Consumer Reports finds hidden new-car incentives leave room for more negotiation

Posted Thursday, September 6, 2007

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As ’07 model year wraps with big discounts, a little research can save shoppers even more

Yonkers, NY – Labor Day weekend is one of the biggest for new-car shoppers as manufacturers clear out 2007 models with dramatic discounts and cash incentives. But a new analysis from Consumer Reports shows there is more potential savings than shoppers may realize.

In July, Consumer Reports’ Auto Price Service (APS) found dealers received an average $1,238 in unadvertised incentives from manufacturers on sedans across all vehicle variations and regions. Combined with an average manufacturer-to-customer incentive of $2,174, a well-informed buyer could negotiate $3,000 off and still leave the dealer with an earnings bonus. And it’s not just sedans; more hidden incentives can be found in other vehicle categories, as well. For the Labor Day weekend, Consumer Reports experts predict convertibles, sedans, and SUVs will be the most subsidized categories. For more details, car shoppers can find the full report on buying a year-end clearance model and Consumer Reports’ current list of Best New Car Deals online at www.consumerreports.org/cro/cars

“To empower their negotiations, smart buyers should be armed with both customer rebates and hidden dealer incentives,” said Jeff Bartlett, deputy autos editor of ConsumerReports.org. “Otherwise there is no way to distinguish a raw deal from a good one.” At www.consumerreports.org/aps car shoppers can purchase a New Car Buying Kit ($39 for a three month subscription), which includes Consumer Reports’ unique Bottom Line Price information, expert technical reports, and reliability ratings on hundreds of new cars, SUVs, minivans, and pickup trucks. The Bottom Line Price calculates all rebates and incentives – both customer and dealer – to give shoppers a price from which to start negotiating up.

For those shopping for a new car, Consumer Reports experts recommend:

* Research rebates and incentives that apply to both buyer and dealer;

* Don’t shop on price alone. Choose a vehicle that performs well, is safe, and reliable - a good deal on a bad car is no deal at all;

* Think twice about buying a 2007 model if you plan to trade or sell in just a couple years

With more than 6,800,000 print and online subscribers, Consumer Reports is one of the most trusted sources for information and advice on consumer products and services. It conducts the most comprehensive auto-test program of any U.S. publication or Website; the magazine’s auto experts have decades of experience in driving, testing, and reporting on cars. To become a subscriber, consumers can call 1-800-234-1645. Information and articles from the magazine can be accessed online at www.ConsumerReports.org .

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