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Uncover How Knowing The Factory Dealer Cost Can Help You Get a Great Deal On A New Car In #location_state_full#

February 19, 2014

Buying a new car can be stressful, there are so many terms to be aware of, and it can be confusing. We aim to make it a little easier- By requesting a free price quote for a new car, truck or SUV today, you will be provided price quotes from dealerships near you. Use these quotes and the information in this article to negotiate a great deal on a new car today!

Benefits of Buying a New Car

There are several benefits of buying a new car, compared to buying a used car or leasing a car, different things are important to different people. Take a look at the points below to see if you are the type of person who would prefer owning a new car.

-When you buy a new car you own it, you can decide to sell it at any point and are not locked into a fixed ownership period.

-Insurance limits on your policy for a car you buy, verse a car you lease, are usually lower.

-When you own a car you don't have to worry about mileage limits or wear and tear penalties. It's your car and you can drive it however you like.

-When you buy a new car you don't have to worry about how the previous owner drove the car, you're the first owner and don't have to be paranoid about auto issues that may spring up down the line.

Know The Differences Between The Factory Invoice Price, Dealer Invoice Price, MSRP and Dealer Cost

When you are in the market to buy a new car it's always good to be familiar with the terminology. You don't want to feel intimidated by car dealers; if you are familiar with the auto terminology they use, you can flip the tables on them and let them know that you won't be taken advantage of.

The Factory Invoice Price of a new vehicle refers to the total cost of the vehicle to the dealer. The factory invoice price includes the dealer invoice price plus other options, manufacturer fees and destination charges. The price does not take into account any manufacturer to dealer incentives, which can make the actual cost to the dealership substantially lower.

The Dealer Invoice Price is the price that the manufacturer charges the dealer for the vehicles they buy. It also includes any vehicle options. This price makes up the cost and is generally not shared with the consumer, it is the standard price that all dealerships will pay for a specific car, truck or SUV, and as such it does not include any fees that can change from dealership to dealership.

The MSRP (manufacturer's suggested retail price) is the price that the manufacturer suggests that the dealership should sell the vehicle for. The dealership is under no obligation to sell the vehicle for this amount, they can charge whatever they want.

The Dealer Cost, or factory dealer cost, refers to the actual cost of the vehicle to the car dealership. This takes into account dealer holdbacks and incentives that the manufacturer is offering the dealership as an incentive to sell more vehicles. These holdbacks and incentives lower the invoice price of the vehicle so the dealer's costs are substantially offset, meaning they can afford to sell you a car at or even below the dealer invoice price, and still make a profit.

Use the Factory Dealer Cost and Invoice Price to Negotiate a Great Deal!

Knowing about the factory dealer invoice as well as the dealer cost, holdbacks and manufacturer incentives will enable you to be in a great place to negotiate a good deal on a new car. You know that the factory dealer cost is actually much lower than the dealer invoice price. You can use this information to pressure the dealer into giving up some of their holdback/incentive profits if they want to make a sale. Try and negotiate a price as close to the factory dealer cost as possible.

This negotiation tactic will be especially useful if you are buying towards the end of the month when dealers are trying to make quick sales to reach their monthly targets. It will also be effective on slow moving models that the dealership is eager to get rid of, as well as previous year models. Dealers need to make room for new models and may be willing to part with their profits if it means moving a vehicle quickly.

If you want to buy a car close to the factory dealer cost of a new vehicle, use the information provided above and request a free no obligation to buy auto quote today! Request as many dealer quotes as you want and leverage them against dealerships in your area to get the best price on a new car in .

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