Buying Your Very First Car? Avoid These Mistakes Made by 92% of New Buyers!

Congratulations! 2019 is the year you’ve finally decided to quit taking public transit and walking in the cold climates Canada has to offer and get your new car. This is as exciting as that time you graduated high school or landed your first paying job!

After doing tons of research, you’ve settled on a make and model and can’t wait to take to the streets. Before you put your money down and complete the transaction, tarry a little. You’re not quite finished with the research process just yet.

Are you aware of the common dealer traps that new buyers often fall victim to? Have you located the best new car deals in Canada? If not, don’t ruin your first-time buying experience with inadequate research. Save yourself a world of trouble by reading this article instead!

 

Breaking Your Budget – And Then Some!

The most pressing question for first-time car buyers is, “How much should your first car cost?” The best way to proceed is to set your budget at no more than 20% of your annual salary. For instance, if you make $85,000 per year, your budget shouldn’t cross over $17,000.

A common trap set by dealers is to catch new buyers unawares by drawing their attention to the monthly payments rather than the total cost. If you’re wise to this tactic, it’s easy to stick to your original plan. Remember that it’s not just the capital cost that you have to budget for but also the insurance, fuel, licensing fees and so on.

 

Ignoring Your Intuition

Some dealers may not have your best interests at heart. If you feel that yours is constantly trying to get you to splurge over and above what you’ve expressed an interest in, it might be time to look elsewhere. When your sixth sense is telling you otherwise and the transaction begins to go south, don’t compel yourself to get the car just because.

Going to another dealer might mean more cordial services and honest and consistent pricing solutions.

 

Assuming That Test Driving Is Just a Fool’s Errand

First things first. Is it better to buy a new car or a used car? Bear in mind that a new car depreciates by about 20% as soon as it exits the lot. If a budget isn’t your primary focus then it makes sense to purchase a new vehicle. A used car, on the other hand, will be 20-30% less expensive even if it is just a year old, however, there may be existing issues with a used vehicle that will cost you more in the long run. 

Once you’ve made a decision on whether you want to buy a new or used car, the next step is to give it a whirl. While the car you have in mind might have the right features, it could still make for a less-than-comfortable drive.

The only way to know what you’re getting into for sure? Test drive like you mean it! Another dealer trap is for dealers to coax you to take a pre-decided route on your drive – a route that no doubt offers the least amount of challenges in the way of road conditions. If you are familiar with the area, choose your own route – preferably something that incorporates highways and streets.

 

Thinking That Walking Away Equates to Defeat

Many car shoppers ask, “Can I buy a car in one day.”  You certainly can but it’s extremely ill-advised. If for whatever reason, you are keen to complete the transaction in a day, you can do so online to speed things up. There are many perks to taking your time with the purchase, not the least of which are allowing yourself time to research, test drive the car of choice, and walk away from an unsavory deal. That way, you can completely skip that dreaded post-purchase buyer’s regret.

Walking away from a deal ties in with listening to your intuition. If you find the dealer being excessively pushy and not meeting you halfway, it’s time to walk. Cue the third dealer trap. Dealerships will attempt to sell you on an extended warranty in the hopes that you’ve forgotten that new vehicles come with a bumper to bumper warranty.

If you intend on retaining the same vehicle for a long time and using a lot of miles, then an extended warranty might be up your alley.

 

Not Acquiring a Dealer Invoice Report

Perhaps the most grievous mistake of them all – failing to ask for a car dealer invoice report from a reputed agency. Just as with any large investment, it’s important to consider multiple offers from different dealers so that you can negotiate for the best price.

Additionally, you’ll want to get your hands on the latest rebates, certified dealerships, best add-ons, and the deals that other people in your area have gotten.

A car dealer invoice report reveals the actual amount paid by the dealer to own the car. That way, when you’re haggling for a good deal, you won’t have to pay the full MSRP. And when your dealer senses you’ve done your due diligence, they are that much more likely to be cooperative with your negotiation tactics.

A dealer invoice report enables you to decide on a great bargaining figure. A majority of dealers turn a profit of 8.7% on selling a new car. When you’re aware of the MSRP, you can follow the 3-5% rule which is adding about 3-5% on the invoice figure in your report to calculate the most lucrative negotiation price.

 

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New Car Buyers Guide: What is MSRP?

When it comes to purchasing a new vehicle in Canada, the process is relatively simple. You walk into a car dealership, inquire about your favourite models and makes, take some test drives,  and begin the negotiation process to get the best price for your investment.

