CARS ACT Extended, Six Consumer Car-Buying Tips

According to the Detroit News, the Senate finally passed legislation to inject $2 billion into the 'Cash for Clunkers' program through Labor Day weekend. However, there is no guarantee the money will last until then. Furthermore, its highly unlikely this bill will be extended again once the money runs out. Here are a few helpful tips to consider before making your new-vehicle purchase:

Get pre-approved before making your purchase. Credit unions and community banks may offer lower rates than the dealer. Even if you aren't a member of a credit union, most will allow you to join in a matter of moments. If the dealer offers a lower rate than your bank or credit union, accept the rate offered by the dealer. Furthermore, if you're credit-challenged, you too, should shop around before landing on a final interest rate. However, you maybe required to bring some money to the table to help negotiate a better rate. (Use JeffCars.com's car-buying calculator to estimate your payments.)

A number of consumers are leaving money on the table. Besides being eligible for the government rebate and the rebate or other incentives available on the car you're purchasing, don't forget to try negotiating off the MSRP, although the 'Cash for Clunkers' program has drained dealer lots of inventory. If it's a popular hybrid or a hot-selling fuel-efficient vehicle you're purchasing, the dealer may be reluctant to negotiate, until inventory increases. Since the inventory of most dealers are scare, the rules for negotiating has changed temporarily. You would have been in a better position to get a larger discount during the initial phase of this program. To find out the difference between the MSRP and invoice cost, the amount the dealer paid, visit JeffCars.com's New-Vehicle Pricing Guide . (To see which vehicles are the top five 'Cash for Clunkers' picks, click here.)

Be flexible. Because of limited inventory and the unpredictability of the end-date of this program, don't spend too much time being inflexible on colors or options. You could find yourself losing out on the government's allowance. Thus, defeating the purpose of why you decided to buy a vehicle now.

For additional savings, consider buying a brand or model that is being phased out. For instance, the Pontiac brand is offering additional incentives to help clear out its inventory. The Chevy Cobalt is the same vehicle as the Pontiac G5. However, GM is offering a larger rebate on the Pontiac than the Chevy. And, just because the Pontiac brand is being phased out, buyers can take their Pontiac to any GM dealer in the country for service work.

Some hybrids and all diesels offer a tax credit. To find out the actual tax credit, visit fueleconomy.gov. Before buying a hybrid, make sure your daily commute consist of driving in a lot of stop-and-go traffic. If not, it may be in your best interest to consider other available fuel-efficient vehicles.

Lastly, don't wait until the last minute to shop for a vehicle. If the government money runs out before Labor Day, you're out of luck. Also don't gamble on ordering a vehicle. Production or shipping delays could hinder the vehicle's arrival - before the program ends. Try to find a vehicle that's in-stock. As of August 13, the government is allowing consumers to orders from the factory via the dealer. While the government is allowing this, we're not sure if this is your best option.

By following the aforementioned tips, this should keep you in the driver's seat. To find out more details about the CARS Act, click here.