A novel tool in the search for new-car bargains

One way to make sure you’re getting a good price on a new car is to find out the best deals other buyers in your area are negotiating.

Until now, that information has been available only in drabs and drabs, primarily on Web-based user groups, such as the CarSpace “Prices Paid: Buying & Leasing Experiences” message boards.

But a new site, TrueCar, provides car buyers with an easy-to-use and free look at what others are paying for particular models, in their area, regionally, and nationally.

After you enter your zip code and details about the exact vehicle you’re considering, including optional equipment, TrueCar presents “good” and “great” prices, after factoring in rebates, factory-to-dealer fees, and other variables.

For example, we recently looked up a standard version of a 2009 Toyota Prius. The site reported that based on transactions in our area, a good price would be less than $21,187 and a great price would be less than $20,773, or less than $1,261 under dealer invoice. The figures take into account $384 in regional advertising fees or other manufacturer-to-dealer charges and a $1,000 rebate. The lowest transaction prices in our area ranged from $18,860 to $19,083, based on three actual recent sales.

Armed with that information, a Prius buyer negotiating among several dealerships could gauge how good the best offer is. 

We also learned that average Prius transaction prices have dropped 7.55 percent nationally since Jan. 4.

The Web site also provides sticker price, factory invoice, cash-to-customer and manufacturer-to-dealer incentives, and an estimate of actual dealer cost.

Unfortunately, the only customer incentive information the site gives is for rebates. So, if instead of a rebate you have the choice of low-interest financing, you won’t learn about it from TrueCar. So remember to check with the manufacturer or dealer for the latest incentives.

Also, if there is a rebate available, TrueCar doesn’t automatically deduct it when preparing its price analysis. Instead, you have to check the box to let the site know you’ll be taking that incentive. If you don’t, the prices used in the analysis will be higher than they should be for a buyer who’s getting a cash incentive.

When using the site, be sure to read the list of frequently asked questions.

We haven’t analyzed the accuracy of the pricing information, and the Web site doesn’t disclose where it comes from. The sites says it collects sales data on more than 25 percent of all new vehicles sold and that sales information is generally up to a few weeks old (some data may be as old as eight weeks). The site provides a limited report, or none at all, if it feels it does not have sufficient data on a particular vehicle.

Incidentally, if you've used this service, we'd like to know what you thought of it. So feel free to comment below.–Anthony Giorgianni

Comments

[Eric]

Also see opencarprice.com

[price analysis]

TrueCar is one of the best site. I had used it.