Once you’ve narrowed your choice to particular manufacturers or specific models,
it’s time to find a reputable car dealership.
The traditional new-car dealership offers a range of cars from one or more manufacturers at a showroom, where you can inspect and test-drive vehicles. Almost all offer financing and insurance in addition to selling or leasing cars, and most of them include service departments to maintain and repair vehicles.
In the past decade, new types of dealers have entered the market — many using the Internet to change the car-buying experience.
Perhaps the most notable change has been the growth of "no-haggle" or fixed-price dealerships, which try to eliminate the stress and uncertainty of negotiating price by offering set prices. Certain manufacturers sell their products exclusively through no-haggle dealerships. Other fixed-price dealerships operate as large regional chains and sell cars from a number of manufacturers. While you may get a lower price by bargaining with a conventional dealership, fixed-price dealerships are convenient for people who are uncomfortable negotiating, or simply don’t have the time or feel they have the expertise to comparison-shop.
About one in five vehicle buyers now pay fixed prices, so it’s clear this concept has become more popular. But not everything at a no-haggle dealership is sold at a fixed price. If you trade in your current car to a fixed-price dealership, you must negotiate on the price of the trade-in. And like conventional auto retailers, many no-haggle dealers have deals on extras such as financing, insurance, or additional warranties. And be prepared: Prices for the same model of car can vary at different dealerships in the same area.
Another relatively new option is a car-buying service, which comparison-shops for you by searching various auto dealerships for the lowest price on a certain car. Some services will even handle paperwork and deliver the car. Because these services may charge you a $200 to $500 fee, they may only make sense if you’re spending a lot on your car or you’re uncomfortable acting on your own or are unable to do so.
Online dealership networks are Internet-based organizations that work with a large number of dealers to help locate the car you want at close to the price you want to pay. When you use a network, your request for a certain auto is forwarded to various dealers, who then contact you with a fixed-price offer. Online networks of this kind include www.autobytel.com and www.autoweb.com.