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Car Buying Faq S What Every Car Buyer Should Know


Question: If a dealership sells an automobile close to it's invoice cost, how can they earn a profit?


Answer:The manufacturer provides a rebate straight to the dealer.A car dealercan make profit from a vehicle financing plus some profits by selling the vehicles. The dealership can make money using their parts as well as service sections.Earning from "kickback" form car manufacturer from sales volume. Vehicle dealers, say for example a Buick dealer.


Q: Numerous car makers offers zero percent annual percentage financing rates, how is this feasible?


Answer: It may seem there are concealed tricks under these incredible rates, but there's actually none. It is their own strategy to launch models with low sales. To avail of these here's what you should know:
You should have a high credit rating. Having said that, not everyone can easily avail of this zero financing rate.


In most cases, the dealership will let you choose between a low financing rate and a rebate. If you need cash to make a down payment and if you don't qualify for zero rate financing, then choose a rebate. Zero rate or very low financing rates only covers a brief period between 2-3 years. Remember when buying car, don't rush. Wait for awhile when the buying mania fizzles out and the inventory increase, then the prices will go down for sure. It's time to go to the car dealership.


Q: If you'll 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 a Pontiac dealer earns 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.


Q: I just leased a new vehicle but I can't I can't pay it any more. How can I end it without losing so much money?


Ans: Two ways to successfully get out of a car lease are:
One, sell your car by on your own. Before doing so, call the financing company holding your lease and inquire the exact amount of your lease. Look for someone who is willing to your car or at least offer an amount close to your lease.


Second, look for a company or individual to take over your lease. There are car lease swapping sites that specialize in car lease. Remember it's not easy to get out of a lease especially when the amount of your lease far exceeds the value of your car. This is a common problem but many people were successful in getting out of a lease.


Question: If we opt to purchase a popular model, what kind of deal can I expect?


Ans. The car's price is influenced by the law of supply and demand. If there is a large inventory or mass production of a particular car model, chances are the prices drop. However, if the demand is high but there is a limited inventory and it's quite difficult to get a particular model then you could expect that it is an expensive car.


Before you set your heart on a particular model, know first from a car dealership such as aPontiac dealer its inventory. It will more or less give you an idea how much that car costs.



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