New Car Buying Tips
Be sure to read How
I Bought A Popular New SUV for $3,611 Below Dealer Invoice.
The most important new car buying tip: do your
homework before buying a new car. 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 five or six 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
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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 Edmunds,
To make sure you're not missing out on a better deal, get quotes from all
New Car Rebates,
Dealer Invoice Prices. Car shoppers can find rebates and
incentive information, plus dealer invoice prices, at this
Rebates and Incentives
page. After selecting your vehicle for the rebate
information, just click on the Pricing tab to get the dealer
invoice price. To skip the rebates and go right to the
Dealer Invoice Price, use this
Edmunds Pricing link.
This will also give you the Edmunds True Market Value™ price, which is the
average price that is paid in your area for that vehicle.
You do not have to enter any personal info here. Just
remember, the real dealer cost is usually a lot lower than dealer
invoice (at least $1,000 to $2,000 lower). Canadian motorists can get similar information
on dealer invoice prices, dealer incentives, rebates and average dealer
markup at CarCostCanada.com.
Used Cars & Trucks - Free Quotes. To
get free (no obligation) quotes on late-model used cars
& trucks, see UsedCarQuotes.
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.
They 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.
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
myAutoloan. Those sites have free,
no-obligation quotes and online applications, so apply at both 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.
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.
Car 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 a VinAudit
Vehicle History Report online.
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 score for free at CreditKarma and you can get your complete credit report (for free) at
If you're shopping for a new or used car,
you will probably be pressured to buy an overpriced extended warranty. Should
you consider buying one? And how much should you pay? Before you buy one though,
you would be wise to do some research. Most financial experts say to avoid them
because the odds are that the warranty will cost more than the repairs that you
will need. Some people find that the warranty wasn't even needed because their
new car didn't need any repairs at all. Here is a great article on this subject:
Are Extended Warranties Worth It? If you decide to buy one, don't pay those high
dealership prices just to get some peace of mind. You can usually find a good deal at
CARCHEX, a 20-year-old
company with an A+ rating at the Better Business Bureau.
Car Buying Tip:
Be sure to visit our How
To Buy A New Car page, where you will learn the best new car
buying strategies for getting huge discounts on new cars and trucks. And
see our Car Buying
FAQ page for answers to the most common questions asked by new car
To Buy A New Car]
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