For many consumers, a new car is one of the most expensive purchases and only the purchase of a home exceeds it. According to the data provided by the National Automobile Dealers Association , the average price of a new car in the United States is approximately $ 30,000. Therefore, it is important to know how to get the most convenient deal.
How to buy your new car
Learn the terms
Financing your new car
Delivery of your used car in part of payment
Consideration of a service contract
HOW to buy your new car
Think about the car model and the options you want and how much you are willing to spend. Do some research, so you will be less likely to feel pressured to make a hasty or expensive decision in the sales room and more likely to get a more convenient deal.
Consider these suggestions:
Consult publications and specialized websites with information on the characteristics and prices of new cars. These sources could give you information about dealer costs for specific models and options.
Search and compare to obtain the best possible price comparing the models and prices published in the advertisements and dealers’ sales rooms. To compare prices, you can also contact car purchase services and car buying agents.
Prepare to negotiate the price of the vehicle. Dealers may be willing to haggle over their profit margin, which is often between 10 and 20 percent. In general, this is the difference between the retail price suggested by the manufacturer, also known as MSGR, and the invoice price.
You can save money by negotiating the price because this is a factor considered in the dealer’s calculation whether you pay your car in cash or if you finance it – and this will also affect the amount of your monthly installments.
If the dealer does not have the car you want to buy in stock, consider ordering it. This may involve a delay in delivery, but the cars that the dealer has in stock may have some options that you do not want – which may increase the price. But dealers usually want to sell their inventory quickly, so if the dealer has a car that suits their needs, they may be able to negotiate a convenient price.
Learn the terms
Car sales negotiations usually have their own vocabulary. Let’s see a list of some of the terms you can hear when discussing the price of a car.
The invoice price is the initial cost that the manufacturer bills the dealer. Usually, this price is higher than the final cost paid by the dealer because it receives rebates, deductions, discounts and incentive prizes. In general, the invoice price should include the freight cost (also known as the destination and delivery charge). If you are buying a car on the basis of the invoice price (for example “at the invoice price”, “$ 100 below the invoice price”, “two percent above the invoice price”) and the freight cost is already included, make sure that you do not add this item in the sales contract.
The base price or basic price is the cost of the car without the options, but includes the standard equipment and the vehicle factory warranty. This price is printed on the Monroe price tag.