Before you think about buying a car learn much about the whole structure of the deal because Auto dealers are masters at figuring out how to squeeze more profit by taking advantage of the customer’s ignorance.
1. Factory to Dealer Incentives :
The car dealers won’t tell you about the factory to dealer incentives that they have very often. Essentially these incentives guarantee a dealer profit even if you buy the car at invoice.
Dealers will tell you only about the "factory to consumer" reimbursement that the dealer is obliged to pass on to you.
If you know that a dealer has a $1,000 incentive, you can press them to lower the price by an equivalent amount since his profit will stay the same.
Hence, before you set foot in a dealership, do a little research on the Internet to find out about all the available "factory to dealer" and "factory to consumer" incentives.
2. The Finance Guy is a real Sales Guy :
The dealer has two opportunities to make a profit on every car he sells.
3. Go with the Fleet Department for a Better Price :
Check out with the fleet department for a better price when compared with the price given by the salesperson.
The fleet department focuses only on volume whereas the main dealership looks for maximizing the profit on every deal.
Remember that the car dealer is paid based on the profitability of his sale hence he may keep you away from getting to your target price.
4. Base Car stock is never available :
Once you approach the dealer regarding the base car on the Internet, you will be disappointed that the cars they have on the lot are thousands of dollars higher.
The adverts you see in the paper are merely marketing tricks they follow to bring in the traffic.
Most often, these cars are manual shift but if you wish to drive a standard shift, you'll save thousands of dollars. Insist on seeing them.
If they are sold out means ask the dealer to give you a call when they are back.
According to the law the dealers must post the VIN numbers in the ads, use this advertisement page with the VIN number while opting for the car.
5. MSRP is merely Fantasy :
Pricing MSRP is merely waste nowadays. True invoice price minus reimbursement the dealer gets is the thing that mainly matters.
1. Factory to Dealer Incentives :
The car dealers won’t tell you about the factory to dealer incentives that they have very often. Essentially these incentives guarantee a dealer profit even if you buy the car at invoice.
Dealers will tell you only about the "factory to consumer" reimbursement that the dealer is obliged to pass on to you.
If you know that a dealer has a $1,000 incentive, you can press them to lower the price by an equivalent amount since his profit will stay the same.
Hence, before you set foot in a dealership, do a little research on the Internet to find out about all the available "factory to dealer" and "factory to consumer" incentives.
2. The Finance Guy is a real Sales Guy :
The dealer has two opportunities to make a profit on every car he sells.
- On the price he negotiates with the customer.
- On by extending warranties, rust proofing, expensive financing, etc.
3. Go with the Fleet Department for a Better Price :
Check out with the fleet department for a better price when compared with the price given by the salesperson.
The fleet department focuses only on volume whereas the main dealership looks for maximizing the profit on every deal.
Remember that the car dealer is paid based on the profitability of his sale hence he may keep you away from getting to your target price.
4. Base Car stock is never available :
Once you approach the dealer regarding the base car on the Internet, you will be disappointed that the cars they have on the lot are thousands of dollars higher.
The adverts you see in the paper are merely marketing tricks they follow to bring in the traffic.
Most often, these cars are manual shift but if you wish to drive a standard shift, you'll save thousands of dollars. Insist on seeing them.
If they are sold out means ask the dealer to give you a call when they are back.
According to the law the dealers must post the VIN numbers in the ads, use this advertisement page with the VIN number while opting for the car.
5. MSRP is merely Fantasy :
Pricing MSRP is merely waste nowadays. True invoice price minus reimbursement the dealer gets is the thing that mainly matters.
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