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new car prices
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Buying Your New Car
Buying a new car is usually the
second most expensive purchase many consumers make, after the purchase of their
home.
Before you step into a dealer's showroom, it helps to know what
car model and options you want and how much you are willing to spend. That way,
you are less likely to feel pressured into making a hasty or expensive decision
and more likely to get a better deal. To help you shop, you may want to consider
these suggestions:
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Plan to negotiate on price. Dealers may be willing to
bargain on their profit margin, which is generally between 10 to 20 percent.
This is usually the difference between the manufacturer's suggested retail
price and the invoice price. To help you do this, refer to the worksheet
listed at the end of this brochure.
Learning the Terms
To give you a better sense of the negotiating room you have when
buying a car, it helps to understand the following terms, listed here in
order of increasing price.
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Invoice Price is the manufacturer's initial
charge to the dealer. This is usually higher than the dealer's final cost
because dealers often receive rebates, allowances, discounts, and incentive
awards. The invoice price always includes freight (also known as destination
and delivery). If you are buying a car based on the invoice price (for
example, "at invoice," "$100 below invoice," "two
percent above invoice"), be sure freight is not added to the sales
contract.
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Monroney Sticker Price shows the base
price, the manufacturer's installed options with the manufacturer's
suggested retail price, the manufacturer's transportation charge, and the
fuel economy (mileage). It is a label affixed to the car window and is
required by federal law. The label may not be removed by anyone other than
the purchaser.
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Dealer Sticker Price, usually on a
supplemental sticker, is the Monroney sticker price plus the suggested
retail price of dealer-installed options, such as additional dealer mark-up
(ADM) or additional dealer profit (ADP), dealer preparation, and
undercoating.
Financing Your New Car
If you decide to finance your car, check the dealer's rate
against banks, credit unions, savings and loans institutions, and other loan
companies. Because interest rates vary, shop around for the best deal and
compare the annual percentage rates (APR).
Sometimes, dealers offer very low financing rates for specific
cars or models, but may not be willing to negotiate on the price of these cars.
To qualify for the special interest rates, you may be required to make a large down payment.
With these conditions, you may find that it is sometimes more affordable to pay
higher financing charges on a car that is lower in price or to purchase a car
that requires a smaller down payment.
Some dealers and lenders may ask you to buy credit insurance,
which pays off your loan if you should die or become disabled. Before you add
this cost, you may want to consider the benefits available from existing
policies you may have. Remember, buying credit insurance is not required for a
loan.
Trading in Your Old Car
After getting your new car for the best possible price, only
then discuss the possibility of a trade-in. First, however, find out the value
of your old car. You may want to check the library for references and
periodicals that can tell you how much your car is worth. This information may
help you get a better overall price from the dealer. Remember, too, that though
it may take longer, you generally will get more money by selling the car
yourself.
Considering a Service Contract
Service contracts that you may buy with a new car provide for
the repair of certain specified parts or problems. These contracts are offered
by manufacturers, dealers, or
independent companies and usually initially run concurrently with the
manufacturer's warranty. Remember: a warranty is included in the price of the
car; a service contract costs extra.
Before deciding to purchase a service contract, read it
carefully and consider the following questions:
Extended Warranties Services
New Car Prices Current Events Car buyers' satisfaction with US brands stumbles (Washington Post) NEW YORK -- U.S. car buyers are growing less satisfied with their purchases from domestic automakers while their Asian and European competitors continue to improve, according to a recent survey.
Solar car visits the Delaney Park Strip in Anchorage (KTVA Anchorage) Gas prices too high? Build your own solar-powered car. That's what one person did. Marcelo Daluz is a former flight attendant from Brazil. He built a solar car nine years ago, with some help from friends?none of whom have an engineering background.
Luxury car dealers halt sales, seek higher prices before car tax rises in China (People's Daily) Dealers of imported luxury cars with big engine capacities are halting their sales and seeking higher prices before the passenger car tax rise is to finally start on Sept. 1, locally based paper Beijing Times reports. An analyst with China Automobile Trading Co., Ltd said the import price of cars with engine capacities of 3 to 4 liters would be increased by 13 percent, and 33 percent for those ...
Man Prays at Gas Stations for Lower Prices (FOX 5 Washington D.C.) Thank God gas prices are coming down. So says Rocky Twyman, quite literally, after leading a string of prayer vigils at pumps nationwide to appeal for some divine intervention. Twyman, a Rockville, Md., choir director and public relations consultant, last Wednesday gathered about a dozen people at a Shell station in Washington as they joined in prayer and thanked God for prices now ebbing from ...
Nissan Note and GT-R take top awards at 2008 Auto Express New Car Honours (carpages) Supermini-MPVs were added to the Auto Express New Car Honours category list in 2006, and to date there has only ever been one winner. That?s because Nissan?s Note has just been voted Best Supermini MPV for an astonishing third year in a row.
Fiat 500 crowned Best City Car (carpages) Fiat is celebrating again, having scooped yet another highly important industry award for its iconic 500 supermini. The Fiat 500 which was launched earlier this year, has just been crowned Best City Car in the 2008 Auto Express New Car Honours.
Man prays at gas stations for lower prices (WTOP Radio Network) Thank God gas prices are coming down. So says Rocky Twyman, quite literally.
Car pooling bonds commuters, beats gas prices (The Washington Times) Robert Gilliland didn't think much about car pooling until gas prices got out of control. Now, he's happy to trade his motoring freedom for $120 in weekly savings.
Cleaning Tips for Your Car (Carteret County News-Times) (ARA) - For most Americans, their car is the second biggest investment they will make in their lifetimes. The average price of a light vehicle is $28,715, according to the Comerica Index.
Toy Town Prepares for Car Show (East Aurora Advertiser) ToyFest may have been shelved this year as a result of the road reconstruction on Main Street, but another summer staple, the Toy Town Car Show, will be kicking into gear for the 22nd straight year on Sun., Aug. 24. The yearly show will once again bring cars and motorcycles of all makes and models to Main Street for perusal by car lovers and bike enthusiasts from all over.
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