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Nailing down the best deal

Kiplinger's New Cars & Trucks, Annual, 1999 by Ed Henry

Reduce sticker shock by driving a hard bargain and shopping till the price drops.

Whether you're out to lease or buy a new car or truck, your primary goal is to negotiate the lowest possible price. With a purchase, that's what you'll pay; with a lease, price is the key ingredient of your monthly payments.

As we noted earlier, new-car prices actually fell a bit over the past year. The fact that sales have remained relatively flat over the past five years will serve as a brake on price hikes as 1999 progresses.

Even steady prices, though, can produce sticker shock. How can you save money? To get the best deal, you must drive a hard bargain and be willing to shop till the price drops.

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If you would like to opt out of the bargaining part, turn to the box on page 67. If you want to do the haggling yourself, here are some recommendations for organizing your campaign.

Shop the Internet

If you're connected, the Internet offers instant access to a wealth of pricing and leasing information (see "(Inter)netting a Good Deal," on page 59.) Many sites include a calculator to help you determine loan payments or compare the cost of buying and leasing.

Shop the dealerships

Visit as many showrooms as you can. You may find the best deals at high-volume dealerships; they are often in a better position to bargain because they get volume discounts from the manufacturer.

Slow-selling models typically carry the most attractive pricing. You can do some sleuthing by checking the white label on the driver's-side door or door post. It shows the month and year a car was made. The older the car, the longer it has languished on a dealer's lot.

When you're ready to make an offer, timing can play a role in getting the deal you want.

Most car salespeople have monthly goals or quotas. If your sale is the one they need to meet their goal, they'll benefit even if the deal includes little profit. So the last few days of the month can be a good time to buy.

Shop alternative nameplates

Similar cars built by different divisions of the same manufacturer and those built for other companies can offer substantial savings.

For example, you may be drawn to the new Cadillac Escalade. But the GMC Yukon shares the same body structure, and the target price is $7,000 lower. Similarly, the Ford Expedition and the Lincoln Navigator share the same underpinnings, but there's as much as a $4,000 difference in price. Isuzu's Trooper and its twin, Acura's SLX, are $10,000 apart.

The Oldsmobile 88 and Pontiac Bonneville are closely related, but the target price for the Pontiac is almost $200 less than a similarly equipped Olds. The Toyota Camry and Lexus ES300 are virtually the same--except for a $6,000 higher target price for the Lexus.

It would be misleading to suggest that the less-expensive car has all the goodies of the more-expensive one. When you compare so-called clone cars, ask yourself: Am I paying more for better performance or simply the panache of a nameplate?

Shop factory orders

A number of manufacturers let you order a car from the factory. For expensive cars, such as Mercedes-Benz, you can avoid paying for unwanted options. And you can eliminate the cost to the dealer of financing from the time the car arrives until a buyer is found.

But be aware that it will probably take six to eight weeks for delivery if you buy an American car, and even longer if you order a vehicle from abroad.

Shop for discounts

General Motors, Mazda, Subaru and Suzuki all tried to jump-start the 1999 model year by rolling out rebates and other incentives that could knock up to $1,500 off the price of a car. Check the Edmund's site Web site (www.edmunds.com) for the latest rebates and incentives.

If you don't have a computer or access to Automotive News, a weekly industry publication that is available on some newsstands and in large public libraries, you can find the latest incentives in CarDeals, a semimonthly publication that typically cites more than 200 deals. It's available for $7 per issue from the nonprofit Center for the Study of Services (800-475-7283; 733 15th St., N.W., Suite 820, Washington, DC 20005).

Many leasing and dealer incentive programs expire around the end of the month, another good reason that's a good time to buy. With an incentive program that's based on volume, a dealer can make thousands of extra dollars by selling just one more car at the end of the program, even if that sale involves minimal profit.

If a customer rebate is available on the car or truck you want, it's probably better to use the rebate to cut the price of the car rather than taking a check. In some states that will reduce the sales tax on the deal as well.

If you're offered a choice between a cash rebate or low-rate financing, a $1,000 rebate will be worth more if the financed amount is $15,000 or less. Cut-rate financing becomes increasingly attractive at higher loan levels, A calculator at Kiplinger's Web site (www.kiplinger.com) will help you compare specific deals.

Nailing down the best deal

Kiplinger's New Cars & Trucks, Annual, 1999 by Ed Henry

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