If you are considering a new car purchase, there are a few bartering secrets that you should know to get the best deal you can.
When looking at the sticker price on a car, the MSRP or manufacturer's suggested retail price, is the price the dealer would like for the car. It's not necessarily the price they expect to get for it. If you can get a few hundred dollars off that price, you probably have gotten a deal. The dealer never pays the MSRP. They have special dealer cost prices that they are charged. If you're curious about what a dealer actually pays for a car you're interested in, you can find out by getting a membership at carcostcanada.com or you can try asking the dealer directly (if they're honest enough to provide you with that information).
Dealers make their money from extended warranties, seat protectors, rust proofing and paint and especially from financing, not from the price of the car. If you have a pushy dealer who insists on any of these extras, now you know why.
Dealers also have what is called a hold-back incentive. This is an amount of money paid by the manufacturer to the dealer for overhead to keep the car. Of course, the longer the car remains in the window, the less the hold-back incentive. This is designed to motivate dealers to sell cars fast. If you are able to find out how long that particular vehicle has been sitting on the lot, you may be able to use this leverage to get a better deal.
When shopping for a car, it's good to keep in mind that popular vehicles, or vehicles that are in high demand, will cost you more. Unless you're buying used, you may want to opt out of the extended warranty as well. It's a fact that nowadays with so many lease options, most people do not own their cars as long as the warranties last. Major parts such as the driveline, engine and transmission are all covered by the manufacturer, usually for between five and eight years. As well, most warranties have too many exceptions, exclusions and deductibles.
Remember when buying a car, it's the sales person's job to get you to purchase the vehicle for the MSRP. Do your research on the vehicle beforehand to find out if there are any special incentives, discounts, or rebates that the dealer has not been completely upfront about. Read the "Auto" section of the newspaper and search online for any deals that might bring down the price of your new vehicle. The few hours of research you do will be well worth it.
Author Resource:-
If your vehicle is in need of some repairs and money is tight, you may want to consider a vehicle repair loan. To find out more about vehicle repair financing and car title loans, visit our vehicle repair financing website. For more articles like this one, visit our car repair blog.
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