An expert’s guide to used car haggling

One of the advantages of buying a used car is that it often allows the driver a little wiggle room in terms of negotiating. Drivers can attempt to haggle over a new vehicle, but most of the time those prices are dictated by the automaker. But when shopping used, buyers with some negotiating skills can often get themselves a great deal.

ABC News recently teamed up with Philip Reed, the senior consumer advice editor for Edmunds.com in order to learn some top negotiation strategies. The auto website buys quite a few cars for research and testing purposes, and Reed is usually the one doing the purchasing. Reed has also seen both sides of the negotiating table, even working as a car salesman as part of an undercover experiment.

The website was in the market for a used Honda Odyssey EXL from 2007. They gave Reed a budget of $25,000 and wishes for a low mileage, well-maintained vehicle with a sunroof for easier photographing. Reed allowed the news source to tag along as he went to several dealerships in an effort to snag the best price.

Many buyers assume that the negotiation process doesn't start until drivers are brought into an office and start going over paperwork. But according to the news source, the first number talked about is often the most important. A good salesman will try to get the buyer to name their price first. That way, they can work from there and hopefully raise the eventual price of the vehicle. But if the buyer gets the dealership to name the price first, they can work down from there.

A good strategy to compliment this is to use a pricing guide. A buyer should go in with a price in mind, but resist revealing it to the salesperson. It's easier to slowly work a salesperson down from their price than get them to stick to the buyer's.

Another tactic is to make sure to always leave the dealership. Even if it seems like a great deal, leaving the dealership and shopping some other car lots can't hurt. In fact, it can be beneficial to quote another dealer's price in order to get another to come down in price.

Using these and other tactics, Reed was able to negotiate the price of the used Honda down from $25,000 to $21,500 – a savings of $3,500. With a little research, drivers can do the same and get a great deal on a used car today.

Google outfits self-driving Prius

Google has revealed that it is testing technology that would allow vehicles to drive themselves using advanced artificial intelligence that mimics the decisions drivers make on a daily basis.

The company is currently testing the new technology around California, using modified Toyota Priuses and one Audi TT. High-powered cameras, similar to those that Google uses for its "Street View" service, are mounted on top of the vehicle in order to detect the situation around the driver. That information is then fed to the vehicle, so that the car can stop, steer and navigate all on its own. According to the company, the technology already makes better decisions than human drivers.

Google says the technology is still years away, but hopes that one day the system will be reliable enough to save lives and cut down on the 1.2 million killed every year on the roads.

"We believe our technology has the potential to cut that number, perhaps by as much as half," project lead engineer Sebastian Thrun wrote on the official Google Blog.

The current vehicles use GPS technology to map a route in advance, but can adapt to situations based on sensors detecting the vehicles and obstacles around it. In limited testing, the team uses a driver who has full control of the vehicle and can take over at any time in case of an emergency. Thus far, the group has only had one accident – when they were rear-ended at a stoplight.

Drivers interested in a Prius or any other vehicle may want to search on the used car market in order to get a better deal.

Mercedes to recall C- and E-Class for power steering issues

Mercedes-Benz is recalling approximately 85,000 of its 2010 and 2011 C- and E-Class models in the U.S. due to an issue with power steering fluid.

According to an update on the National Highway Traffic Safety Administration's website, the recall affects newer models of the vehicles, specifically from 2010 and 2011. The E-Class coupe and cabriolet are also included.

Mercedes says that a loss of power steering fluid could make the vehicles difficult to control in a situation where maximum steering assist is required, such as maneuvering a parking lot. The automaker will make a minor adjustment that should fix the problem for owners.

According to USA Today, a number of vehicles have had issues with power steering lately. BMW ordered recalls of its Z4 and Mini Cooper, GM struggled with steering on its Cobalt and Pontiac G5, Toyota had trouble with the Corolla and most recently, Hyundai has recalled its new Sonata.

The news source speculated that the switch from mechanical power steering to electronic power steering (EPS) may be a factor in the issues. EPS offers a slight advantage in fuel efficiency, making it a popular choice for newer vehicles.

Analyst Jesse Toprak of TrueCar told the news provider that "we have an overwhelming number of steering cases this year." The NHTSA has reported an uptick in EPS-related problems, but it's unclear if the flaw is with the systems or because they are simply more common.

Drivers may wish to avoid newer models with the issue and stick to used cars until the trouble is sorted out. 

Paris’ next used cars

The Paris Auto Show is officially over, and automotive journalists are debating over which automakers had the strongest showings and most interesting designs. While these cars aren't slated to hit the market for a few years, their introduction will likely affect the price of the cars they're set to replace in the near future.

