Money saving tips on new car prices, used cars, and used trucks.
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New Car Prices - Buying Tips
When it comes to getting the lowest price on a new or used auto, timing is
everything. If you're in the right place at the right time, you can get a
great deal. But show up too early or too late, and you'll pay more --
sometimes a lot more.
The new car market is a perfect illustration for the law of supply and
demand: Whenever a dealer has more buyers than cars, everyone pays retail (or
more). Two recent examples of this were the Mazda Miata and the Dodge Viper,
both arriving with much publicity and little inventory. The initial buyers of
those cars wanted them so badly that some paid $5,000 (or more) over sticker,
just to be the first one on their block with that particular car. In the case
of the Miata, thousands more became available within a year, and anyone could
eventually buy one for sticker or less.
Auto experts suggest that buyers avoid the initial introduction of any new
car model. First, new models almost always have more problems than models that
have been out for a while. Second, you'll rarely be offered any kind of rebate
or discounted price during the first few months of a new model introduction
because the supply of cars is usually rather limited.
Later in the year, however, discounts often become available as the supply
increases, and if the new model isn't selling very well, the factory may come
out with rebates and other incentives. (This sometimes happens within 2 to 3
months if the factory was too optimistic in estimating sales.)
Factory rebates and other incentives are just disguised price cuts that are
used to increase sales when things get slow. Automakers hate to use rebates
because they cut into their profits, but since buyers seem to stay away when
no rebates are offered, it looks like they're saying that the cars are
overpriced. So dealers cut their prices (with rebates) and buyers return to
the showrooms.
Buyers need to use a service like Fighting Chance to find out what
incentives are available and when they expire. Incentive programs come and go,
so if they don't have one right now on the car you want, it might be worth it
to wait a month or two in case one comes along. (Don't bother waiting if
you're trying to buy a real hot-selling model -- they don't offer incentives
on those.)
Some dealer incentives are based on volume, which means that the more cars
they sell, the higher the incentive amount on every car sold during the
program. This type of incentive can give a dealer a good reason to sell you a
car at a little-or-no-profit price, because one more sale could end up
generating thousands of extra incentive dollars for the dealership. The best
time to buy a car that has a volume incentive is right before the program
ends, within the last few days.
RESOURCES:
New Car
Prices - Dealer Cost.
Used Cars - free quotes.
Used
Trucks - free quotes.
Auto Loans - Rates, Apply Online.
Cars for Sale, Buying Services.
Auto Insurance - Rates, Information.
Car Sales -
multiple quotes.
Extended
Warranties, Service Contracts.
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