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Pricing Basics for New-Car Buying
Edmunds.com
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Pricing Basics for New-Car Buying
To get a great deal on a new car, you need to understand pricing terms.
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A must read for new car buyers
This is basic information and easy to understand. Some of the websites make it very difficult to understand car buying.
As noted the MSRP is merely suggested. Astute buyers usually pay less than car buyers who visit a dealer without knowledge.
Invoice is not the price the dealer paid. As a result of a number of incentives (which vary from time to time) and hold back (percentage of MSRP returned to the dealer after the sale by the manufacturer) dealers pay much less than invoice. In normal times, these are not normal times, most car dealers are pleased when a car buyer agrees to pay a bit over invoice.
And, as astute car buyers know, the real danger in any car buying process lies in the Box which is the F&I office. That smarmy F&I manager is not a banker and he or she is no friend of the car buyer. The goal of the F&I manager is simple. It is to increase profit through bumping the interest rate and selling as many overpriced products of dubious (at best) value as they can convince the car buyer to buy.