Internet shop ‘til you drop -- but stay cautious

On the Internet, car shoppers can gather information available from dealers but without the pressure of eyeball-to-eyeball negotiations.

But Web browsers should beware. The same basic rule that applied pre-Internet is still valid: Don’t assume one source of information has all the right answers.

Whether looking for new-car prices, trade-in values or loan interest rates, check multiple sources and be prepared for different responses to the same question. Used-car values, more art than science, are a prime example.

Looking to trade in a 1999 Ford Escort LX sedan? Kelley Blue Book (www.kbb.com) says it is worth $2,205. Edmunds.com pegs it at $2,528, and NADA guides.com (the National Automobile Dealers Assn. site) places it at $2,850.

All three say their prices are based on actual trade-ins. Most dealers consult the Black Book, which is not available to consumers on the Internet. It values a ’99 Escort at $3,020.

Which is correct? Possibly all or none, as dealers point out that “no two used cars are alike.”

Suggested retail and dealer invoice prices for new vehicles are available from several online sources, including the ones that provide used-car prices. Among others are Cars.com, an affiliate of Tribune Co.; Vehix.com; and ConsumerGuide.com.

Though posting manufacturers’ suggested retail prices on a website would seem a no-brainer, auto industry consultant Art Spinella warns that those prices aren’t always accurate.

Five years ago, Spinella says, websites were only 70% accurate in this regard, but they have improved to about 95%.

One way that websites can err is in “building” a car with options that aren’t available or not alerting the shopper that certain options come only with other features.

Manufacturers code their computer ordering systems to prevent such conflicts, but online “configurators” may not be as sophisticated.

“On some you could literally build convertibles with sunroofs in them,” recalls Spinella, president of CNW Marketing Research in Bandon, Ore.

Despite the promise of immediacy, prices posted on the Internet can be out of date, partly because automakers don’t announce all price increases.

“You could be looking at yesterday’s prices, but the prices may have changed today,” he said, “and you’ll fall between the cracks.”

Spinella recommends that shoppers try to verify prices and option availability through the manufacturer’s website or another source.

Dennis Galbraith, senior director of automotive website research for J.D. Power & Associates, says, “The Internet is only a guide, but it is a useful guide. Whether it’s 100% accurate or not, it gives consumers an idea of which vehicles they can afford and an idea as to what they should pay for a vehicle.”

According to J.D. Power research, two-thirds of new-vehicle buyers use the Web for at least part of their shopping; half use Internet information to decide which vehicle to buy.

Websites linked to dealers often promise that their Internet prices are the lowest, but Spinella is skeptical of that too. He says the lowest prices usually come from medium-sized dealers outside major metropolitan areas through face-to-face negotiating, not via e-mail.

Spinella also is suspicious of websites that post “what others are paying” because prices can vary widely among dealers.

“Any price you put out there is just an average. That’s one of the problems with the Internet. It gets you a ballpark figure, but that’s all it will get you,” he said.

Spinella recommends that shoppers visit dealers to bargain for a low price.

Carsdirect.com, a site with links to dealers and lenders, and Bankrate.com are among those that let consumers plug in their desired monthly payment, down payment, loan length and interest rate to determine the maximum car price that fits that budget.