5 Tips for Buying That New Car
Can buying a new car be less of an ordeal for you?
We think so. If you arm yourself with knowledge and an organized plan, you’ll get the car you want, equipped to your liking, at a fair price. Once you’ve decided on the size and type of car that suits your needs, follow these 5 simple steps.
1. Learn the “invoice” cost (find out what the dealer paid for the car!)
Here’s the real key to your deal: you must find out what the dealer paid for the car so you can negotiate the price you’ll pay for it. You have to find out this information for yourself and you have to be sure it’s up-to-date and correct!
The best way to do this is to make a quick call to the Consumer Reports New Car Price Service. You’ll be glad you did. New-car buyers who use the service save an average of $1,300 on their purchase. For a fee of just $12, you receive a report by fax or mail that includes:
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- The “invoice” price (a guide to what the dealer paid for the car);
- The “sticker” price (what the dealer wants you to pay);
- Invoice and sticker prices for all options and packages;
- Current rebates, factory-to-dealer incentives, and holdbacks;
- Plus solid advice on using the information in the report to your best advantage when you negotiate the purchase of your new car.
2. Get ready to bargain
Your homework is done. It’s all in your report in plain English with an easy-to-follow worksheet. The invoice and sticker price comparisons give you a clear understanding of your negotiating room. You’re ready.
3. Start bargaining
Ask the salesperson for the dealership’s lowest markup over their cost. And always bargain with the invoice price, never down from the sticker price. If the car you want is in tight supply, you may have to pay the full sticker price. Otherwise, $300 to $500 over the invoice price is reasonable.
4. Play the game
The advice you receive with your report takes you through the hard part, negotiating a fair price. It takes you step-by-step through the rest of the negotiating game with professional new-car-buying advice such as…..Be wary. The dealership’s “business manager” may try to sell you undercoating, rustproofing, fabric protection, extended warranty, windshield etching, etc. They’re all worthless or overpriced.
5. Trade-in
Don’t even mention it until you’ve agreed on a price for your new car. But when it’s time to talk trade-in, you should know what your trade-in is worth whether you sell it privately or to a dealership. You can get that information from us, too. It’s a verbal quote, with prices updated daily, and it costs just an additional $10.
Copyright 1997 by Consumers Union of U.S., Inc, Yonkers, NY 10703-1057. Reprinted by permission from CONSUMER REPORTS, April 1997
5 Responses to “5 Tips for Buying That New Car”
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This is foolish advice! If you want a fair deal and you don’t want to “play games” then don’t be a game player. Let the dealer know oyu are there to buy right then and introduce your trade early so they have ample time to get a fair nuber and make a firm, fair committed offer for a car that is in stock. If you try to beat the dealer, you will get a worse deal than if yOu are upfront and informed. $300-$500 over invoice on a 25, 35, 45, 55k plus item is not a reasonable profit margin given the cost to maintain the inventory level and services oyu expect if something goes wrong. Neiman Marcus makes over
$500 on shoes that cost $1000. Mattresses are marked up 400-600 percent. Just like naything else, don’t be a jack and waste time with no intent to make a fair transaction. Asking “what is your best brice?” is the fastest way to get resistance from the dealer and will net you a worse deal than being upfront and informed!
I worked at Mazda dealership for several years and I worked closely with the salesmen and filed all of the paperwork that has the price quotes on it and they have different pricing plans. X Plan and D plan and so on. Never Never tell them that you have a trade and never tell them what you want for a car note, negotiate what they want to sell the vehicle for. I witness the salesment get fired every friday because they couldnt keep up with sales. The salesman job is to SALE they arent on your side, if you dont buy the car someone else will. The dealerships keep a scoreboard in the Sales Managers office keeping score like a ball game…The above publisher must be a salesman..Take it from a women who knows….
i like to get cars from people who have not driven it to much and is low on the mileage. I get great deals that way and the car is just what I want and need to do what it is suppose to do for me. I have bought 2 cars this way and it is worth it for me.
poor advice. First and foremost, the dealer invoice and what the dealer’s cost was, is completely different. The dealership gets all sorts of incentives from the car company below that dealer invoice. Beware! You can get a better deal the paying the dealer invoice, this should be your goal!!
So how would you suggest a person go about getting below the dealer’s invoice Casey?