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How To Conduct Your New Car Cost Comparison To Get The Best Possible Deal
In an already competitive industry, new car dealerships and manufacturers realize they have to be even more competitive if they want to stay in business. With the internet you are able to conduct all of your research online and have multiple new car dealerships in compete for your business – while you stay in your comfort zone.
By utilizing the following information when you review your free new car price quotes you’ll be able to compare apples to apples, to see which really is the best deal. While many things nowadays may be out of your control, paying a fair and reasonable price for a new car is in your control; if you know where to look and how to use the information.
3 Tips For Effectively Using Competing Car Prices
By comparing competing new car price quotes you ensure you save the most money possible on the new car or truck you want to buy. You should never pay the Manufacturer’s Suggested Retail Price (MSRP), but you need to be aware of how other charges factor in when you are conducting your comparison, along with how to utilize the information:
- The price quotes you receive could be all over the board, even for the exact same make and model of vehicle. That’s because many dealerships don’t include charges such as the destination fee, taxes, dealer installed options, etc.; it’s a way they can come in with what appears to be the lower price quote. Look for any notation or other disclaimer that indicates what is or isn’t included in the price quote; then specifically ask dealers you’ll be following up with. You need to compare apples to apples when performing new car cost comparisons.
- Arrange your price quotes according to which dealership is offering you the lowest price (after you’ve factored in any additional costs). You’ll need to easily refer to the information, so you can use the lowest quote to see if other dealerships will beat it; if any of them say yes, then go back to the dealership with the initial lower offer to see if they’ll match the others. You’ll keep doing that until you’ve negotiated the best possible deal. You can see now why it’s important that you have the information organized well.
- Conduct all of your initial negotiations via the internet where you have the advantage. That way you not only have the agreements in writing, but you’ll eliminate the chance for pushy sales tactics. You can speak with them on the phone or in person once you’ve negotiated the price. FYI print off all of the price quotes, manufacturer rebates and incentives, along with the agreement you reached. You’ll want to take it with you when you go to the dealership to make sure there aren’t any misunderstandings.
Knowing The Price You Should Pay On A New Car
What many new car buyers don’t know and something we feel is important to include in this article is the fact that the dealer invoice price isn’t really what a dealership paid for the car you want to buy – most times it’s substantially lower. Keep the following in mind when you’re negotiating a fair and reasonable price to pay on your new car:
- The car dealership receives incentives, discounts and rebates from the manufacturer that are applied to the dealer invoice price; making the true dealer cost much lower.
- The base dealer invoice price is the invoice price the dealership receives from the manufacturer before the aforementioned options have been added; the total dealer invoice price is the final cost once all of the options/packages have been included.
- The destination fee is the cost the dealership had to pay to have the car transported from the factory. All dealerships have to pay to have the car shipped and as such it’s a non-negotiable charge.
- The dealer holdback is a percentage of either the MSRP or invoice price that is returned to the dealership, usually on a quarterly basis. This gives them additional flexibility to negotiate the sale price.
- To calculate the “total dealer cost” take the base invoice price plus options plus destination plus manufacturer fees (can be several hundreds of dollars for things like regional ads, ads targeting the dealer’s specific market) minus the holdback. The manufacturer fees are essentially the dealers cost of doing business, though many might try to pass them on.
- To calculate the “true dealer cost” you take the above ‘total dealer cost’ and add licensing/taxes then subtract factory-to-dealer rebates and incentives.
- This is why you should never start negotiations from the MSRP and work down; start from the dealer invoice and negotiate up.
Now that you know how to perform your new car cost comparison to negotiate the best possible deal the only thing left to do is request a free no obligation to buy price quote. Don’t forget to organize your list according to which dealers and manufacturers are offering you the best initial prices, along with rebates and incentives so you’re prepared for negotiations.
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