Shopping for a new car doesn’t have to be a stressful experience. If you follow a few simple tips and understand important terminology then you are in a much better position to secure a great deal on a car in Virginia. When you request your free no obligation new car price quote you will receive quotes from reputable dealerships in your area, it makes the process of shopping for a new car a whole lot easier.
Negotiating with Car Dealers- What You Need To Keep In Mind
- When negotiating with car dealers don’t let you guard down. Just because a dealer might seem friendly and trustworthy, make sure that you remember that they are making money off the deal and aren’t doing you any favors by selling you a car.
- Secure your financing before you head to the dealership. The more options you have for financing the better position you will be in to compare what you are already being offered to what the dealership may be able to provide, no need to put all your eggs in one basket.
- Don’t spend tons of money on extras. If there are extras you can’t live without make sure to check if you can get a better deal somewhere else, dealerships are known to charge an arm and a leg for extras. They may also try and charge you for add-ons that you really don’t need such as rust proofing, which you can usually do yourself for much less. Request multiple price quotes online and compare offers from dealerships in your area. You can also use these quotes to make dealers compete against each other so you have a leg up when with car dealers.
- Make sure that you have done all your research before you step into the dealership, remember, a good shopper is an informed shopper. When you request your free no obligation price quotes you will also receive the most up to date available rebates and incentives for the model you are interested in.
Follow these simple tips for negotiating with car dealers and drive away with the best deal possible.
True Dealer Cost vs Dealer Invoice Price
Oftentimes people think that the dealer cost and invoice price are the same thing…but they aren’t. The dealer invoice is the amount that the dealership gets invoiced for a vehicle from the manufacturer. This is the same for any given model no matter what dealership it is being sold at. For example, the dealer invoice price on a 2014 Ford Mustang is the same at a dealership in Miami as it is at a dealership in Los Angeles.
The true dealer cost is the actual cost of a vehicle to a dealership. This is usually significantly lower than the dealer invoice price due to the existence of the dealer ‘holdback’ which is usually 2-3% of either the invoice price or the MSRP, and is worked into the invoice price. This holdback is returned to the dealership by the manufacturer at a predetermined time and serves to lessen the overall cost to the dealership. So the dealership can actually make a profit if they sell to you below the dealer invoice price, which you want to remember during your negotiations.
Now that you are armed with the information that is going to give you a leg up when negotiating with car dealers, get started on your shopping now! Request your free no obligation to buy price quote and get access to great deals from dealerships in your zip code today!