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These days, careful car buyers go mouse-clicking instead of tire-kicking. Web surfers can find online specs for every make and model, along with side-by-side comparisons, user reviews and pricing intelligence.
In fact, with many dealers now happy to deliver cars personally, you can probably buy one without stepping onto a lot. You should probably get out there and do some test-driving, though.
Compare vehicle specs online. Are you looking for a family sedan, a minivan or a hard-working SUV? What options do you need? Comparing specs online will help you identify the most promising make and model.
Websites such as AutoExtra.com offer useful research tools. In fact, web sites offer you the ability to read recent reviews and reliability ratings, find the latest pricing and rebate info, or compare two vehicles head-to-head (How big are they? How many miles per gallon do they get?). You’ll also enjoy the photo galleries and 360-degree photo-tours.
Test-drive the vehicles you like. Every car has a different feel, so visit a few dealers for quick trips around the block.
Figure out how much you want to pay, and whether you want to pay cash, finance or lease. LendingTree.com offers calculators to help you determine the price or the monthly payments you can afford. You can even compare real loan offers from multiple lenders, all online.
Find out what your dealer paid for the vehicle you want. Many web sites tell you not only the manufacturer’s suggested retail price or sticker price, but also the invoice price – the amount the dealer paid for the car (though incentives, holdbacks and advertising fees from the manufacturer can reduce the actual price the dealer pays to below invoice). The difference between the sticker price and the invoice price is the dealers’ margin, which is prime negotiating territory.
Find out what other consumers are paying.
For the purposes of this article, we checked out a no-frills version of the Sienna, Toyota’s popular minivan. All the websites named above reported that the basic "CE" Sienna has an invoice price of $20,658 and an MSRP of $22,955.
Kelley Blue Book offered a third price: the "New Car Blue Book" price, based on actual selling prices across the U.S. At the time this article was written, our new Sienna had a Blue Book value of $22,720 – a smidgen below the asking price.
KBB explained why Sienna prices are so high. Because of its popularity and relative scarcity, the Sienna has tended to sell at MSRP or above. As dealers’ stocks increase, bigger discounts are likely.
Get online quotes. Most of the above-named sites help you get price quotes from dealers in your city. Since these dealers will assume you’ve been researching your purchase on the Net, they should offer a competitive price. Make sure they include the rebates or incentives you found in your initial research.