Today we're starting a new series from Yahoo on "Good, Better, and Best Money Saving Ideas". First of all, the ground rules:
We asked experts to provide a simple tip that will easily save money (good), another tip that might take a little more time or effort but which will save more money (better), and a more extreme tip that will help readers save the most -- but which would require the most thought or effort (best).
Here is what Yahoo names as good, better, and best ideas when it comes to car buying:
Good: Use a market guide such as Edmunds.com to learn the invoice pricing (what the dealer pays for the car) and the true market value (what people actually are paying for the car), says Mike Hudson, consumer advice editor for Edmunds.com.
Better: Research financing rates and get pre-approved. This puts you in a much stronger negotiating position. "Use it as a chip against what they're offering," says Hudson.
Best: Play dealerships off each other. Call or fax all of the dealerships in your area and ask for a written price quote. "With price quotes, you have something in writing you can show the salespeople. You're not bluffing or coming up with numbers out of thin air," says Hudson. "Remember, the greatest ability you have is to not buy a car." The dealer needs to sell cars, but you don't have to buy from him.
I did the "good" and "best" options twice over the past year (I didn't need the "better" since we paid cash) and got both cars for $200 over dealer cost (including holdbacks given to the dealership). It really works -- especially playing one dealership off another. I did it through email, so I didn't have to waste a bunch of time going from one dealership to another.
Click here to read Good, Better, Best Money-Saving Ideas: Clothing.
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