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Use Your Knowledge of the New Vehicle Dealer Cost to Buy Cars At or Below Invoice Prices
The invoice price on a car is the amount the car dealer supposedly paid to the manufacturer for the vehicle. This price is the wholesale price and as a car shopper it should be your goal to pay as close to it as possible. Car dealers are businesses after all so the sticker price that they charge you will be much higher than the invoice price.
However, there’s another catch, and that is the new vehicle dealer cost. The dealer cost is the actual amount the dealer paid for the vehicle and it takes into account something that most car shoppers don’t know about, the dealer holdback. The Holdback is 2-3% of either the MSRP or the invoice price and is returned to the dealer once they sell the car, hence lowering the amount the dealer paid for the auto.
By being aware of the fact that the true new vehicle dealer cost is less than the invoice price, you can plainly see that even if a car dealer is selling at or even below invoice price, they can still make a profit.
Request your free no obligation to buy new car price quote and get competing car price quotes as well as up to date pricing information and invoice prices on new car in .
Different Vehicles for Different Needs
The great thing about automobiles in this day and age is there are several different types to choose from, so you can ensure that you purchase the vehicle that will fulfill your needs and make your life easier.
Take a look at the different styles of vehicles found in today’s market:
Full-size car: This is your standard four door sedan and is ideal if you are driving long distances as they will generally have more powerful engines. These vehicles are spacious as well as comfortable.
Mid-size car: This style is perfect for a small family and is slightly larger and hence more expensive than a compact.
Compact car: These cars are smaller than a midsize or full-size car and are thought of as being multipurpose as well as economical.
Sub-compact Car: This style is perfect for short distances as well as lighter loads. They are smaller than a compact car and generally do not go over 165 inches in length.
Micro cars: These little cars are the smallest on the market and are perfect for city driving as they can prove extremely easy to park.
Sports Car: These cars offer luxury, performance and above all they are fun to drive as well as flashy.
Luxury car: These cars are generally the most expensive to buy and as a result they come with a high amount of prestige.
Minivan: This style is great for large families as they can typically carry between 7-8 passengers as well as cargo.
SUV (Sport Utility vehicle): This style will offer performance that is capable of driving on urban or rural roads, they also come in compact, mid-size or full-size.
Pickup truck: If you need to haul heavy loads then a pick up truck could be ideal for you, like SUV’s there are also different styles such as mini, mid, full or heavy duty.
How You Can Negotiate the Best Price for the Car You Want to Buy
- Understand that the sticker price and the price you will end up paying (purchase price) can be two different things. The sticker price is what the dealer would like to sell the car for, this will be the MSRP amount or even a mark up from that. You should always negotiate up from the invoice price, not down from the MSRP.
- Because of the existence of the new vehicle dealer cost, a car dealer can still make a profit if they sell to you at or even below the invoice price.
- When you get your free no obligation to buy price quote you will also see the available rebates and incentives, make sure not to bring these up until after you have negotiated the final purchase price for the vehicle.
- Get competing price quotes from multiple dealerships, this will ensure that you find the lowest offer. You can also leverage their quotes against each other to drive the price down.
- Try and be as flexible as you can, if you are willing to accept a different color or a car without a 6 disc CD player, it could mean a better deal for you.
- Go over the documents with a fine tooth comb, make sure you aren’t paying for anything you don’t need. If you don’t know what a charge is for, don’t be shy to ask the dealer about it. If you aren’t getting the answer you need or the deal you want, then walk away, there are plenty of dealers out there.
Request your free car quote today and get on your way to getting a great deal on a new car in , it’s quick, easy and best of all it’s completely free!
Negotiation