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The best way to get a fair deal on a new car is by determining the auto dealer cost. However, do not expect your car dealer to simply offer you information on the auto dealer cost when negotiating the price of the car. Prepare yourself in advance by gathering crucial pricing information on the car you want by requesting a FREE online price quote. This will provide you with:

• Updated pricing information on the best new cars;
• Available discount offers, available rebates, and money-saving incentives available for online buyers;
• Certified US dealerships in that carry all the best new cars in stock

Get all the pricing information you need delivered straight to your computer. Educate and prepare yourself with updated pricing information to protect yourself against overpaying at the dealership.

Request multiple price quotes and let dealers compete for the lowest price. Smart car shopping has never been this easy or hassle-free.

Compare Competing Dealer Prices for the Top 5 Cars Across Different Car Types

Can Auto Dealer Cost Help Me Get a Great Deal on a New Car?

The Auto Dealer Cost (or true dealer cost) will reveal the hidden profit margins of the car dealer, allowing you to pay less than what other people are paying for the same type of car. Knowing the auto dealer cost is lower than the invoice price will help you negotiate a better deal.

As an example, the invoice price does not expose the dealer holdback, which is money paid back to the dealer after the car is sold, hence lowering the dealer’s cost. If you buy the car from the dealership at the invoice price, then the holdback will end up as additional profit for the dealer.

Dealerships receive additional cash from the manufacturer in the form of rebates. This is an additional incentive for selling the vehicle. The car dealer can persuade you into buying the car at the stated invoice price, while forgetting about the incentives altogether. For example, if the car has an invoice price of $18,000 with a rebate of $2,500, buying the car at the invoice price of $18,000 will make the car dealer richer by $2,500—money that could be used to further lower the invoice price. Determining the auto dealer cost will help you avoid this. Remember: the auto dealer cost is lower than the invoice price.

Dealerships also enjoy manufacturer incentives such as:

• Volume Bonuses – an incentive for selling a lot of cars, or exceeding the monthly/yearly quota.
• Carryover Bonus – an incentive given for disposing previous models to make room for new inventory.
• Customer Bonus – an incentive provided by the manufacturer for dealerships with top scores in customer satisfaction surveys.

You can see, dealerships have various possibilities when it comes to earning profit. Knowing the auto dealer cost will give you the leverage you need to negotiate the lowest “on the road” price.

Understand the Fees When Buying a New Car

After successfully negotiating a fair price, you are now ready to buy the car; but before you sign anything, you should carefully study the contract and determine the fees involved in the sale.

Unexpected vehicle fees might show up, and these may negate any savings you worked hard to negotiated. Here are the fees you should know about when buying a new car:

1. Vehicle Registration Fees – registration fees vary by state, but these generally include the cost of the license plates, the title of the vehicles, and the registration itself.
2. Documentation Fees – some states do not regulate documentation fees at the dealership. If you live in an unregulated state, and find a $150 doc fee on your contract, you should try to negotiate the price. On the dealer’s side, documentation fees (or doc fees) only serve to add profit to the transaction.
3. Sales Tax – the amount of sales tax will also vary by state. The percent may seem small, but an 8% tax charge on a car costing $25,000 will cost you $2,000.
4. Trade-in Taxes – depending on where you live, trading your old car will make it possible to enjoy a tax break from the purchase of a new car. For example, if your old car is valued at $8,000 and your new car is worth $25,000, the state will only tax you on the difference between the cost of the new car and the trade-in value of your old car. In this case, your tax will be based on the $17,000 value instead of the $25,000.
5. Dealer Fees – similar to documentation fees, dealer fees have a vague purpose and can come with a variety of names/labels, such as ‘shipping fee’, ‘dealer preparation fee’, etc. The purpose of dealer fees is the same: to help dealers get more ‘back-end’ profit from every sale.
6. Advertising Fees – if the car dealership includes advertising fees on the dealer invoice, this is okay. But if you find advertising fees on the contract, then the dealer is trying to make more money from the sale.

It is your duty as a car buyer to know the various regulations in your state. This is safe insurance against unnecessary fees and taxes car dealerships might impose on the sales contract.

Watch Out for Other Fees / Extras

Besides the fees mentioned above, there are still a few more you should know about. The car dealer can also charge you titling fees and delivery fees are unnecessary. In fact, oftentimes, these fees are inflated to a higher amount. They only serve the purpose of allowing the car dealer to earn more money.

If you are offered any extras by the finance or sales manager such as extended warranties, fabric protection, rust protection, and paint treatments, you should refuse the offer outright. Rust protection comes standard on all new cars, and paint treatments are just waxes and polishes that you can generally buy at the hardware store.

If you decide to purchase additional add-ons for your car (such as window tinting, all-weather floor mats and carpets, etc.) remember: they are all negotiable. You do not need to take their word for it and pay outright.

Here is a short list of the add-ons and extras a car dealer may offer:

1. GAP Insurance – the car dealer will charge you $400 to $500 for GAP insurance. If you really need it, you should try asking for a quote from outside sources as it should only cost around $200.
2. Extended Warranties – as previously mentioned above, all new cars have comprehensive warranties. Extended warranties can cost you $1,800 more over the auto dealer cost.
3. VIN Etching – you can do this yourself for a lesser cost as the dealer will charge you hundreds of dollars for something that only costs $25.
4. Car Alarm and Security System – most vehicles come with an alarm system as standard. If you are planning to purchase this add-on for your car, it is best to seek the services of a professional installer outside the dealership. This will save you anywhere from $300 to $500.
5. Rust-Proofing and Undercoating Protection – all new cars have rust proofing and undercoating applied from the factory. Why pay an additional $1,200 for something that is already there?
6. Paint and Fabric Protection – car dealers can charge you anywhere from $250 for paint protection and another $250 for fabric protection. That amounts to $500 in additional payments. In truth, you can buy car wax and fabric spray for no more than $50.
7. LoJack Installation – a vehicle LoJack system will help the police to recover a stolen vehicle. You should consider this if you really need it or if you bought an expensive car. However, you should still consult outside sources to know if the dealer is charging you an unfair amount for the LoJack system.

Now that you are more educated about the fees associated with new car buying, request your new car quote and compare amazing offers from the top competing dealerships in . Locate the best offer and save money on a new car!