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Posts with tag car buying

Recession Watch: $1,000 a month for a new minivan? No way

Filed under: Shopping, Transportation, Recession

This post is part of a series about real-life signs we're in a recession.

It has been fun for the past year, since my son was born, driving around in a 1999 Ford Taurus with three kids crammed into the back seat. But the plan has long been to buy a minivan.

The only one my eight-year-old daughter, who loves our Taurus almost as much as my husband, would consent to is the new Dodge Grand Caravan, for 2008. That's because it is the one with the seats that spin and face backwards and the little pop-in table for in-van picnicking.

Am I a sucker for swivel and go seating? Yes! I thought we had an easy decision and I even joined Costco (more on that decision) to take advantage of their no-haggle car buying program. I had my special incentives and zero percent financing deals all lined up when I went to the nearest participating dealer, ready to buy.

Only problem: I thought I could buy a car for about $22,000. But when I got done talking to the salesman, he had me convinced I needed a model that cost $36,000. With my cheap financing deal, that was still $1,000 a month.

Recession Watch: A new car is in your future

Filed under: Shopping, Recession

With recession fears growing, it might not seem like a great time to think about a new car. But if you want (or need) to get a different car, you might actually be able to benefit from the challenging economic conditions. Here's how:

Auto makers are desperate to sell cars.
It's all about volume for the big car makers, and they want to sell you a car. That means you can probably find a great deal on a new model. Look for "rebates" that give you $1,000 to $3,000 off the usual price of a new car. Also consider looking at the "old" model year. As 2009 models start coming off production lines, you can find better deals on the 2008s.

Use the power of the internet to your advantage. It's no longer a secret what a new car costs a dealer, and it's all available online for free. Find the model you want, and price out the "invoice" on the car to know where to begin bargaining. Remember that a dealer actually pays less than invoice when you factor in the incentives they receive from the manufacturers. Don't be afraid to offer the dealer less than invoice.

Auto dealers rely on volume.
They can qualify for financial incentives from auto manufacturers if they reach certain sales milestones each month. That's why it's often better to go shopping for your car at the end of the month. The manager of the dealership knows how many more cars they need to sell to meet their quota or bonus, and your car could put them over the edge. They'll be motivated to make a deal.

The three best vehicle buying websites to visit

Filed under: Bargains, Transportation

Ready to buy a new car or truck? If so, you're pretty smart to be shopping at this time of the year, as dealers anxious to push out older 2007 models are ready to give much better incentives to prospective buyers. That doesn't mean you shouldn't perform adequate research on the vehicles on your short shopping list, though.

The web is a wonderful thing -- and it makes for armchair research that just wasn't possible a decade ago. Web-savvy shoppers can be armed with more information than some car dealers themselves -- but you have to know where to look. There are so many website offering vehicle-buying tips, tricks, invoice cost estimates, reviews, etc. that it can be overwhelming.

But, if you're prepared to spend a little to save a lot, there are resources that will make your car research journey much easier for the brain. First off, spend just under $6 for a subscription to ConsumerReports.org and research any car to your heart's content down the the nth degree. Next, check out a favorite of mine, Edmunds.com (which is free to access). There are customer reviews, editor reviews, information you can use to negotiate pricing and much more. Also, KBB.com (Kelley Blue Book) charges $6 for complete vehicle reliability ratings.

There you have it -- for under $13 you have access to three website offering a plethora of vehicle information that could save you thousands in the long run as well as save you from buying a lemon (new or used). Happy hunting!