Car Negotiation Coach

The auto industry is at a tipping point and things are about to get a lot better for consumers. Within the past five years a majority of shoppers now start the car buying process online before heading to dealerships.  That trend is driving prices down and sites like Edmunds and TrueCar are bringing more transparency to an otherwise murky transaction.  But there’s still plenty of room for improvement.  Even the most savvy Internet researchers get strong armed in the Finance Office when it comes time to close a deal.  Fortunately, the industry is still in transition and how you buy a car is soon to drastically change.

Most pundits offer boring auto industry predictions that revolve around manufacturer production and sales numbers.  But what does that really mean to you, the car buyer?  How do industry changes affect your buying experience….and wallet?

Let’s take a different approach today and look at auto industry trends from the car buyer point of view.  Here are my predictions of how things will change for car buyers over the next 3 years.

1. Initial new car prices will drop while negotiated prices will level out because of increased competition and comparison shopping habits.  More and more consumers will check the “True Market Value®”, “Target Price”, or get a “Price Report” at home or from their mobile device while at a dealership. The difference between the best deal on the market and the worst deal will slowly converge as car buyers can see what other people paid for the same vehicle.  Manufacturer and dealer margins on car prices will continue to get slimmer and they will need to make profits elsewhere.
2. The trend of LESS personalization will continue.  Manufacturers pump out a limited number of variations of each vehicle to save costs. This will mean more pre-configured options you don’t necessarily want, but provide profits to dealership who can charge more because they will not provide an alternative.
3. The trend of dealerships supplying cheap price quotes (teasers) for vehicles they don’t have in stock will decline.  Car quote services usually allow you to configure a car with any options you want and request prices.  But as I mentioned in my last point, dealers only stock certain configurations and may not have exactly what you request on their lot.  That often doesn’t stop them from providing you a price on a non-existent vehicle, and then not tell you it’s out of stock until you get to the lot (or ask for a VIN# over email).  Dealerships will get poor social media reviews for this sneaky tactic and over time bad ratings will weed out the more shady marketers…..although I don’t expect this tactic to disappear entirely.
4. Google will partner with Edmunds or TrueCar and dominate the market for online car leads.  Google has already announced they will be entering into the auto lead business, but they are missing one key element that the major lead brokers have.  The missing element is historical data from dealerships about sales prices to show car buyers what they should consider a good target price.  Google will need to partner with Edmunds or TrueCar to provide market data so that something like Edmunds True Market Value® or the TrueCar Price Report can be incorporated directly into search results along-side prices.

   Now why would either of these companies want to partner with Google?  Because Google is the clear leader in search and a partnership would make their lead business jump through the roof without a financial strain.  Right now they shell out millions for PPC ads and partnering will make more financial sense and ensure proper placement in search results.  Not only that, but an agreement would allow them to show dealer results and a target price right on the search screen rather than having to click through and perform a second search.

5. The transition to Google means getting car prices will be easier.  You won’t have to enter all your contact information (as a lead) in order to see prices at local dealerships. You will be able to search for a “model+options”, sort by cost, and click through to view all the details similar to how you would search for prices on flat screen TV’s.  This will be a major shift in how lead brokers are used to operating, but I see it as inevitable.  Can you imagine searching for a big screen and having to enter your phone number, email, and address in order to see a price?  Online retailers would lose a lot of business and so will car lead brokers if they don’t get with the program.  Note: TrueCar does show you prices without requiring personal details, but they do not disclose the dealership names until you fill out a lead.
   
   Also, because prices will be so much easier to get, competition will increase and prices will be driven downward. We’re likely to get to a point where you won’t have to negotiate at all after getting car prices online because car dealers will provide their lowest cost up front (just like online electronics retailers).
6. You’ll be able to complete an entire car purchase online.  After getting a price, you will be able to finish the whole transaction online including your financing and trade-in. You can already get auto financing from online lenders and dealerships will follow suit or partner up.  Same goes for your trade-in, you can already go to AutoTrader and get a free online appraisal valid for 72 hours and a service like this will be offered at the point of sale through local dealerships.  Note: You’ll still have to negotiate your trade-in at the dealership as online offers will likely be low.

   In some cases (if you don’t have a trade-in) you won’t even have to visit a dealership to pick-up your car.  You’ll be able to sign everything on line (using something like Escrow.com and SignNow) and the car will be delivered to you. High-end dealerships already do pick-up and delivery for service requests – in fact, my father is one of the drivers!

