How to Find Unadvertised Discounts on New Cars

In order to make money, dealerships aim to earn the most money possible on each car sale. However, other factors influence dealer pricing and can lead to unbeatable discount prices for new car buyers. Learn how to take advantage of unadvertised deals such as; factory to dealer incentives, dealership overstock clearance sales, and below invoice sale prices.

MSRP vs. Invoice Price

The MSRP or Manufacturer Suggested Retail Price is just that, a suggestion. The invoice price is what dealerships pay the manufacturer for a new vehicle. When shopping for a new car you should aim to pay less than MSRP. The closer you pay to the invoice price, the better the deal. Paying below car invoice prices will maximize your savings.

Factory to Dealer Incentives

Auto makers often provide factory to dealer incentives, to entice dealers to sell more of a specific model. Factory to dealer incentives allow dealers to pay less than invoice price for the new vehicle. Dealers are not obligated to advertise or pass along these discounts to consumers. Some may keep the extra profits, while other dealers may be willing to pass along some of the savings to consumers.

If you want to take advantage of factory to dealer incentives you’ll need to negotiate. Since dealer incentives are offered to all dealerships within a region, making dealers compete for your business will encourage them to drop their price below dealer cost.

Dealership Overstock Clearance

Dealers must pay to keep vehicles in stock. If a certain model is overstocked the dealer will be paying extra and earning little on sales. Often overstocked dealers are willing to sell new vehicles at or below dealer cost just to make room for higher demand vehicles.

The longer a specific vehicle has been on the lot, the more likely the dealer will be to drop the price. Shopping for outgoing models or at year end is a great time to take advantage of these kinds of discounts.

Meeting Sales Goals

Both car dealerships and salespeople strive to meet monthly sales goals. Meeting goals can mean cash bonuses to the salesperson, or increased factory to dealer incentives to the dealership. Either way, it’s an incentive to move inventory.

Shopping at the end of the month is a great way to take advantage of dealers struggling to reach target sales. If losing a few thousand on one vehicle means a large bonus, the dealer is likely to take the loss to gain more profit.

Salvage Yards – Find Old Parts

Salvage yards usually hold old cars and old car parts, although some salvage yards have other items as well.

Every wonder what happens to old cars? Well old cars that do not run anymore and have no hope of ever running again, usually make their way to one of the many salvage yards located through out the united states. Once there they are stripped down of every part that can be sold for reuse and than they are crushed and the metal is recycled.

How Big Are They?

Some can be literally acres wide and long, some are simply a lot. It greatly depends on the area that they are located as to how big them can become they are closely regulated by several government agencies because of the potential for pollutants to harm the environment.

There are several very well known yards across the United States; their main business is not recycling the cars it is selling the parts that they take off the cars.

Benefits of the Business

They have very little overhead; Usually the office is a trailer or a small building. Many of the cars that are in there were had for free. In some cases there was a charge for taking the car to the yard.

Basically the business profits off of each and every vehicle. Many vehicles that show up do not run anymore but their other parts are in perfect condition. Meaning each piece that does work can be removed from the vehicle and sold.

The profit is near 100% on each vehicle.

Some Items That They Sell

Batteries, tires, body parts, engine parts, electronic parts, radios, speakers, interior parts, exterior parts just about any part that can be taken off the vehicle will be. A lot of them require that you take the part off the vehicle yourself. This also reduces the yards overhead because they do not have to pay for someone else to do it.

Some are more organized than others and will have the parts taken off the vehicles and housed on shelves for easy location purposes. Many today have computerized systems that keep track of exactly what they have in stock and even offer the items online. This practice is the exception and definitely not the rule. Most salvage yards look exactly as they are pictured to look, jammed with vehicles, dirty and not well kept.

Locating some is simple enough, they can usually be found online or in the local yellow pages. There is almost always many salvage yards in each town or the surrounding areas regardless of how remote the location is.

Salvage yards have been around for a long time and they do not seem to be going anywhere anytime soon, even with the green movement as popular as it is, salvage yards are going to be around for awhile longer.