Buying a New Car: Using the Internet to Your Advantage
By Jonathan Berohn
This will hardly come as a revelation, but car dealers are out to rip you off. I've always known this, too, but having written sales training for a major car manufacturer drove the point home. I could tell you stories, but the non-disclosure agreement I signed prevents me from revealing anything proprietary. I could tell you, but then they would kill me and sue my family for every last penny just for good measure.
Fortunately, though, you don't need proprietary information to get a decent deal when it comes time to buy a car. All you really need is a little common sense and access to the Internet.
Edmunds
My first stop when thinking about a new car is Edmunds.com. Edmunds offers some good resources. Not only can you get car reviews and advice, but you can also get complete pricing information. Briefly, Edmunds lets you calculate how much the MSRP for any car should be, what the dealer actually pays for the car, what rebates and incentives the manufacturer is offering, and what kind of offer you should realistically be able to buy the car for.
In short, Edmunds get you ready for battle by giving you the one surefire weapon-knowledge. There are, of course other sites out there with car information. Vehix.com is another good source, but Edmunds really has all you need.
Getting a Price
Once you have an idea of what you should pay, it's time to get some price quotes. I like to start by getting a quote from a no-haggle place. You can get these quotes via e-mail, and then they are yours to use to your advantage everywhere. AutoNation is always a good place to start because they are pretty much everywhere. If their price is what you were looking for, and they are located nearby you can stop there. But if you want to buy the car at a closer dealership, simply take your no haggle quote in and ask them to beat it.
If it's a smaller, lower volume dealership you might only get them to come close, but the convenience of a nearby dealership might ought an extra $100-that's a decision you will have to make. If you arm yourself with information ahead of time, though, you will be well informed when it's time to make these kinds of decisions.