Shopping for a new car can easily turn from being fun, to extremely overwhelming. Lucky for you the internet has revolutionized the way we shop, making information about shopping for new cars, easily accessible!
There are several different price dealers out there, one of the ways you can get started is by requesting new car price quotes from dealerships in your area; use them to leverage dealers against each other, so you drive away with the best deal possible.
The Differences between the Dealer Invoice Price, Factory Invoice Price, MSRP and The Dealer Cost
Shoppers often get confused with the different terms that are associated with buying a car. We aim to make this a little clearer by defining of some popular car buying terms.
Dealer Invoice: The dealer invoice price refers to the price the dealer paid to the factory for the new car. However, as you will see, this isn't a complete representation of what the dealer actually pays. All models have the same dealer invoice price, regardless of what dealership is buying them.
Factory Invoice: This is the dealer invoice, plus destination charges for getting the vehicle to the dealership, options and manufacturer fees.
MSRP: The manufacturer's suggested retail price is the price that the factory recommends the dealerships charge for the vehicle. Keep in mind that the dealer is not under any obligation to sell the car for this amount, they can charge whatever they want.
Dealer Cost: This is the amount the car actually costs the dealership. It is the Factory Invoice price minus any factory to dealer incentives, rebates and holdbacks. The dealer cost highlights that even if a new car price dealer sells a model for the dealer invoice price, they are still making a profit.
Know the Order of Your New Car Negotiations
- Request several new car price quotes. Compare quotes from several dealerships and play them against each other by saying you'll go with whoever offers you the best deal.
- Stay calm, don't get emotional and be prepared to walk out if the dealer isn't budging.
- Shop during off business hours, days and months. Dealers will be more likely to give you a great deal on a new car during periods where they have incentives to move their product.
- Try to secure financing from your local bank or credit union; you will most likely be able to get a better rate through them, then with the dealership.
- Negotiate the purchase price first, this should be agreed upon before any mention of rebates, incentives or your trade in.
- Negotiate your old car's trade in value. You should try to get the highest value for it as possible.
- sk about any rebates or incentives and take them away from the purchase price that you negotiated.
- Remember that some fees can be negotiated. You will usually have to pay destination fees, sales tax and licensing/title fees. However, any dealer or marketing fees are most likely negotiable.
Request your free no obligation to buy new car price quote today and be on your way to getting a great deal on a new car today!