Before You Buy

Sit down and decide what type of car you want, versus what kind you can afford. After reaching a decision on the essentials, list the possible options that may or may not fit into your budget.

The Real Basics

• standard or automatic transmission
• engine size/horsepower
• antilock, power lock, or power-assisted brakes
• all season tires, or winter/summer
• undercoating
• extended warranty

Medium Level Considerations

• leather, heated or power seats
• wiper and/or defroster for the rear window
• power mirrors on the exterior, map lights inside
• air conditioning

The Frills

• remote starter
• sunroof
• car alarm
• audio system

Remember, that you may be looking at as many as three different price "tags".

The base price is the bottom line. For this you get the car with standard equipment, factory warranty and no frills. This price will appear on the MSRP tag.

The manufacturer's suggested retail price tag lists the base price, the price of any options added by the manufacturer, the freight charge the manufacturer incurred, and fuel economy. By law, this tag must be affixed to the window, and cannot be removed by anyone but the Purchaser.

The dealer's sticker price tag, is usually the flashy one in neon colours. It starts out with the MSRP price, then adds on the suggested retail price of dealer added options such as undercoating, and may also include additional dealer mark-up or profit.

Remember when you see an ad or hear an offer that a vehicle is selling for less than invoice price, you're not necessarily getting a great deal, even with a few extras thrown in. The invoice price is the manufacturer's cost to the dealer. Dealers get rebates, incentive awards, and other perks that reduce this amount significantly.