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Tips for Buying a New Car

Buying a new car can be an intimidating process, but if you keep a few simple tips in mind you'll come away from it with the car you want and a few extra bucks in your pocket.  

The first thing you should do is learn the invoice cost.  That's the price the dealer paid for the car.  The sticker price is what the dealer wants you to pay for the car.  But if you know the true invoice price, you'll be able to negotiate more effectively.  Contacting the Consumer Reports New Car Price Service is your best bet.  For a minimal fee of about $12, the service will send you a report with the vehicle's invoice price, current rebates, factory-to-dealer incentives, holdbacks, and other valuable advice.  People who take advantage of the service save an average of $1,300 when purchasing their new car.  

Once you've done your homework, you'll have a clear view of the difference between the invoice and sticker prices.  Knowing the exact negotiating room will prove a great benefit when you're haggling with the dealer.  

Forget about the sticker price.  Always bargain up from the invoice price.  Ask the salesman what his lowest markup is over cost.  If the car isn't in tight supply, you may be able to score big savings.  

Finally, don't bite on extras like undercoating, rustproofing. fabric protection and windshield etching.  They're all unnecessary and only serve to inflate the price.  

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