The frugal living blog author in me wants to encourage you to buy a used car, rather than new.  But some people buy new cars.  I have and will again.  So if you are in the market for a new car… today’s post is for you!

I recently came across a website that allows you to see what other people have paid for their new car.  It’s called truecar.com.  I’m not promoting this site, I just came across it in my travels and thought it was cool.  You choose the make and model, along with options, and then the site gives you a realistic price range based on what others have reported they paid.

If you are in the market for a new car this is really neat info to have.  Not only does it help you narrow down your choices with informed information, it’s a good tool to have when you are negotiating your price.

One thing that surprised me is how close the price range really is.  I played around with several different cars and most of them had high and low prices within a couple of hundred dollars.  The biggest range I saw was $2,000.  Now, I didn’t go nuts… I looked at 4 or 5 different cars so maybe it was just coincidence, but still.  I was surprised all the prices were pretty much in line with one another.  What really seems to cause price variances are the options.  If you know someone who paid $5,000 more than someone else for the same car, chances are it’s because of their options, not their negotiating skills.

Keep this tip in mind when you go to buy your new car.  Watch those options!  Better to wait a few weeks for your made to order car to be delivered, then to pay for options you don’t need.  Do you really want to pay for that roof rack, the mesh pockets in the trunk, or upgraded floor mats?  It pays to be nit picky about these things.

The site also gives you the price the dealership pays.  This was another surprise for me.  Maybe this is common knowledge to some… but I was surprised how high their prices are.  Often times their price is only two thousand less than sticker.  That doesn’t leave much room for negotiations, or profits.  It explains why the prices paid by consumers are so similar.  There is only so much the dealership can do.

pic by: box of lettuce

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