How To Know If You Are Getting Factory Pricing For Your New Car - Shopping

<p>Striking a good deal for a new car is not an easy ride. Buying a car is downright complicated. One do not simply walk-in and drives home his new ride without taking a good look at the figures presented to him. First time buyers may feel like a lost kid in a toy store, all eyes wide open and itching to play with that new toy stat! Before you do anything foolish such as wasting your hard-earned money on a shiny brand new car, hold your horses, breathe deeply and think rationally.Get familiar with automobile pricing terminologies to equip you better when negotiating with the dealer. Know the difference between dealer price, MSRP, sticker price and factory price. The dealer price is the true cost dealers pay for the vehicle to the manufacturer. Naturally, we can all speculate but the fact remains that both manufacturers and dealers will protect their interest thus this price will never be accessible to the consumers. The MSRP is the manufacturer suggested retail price. Dealers
may top off or shave off a couple of hundreds from the suggested price. Dealers often add their operational costs, floor costs and other overhead costs to the MSRP to make a profit. The&n bsp;stickers on windshields bearing figures are the sticker prices. Sticker prices are what the dealer set for as a selling prices. In short, a sticker price to a car is a tag to a merchandise. The great thing about shopping for cars is that you are free to haggle for the best price. And then there's the factory price. This is the price dealers supposedly pay manufacturers for their inventory. Among all prices this is the most important price to know to give you leverage when bargaining.Ofcourse businesses operate for profit and it is a given that consumers pay for more than the factory price. And as times changes, consumers are getting savvier and smarter. Nobody wants to be ripped off and it's very much understandable when consumers do comparison shopping. Since car buyers will be spendi
ng thousands of dollars naturally they want to save as much as they could. It is an inclination to know the price to be assured of fair pricing. Buyers may request to see the factory price invoice from dealerships but not all dealers are comfortable with this set-up and they have their reasons. Some dealers prefer to inform you verbally rather than showing the actual invoice. Ofcourse a buyer cannot possibly buy the car for a factory price. Consumers must let the dealer profit from the deal as well. In cases when you haven't seen the factory invoice, you should be able to tell if you are getting a just price. Manufacturer's usually credit or repay their dealers between 1-3% of the MSRP as rebates. Depending on the manufacturer, rebates, holdbacks and special incentives given to dealers may vary. Common sense dictates no business will sell his goods for the same price he gets from his supplier. Thus it is impossible to deal for the factory price but rather a couple of hundred
s higher. To know whether you are getting a fair price closer to the factory price, simply deduct 1-3% off the MSRP. That should give you the assurance of buying the car at the right price. Before closing any deal, research for the percentage holdback the manufacturer of that certain car offers to dealers. </p>

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