| Getting the best price on your next car just got | | | | and extended warranties. |
| easier. Just read over the following car buying | | | | 4. Don't Mention Your Trade In |
| secrets and put them to good use. | | | | Negotiate everything else before you mention |
| 1. The Dealers Real Cost | | | | that you have a car to trade in. Otherwise, the |
| The Manufacturer's Suggested Retail Price (MSRP) | | | | dealer may hold out for a higher price on the new |
| is the price that consumers supposedly are meant | | | | car just so he can appear to be offering you a |
| to pay. Of course, most know they can do | | | | decent price on your trade in. Prior to going to |
| better than that, so they look for the Dealer | | | | the dealer, look up the value of your existing car |
| Invoice Price (usually listed on the sales sheet on | | | | in one of the used car price guides (available in |
| the vehicle). They try to get a price close to that. | | | | your public library or online), so you know what |
| What many people don't know is that this does | | | | you might get selling it on your own. Take the |
| not necessarily define the lowest you can go, | | | | dealer offer if it is anywhere near this. |
| because it is not the actual dealer cost. In fact, | | | | 5. Buy At The Right Time |
| this number is essentially a lie that manufacturers | | | | When is the right time to buy if you want the |
| and dealers create to help THEM with negotiations. | | | | best price? Certainly you can watch for sales, |
| For a variety of reasons, the dealers real cost is | | | | special manufacturer rebates and such. These can |
| almost always substantially less than this, so keep | | | | save you hundreds of dollars or more. But one of |
| that in mind. | | | | the lesser known car buying secrets is to shop |
| 2. Dealer Incentives and Holdbacks | | | | near the end of the month. |
| Among the things that lower the dealers true | | | | Why? Because many car dealers pay bonuses to |
| costs are special incentives they are offered by | | | | employees based on total sales for the month. |
| the manufacturer, as well as holdbacks. A | | | | Towards the end of the month then, the sales |
| holdback is an amount paid to the dealer by the | | | | people are often trying to meet some goal that |
| manufacturer upon the sale of a car. Doing it this | | | | might win them a bigger bonus. This gives you |
| way (rather than simply selling the cars to the | | | | more negotiating power. Mention at some point "I |
| dealer for less, is a way to artificially inflate the | | | | might wait until (pick a day that is the first or |
| cost on paper, which helps with negotiations with | | | | second of next month) to make a decision." You |
| "smart" buyers. | | | | might just see the price come down at that point. |
| There are places where you can find out about | | | | 6. Buy Used |
| holdbacks and incentives. Consumers Reports, for | | | | What is perhaps the most valuable of these car |
| example, in addition to having some information | | | | buying secrets, is also a secret of millionaires. |
| about these things in their magazine, also has a | | | | Although millionaires may buy more Mercedes or |
| service that provides you all of this sort of | | | | BMWs than Honda Civics, about 40% of them |
| information about any car you are considering | | | | buy these cars used. Why? Because they |
| buying. Look for their "New Car Price Service." | | | | recognize value. Surveys of repair costs and |
| 3. Overpriced Extras | | | | other data show that a three to four-year-old car |
| Much of the profit on a new car is made from | | | | costs up to 50% less per mile to own as a new |
| the extras that consumers buy. Some certainly | | | | car (less if you are paying cash, because part of |
| can be worth the price, but others are almost | | | | the savings is in the interest savings on a |
| worthless or at least grossly overpriced. Though | | | | lower-priced smaller-loan car). A three year old car |
| there are exceptions, as a rule avoid undercoating, | | | | should look almost new in any case. |
| rustproofing, fabric protection, windshield etching | | | | |