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Tips for buying your vehicle and saving
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When looking for a car to buy, perhaps the price is the most tempting, but you need to know that the price is just one component of a great car. There are several points throughout the vehicle buying process where you need to be both savvy and smart if you want to save more.
Stay in:
Know that the entire car's “sticker price,” also known as the retail price, the one that is suggested by the manufacturer, is the one you will see in advertisements or is displayed in a vehicle's window. This is what the dealer would like you to pay for the car.
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In fact, a dealer acquires each car for much less than the price it says there. Your actual net cost is equal to the invoice or bill price (the amount the car dealer is billed for each car by the manufacturer), minus factory retainage (a percentage of the invoice price that the manufacturer pays to the dealer after from the sale of the car). Getting a better understanding of dealer costs lets you know how much room for negotiation you have.
Keep an eye on the fair price:
To reach an agreement on price negotiations, the dialogue should begin with the price of the invoice, which in Brazil is kept under lock and key. For New York consumers, for example, the value can be easily researched through a website (consumerreports.org), where the customer receives a comprehensive report, which includes the invoice price, the average price paid for the car, the latter based on consumer reports, so the customer has the chance to offer 2% to 5% above the real price.
In Brazil, the FIPE table is the most sought after. Based on its price, it is possible to at least know what the market pays for a given model, according to the year and some specifications.
Don't be fooled by the market:
As a general rule, selling your vehicle yourself guarantees more savings and money in your pocket than through a dealership. However, if you want to offer your used vehicle when purchasing a new one, establish its price first. This is because when the dealership gives a discount for your purchase of a new vehicle, they may be motivated to recover the loss by putting a lower price on the purchase of your used vehicle, so really know how much your used vehicle is worth before negotiating.
Research financing better:
After reaching an agreement on the value of the vehicle, you will move to the dealership's finance and insurance department, where the credit conditions are determined if the car is financed. Understand that this employee is another salesperson selling another product, legally authorized to try to use interest rates at will. So don't accept the first proposal, just as you need the car they need you to generate business. Look for offers at other establishments, you can even use pre-approved credit to get a more affordable price.
Don't buy unnecessary extras:
If at the time of purchase you receive many offers of items to pay more, be careful. For example, dealerships make huge profits on extended warranties. However, according to research conducted by Consumer Reports magazine, extended warranties are generally a losing bet. Instead, researching the manufacturer's long-term reliability and purchasing a car with a good reliability record is a better bet.
Likewise, say no to offers of corrosion protection, paint sealant, and fabric protection. Rust problems have almost disappeared in modern vehicles. If you want to protect your upholstery, you can buy a can of fabric protector and do it yourself. Some extras can be avoided and the result will be a lower price.
Source: carbuyingtips.com
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Tips for buying your vehicle and saving
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