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CAL Getting New Cars at a Discount from a Dealership

last updated January 14, 2014 by

Did you know that it is possible to get brand new cars at dealerships for less than their factory invoices?  It’s true – many dealerships have secret markdowns on some cars that make it possible to get brand new cars for under their retail value, even at a loss for the individual dealerships.  There are many ways to get these discounts; it just takes some patience and the right timing.  The following methods should help you find a car at a below-market price, provided you are willing to put in the energy necessary to get these discounts.

Cosmetic Damage

A great way to get new cars at a low price is by shopping car lots for cosmetically damaged vehicles.  Sometimes, despite the precautions taken by dealers, cars are damaged.  This can happen from man-made errors (key scratches, damage from transit) or from natural events like hail storms.  There are people that go around from city to city after adverse weather conditions to buy new cars that have been dented by hail, pulling out the dents and selling the cars at a huge profit.  If you don’t mind a couple scuffs or dings, buying a cosmetically damaged car can be a perfect way to get new car performance at a used car price.

Dealer Models

Almost every dealer has a select few vehicles that are used for demonstrations, test drives, and for showcasing features.  These cars usually come with all of the premium additions, and they have slightly more mileage than other new cars due to the test drives.  Usually, dealer model cars are cared for just as well (or better) than the other new cars in the dealership, and they are sold at a discount.  Dealer models typically go on sale after the last of the car generation sells out, so the 2013 dealer model would go on sale in late January when the dealer begins to purge the stock of 2013 cars.

End of Year Sales

Many different manufacturers, such as Chrysler, have sales incentives that they give to dealerships to meet different sales goals.  For example, Chrysler sets targets for different dealerships, and pays them a bonus of up to $30,000 if they meet that target.  For some dealerships, this bonus is the difference between operating at a profit or a loss.  When these dealerships get close to the end of a month without meeting their sales targets, they are often willing to sell cars at a loss just to make the sales goal so they can receive the bonus.  Pay careful attention of the attitude in a dealership near the end of the month.  If they seem desperate to have you sign that day (instead of coming back the next day) then you might be able to negotiate a huge reduction in the car’s price.

A Warning about Flood Damage

You may find articles on the internet that speak of huge discounts for buying flood damaged cars, but be warned!  Flood damage is almost impossible to fix for most cars, and it is so destructive that cars with flood damage usually have to mention that damage in the title of the car.  Not only will you find it impossible to sell a car that has noted flood damage, you will constantly deal with electrical and mechanical problems that are a result of that damage.