Out With The Old, In With The New: How Buying a NEW Vehicle Can Benefit You!

“Should I buy new or used?”

 

The age-old question when it comes to purchasing a vehicle. While there is no right or wrong answer as it comes down to every individual’s unique situation and needs, a vehicle is one of the largest assets one purchases, ergo, vast research is required prior to setting your heart on a car. While used vehicles boast lower initial costs, new vehicles come with various benefits that can actually save you money in the long run. Whether you are in the market for your very first car or looking to ditch your current vehicle for something new, buying a new vehicle can benefit you in more ways than one.  Although new vehicles are more expensive initially, they provide a great payoff for your driving needs and with our Dealer Invoice Report, you can save big on the cost of a brand new vehicle!

With that being said, what are the perks of buying a brand new vehicle?

 

No hidden issues, all new parts

 

When purchasing a new vehicle, you are the first owner meaning that no wear and tear has been done to the interior or exterior of the vehicle prior to you driving it. All the parts are brand new and thoroughly inspected by the manufacturer and the dealer, in sum, what you see is exactly what you get. Whilst most used vehicles pass safety standards and are in relatively good condition, there can be hidden issues that a previous driver didn’t disclose which could lead to issues soon down the road.

 

Being the first driver of a vehicle gives you peace of mind knowing that there are no hidden issues in regards to the performance and quality of the vehicle and all of its parts.

 

More bang for your buck?

 

When comparing new vehicles to used vehicles, it’s appropriate to assume that purchasing a used vehicle is the cheaper route, however, that is not the case in every situation. Piggybacking on the aforementioned point, new vehicles = new parts which means that the chances of issues arising are less than that of a vehicle with older, used parts. How does that translate to fewer costs? Simple – fewer trips to the mechanics.

 

Another way a new vehicle can actually incur fewer costs over time is in relevance to fuel economy. Over time, a vehicles fuel economy will decrease. You may notice that after a few years, your tank isn’t getting you quite as far as it used to. With that being said, a new vehicle will boast it’s optimal fuel economy, whereas a used vehicle may have dropped a few percentiles from its initial fuel abilities.

 

Still on the topic of costs, insurance is another key component to note and an extremely important one as everyone is required, by law, to possess auto insurance. Your insurance costs are contingent on a number of factors including; age, location, license class, current safety of vehicle model, and driver/accident history. A vehicle that has been involved in a motor vehicle accident previously may impact your premiums if you plan on purchasing it, regardless of the fact that the accident had no correlation to you. As the first owner of a new vehicle, you can rightly assume that there were no prior accidents that could cause your monthly rates to soar!

 

Out with the old, in with the new

 

There comes a time where we may have to make a decision to part ways with our beloved vehicle and while the thought of purchasing a new vehicle thereafter is exciting, there is one thing you have to deal with first – the old car. Whilst some keep their current vehicles, utilizing them as certain season vehicles or perhaps handing them down to a relative, others want to allocate funds from said vehicle towards the purchase of a new vehicle. It’s no secret that vehicles depreciate over time, even those that are well-maintained. With that being said, it’s important to keep in mind how long you plan on having your vehicle. If you purchase a 2019 vehicle and plan to sell it in 5 years, you will get a significantly higher offer or trade-in value than that of a car 5 years it’s senior. Whilst most people aren’t thinking about their next vehicle while in the process of purchasing a new vehicle, it’s important to keep in mind the value of the vehicle down the road, should you want to sell or trade-in.

 

Features, features, features

 

Infotainment system, back-up camera, heated seats, heated steering, navigation, park assist, lane departure warning – the list of features available in new vehicles goes on and on! Albeit, these features come down to personal preference; some prefer a simpler vehicle whilst others want all the features included. Most new vehicles come equipt with an array of features, even the base models. These features are included in the cost of the vehicle.

 

Whilst there are older vehicles that have some of the aforementioned features, such as heated seats, they typically do not possess the more technically advanced features. Should you purchase a used vehicle and decide down the road you do want these features, adding them on can be costly! If you want a vehicle loaded with features, a new car is the best route to take.

 

Choosing between a new or used vehicle comes down to the factors listed and personal preference/needs. Although new vehicles boast a plethora of benefits in a majority of situations, used cars can be a great option if;

 

  • You are a first-time driver, not 100% confident in your driving abilities
  • You are looking for a classic/specific model/make
  • You are looking to heavily modify the vehicle (a fixer-upper)

 

It’s important to do a good level of research prior to making a purchase to ensure you get the right vehicle for your individual needs.

 

Ready to get behind the wheel of a brand new vehicle? Contact us today and we will help you save thousands on your new ride!