The conversation typically starts at a price point set by the dealership and from there, the buyer will proceed to explain their budget so that the dealership can find a more suitable price for the both of them. The goal of the dealership is to make maximum profits whereas customers are looking for the best deal for their money. For those that have not gone through this process, this can be a challenging point as to what range you should provide the dealer, which is why understanding the definition of the MSRP and how you can leverage tools such as a dealer invoice price for comparison which can be instrumental to getting a good price.

Keep reading to learn more about the difference between the MSRP and a dealer invoice price:

 

What is MSRP?

MSRP stands for the manufacturer’s suggested retail price, which is exactly what it sounds like. Once the vehicle is manufactured, they put together a list of costs associated with the makeup of the vehicle along with any creative and design aspects. They recommend this price that includes the sales efforts and markup, encouraging all locations to have similar price points so that it can be standardized across the board.

This would be more or less the price that dealerships promote, adding on any discounts or additional markups. Understanding the MSRP is often negotiable will allow you to find the range to start the conversation from.

 

What is a Dealer Invoice price?

A dealer invoice price is a price that the dealership is invoiced for the vehicles that they sell. This is often the cost to the dealership, so a subsect of the MSRP. The amount is the direct materials, labour, and overhead associated with the vehicle and this becomes a charge to the dealership when they purchase them to sell to customers.

It is commonly known that the dealer invoice price often excludes costs that dealerships are able to get out of through incentives such as dealer holdbacks or cash incentives. Keep in mind, those discounts are not shown on the invoice prices that are on the report but for the most part, dealer invoice reports help to show an at-cost version of the vehicle you are looking for which is what you need to begin negotiations.

 

So the difference is…

The difference between MSRP and the dealer invoice price is the profit margin that the dealerships make. They are looking to maximize that as much as possible, but all car dealerships are in the business to make sales so they will negotiate until you are satisfied with the price and they are satisfied with the profit margin.

 

Obtaining a Dealer Invoice Report

With Car Cost Canada, you have the opportunity to get a report that showcases the dealer invoice prices and with the service, certified dealerships are recommended so that you can connect with someone who is ready to negotiate on these terms. Since the report itself is free, you have the opportunity to save money without initially investing anything.

 

Negotiating Strategies

Alongside a dealer invoice report, here are some tips and tricks to help you in your purchasing conversation:

  • Do not be an impulse buyer: cars will not run out, if you want a certain model or make, they will exist a week or a month from now. Take your time so that you make the best decision for your commuting needs.
  • Negotiate up from the dealer’s cost: utilize the dealer invoice report and take away any dealer holdbacks and cash incentives to obtain the dealer’s cost; from there, you can negotiate from an additional 3-5% upwards.
  • Bring someone along: this will provide another perspective and give off the impression that you cannot be intimidated; use your partner to strategically guide the conversation so that the power is in your hands.

 

Have your best foot forward in negotiating for your new vehicle. Do not get blindsided by additional markups or prices by utilizing the tools you have strategically. A dealer invoice report can give you all the information you need to make an informed decision. Contact our team today to learn more about the service and to get more advice.

 

2019 Vehicle Rollouts: These New Cars Are Keeping Everyone in Breathless Anticipation!

Say hello to the graduate class of 2019. Pickup trucks and sports utility vehicles promise to make a big splash in car sales in the new year. Expect an extensive lineup of completely revamped luxury cars, family sedans, and sports coupes. If you’re looking for the best new car deals in Canada, we suggest sticking around.

In this article, we break down some highly anticipated new releases that will hit dealerships very soon. Don’t pay the full MSRP for your new vehicle. With Car Cost Canada, get a free dealer invoice report that gives you access to certified dealerships,  lowest price offers, rebates and lets you successfully avoid the hidden fees!

Without further ado, let’s delve into the three new 2019 releases that car enthusiasts are most looking forward to:

 

Audi 2019 A8

Audi’s flagship sedan boasts of several improved features such as comfortable and spacious wood trimmed interiors as well as a dual screen infotainment system that gives the driver access to virtual cockpit operations. The fourth generation vehicle focuses on passenger comfort. Interactivity with the configurable infotainment system takes place either through haptic controls or voice commands.

To add to the luxuriousness of it all, the model comes with several auxiliaries such as a heatable center console, plush armrests and a dual tablet system for the rear passengers’ entertainment.

