Press Release

Consumer Reports Tips: Getting a Good Deal on New or Used Cars

03/18/97

Consumer Reports--How to Buy or Lease a Car: You don't have to be a
financial whiz to get a good deal on a new or used car


YONKERS, NY - For most people, car shopping is an unfamiliar and
daunting experience.  Should you buy - new or used?  Should you lease?
Whatever your decision, you needn't be a skilled haggler to wrangle a
good deal.  Consumer Reports magazine's annual April Auto issue offers
sound advice on how to negotiate the best price - no matter what the
mode of payment or the age of the car.

Shopping for a car can be a rational process or an emotional odyssey.
There are practical considerations like overall performance, safety,
and reliability.  And there are abstract considerations like
aesthetics and image.  Whether you buy or lease, new or used, the more
your practical side prevails, the better your chances of getting the
best transportation at the lowest price.

Nearly two-thirds of all cars sold last year were used vehicles; more
than 30 percent of new cars will be leased rather than bought this
year.  To be successful in any purchase or lease transaction, new or
used, you have to do some homework to get the dependable information
you need.  Begin by choosing several models to focus on.  Shop around
- that's the most basic tenet for getting the best price.  Talk to
your insurance agent; insuring a sports car, for instance, could be
very expensive.  If you're buying a new car and expect to get rid of
it in a few years, look for a model that doesn't depreciate quickly.
And consider the model's reliability record in April's Consumer
Reports.

Consumer Reports complied these pluses or minuses to help you decide
which shopping option works for you.

When buying New, the vehicle has full useful life; hasn't been abused;
has a full factory warranty; has the latest technical features; comes
in a wide choice of models, equipment, and colors.

But: There's a high initial cost; high depreciation in the first
     years; and high insurance rates.

When Leasing, there are lower monthly payments, low down payment, and
you can drive new or nearly new car all the time.

But: You never own the car, there's a penalty for early termination;
     end -of-the-lease costs may be steep; there are mileage caps; there
     are "excess wear and tear" penalties; there's enormous potential for
     fraud and misrepresentation; there are high insurance rates.

When Buying Used, there are lower initial costs; lower depreciation
from purchase price; and lower insurance rates.

But: The most trouble-free part of a car's useful life has been used
     up; there may be undisclosed defects; at best, there's a limited
     warranty, at worst, none at all; the vehicle may lack the latest
     technical features; you're choosing from a limited selection of
     models, equipment, and colors.

Also in the article, you'll find a chart that compares the cost of
leasing versus buying a typical $20,000 car, a table showing the best
dealers, according Consumer Reports readers who responded to questions
about car-buying satisfaction in the Annual Questionnaire (the best
dealers, as the table shows, aren't always those who sell the
costliest cars); and the lingo you need to learn when leasing.

Consumer Reports offers detailed price information through Consumer
Reports New Car Price Service, at a cost of $12 for the first report
and $10 for each additional one, which can be ordered by calling
1-800-395-4400.  A printout lists sticker and invoice prices for the
specific model you request and all its factory options.  It also tells
factory "incentives" - rebates or low interest rates.  If you're
leasing a car, you'll receive a leasing worksheet and special advice
that will help you negotiate the lowest prices - and explain to you
the "legalese" and fine print in your leasing contract.  This service
can also give you the trade in value of your current car, or can call
Consumer Reports Used Car Price Service direct, 1-900-329-9111, at a
cost of $1.75 per minute, with the typical call lasting five minutes
or more.

Consumer Reports April issue provides:

   -profiles of nearly 186 new passenger cars, minivans, SUVs, and pickup
    trucks

   -easy-to-read charts for comparing ratings and reliability of 123 new
    models, based on recent history

   -detailed reliability data on 222 models covering model-years 1989 to
    1996

   -a look at how Consumer Reports tests cars

   -information on crash-test evaluations, what they signify, and safety
    equipment to buy

   -how to buy or lease a car

The April issue of Consumer Reports will be available March 25
wherever magazines are sold.  For information on subscribing, call
1-800- 234-1645.  Copies of the full report covered in this release
will also be available by fax or mail starting March 25, under code
number 9559 for The 1997 Cars, via Consumer Reports by Request,
1-800-419-9824, at a cost of $7.75 per report.