Slow sales = good deals

April was not a good month for some car manufacturers. General Motors, Ford, Toyota, Honda, Nissan, Subaru, Suzuki, Hyundai, and Kia all reported a decline in sales during the month of April compared to last year. With the average gasoline price around $3 a gallon, some manufacturers have cited rising fuel costs as a factor, as well as a slowdown in the housing market.

Lagging sales are hitting dealerships and manufacturers hard, but this can signal a good opportunity for car buyers. So, how can you take advantage of a sales slump and get a great deal on a new car? Here are some tips:

·         Research. Car dealers may be more willing to negotiate the price if they have extra cars on the lot, especially from the brands cited above, but the first step is to do your research. Identify the best vehicle for you using CR ratings, with detailed reviews, test data, reliability information, and owner satisfaction insights all available online.

·         Look for incentives and rebates. Spring is a nice time of year to drive around in a new car and dealers may offer low APR financing, as well as incentives and other rebates to help move out the inventory. You can learn about these deals through various Web sites including the manufacturer site as well as Consumer Reports New Car Price Reports.

·         Consider your budget. Make sure you look closely at the total cost of a new vehicle to determine if you can afford the monthly payments. Consider possible future increases in gas prices that could cut into your budget, as well. Check out our calculators to help crunch the numbers.

·         Negotiate. Arm yourself with the Consumer Reports Bottom Line price to ensure you are factoring not just invoice price, but also the latest consumer rebates, hidden dealer incentives, and holdbacks.Negotiate up from the CR Bottom Line Price, rather than down from MSRP. And keep your trade-in and financing separate from the new-car purchase price. Check out our steps to getting a great deal for advice on avoiding common pitfalls, as well as how to get the best price.

·         Don’t be pressured to buy. You’re in the driver’s seat when it comes to buying a car. Don’t be afraid to walk out of the dealership if you don’t get the price you want or don’t feel comfortable with your salesperson. There are many dealerships out there who want your business, especially if sales have not been where they should be. And be prepared to have a few alternative models if you can’t get a deal on your number-one choice; for example, be ready to give up on an Accord leave the Honda dealer if the dealer isn’t treating you well and head to Toyota to check out a Camry. There are so many good cars out there that you shouldn’t be bullied into settling on just one.

For more advice on buying a new car, see our step-by-step guide. Also, check out our new car best deals report for a current list of vehicles with high savings opportunities.

--Liza Barth

Comments

[Eric Miltsch]

The last item is the key: "Don't be pressured to buy."

Gone are the days where you need to be pressured...If they won't take your first offer, go somewhere else.

[salesman]

If anyone out there would show how little sales people make when you just ask to buy the car for bottom line price, consumers would have a different opinion. Everyone who buys cars I'm sure knows that a company needs to make money, otherwise they wouldn't have a job. If anyone can answer me this question I'd be more than happy to sell them a car. Why when you go to the store, you will pay a 20% mark up on eggs, but when you buy a car you wouldn't pay a 2% markup? Why is that?????

[BLL]

Uh....2 reasons.

1. Eggs cost $2. New car costs....well....a lot more. BTW, how do you know eggs are making 20% profit? LOL

2. Companies operating with a profit margin in the high single digits are doing well. My heart ain't bleeding for someone looking to make 20% profit on items.

[Jack]

Interesting tactic... but in the end of the day, if you want a really good deal on used car you want craigslist or other resources and not a dealer.