TITLE: Car Consumer Reports and Consumer Guide at Auto Lemon - Used Car History Check

Cars Directory : Auto, Automobile, Automotive, Car, Cars, Vehicle, Vehicles, Used Cars, New Cars, Used Car, New Car Price

Site Description: Car Consumer Reports and Consumer Guide on automobile, brake, buying car, car care, car cost, car safety, cooling system, drivetrain, electrical, exhaust, emission, fluid check, fuel system, ignition system, lubrication system, suspension and steering. Offers Free VIN Check VIN check

Cars Topics: car consumer reports on automobile, brake, buying car, car care, car cost, car safety, cooling system, drivetrain, electrical, exhaust, emission, fluid check, fuel system, ignition system, lubrication system, suspension and steering.

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Understanding Car Dealerships

One thing you should remember when buying a new car is that the manufacturer makes thousands of each model every year. The one on the lot is not the only one out there. When buying a new car, check out the previous model's history. Does the car have records of reliability? Does it receive good consumer remarks? Sometimes buying a car that has just come out with substantial model changes is not a good idea. The "bugs" sometimes haven't been worked out. You should also determine what accessories you want on your vehicle. Often dealerships will try to add-on dealer installed items. Most of the time these items are overpriced.Check out other accessory service installers in the area if you want such things as bug deflectors or running boards on your new vehicle. If you are handy, buy the accessories and install them yourself. Another thing you should be aware of is the difference between the Manufacturer's Suggested Retail Price (MSRP), dealer invoice, and dealer cost. The MSRP is commonly called the sticker price. Few automotive models sell at MSRP. In the past, dealer invoice was the price car dealerships paid for their vehicles. But today, most dealerships receive factory to dealer incentives and factory holdbacks. The dealer invoice price is helpful and is relatively easy to get your hands on. Magazines, books, and Internet sites have dealer invoice prices printed. Dealer cost'is the amount that the dealer will actually pay for the vehicle after holdbacks and incentives. Commonly 2-3% (common factory holdback) can be estimated off the dealer invoice to establish dealer's actual cost. For example, a car may have an MSRP sticker price of $34,000, a dealer invoice of $30,000, and a dealer cost of $29,100. What you want to determine is how much you want the dealership to profit from your purchase. You should end up paying between $250 below dealer invoice to $500 above dealer invoice depending upon the model. If you can determine the actual dealer cost (Dealer Cost = Dealer Invoice -Factory Holdback - Factory Incentives) it is reasonable and fair to offer 4% more than dealer cost. Using the previous example, your reasonable offer for that vehicle would be $30,264. This is $3,736 off sticker. However, most dealerships would be happy with that deal. Being educated about the dealer's cost will give you an edge in negotiating a deal. Negotiate up from the dealer cost, not down from the MSRP. Remember you have the advantage. There are thousands of the same car at other dealerships and someone will sell you the car you want at a reasonable price.

TechTip

Be Aware of the Add-ons

When buying a new or used car at a dealership, salespeople will try to add on things such as rust proofing, extended warranties, fabric protector, paint sealant, or pin stripping. These are high dollar mark up items for the dealer. If you want these extras, get several price quotes from local reputable businesses. Leam the facts about your standard warranty and determine if you really need these add-ons.

 

Calculations

Calculating a Reasonable Offer

Dealer Cost =
Dealer Invoice - Factory Holdback - Factory Incentives

Your Reasonable Offer =
1.04 X Dealer Cost

 

 

 

 

 



 
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Copyright © AUTO LEMON - USED CAR HISTORY CHECK - Used Car History Report. All rights reserved. VIN Number - AutoCheck - Kelley Blue Book - Auto Insurance - Auto Warranty

TITLE: Car Consumer Reports and Consumer Guide at Auto Lemon - Used Car History Check

Cars Directory : Auto, Automobile, Automotive, Car, Cars, Vehicle, Vehicles, Used Cars, New Cars, Used Car, New Car Price

Site Description: Car Consumer Reports and Consumer Guide on automobile, brake, buying car, car care, car cost, car safety, cooling system, drivetrain, electrical, exhaust, emission, fluid check, fuel system, ignition system, lubrication system, suspension and steering. Offers Free VIN Check VIN check

Cars Topics: car consumer reports on automobile, brake, buying car, car care, car cost, car safety, cooling system, drivetrain, electrical, exhaust, emission, fluid check, fuel system, ignition system, lubrication system, suspension and steering.