Truthful New Car Pricing - Help Is Available

Co-publisher’s Note: With today's many choices of high tech, long lasting great new cars in every category, and prices climbing into the stratosphere, saving some money is nice but not as important as buying the "right" vehicle for your needs, because spending the next 10 years pissed off every time you get into a “wrong” vehicle is not a good option.

We believe that every new car buyer needs an advocate, whether it’s the intelligence gained from the many helpful Auto Channel tools, or a hand-holding knowledgeable family member, friend or even a hired gun who can make sure you stay on the correct purchase path.

An important thing to understand is that car the dealer is a business that needs, should, deserves and WILL make a fair (ah that is the issue) profit on every transaction.

Keeping the profit in the fair range is a realistic and desirable goal but even more important is that the dealer you choose to buy from can and will competently provide the amenities and services every new vehicle will need over its operating life.

Make sure that you or your advocate gets answers to the right questions, to not just save you some money, but more importantly keep you from being blinded by the wonderful sights, sounds and smells of a wrong new vehicle and stubbornly helps you complete a successful purchase that will meet both short and long term vehicle needs.

How Much Should You Pay For That New Car? Auto Broker Reveals All

May 30, 2012 – Toronto, ON – Michael Turner (name has been changed at client’s request to avoid conflict at the dealership) had been looking for a new Toyota Camry. His wife knew someone at the local Toyota dealership so that is where they intended to buy. Prior to making his final purchase, he consulted his local automobile association website for any last minute guidance. There, he learned about Automall Network, an auto broker that provides buying advice and pricing data to consumers.

The salesperson at the dealership had quoted Turner a price claiming it was “only $650 over their cost”. Just to make sure, Turner consulted with Automall Network to find out what a competitive price should be and whether the price quoted was truly only $650 over cost before signing on the dotted line. Automall Network advised that at the quoted price, the markup on the deal was actually at $1100 over the dealer's invoice price, or there was an added fee on top of the $650.

Upon bringing this price discrepancy to the dealer's attention, Turner found out that there was, in fact, an extra fee built in to the price that he could “opt out of” if he wished. “I found the advice they provided extremely helpful regarding price” says Turner. “I saved over $400 extra based on that advice”.

The problem with buying a new car is that most dealerships won’t give you their best price until someone else has first. Then they will match it or slightly beat it just to get the deal while you’re in their dealership. Unfortunately, this means you are forced to spend unnecessary time comparison shopping from one dealer to the next and playing one against the other.

“Contrary to what most people may believe, price is not the most important thing that motivates buyers of any product or service, especially not cars” claims Viraf Baliwalla. Baliwalla is President of Automall Network, an auto broker of 12 years that has clients throughout North America. “Car buyers are looking for trust, integrity, respect and a long term relationship for service” he explains.

Based on Baliwalla’s experience with car buyers, he believes that most car buyers understand that a dealership is a business and it has to make a profit to survive. What the buyers don't want is that the dealership's entire year's profit be made on their deal.

"The lure of saving that extra little bit is always there, however what buyers really want is to know that when they drive away with their new car, they have paid a fair price that is competitive with the market" says Baliwalla. "Unfortunately, too many people drive away with an uneasy feeling of whether or not they paid too much or if they really needed that rustproofing package or extended warranty".

“It’s the commission based mentality in the industry that has created a negative environment” claims Baliwalla. “Salespeople need you to ‘buy today’ because their commission is riding on it. This is the root cause of the high pressure sales tactics. If you walk out the door to think about it, they are worried that you may just get sold at another dealership”.

Baliwalla believes that new car buyers would love nothing more than to simply walk into their preferred dealership, speak to someone they feel they can trust and that respects them, do a deal at their own pace, and all at a fair price. That may be too much to ask in today’s competitive environment, however it would save everyone, including the dealership, a tremendous amount of time and aggravation.

To help make that happen, Automall Network provides new car buyers with Competitive Market Price Reports. For $50, the report tells a buyer what a competitive retail price (or payments) range is in their market for the vehicle they want, be it a cash purchase, finance or lease. This information serves as a much more accurate benchmark for negotiation with their preferred dealer or the price can shopped around further. Alternatively, Automall Network can take care of the negotiation on the buyer's behalf for less than a few hundred dollars ($195).

Free sample reports can be found at www.IVONTaCar.com, Automall Network’s New Car website. Automall Network also provides consultation, pricing research and buying services for used car buyers at www.AutomallNetwork.com.