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Understand New Car Pricing- Get Great Deals in #location_state_full#!

June 27, 2014

When shopping for a new car there is some important new car pricing information that you need to be aware of. When you understanding important pricing information you will be in a better position to negotiate a good deal on a new car in your zip code. Request your free no obligation to buy new car price quote and get access to offers from dealers in your area today!

MSRP vs. Invoice Price vs. Dealer Cost- Know The Differences

MSRP: This refers to the Manufacturer’s Suggested Retail Price and is the price that the manufacturer suggests that a dealership sell a vehicle for. Keep in mind that the dealership is under no obligation to sell a vehicle at this amount, they can charge whatever they see fit.

Invoice Price: This is the amount that the manufacturer invoices the dealership for a given vehicle. The invoice price for a given vehicle is the same no matter what dealership the vehicle is being sold in. For example, the invoice price of a 2014 Nissan Altima is the same at a dealership in Portland, OR as would be at a dealership in Miami, FL.

Dealer Cost: This is the amount that a vehicle actually costs the dealership, not to be confused with the invoice price. There is a ‘holdback’, which is built into the invoice price of most vehicles, it is 2-3% of the invoice price or MSRP and is returned to the dealership at a predetermined date. The existence of the holdback as well as any available factory to dealer incentives serves to reduce the cost of the vehicle to the dealership. It means that even if a dealer sells a vehicle at or even below the dealer invoice price, the dealership may still be able to make a profit. The dealer cost is calculated through subtracting the holdback and any available factory to dealer incentives from the dealer invoice price. If you want to understand new car pricing, then you have to understand the dealer cost.

How To Negotiate A Great Deal On A New Car

When negotiating the price of a new vehicle there are a few guidelines to follow if you want to get the best deal available.

  1. Request multiple price quotes online. When you request price quotes online you can use them when negotiating new car pricing, and get access to items such as the dealer invoice price and other insider information like available rebates and incentives.

  2. Don’t let your guard down, remember dealers are trying to make a sale, they aren’t doing you any favors by selling you a car and you can be sure that they have a bottom line that they can’t go below.

  3. Secure your financing before you head to the dealership. This will allow you to compare financing rates from the dealership as well as your local bank or credit union so you can choose the best rate available.

  4. Do your research before you step into the dealership, you need to know how much you can afford and what features are important to have on your new vehicle, as well as any important new car pricing information. Being an informed shopper will give you a better chance of getting the deal you want.

  5. Don’t waste money on extras that you don’t need. Oftentimes dealerships charge high amounts for extras like rust proofing, which you can easily do yourself with a kit from your local hardware store. Only pay for what you want.

  6. Always negotiate up from the dealer cost or invoice price, not down from the MSRP.

  7. Do not mention that you have a trade in vehicle until you have agreed on the final purchase price.

Request your free no obligation to buy new car price quote today. Get access to new car pricing information including the dealer invoice price and available rebates and incentives for the vehicles you are interested in, you can request as many quotes as you want and its 100% free. Get started today!

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