It's the worst of times for the auto industry but the best of times for car buyers. With car sales in recent months down more than 40 percent from their peak, automakers are offering generous sales incentives, dealers are primed to bargain, and even the government is offering special programs to get buyers into the showroom. By knowing what tools are available and how to take advantage of them, buyers can save thousands of dollars on a new car.
On the other hand, you must be extra wary of dealer tricks and sales tactics designed to get you to pay more money. "The scams are getting worse, because so many dealers are hanging on by a thread," says Rosemary Shahan, president of Consumers for Auto Reliability and Safety, in Sacramento, Calif. "The irony is, the products have never been better; the practices have never been worse."
So it's more important than ever to be prepared before you buy and to know how to avoid paying extra.