The Dealer Paid What? Everything You Need to Know about Dealer Invoice Pricing!

Whether you are purchasing your first vehicle or looking to make a well-deserved upgrade, the thought of a new vehicle can meet you with much elation. When purchasing a new vehicle, there are a plethora of factors to consider: make, model, colour, add-ons, packages, and the one factor many people look at first – price. Most people have a vehicle in mind, but more often than not, the price is the determining factor when deciding whether or not to go ahead with their purchase. Some will try their best to negotiate with the dealership, but doing so can be tricky, time-consuming, and produce lackluster results.

 

The price the dealer shows you is the MSRP (manufacturers suggested retail price) of the vehicle, which, as the name suggests, is the recommended price a dealer should charge a consumer for the vehicle. There are ways, however, to lower this cost whether you plan to lease, finance or purchase a vehicle outright. The Dealer Invoice Report can help you save a significant amount of money on your new vehicle purchase without having to practice your best negotiating skills for hours on end.

 

What is a dealer invoice?

 

A dealer invoice, also referred to as the “dealers cost”, is the price the dealer pays the manufacturer for the vehicle. This price is often lower than the MSRP to allow room for maximum profit for the dealer. For example, the dealer cost of a vehicle could be $30,000; in which the dealer pays said amount to the manufacturer. The dealer will then work with the automakers to determine the MSRP – or “sticker value” –  of the vehicle which more often than not, is higher than the dealers cost. The car could then be put on the market for $35,000 for example, which is the price the consumer would pay for the vehicle.

 

How can a dealer invoice report help me save money on my vehicle?

 

A dealer invoice report gives you a detailed breakdown of the dealer cost of the vehicle as well as various incentives that can help you save on your new vehicle purchase. For example, if you are looking to finance a new 2019 vehicle, the dealer invoice report will breakdown the monthly payments in accordance with the dealer price of the vehicle. The report also contains discounts, such as dealer cash incentives, that the dealer may not tell you.

 

How do I fill out a dealer invoice report?

 

Filling out a dealer invoice report is a simple process that can be done online (no need to head to the dealer to do this!).

 

  1. Log in to your account (or create one easily via email or Facebook)
  2. Pick your desired car make
  3. Pick your desired model under the make. It’s important to pick the EXACT make you would like. For example, if you are looking for a new Mazda GT, the model comes in both FWD (front-wheel-drive) and AWD (all-wheel-drive); both possessing different price tags. Ensure you pick the exact model you would like.
  4. Review your report + savings
  5. Bring the report to the dealer to obtain the savings outlined in your report

 

What information can I find on my Dealer Invoice Report?

 

Your dealer invoice report will give you a vast amount of information pertaining to your vehicle of interested. Including, but not limited to:

 

  • Invoice Price (dealer cost) of the vehicle
  • Pricing Guidance; how to calculate the best deal for your vehicle of choice based on the invoice price plus any incentives you may be eligible for
  • Factory Incentives; discounts made available via the manufacturer (eligibility may vary)
  • Lease and finance rates
  • Recommended Dealership; recognized dealerships within an appropriate distance that work with CarCostCanada members to help them save the most money possible
  • Vehicle Pricing and Options Details; a detailed breakdown of the costs pertaining to the vehicle in relevance to the base and/or any features/add-ons
  • Comparable Vehicles; vehicles that boast similar features and pricing in accordance with the subject vehicle
  • Standard Features; a detailed breakdown of the subject vehicle

 

How much money can a Dealer Invoice Report actually save me?

 

The savings depend on the make, model, and year of the vehicle, as well as any current incentives offered by the manufacturer and the original cost. Typically, members report savings in the thousands. For example, a 2019 Honda CR-V EX-L AWD has an MSRP of $38,285 and a dealer invoice price of $35,659; savings of over $2,500! Some makes and models will have fewer savings, whilst others may boast even more.

 

Another key component when it comes to saving money with your dealer invoice report is the incentives. The report outlines any incentives that are made available through the manufacturer. These could amount to significant savings on top of the savings from the dealer cost. It’s important to note that a majority of incentives require eligibility which should be discussed with the dealer at the time of the purchase.

 

What is the cost of a Dealer Invoice Report?

 

The first Dealer Invoice Report is free for Car Cost Canada members!

 

 

Will the dealer accept my Dealer Invoice Report?

 

We work with a surfeit of dealers who are more than happy to help you save money on your purchase so you can walk away happy. Within the report, we provide a recommended dealership that works in harmony with CCC to provide you with exceptional service and pricing. Should you choose another dealer, no issues should arise. Most dealers are happy to work with you and your report as the sale of a vehicle is beneficial for them as well. Some dealers, however, may push back and try to negotiate on the MSRP with you, despite your possession of the dealer cost. If a dealer is unwilling to accept your report, which is a rare feat, don’t despair; there are many dealers willing to help you save your hard-earned money.

