Shopping for a new car can be a daunting task, but almost every American will have to do it at some point in their life, usually more than once. Lucky for you the landscape has changed drastically for consumers, the internet offers a wealth of information on the new car buying process, so you can be sure that you have all the information before you step into the dealership.
You are also at an advantage when you request free online price quotes and compare them against each other so you can be sure that you're getting the best deal possible.
Some car shoppers make the mistake of thinking that the dealer invoice price of new cars is the same as the dealer cost of new cars, but they are two very different animals.
The invoice price of new cars refers to what the car dealership technically paid to the manufacturer for the car. We use the word ‘technically' because this price does not reflect the true cost to the dealer. This is because the invoice price has been inflated around 2-3% to provide the dealer with a buffer which they can use to pay for the costs associated with keeping the car on the lot. This inflation is often referred to as the dealer holdback, this is because the money is held back by the manufacturer and returned to the dealer once the car is sold.
This brings us to the dealer cost, which is the actual price a dealer is ‘out of pocket' for a new car. The dealer cost takes into account any holdbacks and incentives the dealership may be receiving from the manufacturer, subtracting these from the invoice price will give you a good estimation of the actual dealer cost.
Follow this easy checklist and you'll be on your way to getting the best deal on the new car, truck or SUV that you want.
Buying a new car can be a stressful experience, but if you follow the 9 steps above, and understand the dealer invoice price and dealer cost, then you are in a better position to get a great price on a new car. Be prepared before you step into the dealership, request a free no obligation price quote today, it's quick, it's easy and best of all it's completely free and you can get as many quotes as you want. Get started today!