In this step, we will go over the most important steps in purchasing a new car. About 4 years ago,o if you wanted to buy a new or used car, ar were all at the mercy of the dealership. Of course, if we didn’t like the price we were given, we could always just go to the next closest dealer for the type of vehicle we wanted to buy.
The Challenges of Car Shopping in Remote Rural Areas
What if you lived in the country and the dealerships were separated by hundreds of miles? What if all the dealers were working together and set a price they would go below? And what if you left one dealer, and that dealer called every nearby auto dealer, gave them your contact information, and told them you might stop by and what they offered you? If this had happened, we would have been stuck, and many of us would have had to pay MSRP.
But lucky for all of us, we don’t have to put up with this anymore. There are websites today where we can, in the comfort of our home, sit down and get free quotes from non-commissioned salesmen. Imagine buying a car while wearing nothing but your underwear. How’s that for a pressure sale?.
There are several terms that you should be familiar with before you go to negotiate the purchase of a new car:
The manufacturer’s suggested retail price (“MSRP”) is the sale price recommended by the manufacturer. The MSRP is only a point of reference and is a figure from which consumers can negotiate. In fact, in the overwhelming majority of cases, new cars are not sold at the MSRP.
Invoice price- is the manufacturer’s initial charge to the dealer. This is usually higher than the dealer’s final cost because the dealers receive rebates, allowances, discounts, and incentive awards. Thus, many Attorney Generals object to its use in auto advertising because many consumers think that it reflects the dealers’ actual costs. In general, the invoice price should include freight, which may also be reflected as destination fees or delivery charges.
Expert Lease Pro comes with a full-featured database of new car prices (Invoice and MSRP) for all new vehicles. This allows you to configure the vehicle by selecting options and option packages. Granted, invoice pricing is all over the web, but having it tightly integrated with the analysis package saves time (point, click, and analytics in) and avoids data entry errors. One can easily price out three or four vehicles in just a few minutes.
Trade-Ins:
If you are considering trading in your current vehicle, remember that a discount in the selling price of the new vehicle is sometimes offset by an undervaluation of your trade-in or by charging a higher interest rate. Shop the value of your trade-in with other dealers.
Prep for a Trade
Once you’ve decided to trade in your old car, there are a few things you’ll want to do before you take it to the dealer. Fix any visual problems with the car (a cracked window, paint scratches, missing trim). Don’t worry so much about the non-visuals, such as tune-ups and oil changes. These things won’t de-value your car with the appraiser like visual problems will. A good visual presentation takes away the dealer’s ability to talk you down on price. His price tag for cosmetic repairs will be much higher than yours, whether you do them yourself or pay a professional.
