Friday, August 29, 2008

The #1 Rule

The first thing I always tell people when they are looking for a new car is, dealers can sell you a car below invoice. And I am not talking about invoice plus rebates, I am talking about $2,000-3,000 below invoice plus your rebates. Out of my last 6 cars I purchased, none were over invoice and I was able to get the rebates on top of my deal. So when a dealer tells you they can not go below invoice, it is simply not true.

Dealers make money in many different ways. They are paid money for each car to floor the vehicle as well as money to advertise. Dealers also have incentive to sell certain types of cars over others. If it is a popular car, then they are able to receive more allocations in the future for the same type of car. Others the dealer had to buy to get so many of a popular car. I know that probably sounds jumbled but it makes sense in my head. I guess the bottom line is that there is always extra money or extra incentive in selling a car for a dealer. So do not let them push you around, you are there giving them business, take control and leave with the deal you want.

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