FAQS




 

Do new car price quotes actually help me get a better deal?

By asking for an online price quote, you are really saving yourself time. In years past, some consumer advocates would suggest asking local dealers to fax their best price to you, like an auction. Thanks to the Internet, you can speed this process up exponentially, by processing a free, no obligation, new car price quote. Spend one minute completing a price quote request, and services like BuyingAdvice.com can match you up with local dealerships that will compete for your business.

Our research indicates these new car sale offers will be the average sale price in the area. In other words, it will help you make sure your not overpaying for the vehicle and it provides you with a starting point for sales price negotiation. Ultimately, if you truly want to get the best deal, you need to go into the dealership prepared and consider all comparable vehicles.


What is the best new car buying advice your Team can provide?

We suggest negotiating the new car sales price, your auto loan terms, and trade-in as three separate transactions. Arrive at the dealership prepared, with competitive price quotes on vehicles, as well as financing terms, and a good sense of what your trade is worth. Once you’ve achieved your goals in all three, then, and only then, do you have a good deal.


How can I best prepare for negotiations at the dealership?

Request a new car price quote, and if applicable, an auto loan quote as well as conducting research to have an accurate idea of what you’re auto is worth. You can use a service like Kelly Blue Book to get a wholesale value of your current vehicle, and also consider our insightful tactic to acquiring the trade in value of your used car. Lastly, after you buy the vehicle, the dealership will ask you if you want to buy an extended warranty. We suggest getting a quote ahead of time if case you decide to go for it.


I sent a price quote request to a dealer, but the dealer’s response didn’t include a price. What should I do?

Feel free to contact the dealer directly by phone or email. Dealers use many systems for processing incoming mail, and if your request is missing specific information you might not get the answer you’re looking for.


Why do I need the dealerships to contact me with my quote?

While we do provide, listed by manufacturer, the MSRP available for all vehicles, your local dealers will be able to provide you an exact quote for your new vehicle, equipped as you like it. Auto makers routinely provide regional sales incentives and local dealers will be able to include those incentives when quoting your price.


The dealer sent me a quote that I think is too high?

The team at Buyingadvice.com strives to provide you the best insider information regarding pricing and available rebates. Although we do not actually sell the cars, we try to provide the research tools to get you the best deal. The dealers should provide you with the average sales price for the car in your area, which should be your starting point for negotiation. We suggest contacting the dealer directly to discuss your quote further or shop around for a better deal.


What is a dealer holdback?

A dealer holdback is a percentage of either the MSRP or invoice price of a new vehicle (depending on the auto maker) that is paid to the dealer by the manufacturer. The purpose of the holdback is to supplement the dealer’s cash flow and indirectly reduce “variable sales expenses” (i.e. sales commissions) by artificially inflating the dealership’s paper cost.


How can I use the dealer holdback to my advantage in negotiations?

Dealers are often reluctant to part with any holdback but you can ask for them to apply their holdback to reduce your price. Much depends on how long the vehicle has been on the lot. After 90 days is when the dealership will begin thinking of using holdback as an incentive to sale the automobile.


How do automobile dealers structure sales commissions?

A car salesperson is paid on a percentage of the profit of the sale. This percentage varies from dealership to dealership but usually runs in the 20% to 25% range. Therefore, if you buy a new car for $300 over the invoice cost, the salesperson may earn only a $50 to $75 commission.

In addition to his or her commission, the salesperson can earn bonuses that are available from both the dealership and the manufacturer for good sales performance.


How much does the average car salesperson earn?

According to a recent national survey, the average commission is $250 per vehicle sold. The average selling price per vehicle is about $1,000 over the invoice cost. In addition, the average number of cars sold is 8 to 10 vehicles per salesperson per month.


Should I lease or buy my next vehicle?

The decision to lease or buy depends on a variety of factors. Leasing may be a good option if you tend to want a new vehicle every few years, can claim your car as a business expense and don’t mind always having a car payment. On the other hand, if you want to keep a car long-term, rack-up a good amount of miles per year or want to pay off your vehicle and avoid having car payments in the future, buying your car may make more sense. It’s important to remember that if choosing to lease, there is a proven strong likelihood that you’ll lease again, because it’s difficult saving for a down payment on your next automobile when you’re making car lease payments.


How can I get out of a lease early?

If you want out of your lease early, you can take advantage of an on-line service that brings together people who want out of their lease and buyers looking for a short-term, more affordable lease. You can post your offer on Swapalease.


What is a crossover vehicle (CUV)?

A crossover vehicle has attributes to more than one vehicle type. As an example, the Audi Q7 is based on a car platform but has SUV attributes.


What do I do if I still have questions?

If you still have questions, please contact for further assistance.


 

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