CHAPTER 4 - GETTING STARTED

n this chapter I’ll cover a lot of the basics, such as how the Internet hasaffected car buying, dealer Internet departments and buying services,

and how to choose the right vehicle for yourself. You should considerthis essential background upon which to base your buying or leasing

decisions. In subsequent chapters we’ll delve into specifics, such as howthe dealer makes profit—and how to minimize it, new versus used, leasing, (^)
finance, and how to get the most for your car.

I

RESEARCH AND THE INTERNET

I’ve seen a lot of changes in the two decades that I’ve been helping peopleget their cars. The biggest have been due to the Internet. While it hasn’t

(yet) reached the point of making salespeople or dealers redundant, theInternet has dramatically impacted how consumers shop. When I started as (^)
a broker in 1991, the average gross profit per car sale at dealerships was 7percent, according to the National Automotive Dealer Association (NADA);
now it is less than 4.5 percent. That progress is because shoppers aremuch more informed.
As there are so many great tools to help you research your choice online, Idon’t want to try to duplicate them in the Guide. However, I will refer to
various Internet resources I trust and feel are useful, with hyperlinks tobring you right there.
Taking the time to do your research private parties is some of the best advice I can offer; the emotional turmoil before setting foot in a dealer or calling