How-to-buy-a-car.com
by UTTM Computer Consultant John Quain
Where to Go for the Best Car Deals
You may not be able to swing a zero down, zero percent financing deal, but if you shop for a car armed with the right information--and know where to go--you can still get a deal. We hit four showrooms, two online car buying sites, and called around shopping for a Dodge Durango SLT and a Honda Civic DX. Here’s what we found.
Hitting the Lots:
Our experience varied considerably, depending on the dealer, but we found in general that showroom prices were the highest. To get a better deal, before you ever enter a showroom, you should know the invoice price (the amount the car maker charges the dealer) and the MSRP (Manufacturer’s Suggested Retail Price). The difference is usually thousands of dollars. Fortunately, you can get this information for free at Web sites like Kelley Blue Book (www.kbb.com) and Edmund’s (www.edmunds.com).
The Durango had an MSRP of $29,420, for example, but the dealer invoice was just $26,864. At one dealership, the salesman never mentioned the invoice price and quoted us the highest price we heard for the Durango: $30,045. For the Honda, another dealer also gave us the highest price we found: $13,270.
Cars Online:
Online car sellers refer you to local dealers, who generally offer the best prices. We tried Autoweb (www.autoweb.com) and Carpoint (www.carpoint.com). Unfortunately, both free services pointed us to the same dealer in one area, and another dealer promised to give us a quote via e-mail but after a week we were still waiting. Still, because the dealers know that you already are aware of the invoice price (which the sites provide), deals here require little or no negotiation. For the Durango, one salesman wanted just $500 over invoice and we found the lowest price on the Honda via Carpoint at $12,425.
Working the Phones:
Online competition has changed car buying in another respect. Where once salespeople were loathe to quote prices over the phone, now they readily return calls to discuss cost. And comparison shopping by phone proved to be the most efficient method (especially versus visiting showrooms, which took a minimum of 45 minutes per visit). One sales woman from a Honda dealership even began the phone call by asking whether there was a price she had to meet or beat. She ended up offering us the second lowest price for the Honda, $12,517, while another dealer met the online price for the Durango.
Caveat Car Buyer:
In the showroom, online, or on the phone, we found additional charges to beware of. Destination charges can add hundreds of dollars to the price, so make sure it’s included in the quote, and most dealers charged us an additional $89 to $94 for paperwork.
In most cases, we found that some negotiation is involved and that can work against you. A recent study at the University of California Berkeley, for example, found that on average female buyers pay 1.5 percent more for cars. The good news? Armed with information—such as the invoice price available online--the same study found that you can level the playing field. Our experience confirmed this.
No Haggle Deals:
If you don’t even want to discuss the price and hate comparison shopping, there are so-called “no haggle” deals. The discount warehouse retailer Costco (800-452-4455, www.costcoauto.com) offers members who pay the $45 annual fee a flat pricing arrangement from affiliated dealers. The service offers you a set price from dealers over the invoice price. However, the guaranteed amount over invoice varies from dealer to dealer, so how good a deal it is will depend on the availability of the vehicle and how competitive prices are in your area. And, you still have to go to meet with a salesperson in the showroom to get the price quote. --John R. Quain