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How to Really buy a New
Car... Figuring out True Dealer Cost
This is the best way to buy any vehicle:
1) Get the Invoice Price and the Rebates
for the vehicle you want.
to get these prices get online quotes from the
following services:
1) InvoiceDealers
2) Autobytel
3) CarsDirect
Don't worry - it's NO Obligation! Filling
in a price request form from these services gives
you invoice prices on options as well as the base
vehicle cost!
2) Once in the price request process you
will receive the invoice price and the list (MSRP)
price. (Make note of them). All cars have a hidden
profit that is 2% to 3% of the Base MSRP
or the Invoice price. This is called "hold
back". To calculate the hold back for
the car you're interested in click
here.
Figure out the hold back for the make you
want Then...
Invoice Price + destination Charge - Hold
Back = True dealer Cost!
When you get your quote you will now know what
the dealer is making in profit. (His price
quote minus true cost!)
3) By using the price request form from
services such as InvoiceDealers,
you will be dealing with an "Internet"
or "fleet" manager. They know you
have the costs of new cars and WONT gouge you
on the price! They are trained to deal with the
Internet public!
Try it; You will be surprised at the results!
TIP: If you want to shop and tighten
your savings further you can start your own price
war by getting quotes from the following:
1) InvoiceDealers
2) Autobytel
3) CarsDirect
These sources all offer excellence customer service
and low prices!
Tip 2: Check insurance costs on the models
you're interested in. Make sure the premiums fall
within your budget. You can shop multiple companies
at the same time for free at Nation
Wide Insurance (Fill in there free quote form)
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Want to Save Thousands
on a New Car or Truck? This Free Guide explains How You Can
Buy "Below" Dealer Invoice Prices...
If you'd like to obtain rock bottom prices on a new car,
avoid all the sales pressure at the dealership, then you have
come to the right place. The information you will receive
in this guide will most likely surprise you...
You will learn one of the dealers most coveted secrets...
True Dealer Cost (And No, it is NOT the invoice price!)
First, The Problem:
Dealer prices are full of hidden profits that are often times
not passed on to the customer. Even dealer invoice prices
are often thousands of dollars above actual cost...
... Everywhere you go on the Internet,
you read about "How to buy at $500 or $1000 over dealer
invoice" - usually you have to pay for this information
- This is bad advice.
Two Reasons NOT to buy at or near dealer
invoice:
Reason one: Dealer invoices have up to two to three
percent holdback that is usually reserved for fleet customers.
The general public is not aware of this inflation.
Reason two: The manufacturer also offers rebates and
delivery allowances in the range of a few hundred to thousands
of dollars that is supposed to come off the price - Again
easily stolen by a dishonest dealer.
Combining the hidden holdback with many rebates offered by
the manufacturer, there can often times be a difference of
$2000 or $3000 between the invoice price and actual dealer
cost. If you purchase a vehicle at invoice prices - with a
$3000 difference - the dealer makes $3000 on the vehicle.
Many dealers will easily settle for a $1500 to $2500 profit.
If they do, and you purchase the vehicle correctly, you will
be well below dealer invoice!
Your awareness of these hidden savings combined with
using the right online "car pricing services"
can put this money into your pocket - not theirs. Car pricing
services offer free price quotes from there vast network of
trained dealers.
Here is a list of qualities a good car pricing service
should have:
- Good online pricing services are free of charge.
- Good online pricing services bypass the salesman completely
- You don't have to worry about scams, selling systems or
annoying phone calls
- They provide you with dealer invoice prices and incentives
ahead of time - You can easily figure out the true dealer
cost of a vehicle by using the formula below - Knowledge
is power.
With the cost of a vehicle you know where you stand. You
can then figure out what a dealer is making on your sale.
Dealers using online pricing services know you have this information
and provide quotes accordingly - usually in the fleet pricing
area. (They won't gouge you on the price!)
