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Submission: On July 17 via api from US — Scanned from DE
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For 32 years, our program helped consumers get the best prices on new vehicles by having dealers compete by bidding for our customers’ business. Unfortunately, in recent years a lack of demand, changing market conditions, and our commitment to using our resources to help as many consumers as possible led us to make this difficult decision. We will continue to advise consumers on how to get the best deals on new cars, including sharing our strategies for getting dealers to compete for your business. And we will continue to help you navigate the numerous car-buying pitfalls. Our advice in this section will help you save money and avoid trouble. We are grateful to our CarBargains and LeaseWise customers. You trusted us, told your friends and relatives about us, and helped us make buying or leasing a new car less stressful for many people. -------------------------------------------------------------------------------- STRATEGIES TO GET THE BEST PRICE AND AVOID DEALERS’ TRAPS If you’re ready to buy a new car we have some good news, some bad news, and a bit more bad news. First, the good news: The production slowdowns that plagued the auto industry over the last several years have eased somewhat. Plus, manufacturers continue to roll out newly designed models, which means buyers now have more choices, especially for those considering electric vehicles (EVs) and hybrids. Better supply means competition has resumed among dealers for many models, allowing buyers to shop around on price. Some manufacturers have even restarted incentive programs, a sign that they need help to move growing inventories. Data from Kelley Blue Book show that in July 2023, the average price for new vehicles was 2.7 percent lower than at the start of the year. Beginning in March, average selling prices dipped below vehicles’ sticker prices (MSRP) for the first time in 20 months (in 2022, buyers paid about $1,000 more than MSRP, on average). Now for the bad news: Manufacturers are mostly building expensive models, with very few options priced below $20,000 or even $30,000. Five years ago, almost one-fourth of all new cars sold in the U.S. went for less than $25,000; now, only four percent are purchased below that price point. In July 2023, the average transaction price was $48,334. “In the past, automakers would offer affordable models to snag new buyers in order to build brand loyalty, moving them up to more expensive and profitable cars as their incomes increased. Not anymore. Nowadays, they don’t want to build ‘cheap and cheerful’ cars and SUVs,” said Tom Voelk, an automotive journalist who produces Driven Car Reviews, a video podcast. Because automakers can sell all the high-end cars they can build, Voelk said they are now focused on building vehicles that give them the highest profits. Interested in buying an EV? Brace yourself for even higher price tags. Only a handful of EV models are priced below $40,000, and very few currently available models qualify for the $7,500 federal tax credit. Click here for an update on EV options. Even more bad news: Higher interest rates are adding even more costs for most buyers. According to Edmunds, the average APR for new-car loans was 7.4 percent in August 2023; two years ago that average was only 4.3 percent. We can’t control interest rates or convince automakers to build more affordable rides, but we can tell you how to get the best possible deal—and how to avoid trouble. Although new EV manufacturers (Tesla, Fisker, Lucid, Rivian, etc.) rely on a direct-to-consumers retail strategy, shopping for most other makes and models of cars still means navigating auto dealerships’ sales traps. The only way to secure a good price is to force dealers to compete for your business. We tell you how to do that. No matter what you buy or where you buy it, you’ll still have to carefully navigate through common pitfalls—avoiding bad financing offers, wasteful service contracts and insurance plans, and dumb add-ons like tire protection, rustproofing, and the like. YOU WON'T FIND ANYTHING ELSE LIKE CHECKBOOK * Nonprofit and independent * Takes no advertising or referral fees * Ratings and reviews by surveyed Consumers' Checkbook and Consumer Reports local subscribers * Thousands of undercover price comparisons * Complaint counts from local consumer agencies and attorney general offices * SIGN UP * OR * SIGN IN ARTICLES * How to Get the Best Price on a New Car * Understanding Car Leasing Terms CAR BUYING STRATEGIES ARTICLES HOW TO GET THE BEST PRICE ON A NEW CAR Our method of buying a car avoids hassles and yields the best possible price. The key is competition—getting new-car dealers to bid competitively for your business. We tell you how to do it. UNDERSTANDING CAR LEASING TERMS Getting a good deal on a car lease is considerably more complex than on a straight purchase, and dealers love this complexity. If you want to lease, you can still initiate a competitive bidding process by nailing down several additional points. RELATED CONTENT * Used-Car Certifications Often Not Meaningful * Vehicle Service Contracts * Used Cars Often Sold with Dangerous Defects * Car Dealerships * Car Insurance * Auto Repair Shops * Auto Body Shops * Savings Apps * 30 Tricks Sellers Use to Manipulate You * SIGN UP * OR * SIGN IN SUPPORT * Contact Us * Help * About Us * Terms of Use * Privacy Policy SITE * Ratings (A-Z) * Subscription * Press Room * Donate * Rate a Business * RSS OUR PRODUCTS * Checkbook * Guide to FEHB Plans * Gift Subscription * Health Plan Comparison Tools * Consumerpedia Podcast AREAS WE SERVE * Boston area * Chicago area * Delaware Valley area * Puget Sound area * San Francisco Bay Area * Twin Cities area * Washington, DC area Facebook Twitter Linkedin Youtube Instagram Podcast * JOIN * or * DONATE Copyright © Center for the Study of Services. All Rights Reserved. ⓧ SIGN IN -------------------------------------------------------------------------------- E-mail Password Stay signed in Sign-in problems? 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