How To Get A Great Deal On A New Car

Whether you think of your car as an object of love or view it merely as a way to get somewhere, having a brand new one is bound to give you a lift. But that pleasure can be tainted by thoughts about the cost—both the thousands of dollars you must pay for the vehicle and the emotional cost of coping with the hassles of making the purchase.

Fortunately, there’s a way to avoid the hassles and get a great price. The key is competition. Get new car dealers to bid competitively for your business.

The Center for the Study of Services, an independent nonprofit consumer group, operates a service used by many thousands of customers each year to get great prices on new cars. See the “Money-Saving Help” list on the back of this pamphlet for more information. You can use the same general approach and get a very good price on your own. What follows is advice that comes out of the experience of this service.

You may have had friends tell you about sitting eyeball to eyeball for hours with new car dealers. It’s nonsense. They wasted their time. The only leverage any customer has with a new car dealer is the possibility that he or she will walk out—and either buy a car from another dealer or not buy one at all.

To get a good price, you need simply set up a competitive bidding process. You have to be careful, thorough, and persistent, but you don’t have to know all the intricacies of the car business.

You can start the bidding process after you’ve decided on the make, model, and style of car you want (Toyota Camry, 4-door sedan LE V6, for example). You don’t have to know the exact options you want.


It’s best to conduct the bidding process by phone. If you try to do it in person, you’ll waste many hours and you’ll have difficulty persuading salespersons that you’re really serious about leaving and getting other dealers’ prices.

Get each dealer to bid an amount above or below the "factory invoice price." The factory invoice price is the same for all dealers. So if one dealer bids $500 above invoice and a second bids $500 below invoice, you'll know the second is $1,000 lower priced than the first. The "Money-Saving Help" list on the back of this pamphlet tells you how you can get information on factory invoice prices.

But you don't really have to have the invoice price information in advance; just explain to each dealer that you will expect to be shown the actual factory invoice for any car you consider buying. Get bids from at least five dealers. Talk only to a sales manager or fleet manager.