New Car Buying Tips

New Car Buying Tips: First, do your homework. Learn all you can about dealer tricks because they can quickly erase any discounts or other savings that you think you're getting. Car dealers spend millions of dollars training their salespeople to get more money out of customers, and if you don't know the tricks they use, you could be overcharged by thousands of dollars. Find out the dealer's real cost on the car (it's typically less than invoice) and the prices that smart shoppers are paying for that car, then research any other items you might want (loans, extended warranties, car alarms, etc.). Shop around for competitive auto loan (or lease) rates at banks, credit unions and lenders on the Web. When you find a great interest rate, get pre-approved at that lender before you start negotiating with dealers. If a dealer can beat the rate you found, let him finance the car -- on a "simple interest" contract only. Otherwise, stick with your pre-approved loan. And don't forget to shop around for insurance before you buy that new or used car, or you may be in for a shock. To save you time and money, we've listed the best places for you to get free quotes on new or used cars, auto loans, car insurance, extended warranties and more. (Keep reading...)

When your homework is done and you're ready to buy, you start the negotiating process -- where dealers quote prices and you make counter-offers. If you've done your homework properly, this process should result in less haggling -- and lower prices. To make dealers compete (and drive the price down), use the Internet to get at least 4-5 price quotes before you start negotiating with any dealers. When you get to the contract stage, make sure the dealer doesn't slip any hidden charges into your loan or lease. This is known as "payment packing." To avoid this common rip-off, calculate your own monthly payments using this online auto loan calculator. Finally, always negotiate the price of the car, not the monthly payment.

Money Saving Resources, Free Quotes
CarInfo.com has searched the Web to find the best new car buying (and leasing) resources. These resources are listed below, along with direct links to their sites.

New Cars & Trucks - Free Quotes. Are you looking for a new car or truck? Get free (no obligation) quotes from the following car buying services, then use those quotes to convince other dealers to lower their prices. If the other dealers can't beat the lowest Internet quote, you may have found the best possible deal on that car. For free quotes on new cars & trucks, use Yahoo!Autos, CarQuotes, Autos.com, and CarsDirect. To make sure you're not missing out on a better deal, get quotes from all four services!

Used Cars & Trucks - Free Quotes. To get free (no obligation) quotes on late-model used cars & trucks, use Cars.com.

Auto Insurance - Free Quotes. Here's a great way to save money -- all the time! If you're in the market for a new or used car, be sure to shop around for insurance before you buy. Why? Because insurance on some cars can be a lot more expensive than others, so make sure you know ahead of time what it's going to cost. If insurance is too expensive for the model you wanted to buy, pick another model (unless you have money to burn). The easiest way to shop around for the best rates is to use Esurance and NetQuote. They both offer free online quotes from multiple insurance companies using just one application. Depending on the state you're in, you could receive quotes from as many as four different companies. If you're not in the market for a new or used car right now, you can still use this to save money by moving your car insurance to a less-expensive company.

Auto Leasing Direct Quotes. This new, innovative service allows you to lease your new or used vehicle directly from the leasing company thus eliminating dealer mark-up on the financing terms. Talk directly with leasing companies who have agreed to provide competitive leases on select makes with full disclosure of terms directly to our visitors, all without the hassles and scams found at dealerships. There is no cost or obligation to participate. Simply complete the short form and a representative will contact you to discuss your deal. Click Here for Auto Leasing Direct Quotes.

Auto Leasing & Buying Software. Expert Lease Pro can save you a pile of money on your next lease or purchase. This easy-to-use program will help you make the right lease vs. buy decision, avoid overcharges and negotiate a better deal. Calculates payments, reveals true APRs on leases, provides MSRP, invoice and residual data on all new cars & trucks. Warning: Dealers use computer programs to manipulate the numbers and increase their profits on new and used car transactions. If you don't have your own program to figure out what's going on, you're a prime candidate for the "payment packing" scam. (See the KCBS story on our front page.) To prevent dealers from slipping hidden charges into your lease or loan, calculate your own payments before signing any contracts. Click Here for Expert Lease Pro.

