The Times West Virginian

Life

June 23, 2012

How to make the right offer on a new car

Many consumers walk into a new car showroom thinking they can go toe-to-toe with the salesman, driving a hard bargain and getting an exceptional deal.

But keep in mind, while you may buy a new car every five years or so, the salesman is probably selling three or four cars a day. Who do you think is going to be the better bargainer?

That said, there is no reason to approach buying a new car with fear and trepidation. Some careful homework beforehand can build your confidence and help you get a fair price.

Shopping tool

Automall Network, an auto broker used by consumers and insurance companies, now offers Competitive Market Price Reports through their recently launched website, IVONTaCar.com. The reports cost $50 but tell a new car shopper what a competitive retail price range is in their market for the vehicle they want, be it a cash purchase, finance or lease.

"If you can walk into a dealership knowing what a competitive price is, you can use this as a much better starting point for negotiations," says Viraf Baliwalla, President of Automall Network. "This saves time comparison shopping and makes negotiating much quicker and less painful."

Another shopping tool is the Dealer Invoice Price Report. The problem with it, however, is that many dealers don't typically sell vehicles at their invoice price. So it is important to consult a variety of sources and find out as much as possible about the competitive price of your vehicle choice. Even then, it can be a crapshoot.

Playing it close to the vest

"The problem with buying a new car is that most dealerships won't give you their best price until someone else has first," said Baliwalla. "Then they will match it or slightly beat it just to get the deal while you're in their dealership."

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