Just when you thought it couldn’t get any better, it does. The rear seats are very amenable to elevate comfort levels. They massage, recline and come with fully adjustable foot- and headrests.

How about the engine? Well, the 2019 model ups the ante and has a V6 turbo powered engine (3.0 litres). To afford enhanced vehicular dynamics, it also offers active suspension and is available with 48-volt technology.

As part of its semi-autonomous safety features, the R8 offers auto braking to curb the likelihood of collisions. This system will prove to be more useful than you realize in light of the updated 2019 distracted driving laws in Ontario, which convicts drivers who get distracted when using a handheld cellular device, eating or reading. Fines soar as high as $1,000. The Audi R8 lets you stay connected while never taking your eyes off the road.

 

Mercedes-Benz 2019 S-Class Sedan

Mercedes-Benz has made some tall promises for 2019 and from the looks of it, the German automobile company has every intention of keeping them. A single glance will reveal that the S-Class cuts a more exclusive figure than previous models. It’s two-tone exterior paint finish and pinstripe-inspired grille stay true to the automaker’s conventional pedigree.

With the spacious interiors, both driver and passenger comfort exceeds newer heights. Expect recline and massage rear seats and individual front seats that have a folding table option. The S-Class’s LED lighting is a beacon of convenience for drivers. With the Ultra Wide Beam technology, tricky curves and turns in the road are illuminated.

The automaker has even surpassed itself with its advanced driver assistance technology – a godsend to help drivers avoid collisions when distracted behind the wheel. As mentioned before, in light of the new distracted driving laws, any autonomous specs are a welcome addition in 2019.

You can switch lanes at the tap of a button, be alerted of danger on the streets ahead and even access the car’s automatic drive options – it detects toll booths or exits and slows itself upon nearing them.

Navigation and entertainment never take the back seat with a beauty like this. Android Auto and Apple CarPlay are fully compatible. The infotainment system’s stellar interface integrates with your phone and offers voice control interactivity. Whether you’re at the front or back, you can access wireless charging features on the go.

 

Genesis 2019 G70

Genesis, the luxury branch of its parent company Hyundai, is introducing an entry-level sports sedan G70, that will follow in the footsteps of the larger G80 and G90 models. The attractive sedan is much more compact than its predecessors and comes in five trim levels: Advanced, Elite, Prestige, Dynamic and Sport.

The driver is able to configure their G70 as they like by choosing from two engines, two transmissions and from an all-wheel or a rear-wheel drive. The Genesis G70 comes with five powertrain options, with the 2.0-litre engines boasting of 255 horsepower being at the starting tier and a 3.3-litre engine with 365 horsepower being at the top tier.

The interior of the car doesn’t disappoint either. Neat and clean lines characterize the vehicle’s exterior, while the automakers clearly maintained a driver-oriented layout. The 7-inch LCD touchscreen and accessible analog controls are positioned on the central instrument panel. Additionally, the driver will find an 8-inch screen that rests on the centre stack, as well as two neat rows of easy-to-use buttons for climate and audio control options.

To make your cruise that much more pleasurable, Android and Apple CarPlay compatibility come standard with your car. You can even access Qi wireless charging, navigation and a 660-watt Lexicon acoustic system.

These Cars Will Arrive at Your Local Dealership Very Soon

Don’t Break the Bank to Get Them!

If any of the upcoming 2019 models in this list or otherwise catch your eye but you’re anxious about the MSRP, we’ve got great news! Don’t pay the full dealer invoice price. Access rebates and discounts from certified dealerships. Shop smartly – Pay 15% lesser than everyone else!

The road ahead looks promising! It all starts when you request a free dealer invoice report from Car Cost Canada.

Planning to Buy a Car Online? Here’s Why a Dealer Invoice Report is Your Right Hand Man!

Buying a vehicle in the 21st century is a whole new ball game. With the evolution of the internet, it isn’t at all surprising that you can buy a car online in Canada, simply through a virtual transaction.

All you have to do is visit the dealership’s digital department, ascertain whether your car is in stock by emailing or texting them, book an appointment for a test drive and get a quote on your vehicle of choice. Once you’ve settled on a car after your test drive, you can finance, negotiate and complete the rest of the transaction online. From there, most dealers will deliver your new car to your address.

Seems simple enough, right? But wait. You’re missing a crucial step!

Why Do I Need a Dealer Invoice Report When I’m Buying a New Car Online?

