08 Oct 08 Best Time to Buy New Cars with Most Discount? (1)

It is one of the most common questions being asked since everyone would like to get the best deal on car purchase. This question can be answerd by an easy way, and it can be answred in complicated way, too. Both answers will be given in this article, so you would be able to get both.

Here is the simple answer - The best time to buy a car is at the time both car dealers and car manufacturers would dump the cars, while you are not hurried to get the car. A little bit too simple, right? However, the answer is that simple, and that’s the simple answer.

You might feel a little confused here, and it is why we would give you the whole picture. Economics 101 says economics is based on demand and supply, and since car sales is an economic activity, it is exactly same. When a party wants to sell something, they would sell it for cheaper. On the other hand, if a party wants the item, then you would buy it for higher.

Normally, both car dealers and car manufacturers want to sell cars. However, due to difference of their goal, different approaches might be implemented. Keywords for purchasing new car is what we suggest you to read in case you have questions about terms being used.

Car discount can be from car manufacturers and car dealers. The most common way for car manufacturer to promote their cars is to give out money (cash). The money could be given directly to car dealers or to car shoppers (customer rebate). Customer rebate is pretty straight forward that if a car shopper purchases certain car and take delivery within certain date, then car shopper will get it.

For car dealers, there are many tricks out there. By the reward dealers are entitled, there are two kind of money. One is based on each car being sold, which is normally a flat rate. For example, as for now, for all 2008 Honda Accords, there is a well-known $500 dealer cash on the car. The other one is volume bonus, which is the key to determine if you could get the best car deal most of the time. Volume bonus is given when the car dealer reach the sales goal set by manufacturer (or their distributors for some brands) on certain cars (or could be number for all models). For example, let’s say a dealer could get $300 for each car they sold when they reach 1000 cars by end of October. Assume today is Oct 29, and the dealer have sold 980 cars, and if they sell another 20 cars in 2 days, they would get additional 300*1000=$300,000 on top of everything, which means the rest of the 20 cars potentially worth 0.3M for them. If that’s the case, congradulation! You hit jackpot becuase they would beg you to deal with them even it means they would make as little as possble on that one car sold to you.

Sounds exiciting? Best time to do car purchase (2)

Tags: best car deal, best time to buy car, Car Buying Tips

28 Sep 08 How to Get Best New Car Deal in 30 Days Without Headache (2)

17th ~19th of the month

List cars you would buy with a specific price after evaluation. For example, for some people, moon/sun roof might worth only a $300 because they do not really care, even though the price difference could be $1200. Therefore, assuming you would pay $15000 for a car without moon roof, and then you would pay $15300 for the exact same car with moon roof. After finishing the list, it is time to collect quotes and prices from car dealers.

18th~25th of the month

Use email address (es) that you do not mind getting tons of messages to ask for car quote on your list from as many car dealers as possible, even for those from 300 miles away if you wish. The reason to collect car prices from dealers 300 miles away is price could vary a lot if you are in a location with only a few dealers there. For example, there are only 2 local dealers within 20 minutes of driving distance for the car you are looking for, they would give out higher price to max put their profit. However, there might be a dealer 100 miles away with competition and would sell you for the same car for $1000 cheaper. Would you drive 2 hours to save $1000?

Have them beat the lowest car quote you got minus 500. Most dealers would try to make you feel like a clown by laughing at you.  Car salesperson would use things like, “I would pay the amount to buy 10 cars from you”, “The dealers quote you are lying”, or “Once you find out you are lied please contact me” or things like that. Take it easy, salespersons’ job is to make the most money possible and most people love money. Response them with “please keep me updated” or simply reply them with “Thank you” politely. After your reply, some dealers might lower their prices and some car dealers might beat the price you offered.

Report the prices and quotes after initial conversation to CarPriceDatabase.com pricing system, and discuss your experience and pricing to forum members as other people might be looking for the same car in your area, and it would help all members to spend less time on collecting data. Occasionally you would find that all the car prices and car quotes you got are not good. Sharing your car information is important here as the more information you gain, the fewer amounts you would pay. With all prices you have got, you would have a magic price for each car you are looking for.

26~28th of the month

You would have a desired price on the car you are looking for at this point. Walk into the car dealer that let you test drive the car first. The reason is that they were helping you to know the car, so you should give them the opportunity to earn your business. Don’t expect good offer from them, but hold your magic number. If there is no deal, just walk out. You have given them the opportunity to earn your business but they mess up. Go to other car dealers and look for the price you are willing to pay. If you get the car at the price you want, congratulation! Your car shopping is almost done. It is ok if you don’t get your car, as not everyone is lucky to have deal done that soon.

29th~end of the month

Expect to get calls from dealers after you walk away between 1 minute and 3 days. They could you offer you better prices, but sometimes they do not. Car dealers would mostly ask you to go back to their offices and discuss. Try to get the number in phone and ask them to email/fax you with the all the numbers in case you get hard time after you arrive the office due to some “misunderstandings”. Even if they do not give you the detail, have their manager speak with you and go there to close deal if everything goes well. Wait for other dealers to call you if there is no agreement between you and car dealers. Repeat this process until a dealer would deal with you. In case after all dealers you work with do not give you the price you desire, wait for the dealers o call you again, but raise your target price a little bit to have deal done.

Tags: Car Buying Tips, Car Price