THIS is a great time to be new car shopping, since dealers must reduce inventory to make room for the 2001 one models arriving soon. This also means it is a bad time to be new car shopping, since high pressure sales tactics can prompt you to pay more than you should.
Avoid these mistakes when shopping for a new Dream-mobile:
Know that the sticker price in the window is only the starting point down the road of haggling. The letters MSRP stand for “manufacturer’s suggested retail price”, emphasis on suggested. In order to negotiate a good deal, you need to know the invoice price. This is the wholesale price the manufacturer charged the dealer. You should also know any rebates to the dealer that lowers the invoice price further.
You can find out the invoice price, and the options you want, by checking these books or their websites. Edmonds New Car Prices and Reviews (www.edmonds.com), Kelley Blue Book New Car Price Manual (www.kbb.com) or Consumers Union (www.consumersunion.com). Edmonds and the National Automobile Dealers Association Used Car Guide (www.nada.com). Each will give you fair market value for trade-in price.
Decide what you can afford including the down payment as well as monthly finance charges. Factor in how long you intend to keep the new wheels, how hard you intend to drive it in that time, the vehicle’s primary use, including how many people will use it the number children in car seats.
Next comes the decision whether to own or lease. If you intend to keep a vehicle three years or less, and expect to put on no more than 25,000 miles a year, leasing may be the better deal.
For buying or leasing, go comparison shopping at more than one dealership. After you’ve decided on the model and options you want, check at least two dealerships. Let the dealership know you are doing that. It may encourage them to lower the price further. Check the dealer’s service area, too. If it is dirty and disorganized, it could signal sloppy workmanship. Is the service area open late one or two evenings a week and Saturdays for scheduled maintenance? What is the turn-around time?
Be aware, too, that dealers can earn back much of the lost MSRP on financing charges. A five-year loan can wind up costing you thousands more than a two-year loan with higher monthly payments. Do the math and know the buy-in price up front.
No matter how much you love a carin the showroom, don’t buy anything until you take a test drive. You may not like the way it handles, or your significant other hates the way the air conditioning and heating vents blast right into the face and cannot be adjusted. There’s more to acceleration than vrooming from zero to 60 in a blink. Does it accelerate enough at 25 or 45 to pass another car? Does it respond well merging on the interstate? Can it make the tight turns required to get into your driveway or a parking spot? Are dashboard controls convenient to reach and read-outs easy to read?