Thus far, despite high gas prices U.S. consumers have not been aggressive in seeking more fuel-efficient cars and trucks.
Chief economist Paul Taylor of the National Automobile Dealers Association, believes that as gas prices continue to rise, it could change consumers' auto buying behaviors.
Over a nearly two year period, a 30% increase in gasoline prices resulted in a 5% increase in customers choosing a four-cylinder engine over a six-cylinder, he said.
Also, sales of crossover SUVs are increasing as sales of traditional truck-based SUVs decline. Taylor said eight-cylinder demand has stayed constant in recent years for a variety of reasons, including strong demand in pickup trucks. Many buyers of pickup trucks need a larger engine for business purposes and therefore buy relatively large diesel engines to take advantage of fuel efficiency, durability and increased towing power. Automakers and dealers say they are increasingly aware of consumer anxiety over fuel economy, even if those fears have yet to spur major changes in customer buying habits. But experts say the cost of gas will have to go higher than $3 per gallon -- and stay there -- to bring on a major change in the type of vehicles Americans purchase. "The difference now is it's on everybody's mind," said Jerry Reynolds, a Ford dealer in Garland, Texas. "Everyone buying a car is trying to improve their fuel economy."
But watch out... All three of the big auto makers will soon roll-out special incentive auto loans, including 0% financing, particularly for gas-guzzling models. The hope is that it will outweigh consumers' concerns about fuel-efficiency.
How To Negotiate With Car Dealers - It is important to be specific about your auto requirements when talking to an auto dealer. Even though you may tell them the price range you want to spend and the name of the auto, this may not be specific enough. Be more prepared with prices for the auto you desire. You could have prices for the auto you want to buy using the True Market Value (what others are paying for a similar vehicle), MSRP (the dealer sticker price), and Edmunds, (what the dealer pays for the car). Dealers can sometimes give a lot of options for an auto when a buyer is not very specific about the auto they want to buy and this can be confusing to a buyer. When seeking a used auto, doing some research on the going cost based on the age of the auto and mileage can be valuable to getting a good deal.
When you talk to a sales person, it is important to know the model, model year, and mileage. Check out Autotrader.com or the dealer's own website and look at the vehicles to determine if any fit your criteria. Call the dealer and ask if the ones you are interested in are still on the lot. Don't mention any price expectations when on the phone. By spending time on the internet and the phone it can save time until you visit the dealership. When you do visit dealerships, visit at least six and take notes on the auto you are seeking. Don't grab the first deal. Compare prices and features and later make a decision when you have gathered all your information. Let the sales persons know you are comparing autos among several dealerships.
Always wait for the salesman to make an offer first, even if you are comfortable with the price. Sometimes one salesman is trying to low-ball a competitor and you could get a bargain if you wait to let the dealer make his best offer. If the dealer is not willing to make you a good price, don't hesitate to walk off and check out a different dealership.
It can be best not to mention "monthly payments" as a salesman may try to sell you on a new auto as opposed to a used auto. A new auto is usually going to cost more each month. You should have a budget in mind for the auto note and not venture from the amount. Be knowledgeable and well-informed or you will be taken advantage of as sales people usually try to determine if you are easy prey. Carry some print outs from your research to let them know you are going to buy an auto and you are not just window shopping for entertainment. Ask questions to see if your salesman is holding back any information.
Ask the "drive-out price" which is the price after taxes, title, fees that you will be writing a check for or getting financed. It can be better to negotiate with the drive-out price instead of an actual sale price. For example, if the drive-out price is $12,000 and you negotiate for o $11,500, you are saving $500. Make sure you have all the information to make a good decision in choosing your auto whether new or used. Take time to think about your finances, compare prices, and shop around.
