Buying Your New Car

Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.

Consider these suggestions:

• Check publications and websites that discuss new car features and prices. These may provide information on the dealer’s costs for specific models and options.
• Shop around to get the best possible price by comparing models and prices in ads and at dealer showrooms. You also may want to contact car-buying services and broker-buying services to make comparisons.
• Plan to negotiate on price. Dealers may be willing to bargain on their profit margin, often between 10 and 20 percent. Usually, this is the difference between the manufacturer’s suggested retail price (MSRP) and the invoice price.
• Because the price is a factor in the dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiating the price can save you money.
• Consider ordering your new car if you don’t see what you want on the dealer’s lot. This may involve a delay, but cars on the lot may have options you don’t want — and that can raise the price. However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs.

Learning the Terms

Negotiations often have a vocabulary of their own. Here are some terms you may hear when you’re talking price.

• Invoice Price is the manufacturer’s initial charge to the dealer. This usually is higher than the dealer’s final cost because dealers receive rebates, allowances, discounts, and incentive awards. Generally, the invoice price should include freight (also known as destination and delivery). If you’re buying a car based on the invoice price (for example, “at invoice,” “$100 below invoice,” “two percent above invoice”) and if freight is already included, make sure freight isn’t added again to the sales contract.
• Base Price is the cost of the car without options, but includes standard equipment and factory warranty. This price is printed on the Monroney sticker.
• Monroney Sticker Price (MSRP) shows the base price, the manufacturer’s installed options with the manufacturer’s suggested retail price, the manufac-turer’s transportation charge, and the fuel economy (mileage). Affixed to the car window, this label is required by federal law, and may be removed only by the purchaser.
• Dealer Sticker Price, usually on a supplemental sticker, is the Monroney sticker price plus the suggested retail price of dealer-installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and undercoating.

Financing Your New Car

If you decide to finance your car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.

Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it’s sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.

Before you sign a contract to purchase or finance the car, consider the terms of the financing and evaluate whether it is affordable. Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in.

Some dealers and lenders may ask you to buy credit insurance to pay off your loan if you should die or become disabled. Before you buy credit insurance, consider the cost, and whether it’s worthwhile. Check your existing policies to avoid duplicating benefits. Credit insurance is not required by federal law. If your dealer requires you to buy credit insurance for car financing, it must be included in the cost of credit. That is, it must be reflected in the APR. Your state Attorney General also may have requirements about credit insurance. Check with your state Insurance Commissioner or state consumer protection agency.

Before you negotiate the price of your next new car, use this worksheet to establish the bargaining room. *You can get the invoice price by looking at the dealer’s invoice or reviewing car publications.

Trading in Your Old Car

Discuss the possibility of a trade-in only after you’ve negotiated the best possible price for your new car and after you’ve researched the value of your old car. Find out what your current vehicle is worth before you negotiate the purchase of a new car. Check the National Automobile Dealers Association's (NADA) Guides, Edmunds, and Kelley Blue Book. This information may help you get a better price from the dealer. Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.

Considering a Service Contract

Service contracts that you may buy with a new car provide for the repair of certain parts or problems. These contracts are offered by manufacturers, dealers, or independent companies and may or may not provide coverage beyond the manufacturer’s warranty. Remember that a warranty is included in the price of the car while a service contract costs extra.

Before deciding to purchase a service contract, read it carefully and consider these questions:

• What’s the difference between the coverage under the warranty and the coverage under the service contract?
• What repairs are covered?
• Is routine maintenance covered?
• Who pays for the labor? The parts?
• Who performs the repairs? Can repairs be made elsewhere?
• How long does the service contract last?
• What are the cancellation and refund policies?

Waukegan used cars: Knowing how to select a quality pre-owned vehicle

While the economy is slowly recovering, smart drivers have recognized the value of purchasing a pre-owned vehicle. Many manufacturers are offering certification for used cars so buyers can make sure they are purchasing a quality pre-owned vehicle. But there are a lot of other factors that go into buying used, and drivers considering a pre-owned purchase should take a lot of things into account when entering their Waukegan used cars dealer. 

One of the first key factors to take into account is safety. Three trusted bodies evaluate the safety of vehicles. The National Highway Traffic Safety Administration (NHTSA) is a good place to start to get information on automobile safety information, auto crash testing, statistics, recalls and more. SaferCar.gov is a website that complements the NHTSA by offering crash-test and rollover ratings for specific models. Finally, when visiting your Waukegan used car dealer, you should visit the Insurance Institute for Highway Safety (IIHS) website. The IIHS provides frontal offset and side impact crash test results. The site also provides Injury, Collision and Theft Losses info and fatality rates for different vehicles. 

Evaluating reliability is an important step before waltzing into your Waukegan used cars dealer. Reliability is certainly not the same for every make, model and manufacturer. The MSN Autos website provides tons of information on the used cars Waukegan drivers want. Most people have heard of J.D. Power and Associates; the company’s website offers both new and used car ratings. If you’d like to take it a step further, buy a paid subscription to Consumer Reports, and they’ll dish all the dirt on the cars you are evaluating for your used purchase. 

Especially with the automotive industry’s renewed focus on eco-friendly driving, fuel economy is an important factor to take into account when evaluating a pre-owned vehicle at your Waukegan used car dealer. Additionally, some fuel-efficient vehicles come with incentives for buyers. To find out more about the fuel economy of the vehicle you are evaluating, the place to start is fueleconomy.gov. 

