Buy Here Pay Here Sacramento, CA

New Car Prices 47 5 When you decide to shop for a new car and visit dealership lots to look at brand new cars you may not completely understand some of the industry lingo that's used. All new cars have a manufacturers invoice. On the invoice is the price new car dealer pays the manufacturer for the vehicle. Having knowledge of the jargon that you'll be hearing when visit the new car lot, and when you start haggling over the new car is very important. It may prevent you from choosing a new car and contractually agreeing to something you wouldn't if you knew what it was you actually agreed to. Every new car also has a Manufactures Suggested Retail Price that's typically affixed to the rear drivers side window which can only be removed by the new car buyer. The window sticker also lists the features and options that are on the vehicle. Some dealers will also place an additional sticker labeling any aftermarket or other accessories installed at the dealership. Here are some terms used often by new car salesmen and women:

• INVOICE PRICE: When the automobile manufacturer ships the new car to the dealer the invoice the dealer the amount seen on this piece of paper. This amount, however, is not what the dealer ultimately pays for the vehicle.
• STICKER PRICE: This is the combination of the MSRP, typically listed on the invoice and the Dealer Addendum for equipment installed at the dealership.
• FLOOR PLAN: Most new car dealer borrow money to buy the cars they have for sale on the lot. Floor plan is the interest they have to pay. This amount is added to the cost of the new car.
• HOLDBACK: This amount is usually on the invoice, but it is displayed in a way that only the dealer will understand. How holdback is displayed varies from OEM to OEM. Once the car is sold, this amount is credited back to the new car lot.
• DEALER CASH: Dealer cash is a special incentive directly to the dealer. Typically dealer cash is based on sales volumes and may vary from dealership to dealership.
• TRUE DEALER COST: Here's the formula for true dealer cost: (Invoice Price + Floor Plan � Hold Back � Dealer Cash)

If Manufactures are overstocked, they may also offer 0% new auto financing, extended repayment terms, and zero down options. If you're looking to get the best new car price or payment you should investigate each discount separately and evaluate which will be best for your situation. If you're a car buy that is not dead set on owning a new car, you should also compare the new cars with a one or two year old used car.