 

What are my vehicle exceptions when it comes to my Dealer Invoice Report?

 

We work with several automakers, so your choices are plenty! The automakers we partner up with provide deals on the newest models available on the market; last, current, and upcoming year. Our report can help you save money on the most recent models your make of choice has to offer. Here is a list of automakers we work with!

 

 

Buying a new vehicle is a rewarding milestone; whether you have finally saved up for your first vehicle or you are ready to take the leap and put yourself in something more luxurious. Purchasing a vehicle is a huge step and the ability to save money on your new vehicle makes the process that much more rewarding.

 

Ready to get behind the wheel of a new ride? Contact us today and save your hard earned money on the car of your dreams!

 

Dealer Invoicing VS. Car Cost Canada

Before purchasing a vehicle, getting a quote on a price point to start negotiating from may be on your to-do list. Between a dealer invoice and a report from Car Cost Canada, it may sound like the same information given in different mediums. The truth is, they provide different perspectives on pricing and one is significantly more beneficial for buyers.

Dealer invoices come from the car dealerships where they look for areas to rank up the price, add additional but unnecessary components to your vehicle or package, and hide hidden fees. The reports from Car Cost Canada showcase attributes that are important to your decision-making such as, incentives and rebates that you qualify for as well as actual dealer costs.

Keep reading to learn the difference between the two and the benefits associated with each:

Dealer Invoicing

A dealer invoice shows the invoice that the manufacturer of the car sends to the dealership when the dealership receives the car from the factory. This should be the at cost pricing, allowing dealers to adjust their sales markup and work from there.

However, the prices on their dealer invoices are no longer a true reflection of the amount dealers pay to the manufacturer. Discounts that are applicable to dealerships such as the dealer holdback and dealer cash incentives, which are based on their sales volume, help decrease the amount the dealer ends up paying back.

Invoice prices also exclude the rebates, charges, and licensing/registration fees that a consumer would have to pay when purchasing their vehicle. Thus, the dealer invoicing gives a very unrealistic estimate for a consumer to predict the markup a dealer is getting.

Dealer Holdback

Dealer holdback is the amount that the manufacturer pays to the dealer upon the sale of each car. Being that this is paid after closing a sale, it is essentially a significant profit margin for the dealer as there is no carryover to the customer in terms of reduced invoice prices.  

The concept of dealer holdbacks comes from dealerships that have inventory on hand, holding back more than necessary to allowing convenience when it comes to consumer browsing. Since this is the case, manufacturers often inflate dealer invoice prices by a predetermined amount but after it has been sold, that inflation amount is reimbursed. The manufacturer holds the funds back and releases it after the vehicle is invoiced to the dealer.

This is the reason that a dealer’s invoice will not reflect the true amount that they have to pay back. The incentives and agreements in place are not taken into consideration, providing a false estimate of what the at cost value truly is.

Car Cost Canada Reports

The invoice price reports from Car Cost Canada more or less provide the same type of information but in a way that is tailored towards the buying consumer. For example, it assists in all the basic information about the vehicle you are interested in, from the vehicle specifications itself to the retail and invoice prices associated. The report even builds in potential add-ons you may consider.

Beyond the vehicle make, the report includes incentive programs that are applicable to you from the specific brands as well as financial incentives from financial institutions. Given these rebates, you are able to make the best decision going forward.

Benefits of Car Cost Canada

The difference between the two invoice reports is the disclosure of incentives and hidden fees. You are able to make a decision that is in your best interests after understanding all components associated with your purchase.

Be cautious when consulting websites that claim to provide realistic and unbiased dealer invoices for a fee. These may not be accurate and in many cases, are actually lead generators for dealerships. When you invest in reports provide by untrustworthy websites, it is possible that this information is being passed on to dealers who, knowing you’re interested in their product and willing to pay for information about it, provide inflated invoice figures and pass it along to you through the website. In these cases, the dealer is paying the website for access to your information in order to target new customers and rack up their sales. Bearing this in mind, it is always advisable to exert caution when approaching a website for invoice reports.

Although they both provide car pricing and an estimated cost of the purchase price, dealer invoices are in favour of the dealership and Car Cost Canada invoice reports are in the perspective of a buyer. Thus, a Car Cost Canada report will benefit a consumer much more. You will be able to save more money by utilizing this free resource.

Next time you’re looking to purchase a new vehicle, talk to our team about getting a free invoice report to make your best decision going forward.