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We all know that competition drives car price down. Dealerships do everything they can to discourage you from making them compete. If you research new car prices online you’ll quickly find it impossible to get complete information about the car you want to buy.
A few of the issues I find out there leave me scratching my head.
Often, dealerships might list a price online but you need to contact the dealership to get exact numbers.
You’ll also frequently see a new car listed with a call to action: “Call for price”.
What’s the big secret? I have to ask. Why do we need to call for the car sale price?
What about those advertisements for a low-priced vehicle that says “You must finance with dealership”.
What’s the vehicle sale price if I pay cash? What interest rate is the loan going to be? Again… questions I have.
Any information you get online is only to drive you into the dealership. They know that if you spend the time visiting their dealership, the better the chance you will buy from them without contacting another dealership. Most people don’t want to spend their time in dealerships haggling over car prices. So you’ll negotiate the vehicle sale price down and then buy.
And that’s the expectation. They knew you were going to negotiate them down, so the question remains: How much of a buffer did they put in that first number?
We’re not just talking about the car sale price. We’re talking about the whole deal including financing, dealer fees, add on’s and insurance.
The truth is unless you contact multiple dealerships, you can not be sure you got the best deal.
As a former car salesman, I know that if you only contact one dealership you probably paid more than you had to. The key is to contact multiple dealerships and make them compete.
When I first started YCBA Inc I had multiple dealerships refuse to work with me although I do not charge dealerships a penny. I work for the consumer. Could you imagine a dealership refusing to talk with a friend or family member that was helping you purchase a vehicle? Don’t most people like to take someone with them when car shopping? They apparently saw me as too knowledgable.
The name of the game is visiting the dealership where you will spend hours negotiating with their sales staff and eventually make a deal because you will not have the patience to go through the same process somewhere else. This is why you cannot buy a new car online with a click. Imagine how easy it would be to shop for a vehicle and how easy it would be to compare deals if you could simply shop from home with a click of a button.
So … will you make dealerships compete? If you contact multiple dealerships you will see a difference in car price, typically thousands of dollars.
Knowing how to find a car invoice price or the exact MSRP of a vehicle is helpful in doing a vehicle search. In this short video, Mike walks you through finding a dealer cost, or invoice price, using NADA. Knowing this information makes it easier to do a more targeted vehicle search and for negotiating.
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