|
|
 |
|
|
|
One
of the most expensive purchases many consumers
ever make is buying a new car-often more than once
in their lifetime. As of last year, the average
price of a new car sold in the United States is
$33,480 (National Automobile Dealers Association).
That's why it is important that consumers make
informed decisions.
Think about what car model and options you
want and how much you are willing to spend. Take
the time to do some research. Being informed,
you will be less likely to feel pressured into
making a hasty or expensive decision in the
showroom and get a better deal.
Some suggestions:
Check
publications, such as the Kelly Blue Book, at a library
or bookstore, or Web
resources, that discuss new car features
and prices. These resources will provide
information on dealers costs for specific models
and available options.
|
|
Shop
around. Comparing models and prices in ads and at
dealer showrooms for the best possible price. Car-buying services
and broker-buying services are also an option to
make price comparisons.
Plan to
negotiate on price. Dealers may be willing to
bargain on their profit margin. often between 10
and 20 percent. Usually, this is the difference
between the manufacturers suggested retail price
(MSRP) and the invoice price, approximately
between 10 and 20%.
Because the price is a
factor in the dealers calculations regardless of
whether you pay cash or finance your car - and
also affects your monthly payments - negotiating
the price can save you money.
|
|
|
Car Buying
Tip: Consider ordering your new car if
you do not see what you want on the dealers lot.
This may involve a delay, but cars on the lot
may have options you do not want - and that can
raise the price. However, you may be able to
negotiate a good deal if an in-stock car meets
your needs since dealers often want to sell
their current inventory quickly.
|
| | |
| |
|
|
|
|
|
Terms to
Learn
Car negotiations have a
vocabulary of their own. Here are some terms you
should become familiar with.
| |
|
|
|
Car Invoice
Price is the manufacturers initial
charge to the dealer. This usually is higher
than the dealers final cost because dealers
receive rebates, allowances, discounts, and
incentive awards. Generally, the invoice price
should include freight (also known as
destination and delivery). If you are buying a
car based on the invoice price (for example, "at
invoice," "$100 below invoice," "two percent
above invoice") including freight, be sure
freight is not added again to the sales contract.
|
| |
| |
|
|
|
Base Price is
the cost of the car without options. It does
include standard equipment and factory warranty.
This price is printed on the Monroney Sticker
Price. |
| |
| |
|
|
|
Monroney Sticker
Price (MSRP) shows the base price, the
manufacturers installed options with the
manufacturers suggested retail price, the
manufacturers transportation charge, and the
fuel economy (mileage). Affixed to the car
window, this label is required by federal law,
and may be removed only by the purchaser.
|
| |
|
|
|
Dealer Sticker
Price, usually on a supplemental sticker,
is the Monroney Sticker Price plus the suggested
retail price of dealer-installed options, such
as additional dealer markup (ADM) or additional
dealer profit (ADP), dealer preparation, and
undercoating.
| |
|
|
| | |
|
 |
Get
a no obligation price quote for a new car or
truck. Click here for an upfront quote
from a local dealer.
|
|
| |
Get a quote for
used vehicles in your area from
both, dealers
and private parties. Get a free quote
here
| | |
Post your car for
sale in three easy steps and let the buyers
come to you.
|
|
|
