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Websites to Help You Get a Better Deal on a Car
By JLP | October 24, 2006
For most people, buying a car is about as much fun as going to see the proctologist. The two times that I have purchased a new car, I felt like I was being ripped off. I didn’t feel like I could trust the salesmen or the finance department. Part of the problem was that I had no idea what the car was actually worth when I went to see the dealer. BIG MISTAKE! Now days with the internet available, you can get a solid picture as to how much you should expect to pay for a new car.
There was a great article ($) in today’s Wall Street Journal by Jennifer Saranow that lists several websites that can help equip car shoppers with the necessary pricing information so that they can talk intelligently with car dealers. The sites:
AAA.com - website offers invoice prices, reviews, and car buying tips.
Cars.com - Offers invoice prices, reviews, vehicle summaries, ratings and recalls - pretty much everything that has to do with buying a new car.
Consumer Reports - most information is available to subscribers only. They do offer bottom-line car prices but they cost $14 per vehicle or $39 for a three-month unlimited subscription.
Edmunds.com - I have used this site many times and like it very much. Edmunds offers pretty much everything that Cars.com and AAA offers and it is all available for free. This is my personal favorite.
Kelley Blue Book - Another good website that in addition to the information included in the other sites, also offers safety ratings and something they call “New Car Blue Book Value.”
According to the article, when pricing cars, the number you are looking for is the price that the dealer pays (called “dealer cost” or “invoice price”) for the vehicle you want. Keep in mind that the invoice prices you see on the sites above do not normally include rebates or “holdbacks” offered by the manufacturer to dealers. You can find dealer incentives at AutoNews.com. A “holdback” is money that the manufacturer collects from the dealer and returns later (why? I have no idea), and can represent another 1% to 3% of the invoice.
In addition to this advice, I have some advice of my own:
1. Know what you want and how much you are willing to spend.
2. Secure your financing BEFORE you visit the dealer. You can do this either through a bank or a credit union.
3. Buy a financial calculator
4. Be prepared to walk out. Most people won’t go this far, but I can tell you that if you don’t like the deal you can get up and walk out. There’s lots of other dealers out there and there’s lots of other cars out there. Don’t let your emotions make the decision for you.
5. Don’t buy the extra insurance the dealer tries to cram down your troat. You don’t need it.
Those are just a few of my pointers. Finally, if it is just reviews you are after, don’t forget about Jalopnik, The Car Connection, and The Truth About Cars. I like all three of these websites although Jalopnik can be a little strange at times.
Topics: Cars |