HOW TO GUIDE 2013

How to

ImportantPoints...

choose a new car

A new car is second only to a home as the most expensive purchase a majority of consumers make.

Searching for a car can be a fun, yet sometimes complicated experience. While it can be exciting to have your choice of dozens of brand new, shiny cars in perfect working condition, most new cars have an assured depreciation, except in very rare circumstances. But there’s a reason people flock to new car lots every day. Car loans and leases make people’s lives a lot easier and service plans ensure that you never have to think about the cost or hassle of keeping track of car maintenance. So while the process of buying a new car can be daunting, the secret is shopping for a great deal and making sure you’re getting everything you need out of the transaction.

Try to keep in mind that the seller is there to make sure you drive away with the right car. In most cases of the time, he or she is not there to make you pay more than you should – it’s in their best interest to keep you happy even after you drive away. Think of the process as a business negotiation. It’s not personal and the sooner consumers recognize this, the hap-pier they’ll be with their purchase.

As with any large purchase, getting the best deal takes patience and a lot of re-search. If you’re not up for investing time in research or haggling, expect to pay at least the suggested retail price, if not more for financing, tax and add-ons.

Getting startedGetting in a new car, smelling the new

plastic and upholstery, checking out all the newest electronic features on the dash – these are the fun parts of car shopping. But before you step foot onto a lot, decide what kind of car you’re looking for and how much you intend to pay for it. You’ll feel more confident in the showroom and less pressured to make uninformed deci-sions after you do some research. You’ll also be more likely to get a good deal.

Check publications and popular Web sites that explain new car features and pricing in detail. Each car has different model types and options, so be specific about what you’re looking for and how

much you’re willing to spend. Compare models at different dealerships online or contact a car-buying service to make comparisons.

Negotiations can have a vocabulary of their own, so learn the lingo before you head into a dealership:

• The “invoice price” is the manufac-turer’s charge to the dealer. Generally, this price should include shipping charges, also known as freight charges, so if you’re buy-ing a car based on the invoice price, check to see that freight isn’t added twice.

• “Base price” is the cost of the car without any options, or add-ons, but should include standard features and the factory warranty.

• The “Monroney sticker price” or MSRP includes the base prices, the manu-facturer’s installed options, the manu-facturer’s suggested retail price, freight charge, and fuel economy. This rundown should be on the car’s window as this label is required by federal law and may only be removed by the person who bought it.

• The “dealer sticker price” is usu-ally the Monroney sticker price plus the suggested retail price including dealer-in-stalled options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and under-coating.

Get a great dealMost good deals on new cars are purely

situational. All dealerships have an inven-tory they have to push out, so if you’re looking at a car that’s been sitting in the lot for a while, chances are you can get it at a substantially reduced rate. Most man-

agers would rather turn a car’s spot three times a month than watch one car sit just because he or she doesn’t want to concede to a reduced price.

Larger dealerships that move more inventory can afford to sell a few cars under invoice, but discounts are a couple of hundred dollars and rarely much more than that. Rare, but also possible, is that the manufacturer is offering a bonus tied to sales and you are the sale that will push the salesperson into victory, which would make he or she more likely to negotiate.

Believe it or not, car salespeople could care less about all cash offers. Instead, use your haggling skills to get free add-ons, a great deal on financing or a chunk knocked off the sticker price. If you’re not into hardcore negotiations, just be hon-est. Tell the salesperson exactly what you want, what you can afford and what kind of monthly payment is realistic for your budget. Most dealerships will work with you to find the right fit at the right price.

Be open to ordering your car for deliv-ery if you don’t see exactly what you want on the lot. It may involve a delay – some-times more than a week – but the cars on the lot may have expensive options you don’t care about that are jacking up the price. However, dealers are often more concerned with pushing what they have on hand, so you may be able to negotiate a good deal if the car in stock meets your needs. Keep an open mind when it comes to less popular colors as they tend to stick around longer and therefore might go at a reduced rate.

You may be better off actually purchas-ing the car toward the end of the month. This is the time of every month where the salesperson may be closer to hitting a sales threshold and he or she may be more inclined to give you a good deal. Commis-sion is based on the percentage of the car sale, but commission increases more when you sell more cars.

There are also end of the year sales at most dealerships, as old models need to be quickly sold before the new models arrive.

• Do the work. Find detailed pricing, technical specifica-tions and driving impressions on car sites and forums. Know-ing exactly what each car has to offer and what deals are out there is key to getting a good deal.

• Get Your Money’s Worth. research to see which ve-hicles retain the most and least value and look into current rebate and financing offers.

• Trade-in Savvy. Find out what your current car is worth before you negotiate the pos-sibility of a trade-in. and only mention a trade-in after you’ve gotten the best possible quote for your new car.

• Contracts, Contracts, Contracts. a warranty is included in the price of the car, but a service contract is sepa-rate and usually costs extra. Before you purchase a service contract, read it carefully.

Check publications and popular Web sites that

explain new car features and pricing in detail.

HOW TO GUIDE 2013