| Buying a new Car? If you are buying a new car, the following procedure might help you save some money: 1.Make a list of the makes/models of the cars you would like to buy. 2.Go to a website giving you information about the performance, cost etc. of the cars. a.Read the performance review. b.Note down the costs. There are two types of costs listed: invoice price and MSRP(Manufacturers suggested Retail Price). Dealers pay the invoice price to the manufacturer for the car and they will sell you the car at the MSRP. For every car, there is 2-3% dealer holdback money, which the dealer gets from the manufacturer. Therefore, if the dealer sells you the car at invoiceprice also, they will still make a profit on that car.So, note down the invoice price of the car with options as you would like it. Add the destination fee to your price. Add 2-3% of the car price as commission for the sales person. 3.Go to a dealer and test drive the cars. Take a long test drive if possible. 4.If you like the car, ask the sales person, to give you the price break up. Ask him to give you the price in the following category: Price of the car including destination fee: Tax: License: Documentation fee: ---------------------------- Tatal cost: This is the total price of your car. 5.Replace the Price of the car in step 4, with the price you calculated in step 2. Add the prices and get the total cost again. This total cost or less is the price you are willing to pay. 6.Then bargain...........!!!!!! Dont be scared to quote the lowest price. 7.Go to different dealers......bargain........ 8.Pick the lowest price offered......and buy the car. 9.When you go to finalise your financial/loan papers, he will try to sell you some kind of costly warranty. He will try to tell you about your lower monthly payment. Always ask him what will be total amount of the loan which you will have to repay. Take this warranty, if it is free otherwise drop it. Good Luck and enjoy your car! Please use this as a reference only. Not responsible for any consequences. |