You want to make sure you’re getting the best value for your money, right? In order to do this, it is crucial to take the depreciation factor into account. While some cars might hold their value for long periods of time, other vehicles are prone to depreciation, significantly reducing the resale value of your car. NadaGuides has a lot of useful information about the depreciation value of different makes and models, and Kelly Blue Book provides similar data.

One final key evaluation criterion for used cars Waukegan drivers love is the cost of insurance. Depending on the make and model of a car, the insurance rate can fluctuate substantially. If you are looking for a powerful sports car, your rate will be far higher than if you were to purchase a nice midsized sedan.

While there are plenty other factors a potential Waukegan used car buyer should take into account, this should give you a good start. Remember to evaluate your vehicles before you intend to buy, and you should end up with a quality purchase.

Chicago Volkswagen dealer offers diesel option in Jetta models

As Cash for Clunkers finishes breathing some life back into an infirmed car industry, the nation’s attention has moved to its next big priority in reforming our vehicles: environmental friendliness. Hybrid cars like the Toyota Prius and the future Chevy Volt are initiating an enormous step in the process; but some venues, like your local Chicago Volkswagen dealer, are getting geared up to showcase a new strategy for keeping the automobile industry cleaner.


Oddly, this “new” strategy is decidedly older than you might think. The new hot word in eco-friendliness is “diesel.”

Visiting their local Gurnee Volkswagen dealers, drivers will want to take note of the German manufacturer’s new strategy for its Jetta TDI. Termed the “hybrid killer,” the new Jetta TDI was named “Greenest Car of the Year” by Green Car Journal.

Diesel fuel has faded from the public eye over the past several years. Diesel became more widely accepted in America around the time of the Opec oil embargo of 1973; the ensuing shortage drove General Motors to consider diesel as a possible alternative fuel. Diesel was to leave the public eye again when a design flaw in GM’s Oldsmobile diesel V8 engines spurred a class-action lawsuit.

Now, with the imminent approach of the new Jetta TDI, the industry is about to be shaken anew. The TDI logs an estimated 41 mpg in highway driving. Chicago VW dealers are already getting geared up to launch this amazing new vehicle.

Starting at $22,270, the Jetta TDI is also affordable. Amenities include a multi-function trip computer and leather-wrapped steering wheel. Propelled by a 2.0-liter four-cylinder turbocharged clean diesel engine, the vehicle truly brings clean power to the forefront of this automotive revolution. What could you lose by taking a quick trip to your Chicago Volkswagen dealer to take a look for yourself?

As this year’s greenest car, the TDI has achieved fuel certification in all 50 states. Promoting a higher fuel economy and lower carbon emissions has its advantages, and Gurnee Volkswagen drivers will reap the benefits.

The car is stylish and sleek; a luxurious-looking front grill and dual exhaust tips round out the most ornately crafted exterior features. An adjustable folding back seat allows for even greater flexibility in storage room, while “Immobilizer III” technology offers the best in security.

The TDI performs surprisingly well. Anti-Slip Regulation (ASR), Electronic Stabilization Program (ESP), Engine Breaking Assist (EBA) and Hydraulic Brake Assist (HBA) systems are standard or available. Independent drives a better handling experience, and vented four-wheel disc brakes provide the utmost in safety (both of which come standard with all Jetta models). In truth, the TDI really has a little bit of everything and a lot of fuel economy.

So now, with the dawn of newer technology, it makes more sense than ever for drivers to stop by their Chicago VW dealers and preview the car that the industry is talking about: the new Volkswagen Jetta TDI. 

The blue book value of a car, really blue?

Products refered too by the brad name

Have you ever noticed that some brand names will stick with a product and that is what they become called generally? Items like Kleenex and Band Aids are referred to by these names rather than tissue or bandage. This is because these where the first brands to come out with the product and to people referred to the product by the brand name.

Blue book value of a car

This same scenario applies to the pricing of used cars. My husband and his friend have been involved in restoring classic cars for many years. They work on the cars in the evenings and on weekends. They each have kept a classic car that they have restored and are now working on one that they hope to sell for a profit. They were discussing how much they were hoping to get out of the car and they said they would compare the blue book value to similar vehicles being sold at auctions and come up with a median price. I have heard them talk about the blue book value of a car in the past, but I have never paid that much attention to where they were looking. My husband asked me if I could grab the blue book off of his desk. I went into the den and started looking for the book. There were some papers on the desk, but it was generally clean. I could not see a blue book anywhere. My husband came into the den to see what was taking me so long. He walked up to a small tan book and said that this is what he wanted. I started laughing and said that I was feeling quite foolish. I was looking for a book that was the color blue. I did not look at the title of the tan book.

Many books all being called the blue book

When the price of used cars were first published in an effort to establish uniformity in cost one company published the pricing. They were published in a blue colored book and were referred to as the blue book value. Other pricing books came out that were not as extensive and accurate so the blue book value became the measure that car salesmen used to determine pricing. Today there are several reputable publications of car pricing, but they are all referred to as the blue book value of the vehicle. The blue book value takes into consideration not only the year of the vehicle, but the number of miles it has on it, the accessories that are on the model as well as the general upkeep of the vehicle. There is still some leeway in determining a price, but the parameters are set.