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Buying a new car could potentially be one of the largest purchases you make. So before you reach for those new keys, let’s talk price…specifically
how to get the most bang for your buck!
The most important thing to do before you purchase any automobile is to do your homework. Look up the value on all the automobiles that you are interested in. (I recommend using the NADA guide.) In doing so, you’ll know what the automobile is worth and you’ll be able to spot an overpriced car immediately. You’ll also know what a “reasonable” price for the automobile is, and this will give you an advantage in negotiations. Another useful tool is found on truecar.com. This website shows you what other people in your area paid for the same car, and it gives you an indication as to what constitutes a great price is and what constitutes above market pricing.
Another important piece of information to track down is the “Invoice Price”. The Invoice Price is the wholesale price the dealer paid the manufacture before any rebates or incentive. Use the internet and try to find some information about this number. By doing so, you’ll know what the profit margin is on the automobile, and with this knowledge in hand you’ll have the tools to negotiate a better price for yourself. Note: Don’t confuse invoice price with MSRP. (Manufactures Suggested Retail Price) MSRP is the sticker price, that’s the starting number. Ideally your price goes down from there!
The last piece of advice has to do with test drives. Before you sign any paperwork or discuss pricing, drive the automobile. Make sure you open every door and window. Push every button, listen for any strange sounds and have a professional mechanic look over the car too. (Most mechanics will give you documentation regarding the repairs, if any, that are needed on the automobile.) Make sure the dealer agrees to fix any issue or reduces the sale price by the cost of repairs. You can also protect your wallet from any future repairs when you purchase an extended warranty. LPI can finance an extended warranty through Route 66. Remember, you can add a Route 66 warranty to your car at any point in time, it doesn’t have to be at the time of purchase.
Use these tools and get informed. By doing so, you will ensure that when you walk out of the dealership you will have gotten the best possible price!
*Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice.