Car Buying Tips

[FC]

cars.com

 

If researching prices is one key to getting a good deal on a new car, knowing what you're up against is nearly as important. Car dealers will throw everything they can at you and hope something sticks. Your best defense is to enter the battle prepared. See previous Money Tip.

No matter how girded you are, however, you're likely to meet resistance. Here's how to avoid any traps:

• Test drive like you mean it. First, make sure you're testing the car you'll actually be buying -- same size, same engine. Salespeople may try to distract you during the test drive by chatting or playing the radio, says Consumer Reports, which tests and rates new cars. Ask to take the car out alone or keep it overnight and don't avoid rough roads, highways or hills.

• Know what fees you have to pay. Delivery, license, title and insurance fees are not negotiable but ask the dealer to explain conveyance, advertising and prep fees. The salesman isn't likely to budge on the dealer's "holdback," typically 2% to 3% of the MSRP, but you can point to it as part of the dealer's profit when haggling. And pick your battles: a $50 fee may not be a deal-breaker but keep an eye out for an excess of extras.

• Don't fall for the stall. Common ploys include telling you that someone else is already interested in buying the car you want or leaving you in the showroom for long periods during negotiations. Expect frequent trips to "consult" with the sales manager and watch out for the good-cop-bad-cop routine, says Cars.com, which has step-by-step advice for shoppers.

• Forget the deposit. Assume any money you hand over you won't be getting back.

• Watch out for add-ons. Rust protector, paint sealant, fabric treatments -- you don't need them. Look carefully at any extended warranty before buying. Dealer warranties typically come with deductibles and transfer restrictions and tend to cover the parts of a car least likely to break after the manufacturer's warranty runs out.

• Read everything carefully. After you've agreed on a price, you may notice extra charges tacked on. Get the paperwork in advance so you can read it thoroughly and ask about any charges you don't recognize.

• Know how to bargain. You can't compete with pressure sales tactics but you can arm yourself with information. Ignore the manufacturer-suggested retail price, or MSRP. Instead, look up the dealer-invoice price on the Web. Figure on paying 4% to 8% above that, says Consumer Reports. Pay attention to factory-to-dealer incentives (also found on the Web), which could lower your price as well.

• Know when to shop. Because of slumping sales, American automakers have repeatedly discounted many models with rebates, low- or no-interest financing or with such gimmicks as free gas. If you're willing to take this year's model instead of next, you might save a bundle. You may also get better deals toward the end of the month when sales quotas need to be filled.