Buying Cars Guide For A Great Car Buying Experience
This buying cars guide
continues on with more advice. Make sure that you familiarize yourself with
this site's other pages' car buying guide and new car buying tips before you set foot inside a car dealership. Now the moment of truth had arrived and you are face to face with car salesmen. They are usually standing in bunches in parking lots of car dealerships, sharply dressed, chatting with their pals, maybe devising ways to hook the next fish. A smartly dressed guy approaches you, asking if you are there looking for a car to buy.
If you are not ready for his sales tactics, you are at his mercy but if you read this buying cars guide, you are completely ready. By now, you know what your credit score is, you are in a positive frame of mind as discussed in the page First Things First You know what your credit score is, you know what car you want and will stick it no matter what, you have made car comparisons, and have shopped for an extended auto warranty
as discussed in New Car Checklist.
Now this website's buying cars guide to deal with car salesmen will be tested as you wrangle with them in all aspects of new car buying. But as long as you did your homework, there's nothing to worry about.
Car Buying Tip#8 Be determined not to buy the first time you are shown your target car. Once you sign the contract for your new car, it's nearly impossible to get out of the deal. The salesman will always brag that their price is the lowest around. But the that you did in the internet plus the rebates and incentives that you found will always lower the price you have to pay.
This site's buying cars guide advices you that today, you are just shopping around for cars and test driving. As you enter the dealership, remember your goal. Get pricing and option info from the MSRP sticker, find out what options your car is supplied with. Their goal is to keep you from leaving without buying. They don't want you to go elsewhere to comparison shop. But be firm. Tell them that you are comparison shopping. And don't be afraid to leave when pressured.
Write down all the option packages - you'll need this info later to form your offer. Your research in those car sites that I mentioned at the car comparison page of this site will be helpful because you will be comparing the pricing at the dealer with the pricing online when you get home. Come back another day to make your offer.
When you do your test drive, be like a poker player. Don't show any emotion. Riding your future car could be euphoric. The new car smell, the options, the friendly car salesman will induce you to buy now, not tomorrow. But this site's buying cars guide will remind you otherwise. I mentioned at another page my wife's reaction when we were test driving a van many years back. She showed the salesman how she liked it and he was only willing to charm her into buying it. Needless to say, we hardly save any. I wish I've read a car guide to help me.
gives you free, no-obligation new car quotes from up to 3 local car dealers. Edmunds.com offers the largest dealer network, offering you better choices when you buy a car. Edmunds.com
allows you to select new car dealers within 50 miles of your zip code where you can make reasonable price comparisons. You still get any applicable rebates. Their site has a great research area too.
Car Buying Tip#9 Offer 5% Over Dealer's Actual Cost. This buying cars guide will help you determine what the dealer paid for the car using the free internet car sites which give great car comparisons
How much should you offer the dealer? To calculate how much to offer the dealer, you must determine how much they paid for the car and offer them a fair profit. Research the dealer's cost and make your offer.
It's important to do you research first in free internet sites and cars guide like Edmunds.com
. At Edmunds.com
you can find out what others are paying for new vehicles, based on real sales data from your geographic area. When you request an Edmunds.com
TMV (True Market Value) report, you get a customized price estimate based on your Zip Code, your car, and your desired options. Your report also includes information on available rebates and incentives on your car. Edmunds.com can give you both the MSRP and the Invoice Price. If offers buying cars guide that are very beneficial to prospective car buyers.
MSRP stands for Manufacturer Suggested Retail Price, and means just that —- a suggested selling price for the retailer. The MSRP is the vehicle’s published retail (base) price, without options, destination charge, or other fees. Because it’s “suggested,” dealers are free to sell the car at either a higher or lower amount.
MSRP is sometimes called the "sticker price," as dealerships used to place the MSRP of each new car on a large sticker on the windshield as a way to advertise to passing traffic. This practice has been largely replaced with a spec sheet on the side window that notes the MSRP.
MSRP originated as a method of standardization and fair trade to protect small businesses and consumers alike. Prior to laws that enacted MSRPs, retailers were free to charge wildly different prices for the same product —- not just among different outlets, but to different customers at the same outlet. This was not only unfair to consumers, but made it difficult for smaller businesses to compete with large-volume dealerships. With a MSRP, all businesses and customers start off with the same set prices across the board and negotiate from there. MSRP does not eliminate free market trade, but attempts to put everyone on an even playing field.
