Friday, January 16, 2015

How to Buy a New Car at the Dealer's Price

It is very difficult to buy a new car at the dealer's price because dealerships and their salespeople want to make some money. The Auto Advice car-buying website explains that dealers usually want to make a few hundred dollars in profit. However, you may be able to get a new car at the dealer's true cost if you are patient and willing to do some research and shop around. You may even have to wait for the right timing, but it can pay off in major savings.

Instructions

    1

    Calculate the dealer's true price, which is lower than the invoice cost. Websites like Kelley Blue Book and Edmunds make invoice information readily available to car buyers. But there are other factors that affect what the dealer really pays to the manufacturer. Most manufacturers give money called a "holdback" to the dealer for each car, based on its price. There are also occasional factory-to-dealer incentives that are similar to rebates, but the money goes to the dealership instead of the car buyer. Holdbacks and dealer incentives can be found online on most of the same sites that list invoice information. Auto Advice states that incentives can change frequently throughout the year.

    2

    Choose a time of the year when the dealer might be most desperate for a sale. Dealers are in business to make a profit, like any other retailer. They are reluctant to sell a new car at the price they paid because, ostensibly, they don't make money on the deal. However, they may need to sell a few more cars at the end of a particular month or year to qualify for special manufacturer program bonuses. They may be willing to forgo a profit on an individual car to achieve the needed sales numbers and earn the bonus.

    3

    Ask a salesperson or manager to call you if he can give you the new car at the dealer's price in the future, even if he turns down your offer when you make it. You have no way of knowing when a sale is desperately needed, so you may not always show up at the dealer's doorstep at the right time for a bargain. The dealer's circumstances may change, and you might get the car at your preferred price if you are patient.

    4

    Consider less-than-premium vehicles. You are more likely to get a new car at the dealer's price if you choose an unpopular model. Dealers are more willing to forgo profit on slow-moving vehicles just to get them off the lot.

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