So buying at the end of one of these periods can save you money, especially if the salesman hasn't hit his quota. Salesmen work on commission and have monthly, quarterly and yearly goals to meet. If you have looked ahead and planned your purchase, note that some times of the year are better than others to buy a car.

At times the manufacturer also offers dealer incentives for specific models. It's usually 2-3 % which they receive quarterly. There is something called “holdback” which the manufacturer gives the dealer for each vehicle. And don't worry, the dealer still makes a profit. Consider MSRP as retail price and invoice price as dealer cost. If you don't have this piece of information, the dealer will work from the MSRP which is a much higher price. It's your leverage in the negotiating process. Do not shop without this information in hand. The Internet has Changed Automotive ShoppingĪfter you have determined the car you want to buy, go to to find the invoice price. Test drive the vehicle you have in mind, but renting one from a car rental company for a couple days is the ultimate test. You may be eying that shiny red sports car, but if its review states that this manufacturer has a history of poor performance or something like electrical issues, you may want to reconsider. First of all, go to to check out vehicle reliability. With the internet, the mystery of the automobile buying process has been unveiled and you can be a well-informed buyer ready to negotiate for the best price. Got new car fever? Well, first, you need to do a little homework. Armed with a pre-approved loan you are now in control and have a choice to go with dealer financing or stick with your bank, whichever rate is lower.

You can also shop for auto loans online if you aren't concerned about where your personal information goes. People with a bad credit history may pay interest rates that are more than double prime rates. The higher the score the lower the interest rate you will be offered. The agent will check your FICO credit score and other obligations and provide you with an amount and interest rate. Go to your bank or credit union and ask the agent if you qualify for a loan and how much. Whether you buy new or used, it's wise to get pre-approved for a loan before you ever step on a car lot. The First Necessary Step in the Car Buying Process

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