New Car Buying, New Cars, Car Buying Guide

<BODY bgcolor="FFFFFF"> <CENTER><IMG src="images/title.GIF" alt="car buying, new cars, used cars" align="TOP" width="535" height="50"></CENTER> <P>Car buying secrets - consumer information on new cars, used cars, new car prices, used car prices, plus low-cost auto loans and extended warranties. Includes dozens of links for the best free quotes on the Internet.</P> <CENTER> <H1>Car Buying Secrets</H1> </CENTER> <HR size="4" width="100%" align="LEFT"> <P>Auto brokers and buying services both claim to save consumers big money on the purchase of a new vehicle, but there are major differences in how they operate and make their money. These differences are significant and could affect not only the price you pay for a car, but what kind of service you receive after the purchase.</P> <P>There are some companies using the name "broker" when they are actually operating as a buying service. Sometimes the only way to tell is to ask whether they are actually "buying and selling" or just shopping for the best price. For the purpose of this discussion, an "auto broker" is a business that buys new cars from dealers to resell to consumers, and a "buying service" is a business that shops around for the best price, then refers customers to specific dealers to buy the cars.</P> <P>Auto brokers have been around for a long time, but it doesn't look like they've captured much of the market. How they operate could be at least partially responsible for their lack of popularity. Brokers take orders from consumers, buy the cars from dealers (with the broker actually taking title to the vehicles), then resell the cars to consumers after adding a markup, of course.</P> <P>When using a broker, the customer is usually required to put up either a large non-refundable deposit or the full purchase price before the car is ordered, creating a huge risk should something go wrong. Some brokers have gotten into legal trouble for taking deposits, then failing to deliver the vehicles, causing some of their customers to lose large sums of money. For this reason, among others, I do not recommend the use of a true "broker." (They're also illegal in many states.)</P> <P>Since brokers are not licensed to sell new cars, the broker actually becomes the "original owner" of the car, and the final customer is (legally) purchasing a "used" car. All original factory warranties do remain in effect for the final customer, though, and buyers can still get a "new car" loan rate.</P> <P>Brokers usually buy from the same dealers, claiming to get low prices because of their "high volume." However, since they're not making a number of dealers compete with each other over every vehicle, it's doubtful that their prices are going to be the lowest available. Remember: It's competition that creates low prices, not "volume."</P> <P>Instead of receiving a fixed payment for negotiating a purchase, brokers make differing amounts of money based on the "spread" between their cost on the car and what the customer pays for it. A broker's desire to make a bigger profit is in direct conflict with the consumer's desire to get the lowest possible price, and since a broker is actually taking title and delivery of every vehicle he handles, he would have to make more money on a car than a buying service that is just shopping for the best price.</P> <H3 align="left">RESOURCES:</H3> <P align="left"><B><A href="http://www.checkbook.org/auto/carbarg.htm" target="_">Car Buying - Information, Services.</A></B></P> <P align="left"><B><A href="http://www.stoneage.com/auto/pr/pr1.cfm?src=431&menu=0" target="_">New Cars, New Car Prices - free quotes</A>.</B></P> <P align="left"><B><A href="http://www.commission-junction.com/track/track.dll?AID=1110013&PID=563870&URL=http%3A%2F%2Fwww%2Evehiclesonline%2Ecom%2FPurchase%2Easp%3FHome%5FID%3D2" target="_">Used Cars, Used Car Prices - free quotes</A>.</B></P> <P align="left"><B><A href="http://www.carinfo.com/auction.html">Used Autos, Used Trucks - multiple quotes</A>.</B></P> <P align="left"><B><A href="http://www.commission-junction.com/track/track.dll?AID=310662&PID=563870&URL=http%3A%2F%2Fwww%2Epeoplefirst%2Ecom%2Fdefault%2Ecfm%3FPFFSRCID%3DALCJ01GENERIC%2A%2A%2ATL0005%2A%2A%2A" target="_">Auto Loans - Rates, Apply Online</A>.</B></P> <P align="left"><B><A href="http://www.warrantygold.com/carinfo" target="_">Extended Warranties, Service Contracts</A>.</B></P> <P align="left"><B><A href="http://www.fightingchance.com" target="_">Car Prices - Dealer Invoice Cost.</A></B></P> <HR size="4" width="100%" align="LEFT"> <P><A href="index.html" target="_top">[Home/Top Stories]</A> <A href="sales.html" target="_top">[Buying Secrets]</A> <A href="lease.html" target="_top">[Leasing Secrets 1]</A> <A href="residuals.html" target="_top">[Leasing Secrets 2]<BR> </A><A href="links.html" target="_top">[Money Saving Tips]</A> <A href="fordlease.html" target="_top">[Ford Lease Info]</A> <A href="repair.html" target="_top">[Auto Repair Secrets]</A></P> <P> </P> <P><FONT size="-1">Copyright © 1998-2001 by Technews Corp.</FONT></P> </BODY>