Planning Beginner: Shopping for a New Car

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1.
Cars with the lowest prices will necessarily have the lowest costs of ownership.
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False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.
2.
If you show interest in a new vehicle on the dealer's lot but you decide to walk away during negotiations, what can you expect the dealer to do in response?
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Call you later and make you another offer. As a rule, if you show interest, the dealer will want your business and may contact you with a new offer.
3.
When it comes to the real price of a new car, the price that a dealer pays is usually lower than the invoice price shown because of dealer _______ .
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All of the above. Manufacturers will offer rebates or allowances on certain car models, and dealers can earn incentive awards based on their sales results. All of these factors serve to lower the dealer's cost.
4.
When it comes to shopping for a new car, the best advice is to complete your comparison shopping before visiting a dealership.
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True. The Internet offers many sites with helpful information that consumers can use to narrow down to the car they want and how much it might cost. Consumer Reports also publishes an annual car-buying issue.
5.
When negotiating the price of a new car, which starting point is likely to save you the most money?
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The dealer's cost. The dealer's cost is what the dealer paid the manufacturer for it. Negotiating up from this, rather than down from the asking price, may save you more money.