How to Get the Most Value for Your Money: Tips on New Car Pricing
The majority of consumers place a high priority on getting the most for their money when purchasing a brand-new car. Since buying a vehicle is an investment, you want to get the best deal. Understanding the nuances in new car pricing is important to help you make informed decisions. Here you’ll find some important tips to help you get the most for your money when purchasing a brand-new car.
2. MSRP (Manufacturer’s Suggested Price): What Does It Mean?
Manufacturer’s Suggestion Retail Price (MSRP) is the starting price for most car sales. It’s the suggested price that the car manufacturer wants dealers to charge. While the MSRP makes a great reference, remember that most dealers can set prices. Knowing the MSRP helps you establish a base for negotiation and recognize when you are getting a good deal from a seller.
3. Compare Dealer Invoice Pricing
The dealer’s invoice price is what the dealership pays to a manufacturer for a car. This is typically less than the MSRP. It can be used as a bargaining tool. Various automotive sites and pricing services often list the dealer invoice price. If you are armed with this information, it will allow you to negotiate better.
4. Timing Is Everything
Timing is important when negotiating the price of a brand-new car. Dealerships will often have sales targets or quotas that they must meet. This may affect their willingness and ability to negotiate. Consider shopping towards the end-of-month, quarter, or even year, as dealers will be more motivated to offer deals to achieve their goals. As new models usually arrive in the fall, it is possible to find better deals by purchasing the previous year’s model during the late summer and early fall.
5. Be Open to Different Trim Levels and Optional Trims
It may be possible to get a cheaper deal if the dealer is flexible about what trim level you want or which optional features you want. Dealers usually have a large inventory of specific configurations. They are more likely willing and able to negotiate with you on vehicles in their showroom for some time. Consider different options. You can find a good deal by choosing a slightly more expensive configuration.
6. Consider Certified Used (CPO) Vehicles
Even though this piece focuses on new automobiles, it’s worth mentioning that CPO cars can be an excellent value. CPOs are late-model vehicles with low mileage, which have undergone an extensive inspection. They come with extended warranties and a comprehensive inspection. They can cost less than new vehicles and be a good buy for budget-conscious buyers looking for a vehicle with a new feel.
To get the greatest value out of your new car purchase, you will need to conduct thorough research, develop negotiation skills, and be patient. By analyzing the pricing factors, being prepared to bargain, and considering all aspects, you can make a wise and cost-effective car purchase. Remember that your goal isn’t just to get the best price but to find a car that meets your budget and all your requirements. Happy car buying!