How to Leverage Pricing Services to Save Money:
To leverage this system in order to maximize your savings,
you need to get as many quotes from competing online pricing
services as possible. Dealers will compete for your business
based on price and not sales pressure. The best pricing services
deal with fleet managers or Internet managers. They don't
make money on overall profit but on sales volume, and they
are happy to offer you the lowest price to get your business.
Leveraging online pricing services offers the best buying
situation possible for the consumer who hates car shopping.
Fill out a few forms and in minutes you are on your way to
savings that would take the best negotiators weeks of hard
work to achieve. But you have to be careful - not all pricing
services are the same. Some let salespeople try to pressure
you to visit the dealership without giving you a quote upfront.
If you want to avoid this get prices from InvoiceDealers,
Autobytel
and CarsDirect.
These services use trained dealers that are used to dealing
with an informed Internet public. These sources all offer
excellence customer service and low prices!
InvoiceDealers,
Autobytel
and CarsDirect
offer the following benefits:
- One: You pay absolutely nothing for the service!
It's Free.
- Two: Deal with a Fleet or Internet manager - no
pressured sales.
- Three: Offer all information necessary to make
an informed decision: Invoice prices, rebates and incentives,
a break down of options and their cost. (Needed to calculate
true dealer cost)
- Four: Offer quick turnaround time. You will often
receive quotes the first day - sometimes in less than an
hour!
- Five: When it's time to take delivery you simply
pay and drive off in the car you want at the price you want
- they won't switch you to another vehicle at a higher price.
Many similar services on the Internet charge up to three
hundred dollars for this service and promise you invoice pricing.
You know that the invoice price has hold back and rebates
that need to come off. Paying for invoice pricing is like
paying a fee to get ripped off.
Side Note: Actually, there are hundreds of price quote
services but 99% of them simply sell your information to the
highest bidder. (Many to multiple sources!) InvoiceDealers,
Autobytel
and CarsDirect
will protect your privacy - and offer good hassle-free shopping.
How to get started - Determine True Dealer
Cost...
The first thing you have to do is visit InvoiceDealers,
Autobytel
and CarsDirect
and fill in your information, the car you want and the equipment.
As you are doing so you will receive the MSRP and Dealer Invoice
prices for the car and chosen options. You will also receive
the current rebate that you are entitled to. Copy this information
down. When you are finished completing the quote process you
will be able to figure out dealer cost using the following
formula:
Here is an example:
To keep it simple the destination charge and options are
left out...
Invoice price: $20,000
Holdback: $700
Rebate: $3000
Note that the prices above do not reflect a real vehicle
- they are simply examples to help illustrate the formula.
$20,000 - $700 = $19,300 dealer cost. If you buy this vehicle
for $19,300, you just made a purchase at dealer cost ($700
below invoice). The dealer made $3,000 because they kept the
rebate as profit.
Many dealers are willing to make much less profit than $3000.
If the vehicle is in high supply with a good rebate you may
do much better than the example above. Get price quotes from
InvoiceDealers,
Autobytel
and CarsDirect .
Wait for your price quotes and see who is the lowest. You
will know how much they are making on the car and have a great
price - usually below invoice.
Why this works...
- Dealers in these networks know that you will be getting
competing quotes - they have to compete based on price.
- Dealers also know that you are an informed Internet shopper
and you are armed with this information - they will price
a vehicle accordingly.
- Perhaps the most important item is the rebate. If a rebate
is $2000 and you buy a vehicle for $100 below invoice, the
dealer still makes good money and you received a great price.
Give it a try! Let us know how you made out. We have been
getting great feedback from people using this service and
would love to here from you. Again the services that offer
the best prices: InvoiceDealers,
Autobytel
and CarsDirect.
NOTE: Please note that in some cases you are only entitled
to rebates if you do not choose the advertised low
financing percentage from the manufacturer. In other words
you can't have both. Again this varies with the vehicle, time
of year and location. Getting quotes from InvoiceDealers,
Autobytel
and CarsDirect
will provide you with the necessary information regarding
rebates.
Free pricing services mentioned in this guide:
InvoiceDealers,
Autobytel
and CarsDirect
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