Dealer Invoice Price is the price printed on the dealer’s invoice from the manufacturer. However, this isn’t necessarily what the dealer actually paid for the vehicle. There are often behind-the-scenes bonuses, such as dealer incentives or a holdback, that give the dealer more profit margin. Looking beyond the dealer invoice price can sometimes save you hundreds of dollars.
Total Price or “Sticker Price” is the total retail price for the vehicle, including the MSRP, options, destination charge, and any market adjustments. Typically a salesperson will try to sell the vehicle for as close to this price as possible, or perhaps offer you a token discount or manufacturer discounts. To get the best price, however, it’s better to negotiate up from the dealer’s true cost, described below, rather than negotiate down from the sticker price.
A Rebate is a direct-to-buyer incentive from the manufacturer. Since it comes from the automaker , disregard it when negotiating with the dealership. You will get the same rebate no matter what price you pay for the vehicle.
Dealer Incentives is money that the manufacturer pays the dealer for selling certain, usually slow-selling, models. This money can be passed on to the buyer in the form of a price reduction, or kept as added dealer profit. This is how a dealer can afford to sell a vehicle for “dealer cost” or below. These programs come and go quickly and aren’t announced to the public. But as mentioned, with the help of cars guide you can learn about dealer incentives on some auto-pricing Web sites like Edmunds.com
Holdback is what most manufacturers offer dealers a percentage of the MSRP, or a percentage of the invoice price, as a refund upon sale of the vehicle. The typical holdback is 2 to 3 percent, meaning a dealer can still make a profit on a vehicle sold for "invoice," even without dealer incentives. Holdback information can be hard to find, although it is listed in Consumer Reports’ New Car Price Reports.
The Dealer’s True Cost is the dealer invoice price, minus any incentives and the holdback.
Car salesmen will usually point to a car's "sticker price" as the amount you have to pay. However, the
price the dealership is willing to sell a car for is often well below the sticker price. AnythingAboutCars.com offers buying cars guide to get to this price and thereby save you, the buyer, money.
How much should you offer the dealer? This buying cars guide will help you to calculate how much to offer the dealer, you must determine how much they paid for the car and offer them a fair profit. You must be patient and research first, don't rush to buy without a game plan. Ask to see the factory invoice for the car. The invoice is a copy of the actual invoice with the car maker's logo on it and the dealer's address for delivery. Don't confuse the invoice with the white MSRP window sticker! The factory invoice lists the base model of the car, and all option packages, floor mats, body trims, etc. It also lists destination charge, holdback and dealer flooring assistance. But the dealer gets the holdback and floor plan back from the factory after they sell the car, so have them remove it.
So how much did the dealer really pay for that car? This website with its buying cars guide will guide you to it. Car dealerships are not required to show you the invoice. But you need to know that there are hidden factory incentives built into this "invoice price" that reduce their cost. If they are quick to show you the invoice, you know they are making money, and can settle for even less. Note that the dealer will dangle the MSRP price to you but remember that the dealer's true cost is the dealer invoice price, minus any incentives and the holdback.
AnythingAboutCars.com's buying cars guide Car-Buying Tip #2 advices you to use timing when buying a car. The fall season and the end of December are very good times to buy a car. This is when they offer Factory to Dealer Incentives to stimulate sales. Incentives are common at the end of a model year to allow the dealer to reduce the price of the car to sell it, and still make a profit.
So, offer the dealer 5% over dealer's cost, not over invoice price. They'll take 5% profit because it pays for overhead and sales commissions. Remember that the dealer has plenty of ways in its disposal to make more money other than selling a car as this site's cars guide is happy to point out:
They get incentives if they meet sales goals, which offsets expenses.
They make way more money on unsuspecting customers.
A few more things to remember in this cars guide: DO NOT include destination charges in your calculation of 5% over dealer cost offer. Add the destination charge after you calculate 5% over the dealer's cost. Don't forget to subtract the consumer rebate if there is one. And as for the options, remember that their price is a big chunk of the total price of a car. The reason why you shop dealers first is to see what typical option configurations are out there. Bring pricing info and check off all the options to study later at home.