As a new model comes in, the old one is shipped out, and a gap in a generation can affect a used car price substantially. For example, the Ford Mustang, which was popular for much of this decade, will now fetch a lower price on the used car market since Ford has introduced a brand-new redesign for the vehicle. While the new models that the major automakers unveiled are sure to delight car fans, it's important to keep in mind that the best value can usually be found by shopping one generation earlier.

The unofficial theme of this year's show was small, eco-friendly vehicles as demonstrated by the debut of high-profile compact models from several major brands. Ford's redesigned 2012 Focus turned some heads, as the company announced its marketing strategy would take a page out of the book of the highly-successful Fiesta, which launched earlier this year. That means buyers can expect plenty of trim levels and customization options, in addition to a hatchback style and great fuel economy. The new debut could also mean some low prices on existing Focuses, so used car buyers should keep their eyes peeled for any deals.

Chevy responded with a similar small car in the upcoming 2012 Aveo. This compact will be available in both sedan or hatchback forms, and the press speculates that the high-performance RS version, previously seen as a concept, will make its debut shortly after the regular model. Drivers can expect plenty of creature comforts like a high-end audio system with Bluetooth and MP3 integration, but buyers should keep in mind that Chevy currently sells an Aveo, meaning they might be able to get many of those features for a cheaper price now.

Finally, what would an auto show be without concept cars? Although not officially slated for production, Nissan unveiled a high-tech concept in its Townpod concept. This vehicle continues the small car trend by being based off of Nissan's Leaf platform, but takes it to the next level with a sleek design and futuristic interior featuring a dual display touchscreen. 

BMW, Mercedes plan smaller offerings

The trend in the automobile industry as of late has been toward smaller cars, with crossovers replacing the full-size SUV and hatchbacks like the Ford Fiesta selling like hotcakes. Now, two luxury manufacturers are getting in on the game by announcing plans to introduce several vehicles that will be smaller than any of their current offerings.

BMW is planning to introduce a new family of subcompacts that will feature front-wheel drive. BMW director of sales and marketing Ian Robertson told the Automotive News that there will be several variants, but all will feature a four-cylinder engine. Early plans indicate that the new class will be dubbed "UKL."

"It will be a relatively big segment because we have several body styles," he told the news source.

Meanwhile, BMW's chief competitor Mercedes-Benz is also looking to expand into that market. The company will introduce a number of new designs based on its B-Class platform, including a coupe and compact SUV. However, the company's new European hatchback, based on its smaller A-Class platform, will not reach U.S. shores.

As smaller cars begin to dominate the showrooms, fans of larger vehicles can likely find deals on the used car market. 

Honda named greenest automaker

As more people become concerned about global warming and other environmental issues, many drivers consider the eco-footprint of their vehicle to be an important factor in making their decision. While miles per gallon is one way to rate how fuel efficient the car is, it doesn't get to the heart of the issue – namely, how much smog-forming emissions the car produces.

The Union of Concerned Scientists releases yearly rankings that look at all the vehicles that an automaker offers in a particular year, then names which one is the "greenest" overall. It does this by averaging various environmental factors and rolling it into a composite overall score. This year's study looked at cars from the 2008 model year, as it was the most recent year that full data was available to the group. The group only looks at the top eight companies in the U.S. – Honda, Toyota, Nissan, Ford, GM, Chrysler, Hyundai and Volkswagen – in determining the rankings, as these account for over 90 percent of the vehicles on American roads.

For the fifth consecutive year, Honda was named the greenest automaker by the study, but it just narrowly beat out competitors Toyota and Hyundai, who tied for second place. Just one point separated the three companies, with Honda scoring an 86 and the other two at 87 (lower scores are more desirable).

"It was a photo finish, but Honda is still the champ," said Jim Kliesch, author of the report.

Despite the victory for the 2008 year, Honda will likely drop off once the latest plug-in hybrids hit the market. While Honda has announced two plug-in models for 2012, those will likely come after many competitors have introduced their offerings. Honda believes the plug-in craze to be a stopover before the greenest technology is introduced: hydrogen. As such, the automaker is devoting more resources toward developing those cars.

"We feel that it's the ultimate solution," Honda spokesman Chris Naughton told CNN in July "But the infrastructure is developing more slowly than we had anticipated."

The study noted that many predicted Toyota to take the top spot from Honda this year, but the automaker stalled in adopting carbon-reducing technology. Hyundai, meanwhile, shot up the rankings by emphasizing more efficient vehicles with smaller four-cylinder engines.

The rankings were not good news for Detroit's "Big Three." Chrysler, GM and Ford finished in the bottom three spaces, with Chrysler placing dead last. The study did note that environmental standards were up overall and that the American companies could see their rankings climb thanks to future introductions like GM's Chevy Volt.

