Cheap Cars – Best Car Deals

cheap-carsWhere are the cheap cars?

Where are the best deals?

Everybody knows that all new cars have window stickers that display MSRP (Manufacturer’s Suggested Retail Price), which is the full retail price of the car. Of course, we all know that nobody pays full retail price anymore.

So, who and what determines the actual price we pay for a new car?

First, dealers can discount prices, depending on the following factors:

1. Wholesale price (invoice price) – This is the price a dealer pays the manufacturer for the car.  A dealer cannot sell below invoice price without help (money) from his manufacturer.

2. Profit objectives – How much profit they must make to keep their business alive and profitable. Dealers must make some profit to pay their bills and stay in business.

3. Time in invenory – A car that’s been sitting on the lot for a long time is costing the dealer money in interest payments on the money he borrowed to buy the car from the manufacturer.

4. Sales goals and quotas – Dealers typically have sales goals or quotas to meet each month, each quarter, and each year. Bonuses and incentive payments are often at stake. Buying cars at month-end, or year-end is always a good move.

So how do you find cheap cars?

Look for the cars with the largest incentives (rebates, loyalty bonuses, factory-to-dealer cash, low-interest loans). Use this web site or go to the car makers’ web sites and look for the “special offers” section.  You might have to enter your zip code because deals can vary by region of the country.

If you don’t mind buying last year’s models, you can find cheap cars and save a lot of money. Typically, the highest incentives are on makes and models for which dealers still have leftover inventory. However, in many cases, incentives on this year’s models are just as good, or almost as good, as last year’s models. When sales are slow, deals get better.

If you are looking for cheap cars and new-car prices are still a little out of your budget, consider a used car (see Used Car Advisor) or bargain-priced cars at public car auctions, repo auctions, police impound sales, or government surplus sales (see Public Car Auctions for more details).

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