There’s nothing like the excitement of buying a new car – especially if you get it at a rock-bottom price.
What most auto shoppers don’t realize is that certain extra costs are usually hidden within a vehicle’s final sale price. Even when you’ve done your homework and you’ve found the best possible deal – you probably haven’t.
There are a number of ways car dealers can boost seemingly low prices. And the savvy shopper can use this information to find where extra costs are hidden – and get them taken off. Here are some ways to protect yourself from paying too much for your next car.
Where Car Dealers Hide Extra Costs
Like the old saying goes, be sure to read the fine print. Ask to see the original invoice on the car, and compare it to the bumper sticker. This is a huge area for negotiating away extras that you don’t want, or that even exist. Negotiate from the invoice price, not the sticker price, which has been padded with dozens of little extras that add up.
These upgrades cost dealers little but really boost their profits, so you should put your foot down about paying extra for them. For the same reason, do not allow them to sell you an extended warranty. You’ll probably never use it.
There are other places where discounts are hidden. Dealerships get rebates, dealer “holdbacks” and factory-to-dealer incentives. This is money they can take off the price and give to you – but they won’t do it unless you ask. These incentives are rarely advertised, but they can add up to thousands of dollars in savings.
Getting Extra Discounts on Your New Car
Up until recently, shoppers were at the mercy of traditional TV and print advertising and stuck making important decisions while on the car lot. Driving from one lot to the next was frustrating and confusing.
But now, the majority of auto buyers compare prices using their cell phones, often while they are actually on a dealer’s lot. This is a tremendous advantage in not only finding the best prices, but buyers can use this information as leverage with dealers.
Even when you’re offered “the very best price” on a vehicle, remember that dealers are extremely motivated to make a sale. They are under pressure to move large numbers of units, and in a slow economy, there are even more unsold cars to unload. Certain models are especially difficult to sell, so researching which ones they are can help identify which cars come with the best discounts.
Of course some of the best prices will be on last year’s models. A perfectly good new car can drop in price by as much as a third or a half, simply because the calendar changes from one year to the next. A luxury sedan will be priced like a mid-market sedan, for instance. Your Ford or Chevy budget can be stretched to pay for a BMW, Lexus or Mercedes-Benz. Be flexible about the models you’re considering – the next great deal may be among the sports cars, hybrids, SUVs right on the same lot where you’re looking.
As the economy continues to recover, the auto industry will take longer to catch up – so now is the time to take advantage. Armed with these tips, you should be able to get a great new car for a much lower price.
Interested in the possibilities? Search now to see what amazing deals you can find!