Car Buying Vocabulary Manufacturer- A company that makes goods for sale, like cars. Dealership- An establishment authorized to buy and sell cars. MSRP- The manufacturer's suggested retail price, is the price that the manufacturer says that the dealer should ask for each individual car. The dealer does not have to use this price. Base Price- A vehicle's MSRP without upgrade options. Invoice Price- Invoice price is what the dealer paid the manufacturer for the car. Rebate- An amount returned to the buyer as an incentive to purchase the car. Promotional Rate- A temporary interest rate that's lower than the regular rate and offered for a specified period of time. Sales Manager- The person focused on the sales techniques and manages the dealership’s sales force.

WHAT TO KNOW ABOUT BUYING A CAR Time Your Purchase Dealers run on a month-to-month basis. At the end of the month, many will accept lower offers to reach their goals and qualify for bonuses. And December is a slow time for car sales, so it’s a wise time to buy. Also, most dealerships are busier on weekends. The weekdays are generally slow, especially in the morning. They need sales and they want to look busy, which keeps them motivated to give you a better deal and earn your business. Do Not Buy a Car on Your First Visit Use the first visit to look at and test-drive the car(s) you are interested in. Gather your information and then leave, and be adamant that you will not be buying a car today. This will communicate to the dealer that you are not going to be bullied. Watch what you say to the salespeople—especially if they ask you how much you are prepared to pay monthly—because whatever you say will be used as a starting point from which the dealer will go up when negotiations eventually start. Make an Appointment with the Sales Manager By calling a sales manager to make your appointment, you communicate that you are serious about this transaction and know what you are doing. You will still be paired with a salesman when you arrive, but they will know that you mean business when you arrive.

WHAT TO KNOW- PAGE 2 Know the Invoice Price of the Car With the exception of very popular models, you should be able to get a new car for closer to invoice than MSRP. Knowing the invoice price of your car will tell the dealer that you mean business and expect a good deal. Don’t walk into the dealership without this information. Research the Dealership If you can’t find online reviews of the dealer you are considering, just talk to people. Your friends and neighbors purchase cars and should be honest with you about whether they were happy with their car or dealer. Check Your Credit Report Most people who shop for cars will need a loan. How much that loan costs will depend on your credit history. Get Internet Quotes from Several Dealers Get quotes from multiple dealers before you ever visit any of them. If dealers know they are competing, it will be easier for you to get their best offer. Get Your Own Financing The biggest profit center for a car dealership is its finance department. You can often get a better interest rate from your local bank. That being said, promotional rates—sometimes as low as zero percent—can be tough to beat.