Consumer Reports Urges Consumers to Consider All Their Costs before They Opt for a No-Interest or Low-Interest Car Loan

CR says consumers should consider reliability, cash rebates, before they buy

YONKERS, NY - Consumer Reports' auto experts urged consumers to consider all
their car buying and ownership costs before opting for a low- or
zero-interest loan from an automaker. Buyers should be sure to ask about any
available cash rebates or other sales incentives, and consider vehicle
reliability and performance before they plunk down a deposit, the experts
said.

"There's no doubt that some of these financing deals can save you money,"
said Consumer Reports Automotive Editor Rik Paul. "But there's more to
consider in buying a car than just a financing rate."

It may make better financial sense over the long haul to buy a consistently
reliable model at a little higher interest than an unreliable model at
zero-percent interest, Paul advised. Similarly, saving a few dollars each
month in payments may not seem worth it if you don't like the vehicle's
performance, comfort, or safety ratings, he said.

Several major auto manufacturers have been using an aggressive campaign of
buyer incentives, in the form of low- or zero-interest loans and hefty cash
rebates, to lure consumers back into dealerships following the September 11
terrorist attacks.

All three domestic manufacturers currently offer some form of
zero-percent/cash-back program, though the particulars of each campaign can
vary regionally and from model to model. Most of the Big 3's models are
included in the programs and a buyer can typically choose either the
low-interest financing or a cash rebate, but not both. In most cases, the
zero-percent financing option is available only for loans of 36 months or
less. Low-interest loans, with rates of 0.9- to 4.9-percent, are being
offered for longer loan periods. Typically, these special financing programs
are only available to buyers with good credit ratings. Other automakers
including Mazda, Mitsubishi, Suzuki, and Toyota, are offering their own
sales incentives.

Regardless of whether you choose a low interest rate or a cash rebate,
you'll still want to negotiate the vehicle's price, according to Robert
Gentile, manager of Consumer Reports' Auto Price Service. There's no reason
why consumers shouldn't get the lowest price possible on a vehicle, plus any
available incentive savings, too, Gentile said.

When negotiating for any new vehicle, it's better to start with what the
dealer paid for the vehicle and bargain up-rather than start with the
sticker price and bargain down, he said.

The dealer invoice price for any vehicle is widely available on the Internet
and in published pricing guides. Gentile cautioned, though, that the dealer
invoice price isn't necessarily what the dealer paid for the vehicle; there
can be behind-the-scenes programs such as a holdback or a special dealer
sales incentive that can lower the dealer's actual cost. To get the lowest
price, you need to take all of these factors into consideration.

Consumer Reports offers numerous products and services to help buyers find
top-performing and reliable vehicles at a good price:

*	The Consumer Reports' New Car Preview 2002, on newsstands now, can
help car-buyers research performance ratings and reliability data on more
than 200 cars, sport-utility vehicles, pick-up trucks, and minivans. The
book includes Consumer Reports' latest list of "top picks"-vehicles that
Consumer Reports' auto experts have rated as the top models in their
categories. Each of Consumer Reports' top picks has excelled in CR's testing
and demonstrated average or better reliability. The vehicle profiles cover
virtually all of the 2002 and early-2003 models. Profiles include expert,
unbiased critiques, key specifications, and a rundown of major safety
features. Most models also include a reliability forecast, based on Consumer
Reports' latest real-world annual survey results, and a reliability history
that shows how past versions of the model have fared in 14 major trouble
areas. The Consumer Reports' New Car Preview 2002 costs $5.95 ($6.95 in
Canada) and is available wherever magazines are sold.
*	Consumer Reports New Car Price Service provides car-buying reports
featuring CR's unique Ratings and reliability information. The reports
contain extensive pricing information, including the latest financing offers
and rebates from manufacturers and the Consumer Reports Wholesale Price
(which factors in buyer rebates and what the dealer paid after incentives).
Buyers simply call the service toll free at 1-800-395-4400 and provide the
year, make, model, and trim line of the vehicle they want to buy. Complete
pricing reports, with detailed reliability information and advice on
negotiating the best deal are available online, or by fax or mail. New-car
reports cost just $12.
*	Car buyers can also visit the Autos section at ConsumerReports.org.
The Web site's Autos area contains extensive free advice on buying a new
car, selling your used car, and interactive tools to help you buy or sell a
car. Site subscribers pay just $3.95 per month or $24 per year ($19 for
Consumer Reports subscribers) to access Ratings and Recommendations,
reviews, and reliability histories on hundreds of cars and trucks, as well
as additional features including CR's forums.
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