Tips you should know before buying a new car?

Buying a car can be really stressful. Indeed, after buying a house, it is one of the biggest expenses in our life. Therefore, as a customer, you need to be prepared. Tips like knowing your needs, establishing a budget, doing some online research and doing some test drives are all good things to help you make a better decision and help you negotiate. Let’s look into these tips a little bit more. 

Determine your needs or wants for your next car

One of the first things to do when buying a car is to decide what kind of car you want. It may be to meet a need, such as transporting equipment or children. Or it may be a car you’ve wanted for a long time.

To help you choose the type of car, you can also look at the gas consumption, the number of seats based on the space you need. You can look at the engine if you need to transport things. There is also safety and comfort for you and your family if you drive a lot.

To help you determine your needs, the ebook, The Road to the deal is a must-read for information on how to budget, understand pricing guidelines, choose the right vehicle and negotiate the best price. Get all the guidelines for buying a new vehicle from two Canadian automotive experts.

Establish a realistic budget

Another important thing to plan for is your budget. You should consider having a monthly budget for your payment that you feel comfortable paying each month. For example, some dealerships will give you several years to reduce the monthly payments, but in the end, the total payment will be higher. 

Also, when you’re done choosing your car, consider the pros and cons of buying versus leasing that car. You can also take into account the interest on the payments, the cost of fuel, maintenance and insurance of the car.

Therefore, all these things should be included in your budget and make sure to plan for them in advance. Another thing to plan ahead is your trade-in value if you have one. To help you out, go to CarCostCanada to get your free trade-in value.

Make an online competitive comparison between makes and models

Before you physically visit a dealership, it is always a good idea to research online for more information. The reason for this is that you are preparing to go to the dealership and knowledge is your power.  You can check out the different warranties, prices, promotions, and previews of the car you have chosen. You can also research the competition for the same type of car you have decided to buy.

To help you and make it easier, CarCoatCanada can compare different models for you and provide you with a free report. You should take a look at their website to get more information.

Ask a test drive and negotiate for the best price possible

Once all the research has been done and you’ve established what you want, it’s time to choose a dealership. To help you, CarCostCanada can do this for you by connecting you with the best dealership available for your needs.

Once you’re there, don’t hesitate to request a test drive. If possible, you can also test drive it at night to see the lights and all the features of the car. In addition, CarCostCanada can also help you negotiate with its free price report. Finally, don’t forget that extras on the car are often optional and quite negotiable.

About CarCostCanada

CarCostCanada can help you make all these stressful decisions in 3 easy steps. They have over 20 years of experience. They will simplify your negotiation and save you thousands of dollars. Learn more on the home page website and you will now be in control of the negotiation by getting your free report.


New Car MSRP VS. Dealer Cost: Pricing Basics for Your New Car

If you’re interested in buying a car, you’re probably already familiar with the process: A dealership buys a car from a manufacturer or gets a trade-in, then marks it up to include profit and sells it to a customer. This becomes their new car’s MSRP

But just how much markup is in each car? What financial basics can you learn about it? 

Let’s go over the new car MSRP vs dealer cost of a vehicle. We have some useful information that will inform you of your next big purchase.



What is an MSRP? 

This term stands for Manufacturer’s Suggested Retail Price. It’s basically what the automaker recommends the car should cost. When you buy a new car, it’s important to understand that you’ll almost always be paying an amount higher than the invoice price to make the purchase. 

Since automakers rarely sell their vehicles to consumers, they sell them to their franchised dealers instead, who in turn retail them to you. The dealer is bound by federal and provincial retail laws and is expected to follow the automaker’s standards for the dealership. In almost all cases, you’re buying your new vehicle from an independent retailer.

As the name implies, the MSRP is a suggested retail price, and dealers aren’t required to stick to it. If they deviate, it’s usually in your favour – you’ve probably seen ads like “Dealers may sell for less.” However, if it’s a very desirable model and there aren’t many available, don’t be surprised if the dealer asks for more than the suggested price.

The MSRP is merely the starting point in negotiations at the dealership. In fact, many people disregard MSRP altogether while negotiating.

It should be noted that MSRP does not reflect the “out the door” amount that you should expect to pay. It doesn’t include registration, taxes, destination charges or other fees. Although MSRPs are ostensibly used to protect consumers, they are just the tip of the iceberg when it comes to getting a great price on a vehicle.


What is a Dealer Invoice Price? 

The invoice price of a new vehicle is the price on an invoice the manufacturer sends a dealer when they acquire a vehicle. Many people believe that this is the true dealer cost of the vehicle, but it is not. Invoice prices also have hidden profit built into them such as dealer holdback and manufacturer to dealer incentives.

Automakers usually factor in a discount for their dealers, primarily to cover commissions, salaries, and business overhead, known as the holdback. It’s usually between about 1 to 3 percent of the car’s MSRP and is subtracted from the invoice price.

There can also be factory-to-dealer rebates, known as the dealer allowance, which can be used as incentives for dealers to sell more cars, or to help bring the price down for slower-selling models. While it will depend on the automaker and the vehicle, the dealer cost can be hundreds or even thousands less than the invoice price.


Here’s Where You Can Learn More 

Keep yourself informed about the latest information about Canadian cars. To start enjoying your car buying experience, check out our website to see the breakdown of prices from our many detailed reports.