Home >  News  > Cars
Top Product Ratings:  Tires  |  Sedans  |  SUVs  |  Small Cars  |  GPS
| More
Cars
Survey: Is car negotiating better in recessionary times?
Jul 15, 2010 2:09 PM
Car-buying-negotiating-survey
These continuing tough economic times are actually putting consumers in the driver's seat for getting good new-car deals. In a recent survey by the Consumer Reports National Research Center, half of the respondents said that their negotiating ability on a new car has improved a lot (or at least some). About 27 percent of respondents reported no change, and 18 percent said their ability to negotiate has diminished some or a lot.

Consumer Reports' survey also found that income significantly impacted negotiating ability. Those earning at least $50,000 were far more likely to say that their ability to negotiate improved, compared to those with household income under $50,000, while twice as many consumers who earn less said their ability diminished relative to the more affluent group.

This information was collected from more than 1,700 phone interviews that were completed among adults whose household owns at least one vehicle.

How to get a great deal
Scanning our latest Best New Car Deals list, which highlights significant discounts on Consumer Reports recommended vehicles, we see that some models are offering savings up to 25 percent off the retail price. The key to getting such a deep discount is doing your homework and having a strategy.

While there are many facets to choosing a new vehicle, addressing the basic numbers game is important - take care to know all the figures involved. Most car buying websites readily show the invoice and retail price, but make sure you go beyond those numbers to discover the applicable customer rebates, dealer holdback, and hidden dealer incentives. Only when armed with all these figures can you know the true bottom line price.

Negotiation tips
  • Get dealer quotes by email or phone, allowing you to focus on the dealership with the right car and price.
  • Play one dealer off another to lower the price. Be clear: the dealer with the lowest price will have your business, even if you have to drive to another town.
  • Negotiate up from the bottom line price, not down from MSRP. This keeps you closer to the real target and shows you are serious.
  • Keep trade-in removed from the new-car negotiation. That is a different transaction to be managed separately.
  • Don't attend advertised dealership sales events. This is when the showroom is staffed with its best, profit-creating experts.
  • Pre-arrange financing by comparing local interest rates. If the dealer can meet or beat your best loan, great. If not, then you still have secured the best rate and are not pressured into taking a bad financial deal to get the car.
For more tips, read our complete car-buying advice.

In the market for a new car?
Consumer Reports new Build & Buy car-buying service lets you configure a vehicle online and then get guaranteed, competitive price quotes from up to three dealers in your area who have agreed to meet certain guidelines of conduct. The service is completely free and you are under no obligation to buy. Access this service through the model overview pages, available to online subscribers.

—Jeff Bartlett and the Consumer Reports National Research Center

More About: Cars | All Cars News

Post a comment

Comments:

2
Expand All
Collapse All