New Car Prices

Read the Fine Print

By ERIC PETERS, AOL AUTOS

A couple buying a car and looking closely at the sales agreement

So, what's the catch?

While there are some great new car prices to be had today, it's always smart to be sure you understand the offers -- and whether there are any "qualifiers," "restrictions," "exclusions" or "limitations" that could affect you.

Most ad offers -- whether TV, print or online -- showcase the big numbers and best new car prices in very large type -- with any stuff that might not be so appealing scrunched down into micro-sized print at the every bottom of the page (or read-through at warp speed by an announcer who might as well be speaking Swahili, as far as your ability to follow what he's saying).

Here are some things to be on the lookout for:

Model Overview	Get a Quote
Toyota Camry	Price Quote
Honda Accord	Price Quote
Toyota Corolla	Price Quote
Honda Civic	Price Quote
Nissan Altima	Price Quote
Chevrolet Impala	Price Quote
Toyota Prius	Price Quote
Chevrolet Cobalt	Price Quote
Hyundai Sonata	Price Quote
Ford Focus	Price Quote
Pontiac G6	Price Quote
Mazda3	Price Quote
BMW 3-Series	Price Quote
Ford Mustang	Price Quote
Nissan Sentra	Price Quote
Ford Fusion	Price Quote
Chrysler 300	Price Quote
Chevrolet Malibu	Price Quote
Buick Lucerne	Price Quote
Toyota Yaris	Price Quote

Sales data shown is of top 20 selling cars and trucks as compiled by Autodata Corporation.

"Offer only available in FLA, GA, SC... " (and so on). Many incentives offered by the automakers are regional -- meaning, if you don't live in one of the areas where the deal is good, the deal is not available to you. The same new car prices might be $1,500 less (or more) just by crossing the state line.

"All estimates are computed on the basis of a 10 percent down payment..." Some financing deals are contingent on things like the buyer coming up with a predetermined cash down payment. In the example above, you'd need $4,000 in cash at the time of sale to take advantage of the advertised low-rate financing on vehicles with a new car prices of $40,000. If you don't have the cash down payment, they may stick you with a higher finance rate.

"Offer not compatible with other offers..." This means you may not be able to get both low-rate financing and "x" dollars cash back. You have to pick one or the other. It's important to run the new car prices before you are in the pressure cooker of the dealer's store, too. This way, you'll know ahead of time whether it makes more sense for you to go with the lower-rate financing -- or the rebate.

Dealer participation may affect savings... " This means the offer's contingent on the dealer's "participation" in the program (rebate/cash back, special rate financing, etc.) being advertised by the automaker. Remember: Dealers are independent operations; they may sell Fords or Hondas, etc. -- but you are not dealing with Ford or Honda, per se. Be sure the dealer you're negotiating with is, in fact, participating in the rebate/cash back deal you saw on TV. He may not be. Don't assume he is.

"For Bonus Cash, buyer must take retail delivery by ..." As implied, the deal on new car prices is only good if you buy the car before a specific date. This can put pressure on the consumer to make a snap decision -- or purchase a car "off the lot" that may not have all the features and equipment (or color) the buyer wanted, etc.

Estimates do not include the cost of transportation and handling charges, dealer prep, labor..." This is a potential loophole big enough to drive a Hummer through. The new car prices you thought you were getting could very well turn out to be nothing like the new car prices you actually end up getting -- if you are not very careful. Insist that every charge/fee associated with the proposed purchase be clearly spelled out, in writing, before you commit to buy. "Dealer prep" alone can add hundreds to the bottom line -- negating any savings you may have expected via the "cash back" lure that got you into the showroom.

"Not all buyers will qualify..." Most finance offers have this little caveat somewhere in the fine print. If you are a young/first-time buyer -- or have less than exemplary credit -- that 1.9 (or lower) finance rate you were counting on may be unavailable to you. It's a good idea to check alternate sources for financing -- such as a bank or credit union -- just in case the deal being offered by the automaker's finance arm won't be extended to you.

Residency and other mileage restrictions may apply..." This means the offer might be contingent not just on where you happen to live -- but also on how many miles you drive annually (lease contract). It doesn't do you much good to get a great deal on a lease if your annual mileage exceeds the maximum allowable -- at which point you'll get whacked with additional charges. It's always best to over-estimate your annual mileage -- just to be safe -- when it comes to lease contracts.

"Vehicle shown may contain optional equipment available at additional cost..." In other words, what you see (in the ad) may not be what you get (at the dealer). Be sure the car you want -- with the equipment and new car prices you want -- is in fact available under the terms of the offer. A great deal on a car you don't want isn't much of a bargain.

