Shopping for Insurance

Some people love to haggle, but others dread the prospect. Now, there are ways for you to minimize or even skip that part of the process.

Recent studies indicate about one-third of consumers want to negotiate for the best deal, and another one-third is willing negotiate if they have to. The final third favors a one-price, no-haggle environment, and most are willing to pay more for it.

If you're uneasy about negotiating with a dealer, shop for a "one-price" model, such as a Saturn. Or, pick dealers that advertise no-dicker sales practices. Then, what you see on the window sticker is what you will pay. Period. That will reduce the stress and let you concentrate on finding the model that best meets your needs. You might pay more than you hoped, but at least you can be satisfied no one else paid less at that dealership.

A highly-publicized trend a few years ago, one-price selling is not as popular today, partly because some of those no-haggle prices were too high. To make that method work effectively, salespeople have to be paid a salary rather than a commission--a change most dealers resist.

The latest trend in pricing and packaging is something many consumers have requested for years--equip vehicles with the features people are most likely to want. That reduces the number of optional features consumers have to consider and makes price haggling less of an issue.

GM used that approach on recently introduced models such as the Chevrolet Malibu and Oldsmobile Cutlass. Ford Motor Company took it a step further by offering most of its 1998 Ford and Mercury passenger cars in a 2-model lineup. For example, the Escort sedan came in base LX and more-expensive SE models and the ZX2 coupe was available in Cool and Hot models. You might have to buy the more-expensive version to get certain options, such as a sunroof or alloy wheels.

There are major new players in the new-car business that are changing the way cars are sold. So far, the "big-box superstores," such as CarMax and AutoNation, have concentrated on used-car sales. They have obtained several franchises to sell new vehicles, however, and plan to become a one stop source for everything automotive, providing a no-haggle, uniform buying experience for several brands of vehicles. This has motivated car companies and individual dealers to improve their sales techniques to compete in this new environment.

There also are independent brokers, agents, and buying services that work in place of dealers or as middlemen who link consumers with dealers. Brokers typically receive payment from dealers for steering business their way. Some brokers are dealers themselves or purchase cars from dealers for resale. Brokers are banned in seven states, and 10 states require that they be licensed.

Members of the National Association of Buyers Agents charge a specific fee to the shopper for their efforts but are prohibited from receiving any payment from dealers. If a buying service charges no fee, they might receive a fee or commission from the dealer to which they send you.

Web Surfing

Technology is helping to change the buying process, and many consumers now buy or shop for a car by computer to bypass all or some traditional routes. The day of ordering a car by computer and having it delivered to your door could arrive soon.

More than half of America's 19,500 new-car dealers have their own Web site, the National Automobile Dealers Association estimates. On over 50 percent of those dealer Web sites, consumers can browse the new- and used-vehicle inventory.

Several on-line services transmit purchase requests to a participating dealer, who then responds with his best price for that model. How can you tell if the price you receive through the Internet is the lowest available? Only by comparing it to prices offered by other dealerships.

The trend toward a virtual showroom continues to grow. Nearly every automaker has established a site on the Internet to provide product information. Some are entertaining and informative, allowing you to "build" your vehicle of choice, obtain a complete retail price list, even apply for a loan and make an appointment with a dealership. Others are no more helpful than the usual sales brochures.

Interactive kiosks also are springing up, serving as a no-pressure information source before you encounter a salesperson. Situated in dealerships, shopping malls, banks, and credit unions, the kiosks use touch-screen computers to display details of vehicles that are available. In some installations, after studying the product information, you can pick up a phone next to the kiosk to make an appointment for a test drive at a nearby dealership.

The bottom line is that the retail end of the automobile business is changing rapidly--and mainly for the better if you consider how much information is at your fingertips now compared to just 10 years ago. You don't have to traipse from dealer to dealer just to see what features and colors are available. Help is available by phone from car companies, dealers, and over the Internet.

Even with all these options, you eventually will probably have to go to a dealership to complete the deal. That being the case, why not shop the old fashioned way at the same time you are surfing the Web? Seeing, touching, and driving a vehicle is much more informative than a virtual-reality display on a computer screen. A face-to-face meeting with a salesperson may also get more answers than an on-line service can provide.

Our advice is to explore the new ways of shopping for a car, but don't abandon abandon the traditional approaches. If you use both, you will be better informed and more likely to find what you want at the lowest price.