Ah, the excitement of a brand new car! Driving to every
friend's house you ever had to show it off. Spit shining it
ever chance you get.
The only bad part about the deal is, well. the deal.
Fortunately, there's a way get a great price on a new car and
this insider info will save you both time and money.
How many hours have you wasted talking about a new car deal,
only to find out that the dealer had other contract clauses in
mind that exploded the cost? I have wasted entire days in the
car buying process.
What does "factory invoice price" really mean? The price that
you see on the car is the "manufacturer's suggested retail
price". You don't want to pay this over-inflated price.
Supposedly, the "factory invoice price" is what the dealer paid
the manufacturer for the car. The dealer will have an invoice
with this price on it.
When you hear a dealer say that he'll sell to you "below
invoice", you wonder how on earth he could make any money. You
may think that you're getting the bargain of the century.
Well, not so fast. See, the factory invoice price probably
isn't what the dealer had to pay for the car.
Dealers get all sorts of incentives on top of this base price.
Carryover allowances and other special discounts added in make
the actual cost of the vehicle less than the price on the
invoice. This can add up to the tune of $500-$2000 dollars.
So you could buy a car at $100 below the factory invoice and
still be fattening the salesman's wallet more than enough.
Ask if the car manufacturer offers a factory-to-customer
rebate. You have to get this straight from the manufacturer,
but every little bit helps!
The more you know about factory-to-dealer incentive payments,
"holdbacks," and other allowances the dealer will receive, the
better off you'll be. Do your research so you'll know the best
prices cars like yours have recently been selling for.
Now, you don't want to get a great price on a car, and then
lose out by paying too much for financing, for an extended
service contract, and for unnecessary add-ons.
Also, check to see what the market value is of your current car
if you're considering a trade in. Don't talk about a trade in
until you have agreed on a price.
Before going car shopping, check the annual percentage rate
currently offered by banks in your area. Sometimes credit
unions offer good rates.
Many new cars are very reliable and often carry long
manufacturer warranties. An extended service contract may be a
waste of your money. If you do want one, make sure you check
over it with a fine-toothed comb to see what it covers and what
it doesn't. Nothing like being surprised by a repair bill.
If your car already has rust-proofing, paint sealant, or fabric
protection, make sure you don't end up paying more than $50 for
it. Any more than that will be pure profit and mark up.
A good deal on your new car can be negated if you get a lousy
price on your trade-in. Go ahead and take your car to a few
dealerships beforehand and ask what they'd pay you for it
straight out. Explain that you're selling your car and getting
offers from different dealers.
If the dealership where you're buying offers you a ridiculously
lower price, you may as well sell your car outright to one of
the dealers you checked with.
You do want to get the true wholesale value for your trade-in.
A dealer who offers some extraordinary trade-in allowance is
likely making it up on the new car price.
It takes a little extra time to ensure a great deal on your new
car, but your savings can be substantial. You just might find
the whole process fun!
Source: http://www.ArticlePros.com/author.php?John Sanderson
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