New Car Rebates, "Dealer Cost" Numbers. This is where many new car buyers make two big mistakes: They don't know how to get the real dealer cost number (it's usually a lot lower than dealer invoice), and they don't know what smart shoppers are paying for the same car. So they end up overpaying by $500 to $1,000 (or more). Most of the free "dealer cost" info on the Web is incomplete (secret payments and incentives to dealers are often missing), and random checks of free dealer invoice numbers keep finding inaccurate and/or outdated information. To avoid these expensive mistakes, pay a nominal fee to get accurate information on invoice prices, secret factory-to-dealer incentives, and customer rebates. For US motorists, click on Fighting Chance to get dealer cost numbers, secret incentives, rebates, and other valuable negotiating material. Their New Car Information Package also comes with a "coach" -- a live, new car buying and leasing expert you can talk to if you have any questions. Click Here for US information. For Canadian motorists, click on CarCostCanada to get information on dealer cost, rebates, and average dealer markup. Be sure to check out their Canadian New Car Buyer's Checklist.

Used Vehicle History Reports. Don't buy a used car or truck without checking its history first. Has it ever been salvaged? In a flood or a major accident? Odometer rolled back? Was it a lemon buyback vehicle? Did it have a branded title? How many owners? Find out in seconds when you order an Autocheck Vehicle History Report online. Only Autocheck has frame damage data from the wholesale car auctions.

Auto Loans - Free Quotes. If a dealer is not offering below-market rates, don't finance your car there. To help you shop around for loans with competitive rates, we've found several great online lenders. They have competitive rates on new & used cars, they post their rates online, and they provide quick service. They can also refinance your existing loan to lower your interest rate. Apply online during normal business hours and get a decision within 1-2 hours. After you're approved, you get a draft or check that you use to pay for the car. (If you are buying a car from a dealer and you don't know the purchase price yet, use the MSRP plus tax for the initial loan amount. Just be sure to negotiate a lower price.) Car shoppers with all types of credit (good or bad) can get quotes from CarsDirectAutoLoans and myAutoloan. Shoppers with good credit can also apply at up2drive (a division of BMW Bank of North America). All three sites have free, no-obligation quotes and online applications, so apply at two of them to make sure you're getting the best deal. While you're researching different cars, you can use this online car loan calculator to calculate monthly payments. (Use the invoice price plus sales tax for the purchase price, then subtract your down payment to get the amount financed.) Note: Be sure to read the Credit Report section below.

You can use this online car loan calculator to calculate monthly payments. Use the invoice price plus sales tax for the purchase price, then subtract your down payment to get the amount financed.

Credit Reports. If you don't know what your credit report looks like, get a copy of it before you apply for financing. This will give you a chance to correct any mistakes that may be in your credit file. Why is this important? Because "blemishes" on your credit will prevent you from getting the lowest possible interest rate on a loan. Never agree to a higher interest rate at the dealer without checking your credit report first to see if the higher rate is justified. And shop around for a better rate, of course. You can get your credit report (and your credit score) online by using FreeCreditReport.com or Equifax.

Extended Warranties/Service Contracts. If you're shopping for a new or used car, you can protect yourself against most major repair bills by purchasing a good extended warranty. But don't pay those high dealership prices just to get some peace of mind -- see SmartAutoWarranty first for a free quote. This company offers great extended warranties at discount prices, and they even run occasional specials that make their deals even better. Current special: 0% financing and $200 in free gas! If you already bought a new or used car without getting an extended warranty, you can still purchase one as long as the vehicle is within certain mileage limits. Vehicles that are still covered by the manufacturer's original warranty usually qualify for new car rates; vehicles with expired warranties are all rated as used cars.

Lease Swapping. This service is a great idea for consumers who want to get out of a lease early without paying thousands of dollars for early-termination fees. And it's also a great idea for shoppers who are interested in leasing, but don't want to waste thousands of dollars on up-front costs just to "rent" a new car for a couple of years. (That's exactly what auto leasing is: a long-term rental agreement with no ownership.) If you are interested in saving thousands of dollars by getting out of (or into) an existing auto lease, use SwapaLease -- the national marketplace for auto lease assumptions. See their web site for details.

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