Consumer Reports' Dealership Experience Survey Shows Most Car Buyers Walk Away Happy

But young and less-affluent are less likely to get best deal possible

NEW YORK, N.Y., Nov. 14; Contrary to stereotypes, car buyers are largely satisfied with their dealership experiences and feel they paid a fair price for their new or used vehicle, according to new findings from the Consumer Reports National Research Center. Still, some groups proved vulnerable to costly dealer sales tactics.

Nearly 9 out of 10 consumers surveyed (89%) were satisfied with their new or used vehicle purchasing experience. More than half (57%) said they were very satisfied, while only 5% were very dissatisfied, and virtually all (96%) said they got at least a fair deal. Most shoppers (90%) found the new-car dealer's sales staff to be informed and helpful.

However, consumers faced several common sales tricks that cost them money in the end. Discussing a trade-in value before settling on the new-car price, and negotiating from the monthly payment allowed dealers to hide hundreds, even thousands, in costs. Based on this survey, younger and less-affluent buyers were especially vulnerable to such tactics. The same group was also more likely to claim a bad deal and be more judgmental of how informed and helpful the sales staff was.

Consumer Reports experts say that understanding key negotiating strategies could help shoppers get better deals. These strategies, in addition to buying tools and key information such as the Consumer Reports Bottom Line Price, are available online at http://www.consumerreports.org/aps. The Consumer Reports Bottom Line Price subtracts any dealer sales incentives, holdbacks, and rebates from the dealer invoice price to give consumers a good starting point for negotiations.

"Being treated well by a dealer doesn't necessarily mean you're getting the best deal," said Jeff Bartlett, deputy editor of ConsumerReports.org. "We recommend consumers really do their homework and go in with as much information as possible."

Figures CR found disturbing were those that showed some consumers are being encouraged to give good feedback on dealers' own satisfaction surveys. Of the 55 percent of car buyers who received a survey, 32 percent were asked by the dealer to fill it out favorably. Eighteen percent were offered an incentive like a free oil change to respond favorably, drawing into question the validity of the feedback. Some other data returned from the survey showed:

  -- 68% said they paid what they expected, with 16% paying more and 15%
     paying less;
  -- About one-third of buyers felt the sales staff lacked expert
     knowledge of competing products; most were of lower income, female,
     or from the North East;
  -- When the shopper visited the new-car dealer's lot, the model they
     sought was available 72% of the time;
  -- When the desired model was not available, 49 percent bought
     something else off the lot; 32% had a car transported from another
     lot;
  -- Older buyers ordered a model built to their specifications at a
     relatively high rate (20%);
  -- Of the 40% of buyers who traded in a car, 54 percent negotiated
     the trade-in value before finalizing the price of the new car;
  -- Just 37% worked through the financial steps in recommended order;
  -- A high 9% doesn't know when the trade-in value was determined.

To learn about the buying experience at new car dealers, the Consumer Reports National Research Center conducted a random, nationwide telephone survey from October 4 - 8, 2007, contacting 2,000 households. The survey data was collected from those adults who had purchased a new or used car from a new-car dealership in the past 12 months.

With more than 6,800,000 print and online subscribers, Consumer Reports is one of the most trusted sources for information and advice on consumer products and services. It conducts the most comprehensive auto-test program of any U.S. publication or Website; the magazine's auto experts have decades of experience in driving, testing, and reporting on cars. To become a subscriber, consumers can call 1-800-234-1645. Information and articles from the magazine can be accessed online at http://www.consumerreports.org/.