What are the incentives available?
Incentives such as
1. First time car buyer discount
2. College graduate incentives
3. Veteran’s/Military discount
4. Brand loyalty discount
5. Manufactures rebate
6. Auto show discounts
7. Aged inventory (this is current model car sitting on the car lots
Over period of time, may be over 60 days or 3 months or longer. Dealer want to move these models to make room for new models arriving daily.
Dealer buys cars on credit. If the car sits longer he has to pay interest (finance charges) most of the time manufactures may offer rebate to the dealer. So, the dealer is forced to move this car faster, you may be the lucky one get a better price.
To find out about these cars.
To do your homework, here a New Car/Used Car Check list. You can down load this checklists.
You have selected the car you want to buy, you test drove the car find out all available incentives.
Now comes negation part. There are many ways to negotiate.
1. There are 2 prices, one is MSRP (Manufactures Suggest Retail Price)
2. DO NOT PAY ANY ATTENTON TO MSRP.
DEALER COSTS/DEALER INVOICE ARE NOT THE SAME.
Now that you are aware of the “below invoice price” strategy, you need to calculate the hidden benefits the manufacturer gives to the dealer for the particular car you are willing to buy. Each factory has its own benefits, holdback percentages and special rebates.
HERE IS THE SAMPLE WINDOW STRICKER.
Dealer Invoice (this is what dealer pays for the car/truck) How you find out this.
You can find this dealer invoice go to NADA or ask the dealer to show you the invoice. When you looking on the invoice make sure.
This is the right car you buying. You can check the VIN number against the invoice.
There is a secret profit (I call it) hold on each from 2 to 3 % you can use this figure.
As a negotiating tool.
Calculate the hold back.
You are not obligated to buy anything they offer you no matter what?
If the dealer charge you for Fabric protection, Paint protection, Window theft protection, VIN etching etc. These are all nonsense, these are all for added profits for the dealer. You are not going to pay for any of these sale tax, it depends on the state you live.
Do you need GAP Insurances? Theft Insurance Protection, You may want say NO to this, or check with your Insurance Agent. He will explain weather you may want or not.
Extended Warranty, Do I need this, this a big question, why pay 1000s of dollars for this
Most of the car come with manufactures warranty 5 year or 60,000 miles ever. Sometime 100, 000 miles. Now cars are made better and last longer. I would suggest NO, it can be a good thing, other words if you decide to buy extended warranty buy only from manufacture.If you buy extended warranty from any other companies, May warranties are not worth Paper written on it. Documents fee, Delivery fee, refuse to pay. Except documents fee.
If you are uncomfortable take a friend with you can trust. You only visit a car dealer to test drive and sign your documents.
If you do not want haggle the price, do it from your home. Get the details of your car you purchasing, note down the VIN number. Come home do it over the phone. Or try online (some dealer do that)
Make sure you note down the VIN number, this is very important. (This is hassle free from the Privacy of your own home). If you have a trade in… what to, find out from Blue Book (Kelly blue Book)
Retails price, wholesale price, Instead of giving it to the dealer you can sell it own your own place an ad on Craig list or local newspaper. Last place trading it for a new car to the car dealer (the dealer won’t give you a good price)