Smart Buying Essentials
Seven Steps to a Good Deal
Haggling, horse-trading, bartering. Call it what you will. Though some buyers may consider it great sport to beat the last penny of profit out of an auto dealer, most consumers hate the hassle. Many would just as soon face a firing squad as go through the tribulations of negotiating for a new car.
The system is beginning to change. First there was Saturn's no-dicker sticker. And now there are sites on the Internet that promise to save you time and aggravation when you shop in cyberspace. But until haggling is truly a thing of the past, here are seven steps to help you deal with a dealer:
Do your homework. The first step is to figure out exactly what vehicle you want to buy that's in your price range. Don't waste everyone's time test-driving and negotiating for a car you can't possibly afford. Check the "AutoExplorer" section in the front pages of the guide. This will give you a preliminary idea of all the models offered by each manufacturer in several price ranges. You can't do better than the Internet for basic research on new vehicles. IntelliChoice's CarCenter site www.intellichoice.com is, for example, a good place to start your quest for a new set of wheels. At the site, the New Auto Comparison Report will allow you to compare competing models side-by-side - including prices, specifications and safety features.
Refine your choices. Once you have a list of new-car candidates, continue your research to narrow down your choices to one or two models. Read critical reviews in such magazines as Automobile, Motor Trend, and in our own IntelliChoice.com vehicle reports. While you're in our vehicle reports, look at government crash-test results. And take a peek in the virtual showrooms of automakers, where you'll find everything from option lists to color selections. We're rapidly approaching the time we will even be able to take virtual test drives of new cars.
Take a test drive. Of course, the virtual-world spin on the computer is no replacement for a real-world test drive. Once you've narrowed your choices through your research to one or two models, it's time to take a test drive or two at your local dealer. Be prepared for some sales pressure to entice you into buying the vehicle right then. But resist it; explain that you're still comparison shopping. Thank the salesperson for their time. Take their card. But don't give them your phone number or address.
You might also find a friend or family member with the kind of vehicle you're considering and test drive their car. Attend an auto show; you won't be able to drive the vehicle, but you will be able to sit in it and examine it closely. Better still, rent the vehicle you might want to buy for a day so you can come to know it well. The rental fee is a small price to avoid a huge mistake by buying the wrong car.
Obtain pricing data. Now that you've settled on the new car, as well any options you require, it's time to figure out a target purchase price. Study the suggested retail prices and dealer's cost for both the vehicle and its options. Don't forget to subtract any current factory-to-dealer and factory-to-customer rebates from the target price. Online, the IntelliChoice site offers all the pricing data for the vehicle you want plus current buyer and dealer incentives.
At the IntelliChoice site, you can also calculate the value of your used-car trade-in, or check out the lowest cost automaker leases - for free.
Locate your truck. At this point, you're ready to contact dealers again. Call several within a reasonable driving distance and ask each if they have the car on their lot with the options you want. Or if you prefer to cyber-shop, contact dealers on-line. Dealer networks on the Internet like Automotive.com (http://www.automotive.com) will refer you to dealers who sell vehicles on-line.
Negotiate a price. You can do it the old-fashioned way, face-to-face at a dealership. Or you do it by computer modem, fax and telephone. But in any case, always remember the golden rule of car-buying: First negotiate the price of the car. Then discuss financing arrangements. Then discuss the value of your trade-in. Always keep the three transactions separate; salespeople are adept at giving away with one hand and taking more with the other. For instance, they may talk about monthly payments instead of the car's price. By stretching out the length of the loan - with correspondingly lower monthly payments - they can make an overpriced car seem affordable.
Keep your cool. During the negotiations, the salesperson may try to pressure you - "Are you ready to buy today?" The salesperson may play on your sympathy - "I'll lose my job if I agree to..." The salesperson may intimidate you - "The dealer cost figures you have are all wrong." Or the salesperson may indicate you have a deal and then turn you over to a sales manger who nixes it; together, they'll work on you to sweeten the deal in their favor. But through it all, stay confident of your research and remember the Scout's motto: Be prepared. Be prepared to buy the truck as soon as you've arrived at a fair price. And if you feel mistreated, be prepared to walk out of the dealership.
On the other hand, let the dealer make a buck. "Profit" is not a dirty word, and no dealer is going to sell you a $10 bill for a buck and remain in business.