7. Bundling with new markets:  We will see a variety of new cross promotional pushes like the travel industry (airlines, hotels, and rental cars) and credit cards.  For example, Ford could partner with Avis Rent-A-Car, so if you bought a Ford you’d be enrolled in the Avis Preferred program and get special discounts if you rent from them while traveling.  I also expect to see credit card companies in the mix allowing you to sign-up for a rewards card at the point of sale and use it for a portion of your down payment.
8. Dealers will start partnering with car wrap companies and offer discounts at the point of sale to those who sign up to be a moving advertisement.  If a car dealer offered you a $1000 discount for a car with a Sheetz logo, would you sign up to have your new car wrapped in an ad?
9. Post purchase feedback will become much more social.  After a sale, car dealers are currently rated through a CSI survey or WSI survey where feedback is directly tied to their bonuses.  Surveys and ratings like these will shift into social media to take advantage of the marketing element.  Dealers have always pushed for positive feedback but when results are public, they may even try things like offering a free oil change in exchange for “liking” a dealership or posting survey results on your Facebook wall after you buy a car.
10. Legislation will be introduced to require electric car charging in business parking lots. For example, companies with more than say 200 spots will be forced to offer charging stations (which may be subsidized) to encourage EV adoption.
11. EV charging stations will make more money than gas stations and pop-up everywhere.  Businesses will take advantage of the time required to charge a car and the resulting captive attention from consumers.  They’ll sell through convenience stores, book stores, hair salons, health clubs, and tons of other options for people to spend their money while they wait for their cars to charge.
12. Moped sales in the US will skyrocket and shoot up at least ten-fold. Younger people on tight budgets will adopt the European model and buy the much lower cost form of transportation.  It might even become trendy to own a moped and the negative stigma will quickly disappear.

I’m optimistic that many of these auto industry changes will come true because they’ll mean lower prices and an easier purchase process for car buyers.  If you have any predictions about changes to the car buying process, please share them in the comments.

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Where should you research and compare cars when you are getting ready to buy?  Edmunds is one of my favorite websites because they have so many different tools for car buyers.  And since I recently did a TrueCar review, today I thought I would do a review of Edmunds.

But in the spirit of being impartial, while I explain the cooler features of Edmunds I’ll also list out a few areas that need a little work.

Edmunds Review

Edmunds has four very interesting services within their website that I’m going to review.  There’s a Compare Cars tool, New Car Price Quotes, Edmunds True Market Value®, and Edmunds True Cost to Own®.  Each of these components are very helpful to car buyers but there’s still room for a little improvement.

Let’s take a look under the hood and maybe someone from Edmunds will read my tips for improvement and make the site even better .

Edmunds Compare Cars Tool

What is it?

A side by side comparison of different cars.  Choose vehicles and see how they compare across a range of categories like price, safety features, available options, measurements, and  Edmunds True Cost to Own®.

What I like about Compare Cars

• It’s intuitive, well designed, and easy to compare the features of four cars at once.
• You can compare photos of specific car features on different models all at once.  For example, you can view interior photos side by side, engine photos, rear views, tires, etc.
• You can change the trim levels to compare different options packages for the same car side by side.
• If you don’t know where to start, the Car Finder feature allows you to start by entering a price range, features, and car type to narrow down the list of vehicles to compare.

What needs improvement

• You can only use the Compare Cars tool for new vehicles.  I’d like to be able to compare used vehicles and have the ability to look at the differences between model years for a single make/model.
• In addition to the Edmunds True Cost to Own® value that is shown (more on that below), I’d like to see an estimated residual value for each vehicle.  I’d also like to see the residual value expressed as a % of purchase price as well since car prices will differ in your comparison.
• I don’t like the “sponsored cars” mixed in with the results of the Car Finder feature.  You can ignore the sponsored cars, but they can be a little confusing.  For example, I narrowed my results to Acura’s and the sponsored cars still included a Chevy and a Nissan.

Edmunds New Car Price Quotes

What is It?

Edmunds sends your request for car prices to local dealerships who email you with free price quotes.

