Today's new car market is crowded and competitive. Many new cars are offered for sale with attractive incentives to make you choose a particular model. In some cases, the cars with the best incentives are those that aren't selling very well on their own.
An incentive is anything that gives you an added reason to buy a particular car. Often, however, it comes in the form of a cash rebate or low-interest financing. A car might be selling for $25,000 but the manufacturer is offering $4,000 in customer cash for a final price of $21,000. In another example, a $25,000 car financed for five years at 6 percent would have a monthly payment of about $535. But with zero-percent financing, the payment is roughly $461. That's a huge savings to you.
Check the Edmunds.com Web site for the latest incentives and rebates available for the car you want to buy. You can also watch for TV and newspaper promotions but, remember, the incentives don't apply to all models and are not offered in all regions of the country. Furthermore, your credit must be very good to get the low-interest financing. And finally, keep in mind that there are some hidden incentives paid directly to dealers to push certain cars. Edmunds.com tracks this so-called "dealer cash" as well, and posts the information in the incentives and rebates section of our Web site as "Marketing Support."
Research what incentives, if any, are offered for the car you want to buy. Print out this information and keep it in your car-buying folder as you move to the next step.
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By rlee47
on 02/14/11
11:25 PM PST
Someday the car manufacturers are going to realize that people are tired of the games that their dealerships play with buyers. Just look at this article, loaded with warnings about how you could get taken to the cleaners during vitually every step of the car buying process! What does that tell you about the integrity of the whole class of businesses that sell cars? While the internet appears to be helping buyers, I'm finding that many dealerships view it merely as a toll to gather sales leads which they then want to lure into the same sordid sales process. Price quotes are many times meaningless. It's hard to get dealerships to compete on an out-the-door price on the "same vehicle", because there is such a wide variety of trims, options, and add ons. Perhaps the answer is more customers knowing exactly what make and model they want, and being flexible about colors and minor cost options in the hope that within that spectrum there are cars that fit their needs at almost every dealer within a reasonable distance, then insisting on going to the dealer only to take delivery. I'm trying to do this right now. Hopefully it will be the first time in over forty years of buying many new cars that the memory of purchasing one won't be unpleasant. Wake up you manufacturers! Many of us have been ready for years to buy online in a streamlined process that allows us a level playing field in your game of "guess what the dealer really paid for this car and what he might actually accept to sell it to you". Can you imagine having to buy everything else you do not knowing the price you are going to have to pay? It's long past time for a change.
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By ensoniqdap
on 02/21/11
8:05 AM PST
Having just found out that I was COMPLETELY ripped off in a car purchase in December 2009... I am SICKENED that state and federal officials like to play "help the consumer" but fall far short with legislation that really does nothing more than say "better luck next time." Short version of events: I was a life long Connecticut resident living in the middle of the state. My car had died unexpectedly, so I went out and, after a few test drives, I bought a car in November 2009 and it wasn't the right car for me so I traded it back to the same dealer for purchase price minus "registration fees" Those fees came to $1011.00. But I bit the bullet and took it as a "rental fee". The dealer showed me a 2006 Ford Fusion... When he went to get the keys for the test drive, I asked to see the carfax. The carfax report was clear. I test drove the car and thought it was a decent car. During the execution of documents for purchase, the dealer said that the "lender is requiring a 2 year extended warranty" I pushed forward. The car also came with "free tires for life". I had received $10,900.00 for trade on the first car and financed $7,367.00 for a total purchase price of $18,267.00. In January 2010, I called to get the car brought in for new tires... It was at this time that I was informed 1) I was informed I had to drive the car at least 25,000 miles before getting the new tires and 2) that the car had to have all oil changes done at the dealership and that since I had not done so, the tire warranty was void. In April 2010, the power window on the passenger side of vehicle stopped working... The motor worked but nothing happened. Further, if I hit a bump, the window would slide down on its own. In October 2010, BOTH power mirrors stopped working the same day... I suspected a fuse and check... as far as I could tell, it was not a fuse. At the very end of December 2010, I had moved to Rhode Island and went through registration & required inspection process. The car failed inspection due to a check engine light that was on. The check engine light was reset and codes cleared to see if there was a problem or if it was a one time code... it came back on again. On February 2, 2011, I took the car to a repair shop that could do further diagnosing of the issue and I was informed that BOTH catalytic converters were shot and needed to be replaced at a cost of $2,000.00 each (according to my research). On February 4, 2011 I took the car to a dealer to just get rid of it. The dealership offered me $5,000.00 trade... a loss of $13,267.00 in 13 months!!! I was just about at boiling point... It was about to get worse... The dealership stated that according to the carfax they pulled, this Ford Fusion had been in an accident in July 2007; LONG before I purchased the car. I was now livid. I asked to see the carfax which they provided and in black and white was an accident from July 10, 2007. Further, the car had been sold at auction in March 2009, September 2009 and November 2009. The dealer I purchased it from listed the car for sale on November 30th, 2009. Additionally, the car was practically idle from March 9, 2009 to when I bought it having been driven on 179 miles in just over 9 months. I am now left to pick up the pieces from a horrible deal and see what, if any, action I can take against the parties involved. I know this was supposed to be a short comment... guess that couldn't be done...
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