Negotiating the Price of a Vehicle
Published by GoAuto.com on Monday, May 22, 2023
It is important to keep in mind that vehicle manufacturers and vehicle dealers (dealerships) are two different and separate entities. The dealer buys vehicles directly from the manufacturer at wholesale prices and then sells the vehicles to car shoppers at a markup.
There are two prices associated with a new vehicle. The Manufacturer Suggested Retail Price, or MSRP for short, is the manufacturer’s recommended price for selling their vehicles. The Invoice Price is the price the dealers pay when they buy the vehicles directly from the manufacturer.
Why is this Important to Car Shoppers?
Even though the MSRP is provided to the dealerships, dealers are free to determine the selling price for the vehicles on their lot. Getting the right information prior to speaking with a dealer is going to be your key to potentially saving thousands of dollars. Knowing both the MSRP and the Invoice price is crucial. Have a maximum price in mind that you don’t want to exceed, generally between the MSRP and Invoice Price, and if the dealer can’t reach it, move on. Remember that dealers create a false sense of urgency to close the deal at a price they prefer.
Where Can I Find the MSRP?
At the dealership, you can find the MSRP on the “Monroney” sticker displayed on the side window of each new car. The Invoice Price is often challenging to impossible to find. Dealers don’t want to disclose what they have paid for a vehicle, as they would rather keep their discounts quiet, and have you pay full retail price.
Finding both the MSRP and the Invoice Price before speaking with a dealer is easy. GoAuto.com can provide an instant MSRP and Invoice Price for every vehicle you are comparing, and more information to help you select your next vehicle.
How the Global Chip Shortage Affects Car Buying
Published by GoAuto.com on Friday, April 7, 2023
Despite the global chip shortage and low dealer inventory, you will always be able to find great deals using the tools at GoAuto.com. Instantly compare dealer clearance prices and save, finding the biggest discounts on new vehicles. Find the exact car you are looking for at a dealership near you, all from the convenience of your computer.
What Are "Chips"?
Semiconductor chips, or “chips” for short, power many modern products, such as computers, household appliances, automobiles, and advanced satellites.
Cars use chips to power touchscreens, which are essentially computers, as well as safety features such as adaptive cruise control, backup emergency braking, cameras that aid in backing up the vehicle, deployment systems for airbags, and engine control modules that lower emissions and improve engine efficiency. Electric vehicles rely heavily on chips.
COVID lock-downs and natural disasters along with a booming chip demand have created a global wide shortage of chips. Production has slowed and existing stocks have been drained. Chip manufacturing is a complex process. Although small in size, each chip contains billions of transistors making up the circuitry that allows them to perform their complex tasks. Production requires specialized equipment and facilities, and can take over three months.
What This Means for Car Buying
Production slow-downs means fewer vehicles on the dealership lots, causing higher prices and long wait times for some vehicles. Despite this lack of inventory, many amazing vehicles with the latest standard technology and safety features sit unsold on dealer lots. The dealership loses money each day the car sits unsold. Online car shoppers can take advantage of this available inventory by using the tools at GoAuto.com, which allow car buyers to locate dealers with inventory that they need to move.