AARP Bulletin March 2019 Tip From Car Dealer: Decoding the Deal

The March 2019 AARP Bulletin featured a valuable tip from a car dealer, sparking considerable interest in savvy car buying. This article delves into that tip and expands upon it, offering a comprehensive guide to navigating the car-buying process and securing the best possible deal, just like the Aarp Bulletin March 2019 Tip From Car Dealer suggested.

Understanding the AARP Bulletin’s Car Dealer Tip

The core of the March 2019 AARP Bulletin’s car dealer tip revolved around understanding dealer incentives and holdbacks. These are essentially hidden profits built into the manufacturer’s suggested retail price (MSRP). Knowing about these can give you a significant edge in negotiations. The tip emphasized leveraging this knowledge to negotiate a price closer to the dealer’s actual cost, maximizing your savings.

How to Use Dealer Incentives to Your Advantage

Dealer incentives are often unadvertised bonuses provided by manufacturers to dealers for selling specific models. These can be tied to sales volume, specific models, or even slow-moving inventory. By researching these incentives beforehand, you can potentially reduce the price further. Websites and forums dedicated to car buying often list current incentives.

Decoding Dealer Holdbacks: A Hidden Profit Center

Holdbacks are essentially a percentage of the MSRP or invoice price that manufacturers return to dealers. This is typically 1-3% and acts as a buffer for the dealer. While not directly negotiable, understanding holdbacks provides insight into the dealer’s true profit margin, giving you a stronger negotiating position.

Beyond the Tip: More Negotiation Tactics

Beyond the AARP Bulletin’s March 2019 tip, other effective negotiation tactics can significantly improve your car-buying experience. These include:

• Knowing your market: Researching comparable vehicles and their prices in your area empowers you to recognize a fair deal.
• Walking away: Demonstrating a willingness to leave the dealership if your price isn’t met can often encourage the dealer to reconsider.
• Focusing on the out-the-door price: This includes all fees and taxes, ensuring you’re aware of the total cost, not just the vehicle’s price.
• Timing your purchase: End-of-month or end-of-quarter sales often offer better deals as dealers strive to meet quotas.

What was the car dealer tip in the March 2019 AARP Bulletin?

The car dealer tip focused on understanding dealer incentives and holdbacks to negotiate a lower price.

Why is this tip important?

This tip empowers buyers by providing insight into dealer profit margins, enabling more effective negotiation.

How can I find dealer incentives?

Online resources and car buying forums often list current dealer incentives.

Leveraging Technology for a Better Deal

Today, numerous online tools can assist in car buying. These include websites that provide price comparisons, vehicle history reports, and even financing options. Utilizing these resources can simplify the process and further empower you to secure a favorable deal.

The Importance of Pre-Approval for Financing

Getting pre-approved for a car loan before entering the dealership provides several advantages. It allows you to negotiate the best interest rate, strengthens your negotiating position, and helps you avoid dealer-arranged financing, which might not be the most advantageous.

Protecting Yourself from Common Dealer Tactics

Some dealers may employ tactics to inflate prices or add unnecessary fees. Being aware of these tactics can help you avoid them. Common tactics include pushing add-on services, focusing on monthly payments instead of the total price, and playing the “waiting game” to wear down your resolve.

Conclusion: Empowering Yourself as a Car Buyer

By understanding the AARP Bulletin March 2019 tip from car dealer about incentives and holdbacks, and by utilizing the additional negotiation strategies and online resources discussed in this article, you can confidently navigate the car-buying process and secure the best possible deal. Remember, knowledge is power, and being well-informed is your greatest asset when purchasing a vehicle.

FAQs

1. What is a dealer holdback? A percentage of the MSRP or invoice price returned to the dealer by the manufacturer.
2. How can I find out about dealer incentives? Check online resources and car buying forums.
3. Why is pre-approval for financing important? It gives you negotiating power and helps you avoid potentially unfavorable dealer financing.
4. What is the “out-the-door” price? The total price of the vehicle, including all fees and taxes.
5. How can I avoid dealer tactics? Be informed and prepared to walk away.

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