What I like about Edmunds New Car Price Quotes

• I love that you can contact up to 5 dealers at once.  This is the highest number I’ve found and most websites only offer 3 quotes.
• Most car dealerships are listed on Edmunds.  Dealerships have to sign-up and pay to use each different car price website.  As a result, other websites may provide slightly different results.  By looking on Edmunds you have the best bet of finding all your local car dealers.
• Before getting dealer prices you can see each dealer’s rating and comments from other car shoppers.   Edmunds also shows the distance to each dealer from your zip code and a handy map link.
• Before getting dealer prices you can also see Edmunds True Market Value® pricing (to see what others have paid for that car).  More details on TMV® below.
• In the Edmunds price quote screen, you can easily tab between car reviews and a variety of car photos from different angles.  This is much better than many other sites that only show one stock photo per car.
• You can check inventory to see what’s listed in stock at local dealers.  Just keep in mind this may not be updated by dealerships very frequently.

What needs improvement

• On top of requesting car prices via email, I’d like to see an instant quote that dealers must honor like the one provided by TrueCar.
• Phone number should not be a required a field when requesting car prices.  I understand why car dealers want contact information, but I prefer to keep all negotiations over email and I don’t want to receive calls.
• I’d like to see an online method of tracking the various price quotes you receive, but for now you can use this car comparison spreadsheet I’ve created.

Edmunds True Market Value® or TMV®

What is It?

Edmunds TMV® is the average price paid for a car based on local sales.  TMV tells you how far below MSRP® most people have been able to negotiate.

What I like about Edmunds TMV®

• I love that the True Market Value® number is shown at the time you request new car price quotes.  In the old version of the Edmunds website you had to hunt around for this number and it was not displayed where you need it most.
• TMV® Alerts show you predicted price trends for all models each month.  This is handy to help you figure out whether you should buy now or wait a month for prices to go down.
• The Edmunds TMV® number is automatically adjusted to include the options and colors you select as well current incentives.  If Edmunds didn’t do this, there would be no way to compare apples to apples.

What needs improvement

• Edmunds TMV® is very similar to a TrueCar Price Report, but  TrueCar does a little bit better job graphing prices and categorizing what should be considered a bad, good, or great deal.
• Edmunds TMV® reflects manufacturer incentives, but they are not broken out.  So if you want to know if there are current incentives and when they expire, you have to check a separate section of the Edmunds website.
• You can view price information based on your zip code, but you can’t compare that to national price information.
• Edmunds doesn’t show you exactly how many car sales are included in the TMV® number or the time frame of car sales that are used in calculations.

Edmunds TMV® gives you a good target price for your negotiations with car dealers.   However, since TMV® is that average price paid, it should be your minimum goal.  Read How to Buy a Car at the Best Possible Price to get below that target number.

Edmunds True Cost to Own® or TCO®

What is it?

Edmunds TCO® is a tool that estimates the total five-year cost of buying and owning a vehicle. The components of TCO® are depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance, repairs, and any federal tax credit that may be available.

What I like about Edmunds True Cost to Own®

• It’s important to understand costs of ownership about a car beyond price and I haven’t seen any other car websites that offer something similar.
• I like that TCO® is calculated for both used and new vehicles.  It’s easy to see how historical cost data is compiled for used vehicles, but I like that Edmunds makes a prediction about new vehicles as well.

What needs improvement

• I’d like to see True Cost to Own® presented right next to True Market Value® at that time you get new car price quotes.

Other Edmunds Car Comparison and Research Tools

Miscellaneous things I like on Edmunds

• Edmunds reviews every car imaginable. You can find a detailed look at any car.  Most cars are reviewed with a great selection of photos and many have videos and 360 views.
• Edmunds has some very useful car calculators like lease and loan calculators, affordability, and trade-in calculators.
• The new car buying guide that comes out each year is very informative.
• Edmunds maintains a good list of current car incentives and rebates (Just don’t get hung up on these, dealers often have cost structures and incentive plans that aren’t published that allow them to offer discounts.)

Miscellaneous items for improvement:

• Edmunds has a direct link to a Carfax vehicle history report for every used vehicle.  But unfortunately, you have to pay to see it.  I’d like to see the eBay Motors model adopted where a vehicle history report is included for free.
• I’d also  like to see the ability to order a paid car inspection directly from the website (eBay does this as well).

As you can see from my review, I have very few complaints about Edmunds.  Mostly constructive criticisms that won’t impact your car buying research.   If you’re trying to compare and research cars, Edmunds should be where you spend most of your time.

