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4 Tips to Save a Bundle on Your
Next New Car Purchase

By: P Desai


 

Many of us have been at the car dealership and have been drained by a salesperson during price negotiations for the purchase of a new car. Most people give in too easily or do not negotiate at all to avoid the dreadful act.

This only means more money in the car dealers? pocket, while you are out of several thousand dollars! Yes, they make that much in profit per car.


This article unveils the dealer?s selling tactics and how you can get around them. But before we dive into the new car buying tips, we need to understand what makes up the dealer?s profits.

In addition to the MSRP (manufacturer suggested retail price), which is the dealer?s cost for the car plus an additional 20-25% profit, a dealer also gets financial incentives from the manufacturer when a new car is sold. This is called Holdback.

Depending on the car, dealers can make hundreds on each car through holdbacks. Dealers also get additional incentives and bonuses on selling a car before the end of the month and/or quarter.

A shrewd dealer can make several thousand on a new car even by selling it at invoice price. This is how new car buying can become tricky for the consumer.

Ready to learn how not to put a dent in your wallet on your next car purchase? Here are four tips to get you started. Each one is a dealer tactic to watch out for.

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