When you begin searching for a brand new car and visit local auto dealers to view new car models you might not fully comprehend all of the salesman jargon used on the lot. Each new car has a dealer car invoice price. This is the amount that the factory invoices the new car dealer for the automobile.
All new car models have a Manufactures Suggested Retail Price sticker affixed the rear driver side glass. By federal law, this MSRP disclosure can only be detached by the new car buyer. This disclosure is known as the Monroney sticker, which has been around since 1958. The name origin came from Senator Mike Monroney who drafted the Automobile Information Disclosure Act. The MSRP disclosure statement also contains specific data, such as mpg rating, on the new car.
Auto shoppers should have knowledge of the jargon used at new car dealerships. This vocabulary is very important when you start the new car price bargaining process. By using the same language as the new car salesman you're likely to save hundreds of dollars. Additionally, it may prevent agreeing to, or signing something you wouldn't if you knew what it was. There's a saying in the car business that most sale people live by; "it's not the new car deal you got that makes you happy, it's the deal you thought you got".
Following are some of the jargon you may observe while shopping for a new car.
Base Price - this, of course, is the base price of the car before any options are added, for most manufactures, the base price may not include destination and advertising costs, which are part of the dealer invoice price.
MSRP - Discussed above, however, the "dealers sticker price" is sometimes also attached to the window of the brand new car in addition to the Monroney sticker. The additional disclosure by the dealer will list any dealer add-on already installed on the vehicle. These add-ons are most popular will high demand, low supply new cars.
Dealer Holdback - The top Jargon term which can save you money is "dealer holdback payment". This is money sent to the new car dealer and it is hidden on the car dealers invoice. Simply ask the sales person to view the new car invoice and ask them to point out the "holdback amount".
From time to time, OEMs and their finance companies offer 0% new car financing, extended repayment terms, zero down options, and new car rebates. If you're buying a new car determine which option is best for you and what you can afford.
To sell more vehicles, new car dealers use a lot of financial resources to upkeep their lots. They also use financial resources to get their value proposition in the hands of local new car buyers. Clever automobile dealerships combine all their annual expenditures and split it by the volume of vehicles retailed annually. This simple calculation lets the new car dealer deduce the minimum average profit they must realize on each new car sold. When, trying to negotiate the best new car deal it's hard to get a new car price quote below the dealer's bottom line.
If the new car deal presented by the automobile dealership does not meet you're expectations, use our used car search engine to find a suitable alternative.