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Do you live in a small city with only one car dealer?  If so, you may be wondering how can you get a fair car price?  If there’s only one dealer in town, he might think he doesn’t have to negotiate.

When buying a new car, start by getting the best car prices online from several car dealers.  But what if there’s only one dealership in your town? Or none?

 

How can you get car prices from multiple car dealers if you live in a small city? Let’s look at how to get around this common problem.

How can you make car dealers give you a fair price when they have no local competition?

I’m asked this all the time and it’s easy to address.

The answer is simple.  You drive.  When there’s no competition, car dealers have no reason to give you a deal.  So expand your search to nearby cities and add some competition to make local dealers play fair.

So how far would you drive to save 2,000 bucks?

How about $3000 or more?  Heck, to save just a couple hundred bucks I’d drive a few hours in a heartbeat.  Consider driving to a larger city with more car dealerships to save big on your car purchase.

A man from Austin, TX asked me how he could get a good deal when there was no local competition.  In Austin there’s pretty much one car dealership per manufacturer. So I suggested expanding his search to Houston and Dallas to get competitive car prices.  Each city is about a 3 hour drive, but has a wide variety of dealerships.  By expanding his search he could easily find 5-10 dealerships for just about every manufacturer.

To make the drive more fun, you could even indulge yourself with a mini-vacation.  Get a hotel room and treat yourself to a night out with a portion of your savings.

How to expand your car search to nearby cities

First, figure out what type of car you want.  If there’s only one dealer in town, you can still test drive a car locally without buying.  Once you’ve settled on a make and model you can start your search for more dealers.

Some car price services allow you to enter how far you will drive: “within 50 miles” or “within 100 miles”.  For those that do not, find out zip codes of nearby cities.  For example, if you live in Austin, do a quick Google search for “Houston zip codes” and “Dallas zip codes”.  Then use those zip codes when getting car prices.  Most sites will allow you to submit multiple searches using new zip codes each time.

For extra savings, try a CarsDirect low instant quote.  It may put you in touch with the same local dealer you already visited, but provide a better price that they must honor.

Once you get car prices from dealerships in another city, give your local dealer a chance to beat them.  Just be prepared to follow through and use your big city quotes.  Many local dealers may not believe you are serious about making the drive, but that’s their loss.

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There are plenty of companies that claim to offer a free credit score, but I’ve yet to find one without a catch…until now.  Most free credit score programs do offer you a score but require you to enter a credit card and sign up for credit monitoring (free for a month and then they start charging).  In the past I’ve suggested signing up for one of these programs and then immediately calling to cancel once you get your score.  But that’s a bunch of hoops you no longer need to jump through.  Credit Sesame is much more transparent.  In this Credit Sesame review, I’ll go over what’s good about them and where there’s room for improvement.

What is Credit Sesame?

Each of the three credit bureaus (Experian, Equifax, and TransUnion) are required by law to give you a free copy of your credit report once per year.  But they are not required to provide your credit score.  You can (and should) pull your credit reports and check for errors and issues, but you also need to view your score which is what lenders will be using when you apply for credit.

Credit Sesame allows you to access your credit score for free, with a quick and painless sign-up process.  The reason they can offer the score for free is actually quite innovative.  Based your credit history, they provide advice on how to reduce your debt, save on loan payments, and raise your score.  And part of this service is to provide you with new loan options to reduce your monthly payments.  Credit Sesame is able to offer their service for free because they make money from banks if you decide to get a loan, which you are under no obligation to do.  Here’s what they say:

We earn a small fee from a bank, but only after you close on a loan, so it’s in our best interest to find you the best match based on your own personal needs. We never play favorites, and it makes no difference to us which bank you end up working with; we’re just looking for the recommendations that work best for you. Meanwhile, all of our tools and services are 100% free for you; no trial periods, no catches.

Credit Sesame Review

Here’s what I like about Credit Sesame

• It’s really free (no gimmicks) and no credit card number is required when signing up.
• Sign up is extremely easy.
• They have a new iPhone app that provides instant access to your score.
• Your score is updated once per month, and you can check back as often as you like (for free) and see how your score changes.  They even provide trend graphs so you can track how you are doing over time.
• Free advice: They analyze your loans and credit card debt daily and if a better loan option comes available that will save you money, they alert you.
• Free home value estimates:   They update the estimated value of your home every month based on market prices and how much home equity you’ve built up.
• Free financial goal setting: They help you set your own financial goals like refinancing a home, borrowing money or buying a house and alert you when they find an offer that meets your goals and saves you most money on interest.

