Buying Cars Guide For A Great Car Buying Experience

    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. You can find out what others are paying for new vehicles, based on real sales data from your geographic area. 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.

    More Cars Guide for the Uninitiated

    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.

    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.

    Check the helpful site WEBCARZ

    Web2carz has an editorial team that reviews the latest vehicles and compares them with the competition. After extensive analysis, their editors prepare buying guides that recommend the leading models in every vehicle segment. These buying guides are meant to help you learn which models are class standouts before you begin to shop. Whether you're looking for a fuel-efficient small sedan, an eight-passenger SUV, a sleek luxury coupe, or anything in between, these recommended vehicles should help establish some guidelines for your search. At Web2carz you never have to haggle or step foot in the dealership again. . Another good reason to buy car online instead of offline.

    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. 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.'s buying cars guide Car-Buying Tip #2 advises 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.
    • They profit by servicing your car.
    • They make a killing on trade-ins, credit insurance, finance , parts, rust proofing, body work.

    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.

    Next Tip

When Buying a New Car:

Step #1: First Things First.
Step #2: These Websites Will Give You Unbelievable Saving$$.
Step #3: More Car Buying Guide for Painless Car Buying.
Step #4: A Checklist Before You Finally Go To A Car Dealer.
Step #5: It's Time To Make An Offer That The Dealer Can't Refuse.
Step #6: Before You Buy, Consider This.
Step #7: You're About To Finalize The Deal - A Word Of Caution!

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