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Buying Or Leasing A Car
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Written by Charles N. Oliphant   
Tuesday, 17 February 2009
Shopping for a new car can be intimidating. Probably one big reason why Saturn has consistently turned up near the top of our dealer-satisfaction surveys is its no-haggle policy. Saturns, however, have a high markup, at least $1,000 above what you might negotiate for an equivalent car.

And you needn't be a skilled haggler to negotiate a good deal. You just have to shop around - the most basic tenet for getting the best price.

The other basic tenet is, do your research. Decide on the vehicles and equipment you want, and find out what they cost the dealer.

Whether you buy or lease, here are some basics:

- Narrow your choices. The following profiles can help. Pay special attention to our recommended models. We chose them because they performed competently in our tests and because they've been at least reasonably reliable.

Some basically similar models from the same car company are available under more than one nameplate. If you can't find a Dodge Caravan at a good price, for example, check out the similar Plymouth Voyager. Besides the Chevrolet Cavalier, consider the Pontiac Sunfire. The report "Profiles of the 1998 cars" identify such siblings.

- Check out your picks. Use the information in this month's reports, and pick up brochures at showrooms. Most automakers and many dealers have a web site where you can find specs and order literature.

- Consider renting a possible choice for a day or two. For a relatively small investment, you might discover flaws, such as an uncomfortable seat or incovenient controls, that a short test drive won't reveal. Some models may be hard to find in rental fleets, especially in rural areas, but it's worth a try.

- Decide on the options. For guidance, see the reports "New Equipment, New Designs," and "Getting There Safely".

- Talk to your insurance agent. You may be surprised at the difference in premiums between seemingly comparable models. For example, a 40-year-old male driver in California would pay $308 more per year to insure a two-door Ford Explorer than a comparable Chevrolet Blazer. If you're thinking of leasing, ask about the cost of higher insurance coverage required under many lease contracts.

You may have to be more flexible when shopping for a used car, since finding a specific model with all the equipment you want may be difficult. You'll find our used-car recommendations in the report "Using our information. Used Cars."

Buying a new car

Falling in love with a car is a sure way to overpay. Look at several cars, and be ready to walk away from a deal that's not sweet enough.

How much did the dealer pay? Before you visit a showroom, determine how much room you have for negotiating. That means finding out the dealer's cost, or invoice price.

The "cost factor" in the profiles in the report "Profiles of the 1998 cars" gives a rough idea of that. A 90 percent cost factor, for instance, means the dealer paid about 90 percent of the sticker price.

The Consumer Reports New Car Price Service offers more precise price information (see the report "How to buy a new car"). It provides a printout of sticker and invoice prices for the car and its factory options. And it spells out any factory "incentives," such as rebates or low-interest loans. The service can also provide the trade-in value of your current car.
Last Updated ( Tuesday, 17 February 2009 )