In the above scenario, a dealer invoice report wasn’t used. Therefore, the person making the purchase would have likely paid the full MSRP (Manufacturer’s Suggested Retail Price) and missed out on saving quite a bundle. For instance, the dealer may provide the car to you for $27, 000, however, they paid $24,000 to the manufacturer to own it. This means that the dealership enjoys a profit margin of $3,000, with the buyer of the car being none the wiser.

Complete Transparency – No Catch, No Hidden Costs

This is how a dealer invoice report helps. It starts when you request a free report for a particular model and make. Your report will detail the original price (invoice price) paid by the dealer to the manufacturer. Moreover, when you approach a reputed dealer invoice report provider, you can even access the latest incentives, rebates and certified dealers with absolutely no hidden charges. All of these benefits would ordinarily be closed off to you. With a dealer invoice report, transparency is the focal point.

SAVE on Your New Car While You Access the Latest 2019 In-Car Technologies

2019 promises to debut several innovations in the automotive industry. What will your future car look like? These breakthrough technologies will revolutionize the way you drive.

For instance, using AI like Amazon’s Alexa to interact with your car’s infotainment system, Nissan’s “B2V (brain to vehicle) communication that uses a headband to detect brain waves and prep the vehicle for the action that you intend to make, Ford’s Waze mapping and navigation that gives you real-time crowdsourced data on a delay/backup, and so many other seamless solutions.

How does a dealer invoice report factor in? Not only do you get the best price on your new car, you also get the latest upgrades, technologies and trim levels at the best quotes. The savings you rack up just by approaching the right dealer will make for a very pleasant buying experience.

Compare Offers From All Your Local Dealers!

When car shopping, just as with any sizeable investment, it’s important to consider offers from at least a couple of different dealerships to get a rough idea of what you’ll be spending. You may have to walk away on your first visit, prompting the dealer to provide a more attractive offer. Don’t settle. Shop around until you find one that’s willing to match your expectations.

With a dealer invoice report, besides finding out the vehicle’s wholesale cost, you will also be able to find out what other people in your area have paid for the same make and model. Moreover, the report will recommend only the highest quality dealers that offer irresistible prices.

Be in a Much Better Position to Negotiate

When you approach your dealer, you need a feasible figure, based on which you can begin negotiations. Overshoot a reasonable amount and the dealer won’t entertain you, undershoot a reasonable amount and you’ll stand to lose a tidy sum.

The question is: how do you strike the right balance? A dealer invoice report gives you a good idea of the bargaining figure on which to begin negotiations. Most dealers make a profit margin of about 8.7%. Naturally, you have to negotiate at a quote that’s fair to you and allows the dealer to have some leftover revenue as well. The report gives you a number that works for both parties. It’s best to follow the 3-5% rule. This means, whatever invoice price your report reveals, add about 3-5% to that figure to arrive at your negotiating price.

Free Invoice Reports. Lowest Price Offers. Certified Dealers.

Buying a new car online doesn’t have to be riddled with challenges. With a free dealer invoice report, you can access incentives, rebates, and offers that you can’t normally enjoy. Request your report right here!

Car Cost Canada: How does it Work?

Buying a new vehicle comes with new expenses to add which can be challenging, especially when you’re eyeing expensive models. The maintenance fees that come with buying a new car become part of the decision making process and not knowing where to begin the negotiation at a dealership can put you in a difficult position.

Car Cost Canada is able to provide free dealer reports which give details in regards to what you are purchasing, and the various ways you can save money. The basis of a free report comes from the cost at which the dealership gets the vehicles at. Having the knowledge and understanding of that will allow any potential new car buyer to start their negotiation.

The process of getting a report is simple, and can be done electronically via the Car Cost Canada site. When it comes to how exactly it works, that can be broken down into three easy steps:

Step 1: Initiating the Free Report

Once you are on the site, you are able to choose from a variety of brands, makes, and models, to help the report identify exactly the vehicle you are looking for. For example, if you are looking for a Honda Civic Coupe, you would be able to narrow down the factors and even choose the model, LX, Touring, EX-T, etc. The following pages would be to identify the specificity of the car: the vehicle colour, paint scheme, seat trim, and other customizations that your vehicle would have.

Step 2: Best Price Formula

Once you have chosen all of your customizations and preferences for your vehicle, you will be redirected to a page where the MSRP and average price that people pay for the same vehicle are shown.

