The automotive industry has come a long way and now produces a wide variety of car models, makes, and styles to choose from. New technologies, like the navigation system in the new Honda Accord, make these cars more luxurious than ever. However, I should mention that the learning curve for GPS systems and bluetooth technology to connect your cell phone to your call can be quite daunting.
The downside to this new technology is that when a light appears on your dash, you know it means a service call right away or sooner rather than later. Cars that are newer on the market also have the latest computer technology that requires a reset by a technician from your manufacturer’s service department. Going elsewhere may risk your warranty and the long-term health of your care. It is always best to take your car to the dealer to have it checked out, especially if your car is a newer model. Any other action could void your warranty and create a very dissatisfied customer: you.
What are some fees to consider before buying a new car?
Destination Cargo –
This charge covers the cost of bringing the vehicle to the dealer from the factory and is always included. What is commonly known as the “Sticker Price” is the full retail price of your new car. It’s best to haggle based on the dealer’s actual cost, not the sticker price. Market Adjust – This is the price known as the “add-on” price and can be traded. What you won’t see when you look on the car window sticker is the dealer invoice price, the actual price you paid for the car. And don’t be fooled by the so-called “refund incentive”. This comes from the manufacturer and it will be the same rebate no matter what price you end up paying for this new car.
A dealer incentive is money paid to the dealer if a car is slow to sell. This can be passed on to you as a buyer as a price reduction. And finally, a hold is a percentage of the invoice price that is reimbursed to the dealer when the manufacturer offers the car to the dealer. The best concept is to start your negotiations with an asking price that is in the range of 4-8% above the dealer’s actual cost of the vehicle.