Buyer Behold
Consumer Reports breaks down the car purchasing essentials
By Joshua Condon Sep 30, 2009 9:32AM
This is the type of article that earned Consumer Reports its reputation as the consumer advocate, and if you're in the market for a new car -- or just want to learn about the best way to approach the decision -- the read is well-worth your time. Everything from researching incentives to getting your financing in order to test driving, finding your trade-in value and the do's and don'ts at the dealership is covered. Really, no one looking to buy a car -- new or used -- should venture into the process without reading this. Have I praised it enough? Good; now go read it.Some highlights:
- You may see a whole bunch of incentives to lure you in the door, but often they can't be combined; be prepared to pick between low-interest financing or a rebate, because you won't be getting both.
- Previous-year models may sell for less, but they depreciate at the same rate as the model year, not the year you bought the car; depreciation is more of a concern, too, for brands -- like Pontiac -- that are being phased out, assuming you plan on selling or trading in your car within several years.
- Rebates come from the automaker, not the dealer, so the latter's profit is not in jeopardy. That means you should continue to push for a deal even after working out a rebate.
- If you buy a new car in what remains of 2009 (until Dec. 31), you can deduct state and local motor-vehicle sales and excise taxes from your federal income tax.
- More tax credits exist if you buy a diesel, hybrid or natural-gas model.
- When test-driving a vehicle, make sure to drive a model with the options and trims you would want to buy, so you can get the best idea of what owning the car would be like; also, don't talk price until after the test drive.
- During the negotiating stages, don't give out your Social Security number (even though it's likely you'll be asked for it) or sign anything authorizing a credit check -- these are things that should be done only when necessary (like applying for a loan).
- Don't attend special savings events promoted by direct mail; they're run by outside specialists who, to put it lightly, aren't there to help you save money.
- Many dealers will work out a price over e-mail or the phone; if they try to raise that price once you're at the dealership and have the car in your sights, walk out.
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