Getting a Fair Price on Your Next Vehicle
By: TrueCar
Published: August 31, 2021
As one of the biggest financial decisions you can make, buying or leasing a car requires the proper amount of research and strategy. While there is a wealth of information to be found online, sifting through it all can be a challenge. Yet, having the right information can give you much-needed clarity and confidence throughout the process. In this article, we’ll cover the most common numbers you’ll see in the car-buying process, including what to focus on. And while price is a very important number, knowing what kind of buying experience you want can help set your expectations from the start. Here are three tips to help you have a smooth experience from shopping to purchase.
Understanding Pricing Terms | Negotiate Effectively
Take Advantage OF Incentives and Rebates
Understand Pricing Terms
As you start researching cars online, you’ll probably see an abundance of prices and pricing terms online. The three main ones to focus on are invoice, and selling price
MSRP, or Manufacturer Suggested Retail Price, is just that – a suggested price. This is often seen as the starting point for negotiation.
On the other end is the Invoice Price, or the price the dealer paid the manufacturer for the car. This price may not always reflect the dealer’s actual cost. Because incentives and rebates can differ from dealer to dealer, it is not always a consistent reference point.
Selling Price, the most important number to know, is the actual price the car sold for. While knowing the selling price isn’t always easy to find out, with TrueCar, you can see what other people in your area paid for vehicles similar to the one you want.
This critical pricing information can help you see instantly if the price you’re being offered is fair and helps you break through the clutter of pricing frequently seen online.
Negotiate Effectively
Now that you know what price to look for, it’s time to think about effective negotiation. By that, we mean knowing what kind of experience you are comfortable with. This can mean different things to different people. Are you looking to get the absolute lowest price possible and are willing to put in the time and energy visiting multiple dealerships? Or are you interested in a more streamlined and personalized experience at one or two dealerships? If you aren’t a fan of negotiating, TrueCar can connect you with dealers who will give you an actual price on the car you want. All you have to do is choose the dealer with the price that works best for you, and you’re done. If you do want to negotiate, stay realistic and keep in mind that dealers don’t make as much on new cars as you might think. Be prepared to walk away at any point if the numbers don’t make sense to you. Either way, knowing what others paid for the car you want is an invaluable piece of information to know before you go.
Take Advantage of Incentives and Rebates
Many shoppers aren’t aware of the various incentives and rebates available to them. You can save significantly if you know where to look. On TrueCar, you can see exactly which incentives you’re eligible for and how the savings affect your price. Another way to save if you’re not too concerned about having the latest design is to consider buying a year-end model, especially if there is a refreshed or redesigned model coming in the following year. Doing a bit of research online to find out when new models are due can help you negotiate deeper savings. Lastly, if you have the luxury of time, plan on buying during the summer or winter seasons, when you’ll often see the best deals.
These three tips can help you manage your expectations and have a great experience from start to finish. After taking them into consideration, you’ll be ahead of the game and ready to get into your new vehicle. Good luck and congrats on your new ride!
© and ™ TrueCar, Inc. All rights reserved. This TrueCar article was originally posted on the TrueCar Blog on February 12, 2020.