Car Price FAQs

  1. How can an auto dealership sell a new car at or below the invoice price and still make a profit?
  2. When purchasing a vehicle that is in high demand, will I still be able to negotiate a good price?
  3. I want to purchase a new vehicle, but I'm stuck in lease with high payments. Is there a way for me to terminate my lease without paying exorbitant fees?
Q: How can an auto dealership sell a new car at or below the invoice price and still make a profit?

A: A new car dealer can typically sell a new car at or below the invoice price for several reasons:

  • Manufacturer-to-dealership rebates.
  • If the dealership arranges financing, they may get paid on a percentage of the vehicle financing.
  • Holdback from the manufacturer – Essentially a bonus from for hitting sales volume levels.
  • The auto dealer may make its profit on accessories and sale add-ons.

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Q: When purchasing a vehicle that is in high demand, will I still be able to negotiate a good price?

A: Pricing for vehicles that are in high demand or have a waiting list to purchase will typically sell higher than MSRP. High demand vehicles are tough to negotiate lower than MSRP in most cases.

On the contrary, vehicles with high inventory counts and multiple models, colors, etc. may be your best bet for negotiating a price below dealer cost.

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Q: I want to purchase a new vehicle, but I’m stuck in lease with high payments. Is there a way for me to terminate my lease without paying exorbitant fees?

A: Here are several options that might help you:

  • Find someone to assume your lease payments. A service that can help is Swap A Lease (Add our Affiliate Link)
  • Another service that can help in finding someone to assume your lease is Lease Trader (Add our Affiliate Link)

 

 

 

New Car Buying FAQ

Read our list of FAQ's for new car buying. Get answers to the most commonly asked questions from buyers shopping for a new vehicle.

Got a question, but don't have an answer listed on our site? Send us your question and we'll do our best to post it for others to read.

 

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