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Getting A Great Deal On A New Car

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By : Phoenix Delray    99 or more times read
Submitted 0000-00-00 00:00:00
Ah, the excitement of a brand new car! Driving to every friends house you ever had to show it off. Spit shining it ever chance you get.

The only bad part about the deal is, well the deal.

Fortunately, there is a way get a great price on a new car and this insider info will save you both time and money.

How many hours have you wasted talking about a new car deal, only to find out that the dealer had other contract clauses in mind that exploded the cost? I have wasted entire days in the car buying process.

What does factory invoice price really mean? The price that you see on the car is the manufacturers suggested retail price. You do not want to pay this over inflated price. Supposedly, the factory invoice price is what the dealer paid the manufacturer for the car. The dealer will have an invoice with this price on it.

When you hear a dealer say that he will sell to you below invoice, you wonder how on earth he could make any money. You may think that you are getting the bargain of the century.

Well, not so fast. See, the factory invoice price probably is not what the dealer had to pay for the car.

Dealers get all sorts of incentives on top of this base price. Carryover allowances and other special discounts added in make the actual cost of the vehicle less than the price on the invoice. This can add up to the tune of $500 to $2000 dollars.

So you could buy a car at $100 below the factory invoice and still be fattening the salesmans wallet more than enough.

Ask if the car manufacturer offers a factory to customer rebate. You have to get this straight from the manufacturer, but every little bit helps!

The more you know about factory to dealer incentive payments, holdbacks, and other allowances the dealer will receive, the better off you will be. Do your research so you will know the best prices cars like yours have recently been selling for.

Now, you do not want to get a great price on a car, and then lose out by paying too much for financing, for an extended service contract, and for unnecessary add-ons.

Also, check to see what the market value is of your current car if you are considering a trade in. Do not talk about a trade in until you have agreed on a price.

Before going car shopping, check the annual percentage rate currently offered by banks in your area. Sometimes credit unions offer good rates.

Many new cars are very reliable and often carry long manufacturer warranties. An extended service contract may be a waste of your money. If you do want one, make sure you check over it with a fine toothed comb to see what it covers and what it does not. Nothing like being surprised by a repair bill.

If your car already has rust proofing, paint sealant, or fabric protection, make sure you do not end up paying more than $50 for it. Any more than that will be pure profit and mark up.

A good deal on your new car can be negated if you get a lousy price on your trade in. Go ahead and take your car to a few dealerships beforehand and ask what they would pay you for it straight out. Explain that you are selling your car and getting offers from different dealers.

If the dealership where you are buying offers you a ridiculously lower price, you may as well sell your car outright to one of the dealers you checked with.

You do want to get the true wholesale value for your trade in. A dealer who offers some extraordinary trade in allowance is likely making it up on the new car price.

It takes a little extra time to ensure a great deal on your new car, but your savings can be substantial. You just might find the whole process fun!
Author Resource:- Visit Bell Road Toyota for more automobile purchasing and leasing information.
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