| About 17 million new cars were bought last year. | | | | these key financial terms when negotiating the |
| The majority of these purchases required new | | | | price of a new car: |
| car loans, with over half being for five years or | | | | Invoice Price - the manufacturer's initial charge to |
| longer according to the Consumer Bankers | | | | the dealer. This usually is higher than the dealer's |
| Association. | | | | final cost because dealers receive rebates, |
| The National Automobile Dealers Association | | | | allowances, discounts, and incentive awards. |
| (NADA) estimates the average price of a new | | | | Base Price - the cost of the car without options. |
| car in the U.S. to be $28,400. This makes a new | | | | It includes standard equipment and factory |
| car purchase second only to buying a home as | | | | warranty. This price is printed on the Monroney |
| the most expensive financial transaction most | | | | sticker. |
| Americans ever make. | | | | Monroney Sticker Price (MSRP) - shows the base |
| When it comes to getting a new car loan, the | | | | price, the manufacturer's installed options with the |
| Federal Trade Commission says, "If you decide to | | | | manufacturer's suggested retail price, the |
| finance your car, be aware that the financing | | | | manufacturer's transportation charge, and the fuel |
| obtained by the dealer, even if the dealer | | | | economy (mileage). |
| contacts lenders on your behalf, may not be the | | | | Dealer Sticker Price - gives the Monroney sticker |
| best deal you can get. Contact lenders directly. | | | | price plus the suggested retail price of |
| Compare the financing they offer you with the | | | | dealer-installed options such as additional dealer |
| financing the dealer offers you. | | | | markup (ADM) or additional dealer profit (ADP), |
| Because offers vary, shop around for the best | | | | dealer preparation, and undercoating. |
| deal on a new car loan, comparing the annual | | | | New Car Loan Quote |
| percentage rate (APR) and the length of the loan. | | | | You can get a free quote on a new car loan |
| Don't just focus on the monthly payment. | | | | simply by using the express request form at |
| Numbers to Know | | | | 1-800-Bar-None. The site also has more |
| The FTC advises consumers to pay attention to | | | | information on New Car Loans. |