Car Buyers and Leasers Say Getting the Lowest Price is Most Important
Consumer Reports Car-Buying Survey 2001: New Car Buyers and Leasers Say Getting the Lowest Price is Most Important, But Many Didn't Shop Around
YONKERS, N.Y.--March 14, 2001--
Consumer Reports New Car Price Service surprised that 36.5% visited only one dealer before making final selection
When negotiating for a vehicle, getting the lowest total price is most important, according to 70% of the respondents to the 2001 Consumer Reports Auto Buying Survey. However, if finding the best price is key, Consumer Reports New Car Price Service was surprised that so few new-car buyers and leasers did comparison shopping - 36.5% of the respondents visited only one dealer before making their final selection. And 30% did not negotiate. Next time, the same respondents say, they would act differently: 41% would visit more dealers and elicit more bids; 29% would investigate car buying and leasing options through the Internet; 28% would learn more about the options packages available for the model that interests them; and 25% would compare more models before settling on the one they bought. "If getting the best price is the most important factor, buyers and leasers can be doing so much more," says Paige Amidon, Chief Marketing Officer of New Media and Consumer Reports Car Price Services. "Evaluate several models that meet your needs. Visit multiple dealers, and use Consumer Reports' Wholesale Price, the closest approximation to actual dealer cost, as a negotiation tool." The Consumer Reports Wholesale Price includes current national rebates as well as the behind-the-scenes financial incentives that manufacturers give to dealers to increase sales of particular models. And there's also information on dealer holdbacks, which are the reimbursements from manufacturers to dealers that typically amount to about two to three percent of a car's invoice price. "We know that the median price for a new car is $25,500, according to our survey," says Amidon. "If you use Consumer Reports Wholesale Price as a negotiating tool, you can save, on average, $2,200." When you visit www.ConsumerReports.org, click on the New Car Price Service link, and you'll find information on Consumer Reports Wholesale Price with actual figures that show your potential savings for some popular vehicles. "In addition to our unique Consumer Reports Wholesale Price, which has great money-saving value, Consumer Reports New Car Price Service tool kit provides, at a $12 cost, buying and leasing advice, our expert recommendations on options and equipment for a car, a list of alternate models we recommend, and Consumer Reports' unparalleled performance and reliability data," adds Amidon. Because rebates, holdbacks, and dealer incentives vary with shifts in supply and demand for any given model, Amidon says, shoppers should check prices in effect at the time they're actively looking. Also, it's not uncommon for dealers to charge (and get) the manufacturer's suggested retail price (MSRP) or near it for cars that are much in demand. To order a price report for a specific model by fax or mail from the Consumer Reports New Car Price Service, call -- toll free - 800-395-4400, or order and view your reports on our web site, www.ConsumerReports.org. Reports for currently sold automobiles cost $12 for one vehicle and $10 for each additional vehicle requested. The second Annual Survey, part of which appears in Consumer Reports April Auto issue, was conducted in January 2001 among a nationally representative sample of recent car buyers and leasers, and is based on 1,001 responses. It was conducted on behalf of Consumer Reports Auto Price Services, Consumer Reports magazine, and Special Publications. Other car-buying trends from the Survey:
- Convenient location (52%) and treatment by staff (50%), rather than price, were the main reasons most people selected a particular dealer when they finally bought or leased their vehicle. - The three most important factors for choosing a vehicle were: getting a reliable car (52%), appearance/styling (44%), and getting the best possible price (40%). - The most commonly sought information was price (71%), but buyers were more likely to seek it than were leasers (75% vs. 64%). Leasers were more likely than buyers to search for information on financing options (39% vs. 23%). - In negotiations, ensuring that the respondents would get the lowest total price for the vehicle was listed as most important by 70%, followed by getting an affordable monthly payment (26%), finding a deal that required no money down (6%), and getting the most favorable credit terms on a loan (4%). Buyers were more interested in getting the lowest total price for the vehicle (79%) than leasers (43%). Leasers were significantly more likely to consider the monthly payment figure (43%) than buyers (19%) as important. - Almost two-thirds (65%) characterized the experience of getting a car as fun or at least rather pleasant. - Only 1.5% had bought their vehicles online. However, an additional 3.6% had tried to buy online. - When Consumer Reports conducted the study last year, about 40% of respondents said they would use the Web to either buy or get a deal referral. This year, that figure was up to 64%.
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