More New Car Buying Tips:

"Bonus cash offered on eligible vehicles must be financed or leased through (the automaker's captive finance arm)" This means that in order to get the offered cash back/rebate, you have to finance the new car prices through the automaker's own finance company (Ford Credit, GMAC, etc.) rather than a credit union or private bank. You may also not be able to get the cash back if you pay cash for the vehicle. Basically, the automaker is looking to recoup the "cash back" by making money from you via interest payments. It may still be a good deal for you -- or not.

The key to negotiating the fine print with new car prices is to take the time to read and understand every clause, caveat and potential loophole before you sign anything or cut a check.

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354 comments

Mouseketeer1953 11:10:36 AM Jun 14 2008

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The best way to buy a new car is to fax attack at least 30 car dealers. Never go into a car show room because you will be screwed right from the start. Here is what you do: on a sheet of paper, address the message to the sales manager and tell him exactly what you want and tell him you are sending this form to at least 30 dealers and who ever sends you back the lowest price will get the order. Tell him to include all taxes, prep charges, destination charges, etc in the price. Also, send the form to a few car dealers far away from where you live, such as in another state because they will consider this a potential sale that they would normally never get and may send you the best price. Do this on the last two days of the month only. Never buy a car until the very end of the month. This will make the dealers compete with each other and they will have to play your game instead of you playing their game. Remember: once you step foot in a dealership showroom, you loose.

KWMSINS 01:26:38 AM Jun 07 2008

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I have just put a 2003 Audi A4 1.8T Cab on the market. It has less than 23,000 miles (21,750). Excellent condition. New tires and new battery. Looks like it did when I drove it off the lot 6/03!! It is silver metalic with a black top w/gray interior. Bose/heatedseats/wind deflector/alloy wheels/leather seats-both power. Has been garaged and no one has touched this baby except BOARDWALK AUDI - full records on it.

Ruppaustin 09:29:17 PM Jun 06 2008

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Nothing to this day out does the 6 speed transaxle produced by Randolph Austin Company in Austin, Texas. Used in the first Shelby Series 1 back in the year 2000 and now even the Brititsh Saleen S-7. This is where all the majic behind the enormous horsepower of these cars come from. The speeds and ratios of the gears behind the 6 speed transaxle.

WYankee25 06:05:36 AM May 22 2008

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I'm shopping for a new vehicle. I am considering a 2009 Honda Pilot. I have done business with the same dealer since 2000. My question is shouldn't there be some consideration from the dealer due to being a long time staedy buyer? I can afford the car which it looks like it's going to be around $50,000 but I still want to negotiate and get the best deal I ca. If my long time dealer does not give me a fair deal I will go to another dealer. I am 68 years old but I am healthy and still fully employed. I refused to give in just because I like the Pilot. The economy is putting a lot of pressure not only on th consumer but on the dealer because I belive that not too many people will be buying SUV'S due to the gas situation. The manufacturers and the dealers will be obligated to make some consessions. The price for the top Honda 09 Touring Pilot is almost $40,000 for the MSRP. Wish me luck, courage and strength. Thank you.

LadyGroneveldt 05:00:20 AM May 20 2008

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I'm 19 year old college student and I'm planning on getting a summer job to save up to buy a car before I have to go back to school. My plan is to buy a used car, max price 2,500, but my mother says that I'm just going to have to make a whole bunch of repairs to the car if I buy it that cheap so now I'm not sure if that's exactly true..what should I do?

Frk Sciab 04:39:23 AM May 20 2008

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I recently bought a new Buick and had a trade. I had an conservative idea what my trade was worth. I was offered $2500 more an hour later after another dealer "lowballed me" with an offer. This is the second time this dealer had done this to me in about a year. As I did the first time I walked out of the first dealers office. After I made my deal, I asked the owner (second dealer) why the first dealer lowballed me again, and she said, since you are getting the family price on the car they have to make money some where else on the transaction.

Jaygreen123 08:48:15 PM May 19 2008

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car dealers are not dumb bunnies, they know how the heco to screw you. The financing they minulape. the apr is the key get it in writing, period before you take delivery.!!! they are all crummy thiefs.

EVOTZ2 11:16:02 AM Apr 26 2008

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q: would you buy a former rental car c 25K miles, , if you know it is from carfax? it is still within 1 year
of manuf warranty. also do convertibles usually leak (like sunroofs and skylights eventually do)

otherwise carfax has a clean record for the car, but probably 100 people drove the car in a vacation area (convertible)