A:
Because of rebate given by a car manufacturer.
Car dealership earns from financing they offer to their clients.
Car dealership earns from their service, maintenance and repair department.
Kickbacks from their sales.
Q: Car dealerships such as a Pontiac dealer sometimes offer 0% financial rates, how is this feasible?
Answer: It might appear on the surface that there are hidden tricks or fine print but there is none actually. This is the scheme they use to sell cars with very low sales. However, not everyone can avail of this special rate unless:
You have a high credit rate. Some dealership set a minimum credit rate to avail of this scheme.
If you cant meet their requirement, a car dealership will offer you a rebate instead. Grab this offer if you are not eligible for a zero financing. Zero financing rates cover only a short period of time or three years the most.
Just a quick tip, dont be compulsive when buying a car. Rather, wait for some time until the buying mania for a particular brand dies down when the price will soon follow, it will be the perfect time to buy a car.
Q: I leased a new car, however I cant pay the mortgage anymore. How do I get out of the lease without a great amount of money.
Ans. There are two best solutions to get out of your lease.
First option, sell the car. Call or visit the financing company holding your car for the amount of money you need to pay them to get you out of lease. Find someone to buy your car or give you offer you a quantity close to your lease.
Second option, find someone or a company to buy you out of lease. There are websites that specialize in swapping of car lease or offering solutions to them. You need to understand that getting out of lease is difficult especially if the amount of your lease is higher than the actual cost of your car. Though getting out of lease is indeed tough, many people have successfully got out of it and so can you.
Q: Im planning to buy a popular car model, what type of negotiations should I expect?
Answer: The cars price is dependent on supply and demand law. Typically, when the inventory of a particular car model is large then prices go down. Conversely, when the inventory is low and demand is high, the cars prices go up.
Ask a Pontiac dealer for their inventory of a particular model for example. If theres plenty of that particular model you want in their inventory then you can buy it just a little above its invoice price. However, if there is just a limited number of that type of car then chances are you are looking at an expensive car.
Q: If youll pay in cash, how much discount can one expect?
Ans. This will surprise you a bit but sometimes paying cash is a disadvantage. This is because vehicle dealership such as Red Deer Buick dealers earn profit through financing. What will happen is that they will raise the price to earn profit.
In this case, be straightforward and tell them that you are paying in cash and will buy the car today or right now after they give you their best offer. Let them know that you are giving them a chance for an easy and seamless sale.
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