26 Apr 09 Triple Net, What is the Meaning of Triple Net Price in Car Purchases?

Triple Net have several meanings in different areas. Since we focus on providing car buying tips, triple net price discussed here would be on what people use for car purchases.

Triple net price, as the term shows, is the car price after three types of possible money that car dealers would be able to give out, and given to car dealers by car manufacturers.

The first net is the car price difference between the MSRP of the car and the car invoice price. It is obvious that even though the car invoice price looks like the cost to car dealers, it is NOT the real cost for the car. There could be a lot of cash back to car dealers under the table from auto makers, so it makes car salesperson and car sales managers easier to have a number to show car shoppers that is the cost of the car.

The second net is all public car incentives and auto rebates available on the car and model. Use the invoice price of the car and take out the amount of all rebates and incentives. Keep in mind that besides those manufacturer-to-customer cash rebates that are taxable, there could be manufacturer-to-dealer cash incentive that are NOT taxable since it will not be shown on the sales invoice.

The third net, which is the part that some auto dealers would not give out, is the car holdback, which is normally between 1% to 4% of MSRP for the car, depends on the car manufacturer. The reason that car dealers would not like to pass this incentive out is passing out holdback makes their balance sheet negative for this car purchase, despite the fact car dealers would be able to get it back.

You might be wondering that how car dealers make money if they sell cars for triple net price. which seems to be there real cost.

The good thing about the business in car sales is there are many private auto rebates and hidden dealer incentives back to car dealers after cars are sold. Therefore, don’t worry about car dealers as they will always get enough money, if not too much money from people who do not do their homework before making the car deal.

Now you know what triple net means in car purchase, and it would be a good start to negotiate a car deal. Please report your car price to us as it helps us to identify and discover all kinds of hidden car incentives and customer rebates.

Tags: Car Buying Tips

27 Mar 09 How to Get Car Quotes, Car Prices from Car Dealerships by Email (1)

Car purchase is a problem for most people, and it is even worse for people who have a job that does not give them much freedom to talk on phone under managers’ “supervision”.  Car salespersons and car sales managers know that as well. Therefore, in order to maximize the profit for the car dealership, in other words, sell the car for the highest price possible, they would try to give car shoppers the most trouble, which makes car buyers want to finish the nightmare as soon as possible, so they could not only sell the car, but also make the most money.

This article focuses on how to use email, one of the most convenient ways to communicate for people work in office, to negotiate the best deal possible with the least days off.

The easiest way to start a conversation with car dealers is to request for the auto quotes for the particular car you are looking for. It is recommended to apply for a new and free email address like Gmail, Yahoo Mail, Live Email…etc. The reason of getting a new email address will be explained later.

Auto dealers will always attempt to use phone to contact you if phone number is available for car dealerships, despite the option of contacting email is selected. The reason, which is understandable, is that sales person in automotive field would like to connect with auto shoppers as close as possible.  For people who do not want to be contacted via phone, do not leave phone number with automotive dealership. How if phone number is required for the auto quote request form? Some people might think that just give out a random phone number to the car dealerships, but it causes problems for people with that phone number, who are mostly do not want to get a new car or used car now.

Besides, car salespersons attempt to call the number, but they get the response of wrong number, it makes them believe that the auto quotes requester might not be serious about the auto purchase, which increases the difficulty of getting a good car deal. The good way is to leave a number that it will definitely not work, and add to the comment field in the car quotes request that tells car salespersons or car sales manager for internet department not to contact you via phone. Request car quotes from as many car dealers as possible, even for car dealers are not local to you, if possible.

After the car quote request is sent, you would get instant responses from computer system to thank you for your interest, which are not important, so you could just delete them. Besides these welcome emails, car shoppers would expect to get tons of so-called car buying tips emails from auto dealerships. However, do you think car buying advises from car dealerships that would want to make the most money from you would help you at all?

[to be continued.....]

Tags: auto quotes, Car Buying Tips, car quotes, email car dealers