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Dollars & Sense Past Tips
 

Buying a new car? Make sure you`re the one in the driver`s seat.

Are you shopping for a new car? It will pay you to be bold in the car buying jungle! Here are some ideas that will help you to get the best new car deal. Start by doing your homework.

  • Look through the papers for rebates and discounts from dealers that top their competitors.


  • If you live in a busy metropolitan area, travel to dealerships that are outside your local region. Less buying traffic might mean superior deals.


  • Do some research to determine the actual dealer invoice price. Generally, it will be 15% to 20% less than the sticker price. There are a number of publications that provide this information, including Edmund's New Car Guide, Consumers Guide, and Consumer Reports. You can also search Edmund's web site at http://www.edmunds.com for invoice prices on current car models. Once you know the dealer's actual cost, you will be ready to negotiate a price.
Usually, your final cost should be somewhere between 3% and 5% above the list price of the car. Take an initial stand slightly under your target price so that you have bargaining mobility. If there are any extras that you want for the vehicle, ask that they be included at no-cost.

When you begin price negotiations, be prepared for heavy pressure tactics from the salesperson. You may be told that the offer is only good for that day, or that the selling price is the absolute lowest price the dealer can offer. Be wary of these statements; play the game with them. If the salesperson is not willing to negotiate, start to walk off the lot, telling them that you will have to think about the offer. Explain to the salesperson that the price is not in your range. They will probably scramble to keep you there. It may take multiple trips to the dealership before you have a signed contract. As you walk into the dealership, remember that they want YOUR money--and they need to sell THEIR cars. Realize who is in the driver's seat!







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