Posted Thursday, Sep 30, 2021
Three tips will help you stay focused on the right number.
Buying or leasing a car is, to most people the second biggest financial decision they are going to make. If you want not to OVER PAY; it would be beneficial to educate oneself, similar to what you’re doing right now. It requires the proper amount of research which takes time and a strategy. There is a wealth of information that can be found online, the challenge is sifting through it. But don’t let that deter you, having the right information can give you confidence throughout the process. In this article, we’ll cover the most common numbers you’ll see in the car-buying process, including what to focus on. Here are three tips to help you have a smooth experience from shopping to purchase.
As you start your research on cars via your friends and relative or online, you’ll probably hear about MSRP and INVOICE your focus should be on SELLING PRICE that is after all the amount you are buying the vehicle for.
MSRP, or Manufacturer Suggested Retail Price, is just that – a suggested price. This is often seen as the starting point for negotiation.
On the other end is the INVOICE, or the price the dealer paid the manufacturer for the car? This price may not always reflect the dealer’s actual cost. Because incentives and rebates can differ from dealer to dealer, it is not always a consistent reference point. This also is a number that a regular customer will probably never see!
SELLING PRICE, the most important number to you. While knowing the selling price isn’t always easy to find out, online research once again is our best friend. Comparing different third party sites like Kelly Blue Book, Edmunds, True Car as well as dealership websites will give you an idea on what is the current market value of the car you are interested in.
This critical pricing information can help you see instantly if the price you’re being offered is fair.
Now that you have an idea on how much your particular car is going for, it’s time to take off the gloves and think about effective negotiation. By that, we mean knowing what kind of experience you are comfortable with. This can mean different things to different people. Are you looking to get the absolute lowest price possible and are willing to put in the time and energy visiting multiple dealerships? Or are you interested in a more streamlined and personalized experience at one or two dealerships? Either way you have to negotiate, just the way it is. Dealer wants to make as much money as possible and you want to save money as much as possible. Stay realistic you’ve done your research. Be prepared to walk away at any point if the numbers don’t make sense to you.
Knowing what the current value of the vehicle you are buying based on tip number 1, will give you the confidence to say YES or NO to the offer.
Take advantage of rebates and any incentives. Many shoppers aren’t aware of the various incentives and rebates available to them. You can save significantly if you know where to look. Manufacturer website, dealer website and sites mentioned earlier are good resources. You can see exactly which incentives you’re eligible for like first responder discount, military discount, and loyalty discount. Dealership cannot not give you this incentives, but knowing they are available is valuable; this is on top of the discount you negotiated from the dealerships as they come from the manufacturers. Also most rebates cannot be combined with special APR.
These three tips can help you manage your expectations and have a great experience from start to finish. After taking them into consideration, you’ll be ahead of the game and ready to get into your new vehicle. Good luck and congrats on your new ride!