When you are in the market looking for a new car, it’s important that you educate yourself with essential tips and knowledge to make the best decision. From obtaining a dealer invoice report to the negotiation itself, ensuring that you have the best information from the beginning will prove to be beneficial to you.
Keep reading below to uncover how having a dealer invoice report in your hands before you step into the dealer’s office, can help you get the best car deals in Canada.
Obtaining a Dealer Invoice Report
Dealer invoice reports are important for both the dealers and customers to understand vehicle value. When vehicles are transported to a dealership, a certain price is paid to the manufacturers — which is referred to as the invoice price. The price seen on the sticker of vehicle ads is the MSRP – manufacturer’s suggested retail price, which incorporates the margins set for dealers.
Whether you are financing or leasing a car, invoice reports are essential as the purpose of them is to provide an accurate understanding of the vehicle you will be driving.
Know the hidden details
Buying a new car is an important decision, with a major part of your savings at stake, you ought to know even the minutest detail involved in the process. Dealer invoice reports will give the dealer’s cost, along with hidden factory incentives and rebates that you are entitled to when buying new car.
When you have all this information with you, you can ask dealers for their starting quotes, and you’ll be able to identify any unnecessary costs. The dealer will know that you’ve done your homework and are quite serious about finding the best car deals.
Provide a reasonable number to begin with during negotiation, by adding a specific percentage to the invoice price. Usually the dealer’s margin is not more than 8.7% as per recent research, and it would be wise to consider this factor when negotiating. Keep the dealer’s perspective in mind as they are looking to satisfy their customers but also expected to make a certain amount of revenue. Since you have your dealer invoice report, you will be able to identify what number to start with and what the ideal negotiated numbers would be for both parties.
3% – 5% Rule
A smart negotiation tactic would be to follow the 3 to 5% rule. Add 3-5 percent to the invoice price for the dealer margin. If you keep the expectations realistic and do your research, you will certainly be able to negotiate a price in your favour.
Looking for assistance when finding the best new car deals in Canada? Get your customized, free dealer invoice report from Car Cost Canada now and be ready to enjoy the big savings!