Buying A Car in the USA

Quiz

After you decide what kind of car you want, which options you need, and how much you can afford to spend, you should shop at several dealerships. Buying a car is one of the few purchases that you will make in the United States that allows for negotiation. In the case of cars, new and used, the sticker price posted on the window is not fixed, and the car dealer will expect you to bargain. It has been estimated that fewer than 20 percent of all new car buyers end up paying an amount even close to the list price.

To save the most money, use the following strategies when you negotiate. In the first place, don't mention that you have a car to trade in until you have agreed on a price for the car you want to buy. If the salesperson know in advance, they may quote you a high price for the trade in, but the price of the new car maybe adjusted to include the added amount. In addition, buy a car that is already on the dealer's lot instead of ordering a car. The dealer has to pay insurance and finance charges for every car in the inventory and is usually willing to sell one for less money in order to reduce the overhead expenses. Furthermore, try to buy your new car at the end of the year, just before the next year's models arrive in the fall. Dealers are usually glad to move these cars off their lots to make room for the new models. If you can't wait until fall to buy your car, at least wait until the end of the month, when the dealer is trying to reach a set sales quota in order to earn a bonus from the manufacturer.

Finally, don' mention to the car dealer that you intend to pay cash or use a bank for financing until the deal is closed. Some dealers will offer a lower price if they believe that they will have the opportunity to arrange the financing and collect a commission.

What is the author's main purpose in writing this passage?
1. To complain about car dealers
2. To offer advice to prospective car buyers
3. To sell new cars
4. To explain how to finance a car
According to the author, when should a buyer purchase a new car?
1. In December
2. In the fall
3. Near the first of the month
4. At the end of the week
The author recommends all of the following strategies for getting the best price on a new car EXCEPT
1. negotiating a lower price than the one that appears on the sticker
2. not telling the dealer that you have a car to trade in
3. financing the new car at the dealership
4. buying a car that is on the dealer's lot instead of ordering one
The word "inventory in bold letters could best be replaced by
1. the cars that the dealer has to sell
2. the cars that the dealer has sold
3. the cars that the dealer must sell every month
4. the cars that the dealer will order
The "one" in bold letters refers to
1. insurance
2. you
3. a car
4. the dealer
It can be inferred from the passage that
1. negotiating a price for the most purchases is not common in the United States
2. car dealers in the United States are not honest
3. new cars are expensive in the United States
4. most shoppers have a car to trade in

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Buying A Car in the USA

Quiz