Center for the Study of Services
(800-475-7283). These services will shop local dealers and present you with a choice of
several deals.
For the latest on manufacturers leases -- often the best deals going -- visit IntelliChoice.
Shop the dealerships
Visit as many dealerships you can. You may find the best deals at high-volume dealerships and
late in the month, when salespeople are scrambling to meet quotas.
Slow-selling models typically carry the most attractive pricing. You can do some
sleuthing by checking the white label on the driver's-side door or door post. It
shows the month and year that a car was made. The older the car, the longer it has
languished on a dealer's lot.
Shop alternative nameplates
Similar cars built by different divisions of the same manufacturer and those built for
other companies can offer substantial savings.
For example, you may be drawn to a new Cadillac Escalade. But the GMC Yukon shares
the same body structure, and its price may be much lower.
Shop factory orders and save
A number of manufacturers let you order a car from the factory. For expensive European
cars, such as Mercedes-Benz, you can avoid paying for unwanted options. And you can
eliminate the cost to the dealer of financing from the time the car arrives until a buyer
is found. It will probably take six to eight weeks for delivery if you buy American, even
longer if you order from abroad.
Shop for discounts
If you're offered a choice between a cash rebate or the low-rate financing, a
$1,000 rebate will be worth more if the financed amount is $15,000 or less.
Cut-rate financing becomes increasingly more attractive at higher loan levels. Use this
calculator to see just how attractive.
With the exception of Saturn models, which sell for fixed prices, what
you pay for a vehicle will be determined by negotiations between you and the dealer.
No-haggle deals translate into low pressure. But haggling is the order of the day at
most dealerships and you should brace yourself for a well-choreographed effort to maximize
the price. Every year we hear from readers who encounter salespeople who pooh-pooh our
target-price estimates. Our prices are based on the
manufacturers' prices that were available at the beginning of the model year. They
may become outdated because of subsequent price increases, but the ratios of suggested
price to invoice to target price will remain virtually the same.
Beware that it's possible to win the battle over pricing in the showroom and lose
the war in the finance-and-insurance department, where the deal is closed. Steel yourself
against buying credit life insurance, extended warranties, disability insurance and other
products -- such as rustproofing or fabric protection -- of dubious value.
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IN THIS TUTORIAL
Get the Best New Car Deal
