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Have you ever thought of the price of a vehicle? What does it include? Well, there is the cost of the metal, glass and plastic it is made of, but there are add-ons to the “pure” price. Bankrate reporters have put down a list of the main secrets hidden behind the car-price stickers.
First of all the dealers add a lot. To their invoice price (the cost they paid for the vehicle) they add so called “dealer holdback” which is about 2-3% of the price that goes straight to the dealer for managing to sell the auto. Sometimes manufacturers offer “direct-to-dealer incentives” separate from the “holdback”. They are referred to specific models and for a short term only, so they are included in the price.
The base cost of a new model does not usually include any additional features, so if the customer wants some extras: warm-up seats and cup holders, special stereo system, GPS, BlueTooth, etc., – they will add another $3,000-$8,000 to the price. Since nobody wants a “stripped” car, dealers usually add their features and offer vehicles with their add-ons for extra price which might change base cost by thousands of dollars.
It is always good to have a discount or rebate on a big purchase, but they are possible only if additional sum of money is included in the price. So, the customer should be aware of any discounts and rebates and apply for them if they are acceptable.
Besides being emotional at a dealership and choosing the nearest dealer, car buyers make several other mistakes which cause waste of money. Here are three more things to think about:
Some people are really good hagglers: they can negotiate any price and as a result of good talking they pay significantly smaller price than the majority of people do. There are several tactics in haggling, so if you want to negotiate the price when you go to shop for a vehicle next time, try one of these:
For many years Toyota was known as a manufacturer of high-quality vehicles, but the recent events ruined it like a house of cards. While the automaker is losing reputation, sales and money, others are trying to gain on it as much as possible: the three big American manufacturers are offering good deals for those who want to give up their Toyotas.
Everybody tries to attract buyers at the time when people have more money. Tax return is the period of time when many consumers look for a new vehicle. Chrysler offers a good deal for those who aim for a minivan.