Here are the only things I don’t like about Credit Sesame

• While knowing your credit score is critical, Credit Sesame only provides the Experian credit score, and not the scores reported by the other two credit bureaus.  The scores are usually pretty close and if you get your Credit Sesame score and your credit reports, you’re probably in great shape.
• You can see a breakdown of most of your debt, but you do not get your full credit reports which as I’ve mentioned are important to monitor as well.  Fortunately, you can also get all three credit reports for free through AnnualCreditReport.com (again, no catches or gimmicks).
• It’s not obvious how to navigate to your financial data and debt records (which are a summary of your credit report).  However, to find them just click “My Account” in the upper right corner and then click “My Financial Data”.
• Home estimations are performed by a service that pulls public records, but should be taken with a grain of salt.  This is a good starting point, but to get a completely accurate value for your home you would need to hire an appraiser to come out and do an appraisal.

Bottom line, Credit Sesame is the real deal and a much better alternative to having to pay for your credit score or provide a credit card to sign up for a “free trial” that’s not really free.

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When should you buy a car to get the best price? Let’s look at how your timing can affect car prices.

As you’re reading, just remember that regardless of when you buy, you’ll find the best car prices online, not at the dealership.

  Click the infographic below to enlarge.

Embed this image on your site:
<a href="http://blog.findthebestcarprice.com/car-buying-tips/best-time-to-buy-a-car/"><img src="http://www.findthebestcarprice.com/images/best-time-to-buy-a-car.jpg" alt="Best time to buy a car" title="Best time to buy a car"/></a><br/>Source: <a href="http://blog.findthebestcarprice.com/car-buying-tips/best-time-to-buy-a-car/">Best Time to Buy a Car</a><br/>

Best Time of Year to Buy a Car

You can find the best prices on seasonal vehicles off-season.  Convertibles and sports cars can be cheaper in the fall and early winter because of less demand.  SUV’s might be discounted in the summer when gas prices are up and people aren’t as concerned about finding four wheel drive cars to navigate wintery roads.

If you’re looking for a home on the road, the best time to buy an RV in colder climates is when the snowbirds have headed south for the Winter.  Demand drops off and sellers know they are going to have to go through the hassle of winterizing and storing the RV for the off season.   Conversely, in parts of the South, the best time to buy an RV is in late Spring after buyers migrate back north and there is less local demand.

The fall months are also good for sales at the end of a model year.  Different manufacturers end model years at different times, but many change years in September or October.  Dealers want to get rid of old models to make room for new ones. And you can get especially good deals if the body style is changing.  Just be careful to weigh the discount on an end of model-year car.  As soon as you enter a new year, that car’s resale value will take a hit because it’s labeled as a whole year older.

Best Month to Buy a Car

December is a great month to buy a car because dealerships are desperate to lure shoppers on the lot while most people are preparing for the holidays and spending all their extra cash on gifts.  It’s also the best time of year to buy a car because dealerships are trying to hit their annual sales quotas and related bonuses.  Dealerships have both month-end and year-end targets, so December means big discounts.  And if you don’t want to stay home on the holidays, Christmas Eve and New Year’s Eve are typically two of the best days of the year to find deals.

Best Day to Buy a Car

Even if you forget everything else, remember this statement:  The best time to buy a car is the last couple days of the month.  Manufacturers set monthly targets for car dealerships.  If car salesmen and dealerships meet their monthly sales goals they can earn bonuses.  So if you time your car purchase towards the end of the month you could end up buying from a car salesman who is close to hitting his quota and earning a bonus payment.  This bonus may be much bigger than the loss he takes on a single sale and as a result he may be willing to provide a bigger discount to you in order to earn that bonus.

And interestingly enough, the second best time to buy a car is the first couple days of the month.  Because the end of the month trick is widely known, salesmen are usually pretty busy with buyers that have waited.  As a result, the first couple days of the month mean fewer buyers and idle salesmen may be willing to deal.  Salesmen may also want to get a jump on their monthly sales quotas so they’re not under as much pressure at the end of the month.

