How Much Should You Pay For That New Car? Auto Broker Reveals All
TORONTO, June 19, 2012 /PRNewswire/ - It is said that many people would rather have a root canal than go through the new car buying process. Well, that's sort of true. Most people like the car shopping part - the test drives, the new car smell. It's the price comparison shopping and negotiating they don't much care for.
To help solve the problem, Automall Network, an auto broker used by consumers and insurance companies, now offers Competitive Market Price Reports through their recently launched website, IVONTaCar.com. For $50, the report tells a new car 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. A free sample Competitive Market Price Report is available at IVONTaCar.com.
"If you can walk into a dealership knowing what a competitive price is, you can use this as a much better starting point for negotiations" says Viraf Baliwalla, President of Automall Network. "This saves time comparison shopping and makes negotiating much quicker and less painful".
The public has become accustomed to Dealer Invoice Price Reports, which Automall Network can also supply, however dealers don't typically sell vehicles at their invoice price so that information is not as useful as knowing what constitutes a good deal. Most car buyers understand that a dealership is a business and it has to make a profit to survive. As such, they don't mind paying a competitive price.
"What they don't want is that the dealership makes their entire month's profit on their deal" claims Baliwalla. Take for example, Michael Turner (name has been changed at buyer's request to avoid conflict at their local dealership).
Turner had been looking for a new Toyota Camry. His wife knew someone at their local Toyota dealer so they fully intended on buying it there. Their contact at the dealership had quoted Turner a price claiming it was "only $650 over their cost". Just to make sure, Turner consulted with his local automobile association before making a final commitment. The association directed him to Automall Network, who serves as their member benefit. Automall advised Turner what a competitive market price should be and that at the quoted price, the markup on the deal was either $1100 over the dealer's invoice price (not $650) or, there was an extra fee built in that he didn't know about. Upon bringing this price discrepancy to the dealer's attention, Turner found out that there was, in fact, an extra fee built in that he could "opt out of". Unfortunately, this option was not brought to his attention during the initial negotiation.
"The problem with buying a new car is that most dealerships won't give you their best price until someone else has first" says Baliwalla. "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.
"It's the commission based mentality in the industry that creates a negative experience" claims Baliwalla. "Most salespeople are compensated based on how much profit there is in the deal".
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 without high pressure sales tactics, and all at a fair price.
"Our company really shouldn't need to exist" adds 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. That's why they look to us for help".
Automall Network, started in 1999, is a full service auto broker that helps new and used car buyers find the vehicle they want at the best price.
SOURCE Automall Network Inc.
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