There are few things better than getting a new car and, for many folks, few things worse than shopping for one. Car dealers in general don't have the best reputation, and for good reason. The high pressure - and sometimes, sleazy - sales tactics they employ take all the fun out of what should be an exciting purchase.
But things are changing. These days you have more ways to buy a new car than ever before, ranging from the traditional brick-and-mortar dealers to that virtual marketplace, the internet. There are even mall stores popping up at shopping centers across the country. And, in between, there are brokers and buying services that may help you sidestep flim-flam showroom sales tactics. Here's a rundown of your options:
• Traditional New-Car Dealers: If you're not afraid of face-to-face haggling, head for the showroom. It's hard to beat the convenience of shopping at your nearest new-car dealership. With one stop, you can peruse various models, take test drives, negotiate a deal, dispose of your trade-in and arrange for financing. You can check out the service area where you'll be bringing your car for routine maintenance or repairs. Plus, you can ask current dealer customers how you'll be treated after the sale. Moreover, even traditional new-car dealers are changing their tunes: Sensitive to their bad reputations, many are making efforts to dial back annoying, high-pressure sales tactics. The downside? If you're comparison-price-shopping several dealers it's going to take a lot of time, perhaps going from one town to another.
• Online Referral: Online referral services, the most common type of the car-buying internet sites, provide leads to dealers within their networks. You tell a service the make, model, options and color you like, and one of their participating dealers will get back to you by phone or email, usually promising you a low, no-haggle price. If your research of target prices on IntelliChoice.com, for instance, shows you the dealer's price is a good one, you can then make arrangements to purchase the car from the dealer. Or, you can use the quoted price as a bargaining tool at other dealerships, perhaps one closer to you. Autobytel.com and autos.msn.com are among popular referral sites. The downside? You'll still end up at a traditional dealer to close the deal, which might include old-fashioned haggling over your trade-in.
• Online Broker: A few online sites promise to handle nearly the entire buying process for you. After telling them exactly what you want, they'll give you a price. If you like the deal and confirm the order, they'll arrange the purchase through one of their dealers and may even deliver your dream machine to your door, if you wish. CarsDirect.com is an example of an online broker site. The downside? You'll still have to visit a dealer showroom to take a test drive. What's more, in some states and communities, brokers or agents other than traditional dealers are restricted in their activities or are even outlawed.
• Online Direct Manufacturers and Dealers: Nearly all automakers have sophisticated online sites, offering basic vehicle information, photography, multimedia, dealer locator tools and sometimes special discounts or even online-only models. Today, any reputable dealership has its own website, listing basic hours and location information all the way up to integrated service and test-drive scheduling. On some automaker sites, you can check available inventories and then link to a nearby dealer who has the vehicle you want. Some sites will give you the dealer's best price or pre-qualify you for a manufacturer-provided loan. Among the major automaker sites are fordvehicles.com, gmbuypower.com, honda.com and toyota.com. The downside? You still have to make the deal at a dealership.
• Buying Services: Some wholesale retailers, auto clubs, credit unions and other organizations provide buying services similar to online referral sites. Like the latter, there's usually no fee involved. And, like the online sites, they'll help you research your choice of vehicles. Once you've decided on what you want, they'll direct you to the vehicle at a set selling price at a participating dealer. The American Automobile Association (AAA) and the retailer Costco, as examples, offer car buying services to their members. As before, you'll still have to go to a dealer to test-drive the car and negotiate the final deal.
Finally, let your research be your guide; confirm the vehicle and option pricing on our website before you pursue any offer.