You can also check Edmunds predicted price trends which forecasts whether prices are headed up or down for most models over the next 30 days.

Best Time to Buy a Car

Don’t go out of your way for this one, but some dealerships offer salesmen a small bonus ($100 or so) for selling the first car of the day on a Saturday or holiday to encourage sales. So if you are one of the first buyers of the day you may notice a small benefit.

What’s the Best Way to Buy a Car?

That’s easy, don’t go to the dealership at all!  Get car prices from multiple local dealers and ask them to compete with each other over email.  I explain how in my free guide, How to Buy a Car at the Best Possible Price.

What if You Need a Car Now?

As much as you might like to time your car purchase to get the best deal, it’s not always possible.  Sometimes an accident or unexpected repair may make waiting difficult.  In these cases, you can still get car prices online and make car dealers compete.  And check out Edmunds car incentives and rebates to see which manufacturers are currently running promotions.

European Delivery Programs

Here’s a final added tidbit.  If you are considering buying a high-end luxury car, why not take a trip to Europe?  While timing a luxury car purchase may not net you savings on the car itself, you can save on your vacation spending.  Manufacturers like Audi, BMW, Mercedes, Porsche, and Volvo all offer vacation packages that allow you to pick up your car in Europe and tour the country side.   As for the best time of year, Spring is a great time to visit Europe while the weather is comfortable but the high-priced summer tourist season as not begun yet.

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Today I’ll explain how to save thousands and buy a new car at the best possible price in this short video. You can find email samples to send to car dealers, car price services, and a spreadsheet to track car dealer responses in my free guide: How to buy a new car at the best possible price.

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How do you know what to pay for a new car?  Most people never really know.  They do a little haggling and hope the price they got was a fair deal.  But now that TrueCar is on the job that guess work is gone.  TrueCar collects statistics from car sales across the country and shows them to you so you know exactly what to expect.

Before you read about how TrueCar works, let me start out by telling you it’s possible to beat TrueCar prices.  They do offer a fantastic tool to find low priced cars, but you should not stop price hunting after getting their “Best Local Price”.  More on that later, but first…

What is TrueCar?

TrueCar provides guaranteed car price quotes with a twist.  They enable consumers to see exactly what other people paid for new cars in their local area.  This gives you an answer to the most commonly asked car buying question, “What price should I really pay for a new car?”

Unlike other car quote  services, TrueCar has access to real-time market data and they use it to help you understand what to pay.  When you enter a make and model, they’ll show you a clever chart like the one above that reveals dealer cost and what’s considered a good deal.  In negotiations, this information is extremely valuable whether you buy a car through one of TrueCar’s network of dealers or not.

TrueCar Review

Here’s what I like about TrueCar

• You get haggle-free, guaranteed price quotes on new cars and trucks from local dealers in your area.  Other services will put you in contact with local dealers, but you won’t find the same layer of cost transparency and upfront pricing.
• Their Price Report shows you the actual car cost, average price paid, and what constitutes a good deal in a clever graph. This is similar to Edmunds True Market Value® which I explain in this Edmunds Review.
• Their Price Report also includes a “flexibility score” of how much negotiating room a dealer has on that model.

Here are the only things I don’t like about TrueCar

• Their advice is to take your “Best Local Price” to the dealer (which is usually quite good), but to not bother negotiating the price any further.  A TrueCar Price Report will certainly help you get a fair price, but by itself may not get you the absolute best price.
• They only put you in contact with three local dealers.
• Dealers quote a price through TrueCar on a model, color, and options, but may not actually have that configuration in stock.
• They don’t help you find the best car financing or get the most trade in value for a car which are huge aspects of a car purchase and can cost you a lot of money if not handled properly.  But then again, you’re on your own for these items when using any car price service, so I can’t fault TrueCar too much for leaving them out.

How to Really Use a TrueCar Price Report

For most people, simply getting a TrueCar price report and using it at a local dealership is enough to get you a fair price on a new car.  However, I like to take it a step further and see if I can find any dealers willing to give me a better deal.  I use the price report as a guideline of what I should pay for a car, but I still try to beat that price.

After you have a target of what you should pay for a new car, use their service to locate dealers and get price quotes.  Then email each dealer and ask them if they’re willing to beat the best price you’ve received so far.  Don’t be surprised if you are able to get even more savings than the low price you were quoted online.  You can use the emails and car buying tips I’ve included in my free car buying guide: How to buy a new car at the best possible price.

