New Car Prices

So, what's the catch?

While there are some great new car prices to be had today, it's always smart to be sure you understand the offers -- and whether there are any "qualifiers," "restrictions," "exclusions" or "limitations" that could affect you.

Most ad offers -- whether TV, print or online -- showcase the big numbers and best new car prices in very large type -- with any stuff that might not be so appealing scrunched down into micro-sized print at the every bottom of the page (or read-through at warp speed by an announcer who might as well be speaking Swahili, as far as your ability to follow what he's saying).

Here are some things to be on the lookout for:

"Offer only available in FLA, GA, SC... " (and so on). Many incentives offered by the automakers are regional -- meaning, if you don't live in one of the areas where the deal is good, the deal is not available to you. The same car might be $1,500 less (or more) just by crossing the state line.

"All estimates are computed on the basis of a 10 percent down payment..." Some financing deals are contingent on things like the buyer coming up with a predetermined cash down payment. In the example above, you'd need $4,000 in cash at the time of sale to take advantage of the advertised low-rate financing on vehicles with a price of $40,000. If you don't have the cash down payment, they may stick you with a higher finance rate.

"Offer not compatible with other offers..." This means you may not be able to get both low-rate financing and "x" dollars cash back. You have to pick one or the other. It's important to run the numbers before you are in the pressure cooker of the dealer's store, too. This way, you'll know ahead of time whether it makes more sense for you to go with the lower-rate financing -- or the rebate.

Dealer participation may affect savings... " This means the offer's contingent on the dealer's "participation" in the program (rebate/cash back, special rate financing, etc.) being advertised by the automaker. Remember: Dealers are independent operations; they may sell Fords or Hondas, etc. -- but you are not dealing with Ford or Honda, per se. Be sure the dealer you're negotiating with is, in fact, participating in the rebate/cash back deal you saw on TV. He may not be. Don't assume he is.

"For Bonus Cash, buyer must take retail delivery by ..." As implied, the deal on new car prices is only good if you buy the car before a specific date. This can put pressure on the consumer to make a snap decision -- or purchase a car "off the lot" that may not have all the features and equipment (or color) the buyer wanted, etc.

Estimates do not include the cost of transportation and handling charges, dealer prep, labor..." This is a potential loophole big enough to drive a Hummer through. The price you thought you were getting could very well turn out to be nothing like the price you actually end up getting -- if you are not very careful. Insist that every charge/fee associated with the proposed purchase be clearly spelled out, in writing, before you commit to buy. "Dealer prep" alone can add hundreds to the bottom line -- negating any savings you may have expected via the "cash back" lure that got you into the showroom.

"Not all buyers will qualify..." Most finance offers have this little caveat somewhere in the fine print. If you are a young/first-time buyer -- or have less than exemplary credit -- that 1.9 (or lower) finance rate you were counting on may be unavailable to you. It's a good idea to check alternate sources for car loans -- such as a bank or credit union -- just in case the deal being offered by the automaker's finance arm won't be extended to you.

Residency and other mileage restrictions may apply..." This means the offer might be contingent not just on where you happen to live -- but also on how many miles you drive annually (lease contract). It doesn't do you much good to get a great lease deal if your annual mileage exceeds the maximum allowable -- at which point you'll get whacked with additional charges. It's always best to over-estimate your annual mileage -- just to be safe -- when it comes to lease contracts.

"Vehicle shown may contain optional equipment available at additional cost..." In other words, what you see (in the ad) may not be what you get (at the dealer). Be sure the car you want -- with the equipment and new car prices you want -- is in fact available under the terms of the offer. A great deal on a car you don't want isn't much of a bargain.

"Bonus cash offered on eligible vehicles must be financed or leased through (the automaker's captive finance arm)" This means that in order to get the offered cash back/rebate, you have to finance the new car through the automaker's own finance company (Ford Credit, GMAC, etc.) rather than a credit union or private bank. You may also not be able to get the cash back if you pay cash for the vehicle. Basically, the automaker is looking to recoup the "cash back" by making money from you via interest payments. It may still be a good deal for you -- or not.

The key to negotiating the fine print is to take the time to read and understand every clause, caveat and potential loophole before you sign anything or cut a check.