T he Internet has made it easier to save money when buying a new or used car... and it can help you get the best price when selling your old car. Using the Web also can eliminate that awful haggling with dealers -- and save you weeks of shopping time.
Practical step-by-step how-to advice from real buyers and sellers...
BUYING A NEW CAR Drew Long
I bought my 1999 two-door Jeep Cherokee Sport without ever negotiating at a dealership. I financed it through an on-line bank... and negotiated the price by E-mail. Total cost: $20,209 -- just $200, or 1%, over the price the dealer paid for it.
The dealer even delivered the car to me. My advice...
Find your favorite make and model. My first move was to visit www.personalogic.com, a consumer buying service that is run by America Online. After you type in answers to a series of questions, you are given a list of cars that meet your criteria. Next, read free reviews of the cars that were suggested.
My two favorite sites: www.auto.com and www.caranddriver.com.
Once I narrowed down my list to the Jeep, I visited the carmaker's Web site for details on colors, options and a 360° view of the exterior and interior.
Important: Test-drive the car you're interested in at the closest dealership. Wait until the end of the buying process -- when you have found the lowest offer.
Get dealers to bid for your business. After you decide on a specific vehicle and options, submit a price request to on-line car-buying services. It's free to submit price requests, and you are not obligated to buy.
How they work: Type in the vehicle, options and price you want to pay. Dealers will then contact you by phone -- usually within 48 hours. They will present no-haggle prices -- usually 3% to 5% higher than invoice price, including all fine-print charges, such as taxes and destination fees.
Important: Use several car-buying services at once. My favorites...
Use on-line offers to reduce prices further. Go to www.edmunds.com to find out what the dealer paid for the car. Negotiate with dealers by E-mail or phone. It's easier to resist the hard sell when you're not on their turf.
Shop for financing on-line. On-line bank-loan rates are usually 0.5% to 2% below traditional banks' that are chosen by dealers for loans on new cars.
After you apply on-line, the bank E-mails you an answer, usually within 24 hours. Popular on-line auto financing...
If you don't get approved by an auto-financing service: Try www.lendingtree.com. The site takes your original loan application information and finds four banks that are more likely to lend to people with your financial profile.
Drew Long is a materials manager for a gas-equipment manufacturer in North Wales, Pennsylvania.
BUYING A USED CAR Steve LaSala
I used the Web to purchase a used 1998 Chrysler Sebring Convertible JXI with 25,522 miles -- and under warranty for two more years. Cost: $18,495. Although I bought my car through a local dealer, going on-line saved me about $3,000 and days of searching newspaper classified ads or visiting car lots. My advice...
Research what's available in your price range. I started by visiting three popular classified ad sites...
www.edmunds.com, which provides pricing and buying information.
www.cars.com. Posts on-line auto classifieds from 130 major newspapers across the country.
www.autotrader.com. More than 1.25 million listings, updated daily.
www.autobytel.com. A 72-hour, money-back return policy and a free, 3,000-mile, three-month limited warranty.
Most Web sites have a free notification service. When the car you want enters one of their databases, you'll receive an E-mail.
Identify the most reliable cars. For crash-test data, visit the National Highway Traffic Safety Administration's site -- www.nhtsa.dot.gov.
To find out whether the car you want has been in an accident or had its odometer rolled back, visit www.carfax.com. and www.vehiclehistory.com A vehicle history report costs about $20.
Establish the car's market value. After you select the car you want, check www.kelleybluebook.com to find the going price for the car. Print your research, and bring it with you when you look at used cars. Negotiate downward from your printout market value, not from the seller's asking price.
Always visit a dealership's Web site before you go to the dealership to view used cars. To encourage on-line shopping, some dealers offer $100-off vouchers and other incentives that you can print from your computer.
Steve LaSala is a librarian in Manahawkin, New Jersey. He teaches workshops at the Ocean County Library, Barnegat, New Jersey, on how to buy cars over the Internet.
SELLING A CAR Jeff Ostroff
Instead of trading in my old 1988 Trans Am with 135,000 miles, I advertised it on the Internet and in print media. I spent less than $200 in advertising and received $5,600 for the car -- about three times what any dealer would have given me. My advice...
Use on-line classified ads. They're much cheaper than newspaper ads and run for much longer periods of time. You also can reach buyers who are hundreds of miles away.
Example: I received many E-mails from out-of-state people who were going to be in my area and were thinking of buying the car and driving it back home. My ads brought in about 20 inquiries.
Budget at least $100 to sell your car. That should get you two ads on popular Internet classified Web sites for two 30-day runs and a few runs in local print media. My favorite sites...
www.autoweb.com. No word limit. Space for a photo. If you get no leads, you receive a full refund or a one-month extension. Your ad also appears in the on-line versions of Car & Driver and USA Today at no extra charge. Cost: about $20 for 30 days.
www.stoneage.com. Your unlimited-word ad runs until the car sells. Cost: A one-time $19.95 fee.
Create a Web site for your car. Most Internet service providers give you a free home page on the Web with your regular E-mail service.
Advertise in Auto Trader magazine, available in convenience stores. Photo and ad runs for two weeks for $20.
List your site in your ad. Scan in photos as well as a lemon-check report, available at www.carfax.com, to prove the car was never recalled or in a wreck.
Select a nonnegotiable -- firm -- price. Never use the words "or best offer" in your ad or E-mail. It makes you seem desperate, and people will expect to get a huge bargain.
Visit www.edmunds.com or www.kelleybluebook.com to get market value -- not trade-in value. After typing in the make, model and year, adjust the price for mileage... condition... and options.
Print out your Internet research. If prospective buyers show up and claim your car isn't worth what you're asking, show them the printouts. Explain that any problems have been factored into the price. If they disagree, politely ask to see their research. Most people have none, and you can gain the upper hand.
Jeff Ostroff is an engineer at Motorola Inc. in Florida, and runs www.carbuyingtips.com which educates consumers on purchasing and selling autos.
