College is an exciting and challenging time. Between 7 am classes, tons of homework and, whew, student loans, you have a lot of your plate. But now you’ve decided to invest in a new car so you can travel faster and more conveniently. That’s great news! Naturally, you want something that stays well within budget.
Buying a new car is a phenomenal experience. Well, actually, owning a new car is a phenomenal experience. Buying one? Not as much.
We understand that you’re super new to this and need a little help. If you’re curious about, say, the price of a Honda, Car Cost Canada has got your back! This article helps you simplify the negotiation and reveals how you can find out the invoice price on your new car in Canada in a matter of minutes!
Like most new car buyers, you might be wondering; just what is the invoice price of a car? The invoice price or dealer cost is the sum of money paid by the dealership to gain ownership of the car. It includes the cost of the base model and all add-ons. The figure is typically much lower than the advertised figures, the latter of which is referred to as the MSRP (Manufacturer’s Suggested Retail Price).
When you shop smart and get a car dealer invoice report, you can skip the MSRP and pay a much lower fee.
Check the Age of the Car
When shopping around for a new ride, go for a model that’s less than 8 years old. You’ll need a car that has easily available parts that do not call for frequent replacements.
When you approach the dealers, make sure you have someone with you who is experienced in purchasing cars. Certain salespersons might deceive new buyers about the state of the motor vehicles.
By taking an experienced person with you, you’re enhancing your bargaining power and the likelihood of getting the best value for your money.
Set the Ground Rules
Do your research on the car you have in mind before you set foot into the dealership. Instead of dropping by the dealers and letting the salesperson sway your opinion, tell them you already have a vehicle selected. Convey the trim level and add-ons that you wish to invest in, keeping in mind the price for that configuration.
When the salesperson senses you’re a novice who doesn’t have a specific model and trim level in mind, they’ll pull out all the stops to get you to invest in expensive and unnecessary add-ons.
Reassure them that both parties are emerging from a mutually beneficial deal, and ask if they’re willing to match your target price. If not, don’t be afraid to tell them that you’d prefer to go to another dealership. When they see you’re willing to let the deal fall through, they are all the more likely to be open to reason.
Purchase At the End of the Month
Business slows down at the end of the month and most salespersons are looking to make one final sale. It stands to reason that they’re more amenable and willing to be open to your negotiation tactics. If you want to go one better, try buying your car at the end of a quarter – March, June, September or December. This will help you save even further.
We suggest shopping for the car early in the month and actually buying it much later, meaning get the test drive done early and narrow the list when the month is closing up shop.
Access Great Rebates With a Free Car Dealer Invoice Report
A dealer invoice report is honestly every college student’s best friend when car shopping. This report is meant to provide a breakdown of all fees, including the hidden car fees that most people aren’t aware of. That way, you will know exactly how much you’re paying for that trim level and how to negotiate smartly.
Your report will reveal;
- MSRP (Manufacturer’s Suggested Retail Price – what the dealer paid to own the car)
- Factory incentives and rebates
- Lease and finance rates
- Recommended dealerships
- Vehicle pricing options
- Comparable vehicles
A majority of dealers turn a profit of 8.7% on selling a new car. When you’re aware of the true MSRP, you can follow the 3-5% rule – meaning you can add about 3-5% on the invoice figure in your report to calculate the most lucrative negotiation price.
At Car Cost Canada, you can have your cake and eat it too. Get a great car at your dream price.