Drivers can likely find many of the 2008 models that were evaluated in the study on the used car market. Buying a used hybrid can make sense because the reduced price of the pre-owned market can offset the inflated price that many drivers pay when buying the vehicles new.

DOT unveils tougher safety system

The Department of Transportation has unveiled a stricter safety testing system that will lower the amount of stars received for some popular vehicles.

The new system is said to be a lot tougher on vehicles and highlight a greater disparity between the models. Many vehicles in the past were easily able to achieve five and four stars under the old system.

Chief among the changes is a new overall score that weighs various factors into one number. While the test still differentiates for front and side-impact rating, it also takes into account some new features. Dummies representing the average size of women will now be incorporated, as will a test where the vehicle strikes a tall object like a pole or a tree.

"We are raising the bar on safety," said Transportation Secretary Ray LaHood.

In an initial analysis of some new models, some vehicles came out looking better than ever. The BMW 5 Series and Hyundai Sonata were the only two vehicles who got a five-star rating in the first batch of 34 vehicles. The Toyota Camry, a previous five-star winner, was rerated down to a three-star car, while the Nissan Versa, previously at four stars, walked away with just two.

Travelers should consider safety features when searching for a car, but they can still get a great value by searching for some of the safer vehicles on the used car market. 

Ford announces Focus rally contest

As part of the launch of its redesigned Focus, Ford has announced that it will team up with the "Amazing Race" producers for an online reality show.

The show, named "Focus Rally: America," will follow six teams of two as they make their way across the continental U.S. Along the way, they'll compete in challenges that will also have an interactive component, encouraging fans and followers to get onboard as well. The winner receives $10,000 and 10 Focuses, which will be split among the competitors and randomly chosen fans of the show.

At the Paris Auto Show, Ford executives announced that the Focus marketing campaign would be similar to the successful "Fiesta Movement," which utilized social media to generate buzz for the company's Fiesta hatchback. The new show continues that trend by being streamed online at popular video site Hulu.

According to Matt VanDyke, Ford's U.S. vice president of marketing, the challenges will incorporate the technology available in the car.

"The technology available with the Focus will be demonstrated throughout the course of the rally," said VanDyke. "And fans will see Focus' technology used by the competitors in a very authentic way. Essentially, they will be riding along on a very entertaining virtual test drive of the vehicle. At the end of the day, we are hopeful they will put the new Focus on their shopping list."

Drivers interested in a Ford or any other vehicle can save money by shopping on the used car market rather than buying new.
 

Chevy throws down heavy-duty gauntlet

Chevy thought it had a winner with its redesigned Silverado, which at the time of its debut boasted a class leading 6.6-liter Duramax V8 engine that got 397 horsepower and 765 pound-feet of torque. Then Ford engineers tweaked the SuperDuty's diesel V8 so that it eclipsed those numbers.

But Chevy isn't buying the 400 horsepower and 800 pound-feet of torque that Ford rates its boosted engine at. So the company has challenged Ford to a "tow-off," a showdown between the two trucks to see which could tow a trailer up a mountain the fastest.

Ford currently leads Chevy in sales in the pickup class, meaning the company had a lot to lose but very little to gain by accepting Chevy's challenge. So although Ford has declined to participate, Chevy will go ahead and test the two trucks anyways, with the competition overseen by an impartial independent committee of judges.

"Numbers on paper are fine. Let's go work these trucks in the mountains, and may the best truck win," Chevrolet Silverado Marketing Manager Tony Truelove said.

The vehicles are so close in power and performance that what a driver chooses will most likely come down to personal preference and styling. Both of these trucks have been on the market for years, so drivers searching on the used car market will have plenty to choose from. 

Ford posts big gains in September

Monthly sales totals are rolling in, and the big news is at Ford, where the company posted a whopping 46.3 percent sales increase over September 2009.

Nearly all models posted upticks in sales, but the Focus and Fusion both performed above average. Ford also posted an unexpected 61 percent spike in the SUV department and said its new Transit Connect van, mainly bought by businesses, has been a hot seller.

"The key to our success in the U.S. market is the relentless cadence of new vehicle, powertrain and technology introductions," said Ken Czubay, VP of marketing, sales and service for the company.

Automakers are expected to post big numbers in September because of the aftereffects of the "Cash for Clunkers" program in 2009. While the government-sponsored initiative boosted numbers for August of 2009, it hurt sales in September because many automakers didn't have the supply left to meet demand.

Despite this, Ford has still posted the biggest increase so far out of the major auto brands.

Drivers on the market for a vehicle may want to search for a late-model used Ford, as the company has produced a major turnaround in recent months