For many of us, buying a new car is probably the second biggest purchase we’ll make in our lives. It’s expensive, it’s a long term investment, and you rely on it. Most of all, no one wants to get screwed.
Get informed…It’s free
Until recently, invoice prices were not readily available to Canadians. Some companies sold it, while most car dealers just wish they didn’t exist.
Invoice price is the number which the dealer essentially pays for the vehicle. If a shopper knows what the dealer paid, they go into the dealership more informed.
Now, a website like Unhaggle.com lets you access invoice prices absolutely free.
So what’s a fair markup on a new car?
It all depends on how good you are at negotiating, and how well the vehicle is selling. Generally a great price is around a 3 percent markup; 5 to 7 percent for luxury brands.
Related: Why I Bought Out My Car Lease
Manufacturer incentives are money offered by the manufacturer of the vehicle to help dealers sell cars.
It’s free money that’s generally passed on directly to the customer. Sometimes these incentives can be in the thousands of dollars.
Next, you’ll want to know the fees. There are four main fees (three in some provinces) that a consumer MUST pay.
- Freight is the cost of transportation of the vehicle to the dealership.
- Air conditioning and tire recycling levies are smaller government taxes that generally total to around $115 to $130.
- Finally Alberta and Ontario buyers pay a small regulatory levy for consumer protection purposes of around $5 to $6.25.
Any fees on top of this usually represent additional ways for the dealer to make a profit, admin or etching fees can be negotiated out.
Leave out your trade-in
The age-old negotiating trick is easily applied when a customer introduces the fact that they have a trade-in before the price on the new car is settled.
Essentially, negotiating a trade-in value is a completely separate negotiation. Don’t mention it up front.
Buyers who combine the two often get overwhelmed, which makes it easy for the dealer to take profit from one to apply to the other.
How to Get the Best Deal in your Pajamas?
Unfortunately, buying a car requires most shoppers to be organized and well researched. Then you’ll need to spend a few evenings and weekends negotiating, which isn’t as fun as going for a test drive.
For a small fee of $49, Unhaggle reaches out to your local dealers to get them to compete for your business – like a reverse auction.
Related: 10 Fees That Are Worth The Money
Dealers know they have to offer great deals for a chance to win the business. You can shop for the best price from the comfort of your couch.
Finally, select the best offer and walk into the recommended Unhaggle dealer to finalize the paper in a few short minutes – not hours!
For the more ambitious negotiator, Unhaggle offers free dealer cost reports on almost all vehicles in the market today.
As mentioned above, this is free information that gives the shopper a significant advantage in price negotiations.
Take a look at some recent Unhaggle deals:
2013 Ford Taurus SEL FWD
- MSRP – $33,799
- Manufacturer Incentive – $5,500
- Unhaggle Savings – $1,300
- Total Savings – $6,800
- Mandatory Fees (Freight, AC Tax, Tire Tax) – $1,680
- Total Before Tax – $28,679
- + $1,000 discount after tax for Costco Members
- Finance Rates: $5,500 + 5.69% up to 48 months
2012 Acura TL AWD Auto Technology Pkg
- MSRP – $46,990
- Manufacturer Incentive – $7,500
- Unhaggle Savings – $2,550
- Total Savings – $10,050
- Mandatory Fees (Freight, AC Tax, Tire Tax) – $2,080
- Total Before Tax – $39,020
- Finance Rates: $2,000 + 0.9% up to 48 months
Related: My Brand New Car
Final Thoughts On Buying A New Car
Buying a new car can be intimidating for many people. You walk onto the car lot and the sales staff jumps all over you with their high pressure tactics. All of the negotiating strategies you’ve read go out the window when you lose your nerve in the heat of the moment.
Unhaggle is one of Canada’s largest online market places for new vehicles. They make buying a new car easy because they strip away all the dealer jargon that’s designed to confuse you. They make the dealer’s compete for your business and offer their best price.
Best of all, Unhaggle offers a 100% satisfaction guarantee.
So if you’re in the market for a new car, or you’re reluctant to buy a car because you hate negotiating, give Unhaggle a try and save yourself some time and money.