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:
Get Relationship Help!: Talk to someone confidentially online
Learn to Communicate: Learn the 5 levels of communication
- 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