Other Tips for Using TrueCar:

• There’s a small, almost hidden button underneath the price that says “Edit Options”.  Use this to configure the car the way you want it.  Make sure you input all your desired options BEFORE requesting a quote.  You want to be certain dealers all quote you based on the same set of options.
• TrueCar only puts you in touch with three local dealers and I suggest contacting 5-8 to get truly competitive pricing.  However, it’s easy to find other local dealers by combining TrueCar quotes with quotes from another service like Edmunds or other car quote services as well.
• If you get to the dealership and they do not have the exact configuration you were quoted, don’t get sucked into paying a higher price.  The Price Report you receive will be for a specific trim and options package, but dealers don’t always carry cars in stock for every possible configuration.  So before you go to the dealership, make sure the dealer provides you with a specific VIN number, price, and list of options.  If they try to add options and increase the price, consider checking with other dealers for what you want.
• Don’t forget that a good car price is only half the battle.  Once you get to the dealership be prepare to negotiate car financing and the price of your trade-in as well.

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You’ve probably seen the stereotype of many families going from convertible coupes to minivans once they decide to grow a family. The fact is, if you have a smaller family, a minivan may not be for you. Just like with homes, you shouldn’t buy more car than you need or can afford. If you plan on keeping your family to 2 kids or less, you may have to do a different type of search for your family vehicle.

Safety

The number one most important thing to consider when you’re choosing a car for your family is safety. You want to keep your family safe while driving, whether it’s an accident, bad weather, or just a seemingly safe ride. You should check consumer reports for car safety awards and start your search there, to see which cars will do the best to protect your family from harm. These reports will include how the car handled in rear end, head on, and jackknife collisions, as well as blind spots and if its car seat compatible.

If you have small children, child lock will be an important feature, and possibly even window locks. See how prospect cars did in road tests, which may include extreme weather conditions and accident avoidance. Also, don’t forget to do some research regarding any recalled vehicles before making your decision.

Comfort

Even for a small family, space is going to be essential. Obviously, any two seater is out of the question, but if you have a 4 person household, you probably don’t need a third row of seats. Enough room for everyone to have a seat is important though, and you may want to look into sedans instead of coupes if the family travels together often.

More cars are being manufactured with families in mind, so they’re leaving a lot more room for the kids to sit in the back seat without kicking your chair or being cramped when they hit a growth spurt. Some cars even have some entertainment features that can make the ride more comfortable, like a DVD player and TV, a storage area to keep games and toys, or even seat warmers for those cold drives. And dual climate control can be a dream.

Reliability

Debating between an older model and a brand new car? Consider the reliability of your family vehicle. You’ll want to make sure you won’t spend a lot of time at the auto shop doing repairs outside of regular oil changes and maintenance. It’s important to choose a car that has a good CarFax history and will continuously get you from point A to point B without stalling, sputtering, or breaking down. The last thing your family needs is a car that needs elbow grease and a prayer every morning before you know if you’ll be able to drive it or not. Not saying that you should get the latest model, but it’s probably best to stay away from cars that are more than 10 years old.

Mileage

Even for a small household, family members may all have to be at different places at different times. Maybe mom is at home while dad is at work and the kids are at school. You can accrue 25-50 miles per day making necessary trips, and even more if you’re running errands, visiting family members or taking a family trip. When you’re choosing your car, you’ll want to ensure you’re getting great gas mileage.

Stay away from turbos and V8 engines, which are gas guzzlers and will hurt your pocket every time you’re at the pump. Fuel efficient vehicles that have mileage of 23 miles per gallon and above are your best bet.

Cost

One of the final deciding factors in your search for the perfect family car is the price. Budget how much you’re willing to spend each month and be sure to include insurance, gas, and maintenance when establishing your budget. When looking for a lender, check with your local bank or credit union first and then look for loans online.  When you get to the dealership see if they can beat your outside rates or if they have any financing specials. Be sure to check your credit yourself before having dealerships run your credit so that you know ahead of time what to expect. You don’t want a lot of inquiries on your report, so make sure all your credit checks are performed within a short period of time.

This post is brought to you by MoneyChoices where you can compare cheap car loans.

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