Best new-car buys begin online

By PHIL MULKINS World Action Line Editor - 10/23/2009


Dear Action Line: What's the best way to get the best prices on new cars? — O.T., Tulsa.

A tightening credit market, the need for automakers to move metal, and sizable government and automaker incentives are making it easier for buyers — those with the money and the credit — to make good deals, say Web sites such as NADAguides.com and Bankrate.com.

Auto experts say that while reliable used cars traditionally have given buyers the most bang for the buck, new cars with compelling incentives offer the best values now.

Internet search: Most Internet department salespeople are salaried and get bonuses based on volume rather than commissions based on sales prices. This means they have the incentive to cut you the best price to move cars. The average savings when you deal over the Internet is up to $2,000. When dealing online, you avoid the dreaded financing and insurance discussions — where showroom buyers encounter add-ons and extra fees that taint the deals. Also on the Internet, you shop and negotiate at times convenient for you.

Pit dealer against dealer: Start a bidding war for your business after you've determined which make and model you want. Contact a handful of dealers via the Internet, tell them what you want and when you want to buy. Ask for their best price, says CarBuyingTips.com. Let them know you're talking to other dealers and will give the sale to whoever cuts you the best deal. See how low they can go by e-mailing 10 dealers making the same proposal.

Bring your own financing: Find your own financing at tulsaworld.com/OwnFinancing and get preapproved for your auto loan before you start car shopping. Apply to a handful of banks and several credit unions to see who can give you the best rate and terms. Confine your loan applications to a 14-day period so all of them will count as only one inquiry on your credit history, minimizing any impact on your credit. Once you settle on a lender, that preapproval should be good for about 60 days, giving you plenty of time to select your car and close the deal.

Negotiate price first: Car deals have a lot of moving parts these days — the price of the car, credit for the trade-in, financing rate and incentives. Keep those different transactions separated in your mind. Focus on only one part at a time, starting with getting the best price on your new car. Only after you have that in writing do you start talking about incentives, which would be subtracted from the negotiated price; the trade-in; or the financing. What you don't want is the money you saved on one part being added to some other part.

Educate yourself: Find out what incentives are being offered by manufacturers to buyers or dealers on the car that you want at tulsaworld.com/MfgrIncentives. Get great information on sites such as Edmunds.com, ConsumerReports.org, KBB.com, NADAguides.com, CarBuyingTips.com and JDPower.com. Edmunds has a "true market value" feature that reveals what buyers are paying for the same makes and models in their areas and nationally.



Submit an Action Line question by calling 699-8888 or by e-mailing phil.mulkins@TulsaWorld.com or by mailing it to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.




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