SEATTLE - Have you checked the prices on new cars lately?

With lots of new inventory on the market, including brand new 2006 models that dealers what to move to make room for the 2007 arrivals, I've got a way to shave off hundreds -- maybe even thousands -- of dollars on your next new car deal.

The key is to use the telephone!

We all enjoy looking, but when it comes time to buying that new car, most people dread negotiating at the dealership.

So Robert Krughoff says, don't.

"You might go into the dealership to try out a car -- to test drive or whatever -- but once you’ve decided what make, model and style you want, then do all the competitive bidding by phone," said Krughoff.

That's right, the telephone!

Krughoff runs the non-profit service and magazine Consumer's Checkbook, which rates hundreds of local businesses to save you time and money.

They also have a service called CarBargains. For $190, they'll call local dealers and help you get the best deal on a new car.

The key is to have your financing already in order and know exactly what you want. Let's say you want to buy a 2007 Toyota for example. You specify the model, the options and the color, and then the pros at CarBargains go to work.

They call one dealer in your area, and then another -- at least 5 of them.

They tell each dealer they're taking competitive bids for a ready buyer and they ask one simple question:

"How much below invoice will you sell me a car for? How much above invoice?"

Factory invoice is the crucial phrase.

"The invoice price is theoretically what the dealers paid for the car. Now, in fact, all the dealers get discounts off invoice sometimes. They get some money back from the factory. But the nice thing about the invoice is all the dealers have the same invoice," Krughoff explained.

"If one dealer says, 'I'll sell it for $500 below invoice' and another dealer says 'I'll sell it for $500 above invoice,' the first one is $1,000 cheaper than the other one."

The CarBargains service differs from other car buying services in that it's independent, non-profit and takes no fees from any dealer. Other services that offer to help you buy a car, like those you come across on the Internet, in newspapers and on television, are simply referral services to name dealers who have paid for the referrals.

In many cases the dealers have no incentive, nor obligation to give you the best price.

"The dealers know we know how to get a good price and therefore they’re going to give a good price," Krughoff says, "because they’re all trying to second-guess what the other dealer will charge for the car."

Krughoff says CarBargains often get prices as much as $2,000 below invoice on some car models. And if you don't want to pay $190 for them to help you, they'll walk you through the steps so you can do it yourself.

"The average person can do this and get a great price., said Krughoff. "Make them fight for your business. Competition is the only power."

More information about the CarBargains service

For more information on how to use the CarBargain method yourself: