[/caption] The average NEW CAR buyer will appreciate the Auto Sales Tax deduction for the recent American Reinvestment and Recovery Act, however, the actual value of the program is probably less than $500.00 in actual cash value. The truth is most new car buyers are looking for below invoice prices, huge rebates and low interest rates. The reality is you may get one or the other but not all three, unless you are open to any type of vehicle, have a FICO AUTO score of 800, and no “upside-down trade-in.” The truth about Auto, Wholesale, Fleet, Internet invoice pricing is this; forget what is advertised or found online at websites like edmunds.com or kbb.com Invariably the car you build with these ‘build your own’ models rarelymatch the actual factory-dealer invoice. There are advertising and market region costs that must be figured into the invoice cost. Sometimes the additional fees (clearly noted as a warning on some websites) can add 1% or 2% to the cost. There are often exclusions for certain regions of the country or mixing program offers. It always seems like the disclaimer is buried in the back matter or says: See dealer for details. (This usually sends the customer running away). You can take the factory offer of a low interest rate or the rebate, but you can’t have both. In some cases, you may be offered a reduced rebate and a slightly higher interest rate, but these offers do nothing but confuse the car buyer. My rule of thumb is simpler: If you owe more on your trade-in than what the car is worth, take the rebate to help balance the loan. You can always refinance or pay-off the vehicle early. Don’t get hung-up on interest rates. The banks are being scrutinized and if the difference between you driving or walking is the interest rate, take the best finance offer your credit score and cash down gets you. These are tough times. If you have a great score and no negative trade-in, go for the rebate if you plan to trade or pay it off early. The cash value of a low interest rate only comes out ahead when you keep the car the entire term of the loan at a rate 2% points less than your best conventional finance plan/dealer can offer. The sad fact is most folks take the low rate and end up trading the car in less than 4 years or suffer a total loss, which renders the loan cancelled. In either case, cancelled loans before maturity cost you the savings you were expecting. Rebates are “cash in fist” and you can’t lose it on the back-end. In all this noise about car dealerships closing, dealers hurting and the auto industry in a state of near collapse, read between the lines. People are buying cars, trucks, vans and suv’s, both new and used. The car buyer is shopping longer with less inventory to pick from. You and your friends, neighbors and family are competing for the GREAT CAR DEAL, which limits the steals on wheels. Be realistic and ready. Have your credit score/financing ready as a back-up to the dealers offer. When you see the car you want, make a reasonable offer and be prepared to buy it that moment. You won’t often get a second chance. Nice cars at great prices don’t last a day. Use a car broker or car buyer’s agent to find you that perfect car. Having an ‘insider’ will cut down on the run around nonsense and haggling, and usually gets you the car before everyone else. You can easily save the cost of a broker or agent in the price they’ll get you, never mind the time. Dealers have a network of people who know who, what and where to find the deals long before they get photographed for the internet. So thank President Obama for the tax help but ask him to push the banks to use those bailout dollars to help you get a car loan! ———————————————————————————— To learn more about getting your best car deal click here: CAR DEALS Sarah Lee is an automotive executive with 20+ years of experience. She writers about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com ]]>