According to JD Power and Associates, a record high 67 percent of new-vehicle buyers use the Internet in their vehicle shopping process — up from 64 percent in 2004. Nearly all (89 percent) of these consumers visit a search engine or autos Web site as part of their automotive research and shopping process.

But with more and more people shopping for cars online and even more dealers learning to make online sales more profitable, can the Internet still deliver the great deals it did just a few years ago? The short answer is yes, but simply finding a special “Internet price” is not the only way to save money today.

FINDING THE RIGHT CAR AND THE RIGHT PRICE
In terms of car buying, the Internet was initially considered a tool for finding the best price on a vehicle. But it’s so much more than that. Today, consumers are even more impacted by the Internet — searching just as frequently for which vehicle to purchase and how much they should pay for it. According to a JD Power survey, 79 percent of automotive Internet users are impacted in their vehicle selection by information found online. This compares to 78 percent who are impacted in how much they paid or offered for the vehicle they purchased.

The sophistication of today’s vehicle comparison tools online let you simultaneously compare all the vehicle specifications, which allow users to find the best car for their particular needs. This can cut out the need to run from dealer to dealer, and perhaps help them discover a model that wasn’t previously on a short list but has all the features needed at an even lower price point.

Ultimately, the main goal of researching an automotive purchase online is to become a more price savvy shopper — doing even a small amount of research will help buyers better negotiate pricing. Executing an online purchase shifts the advantage to the buyer, as dealers who specialize in Internet sales know they must offer the lowest price to make a sale. An even bigger bonus is that many times, the haggling is done via e-mail before you ever enter a dealership — a huge boon for those who don’t enjoy pressure-heavy sales pitches.

NOW YOU’RE READY TO BUY
In addition to the astounding amounts of research that can be done online, merely looking at the great selection of cars available online can actually translate to money saved. If the car you want is in high demand in your area, traveling to other areas — even those 20 to 50 miles from your current location — can mean saving thousands.

Whether you are purchasing a vehicle online or at your local dealer, most experts agree that the timing of the purchase makes a difference. It's still true that good deals can be found in late summer/early fall, when carmakers release new models and dealers want to get rid of current model-year inventory. A good price may also be wrangled at the end of each month as dealers come under the gun to book final sales. Some say that even shopping when the dealerships aren't crowded, like early mornings, midweek or the winter can lead to additional savings.

If you are seeking a real deal and aren’t concerned with having the latest body style or most popular vehicle on the market, you can keep watch for vehicles at the end of a car’s lifecycle or design cycle. When a manufacturer announces that a certain car will be discontinued forever, it generally leads to deep savings. On the flip side, a manufacturer that is going to continue making a certain model but it is about to introduce a completely redesigned version traditionally will offer serious discounts on the existing model design. If you are more bargain hunter than auto trendsetter, this is a practical cash-saving option.

QUICK AUTO-BUYING TIPS
Keep the following tips in mind as you use the Internet to locate the right car for you:

Research, Research, Research: A great place to start gathering car buying information is online. Before making an offer, you can check out the latest car models, compare prices for used cars in Kelley Blue Book, read vehicle reviews from Consumer Guide and Edmunds.com, and even get a free price quote from a local dealer.

How Much Can You Afford?: A good rule of thumb is that your monthly payment for a car should be no more than 20percent of your monthly net income. Some other things to consider when estimating the cost of a new vehicle are the costs of fuel, license, registration and insurance. And if you prefer leasing, be sure to learn the pros and cons first – sites like Yahoo! Autos generally offer options to compare the best financing options.

Free Lemon Checks: Through a relationship with AutoCheck, car buyers can check the history of a used car for free through Yahoo! Autos to ensure any problems with the car haven’t been hidden from the buyer. These checks detail records including repaired damage from a previous accident or “listed as stolen” notices. If you are buying a used car, simply provide the Vehicle Identification Number and you can search the national database for a free record of major problems or manufacturer state recalls. A full used car history report can be ordered to provide added peace of mind.

Don’t get taken for a ride with your next car purchase. With so many auto-specific resources available online, you’ll be in pole position to strike a winning deal.

Copyright 2006 Jennifer Dulski. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.