On Car Cost Canada’s end, the best price formula is used to assist in the report making aspect. The formula takes the dealer’s cost, subtracts the incentives you qualify for, adds the dealer markup, and presents the best price. All of that combined will provide a good estimate of where you can aim to start in the negotiation process and provides you with a realistic number that you should aim to get.

Step 3: Partner with a Dealership

At Car Cost Canada, we have a list of top rated and most popular dealerships. Partnering with them, we know that they will provide you with a quality buying experience whilst simultaneously providing you the best price. Using the free dealer report to buy a new car will allow you to leverage that knowledge and use it during the negotiation. Since they are partnered with us, the conversations of whether the prices on our reports are doable will not exist. We are able to contact an associate dealer that can help secure your vehicle at those prices which makes this a hassle free process for you!

Now that you understand the quick process that CCC provides, you can get started by choosing the brand, make, and model you are looking for! Find a vehicle that works best for you and your lifestyle and get a price that works even better!

Contact our Car Cost Canada team today to get more information on the dealer invoice report and how you can leverage that to your benefit.

What You Need to Know before Buying a Car

Whether you have bought a car multiple times or are looking to become a new car owner, the truth is you can use a couple tips to ensure that you’re getting the most for your money. The process is much more than just choosing your favourite car and paying for it as there are always many hidden costs and incentives that dealerships and general websites online will not let you know about.

With Car Cost Canada, the online feature of obtaining a dealer invoice price allows you to see what incentives you qualify for and the additional costs that can add up when you’re not noticing them. The program allows you to have your best foot forward in the car purchasing negotiation, saving you lots of money.

To learn more about what you should know about before buying a car, keep reading! The dealer invoice price program that Car Cost has is a part of the process:

Finance or Lease?

The big question of how your vehicle will be paid off: will you finance it or will you lease it? Depending on your financial position, it may be less of a debate and more of what you can afford. There are benefits to both, and one will cater better to you if you’re a student vs. an adult with full income.

Have a sense of the type of deposit you can put down and the amount you can afford to pay monthly. You can also look at auto loans if you’re interested in financing a car rather than leasing and require more funds.

Understand your Credit Score

Before purchasing your vehicle, your credit score is important to know. This is because the credit report and interest rates that you have available will be able to act as a leverage point, allowing you to negotiate a good deal and save money.

Shop Around

Even if you have your eye set on a specific car, model, and make, take a look around at other dealerships, similar brands, and see what other options you have. For every car you look at there, there is always a more expensive version and another affordable make. Know your options so that when it comes to negotiating, you know your budget limits.

In addition to looking at different cars, ensure you do you research regarding dealerships. Look online for bad customer reviews and those with glowing reviews so that you know you will get the best service and treatment when you walk into a dealership. Even expensive cars from a well-known reputable brand can have issues and if your dealership is one that puts their needs and sales ahead of your own, you may end up with issue-filled car.

Find a Dealer Invoice Price

This process step is something Car Cost Canada can help with. As mentioned before, these dealer invoice reports help seek out rebates and incentives that a car owner may qualify for and takes out unnecessary costs for you to understand the starting cost that the dealership works with. Obviously, certain dealerships will have a more stubborn attitude to negotiate with but for the most part, this dealer invoice report gives you leverage as you understand how much the dealer will make from this purchase.

Test Drive your Car of Choice

Once you have decided there is a certain type of car you are interested in, make sure you test drive it. Often new car owners will buy it for the look or aesthetic and neglect to see the compatibility and comfortability associated with the vehicle. Doing a test drive will ensure that you know how the functions work and that you are comfortable with the drive of the car.

Find Repair Records

Certain models and makes will have a more reputable history of doing its job. What this refers to is the amount of recalls for certain cars that have happened in the past decade. Sometimes, after an accident or a check-up, cars will have persisting issues that began when they were being built. Taking a look into the history of the car you want will give you a sense of the company and how often these problems arise.

Regardless if it is a new or used car, taking a check-up after you purchase it is a good idea to see if there are any preliminary issues that need to be fixed. Some dealerships may be hiding serious issues with a car and urging you that it is not necessary to do a checkup after your initial purchase but it is always better to be safe than to be sorry.

Conclusion

When it comes to buying a car, there are many things to be wary of. Being cautious allows you to save money and be safe on the road — key components when it comes to this heavy investment.

Are you looking to buy a new car? Take a look at our service online to get a dealer invoice report and ensure that you get all the rebates and incentives so that you can save!