Is it Possible to Buy a Car at Below Dealer Cost?
The short answer is yes, but it's difficult. The good news is that most people can buy a new car for just a couple hundred dollars above dealer cost if you follow the right steps. So how does one go about doing this?
It's mainly a matter of great timing - you have to find a dealer who is desperate to sell one more car to hit their monthly, quarterly, or yearly sales goal.
Many car manufacturers provide dealers with hidden incentives when they reach certain sales targets For example, they may give them a cash bonus of $150 for every new car sold that month - but only if they sell at least 75 cars.
Imagine if that dealer has sold 74 cars and it's near the end of the month. All they need to do is sell one more and they qualify for a $11,250 retro-active bonus. You can bet they will be offering you an incredible deal, hoping you will buy before the bonus expires.
The key here is to time your purchase near the end of the month and contact as many dealerships as you can. I recommend contacting at least 10 dealerships - the more you reach, the more likely it is you'll find a desperate dealer ready to give you a killer deal.
It's all about contacting the right dealer at the right time - it's rare, but it can and does happen.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
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