Ways to buy a car for a low price

Buying a new car from the factory is quite realistic, but some conditions must be met. This procedure is much more complicated than the usual purchase in a car dealership, but the result in most cases is worth it. The main advantage is the confidence that the car is brand new, and has never been damaged or painted. As practice shows, there is no such guarantee when buying a car through a dealer. We buy junk cars and tell you how to buy a car, only profitable for you, not for a dealer or manufacturer.

Another advantage is the more attractive cost. Dealers are currently overcharging the retail price recommended by the manufacturer.

Every motorist dreams of sooner or later being behind the wheel of a brand-new car, but not everyone can afford it.

There is an opinion that if you buy a car from the factory, you can save a lot of money. Is it really so?

How is it possible to buy a car from the factory?

Where does one purchase a machine? JunkCarsUs says, there are quite a few places where it is possible to purchase a car for yourself. Their list includes:

• Car dealerships;
• Car pawnshops;
• Automobile markets;
• Other places where you can make an inspection of the car, and conclude a deal on its purchase if the car is found on the ad.

But we are talking about buying a new car, which means that the first thing to do is to go to a salon. There are two varieties of them:

• Official dealers;
• Gray dealers.

Companies that produce cars quite rarely sell their own products on own. Even if the management has made such a decision, in the structure of the company will be created a separate division, which will deal with this. And this organization will be relatively independent.

The cost issue

The cost of the car for each country where there is a brand representation will be set only by the manufacturer. In some cases, the showroom has the ability to reduce it by a small amount, through its margin, the manufacturer’s or importer’s margin. But this can only happen during the purchase of large batches of cars, and each of the cases must be previously agreed upon with the higher representatives of the manufacturer.

The dealer issue

Buying a car is also possible from the so-called “gray” dealers. This refers to the salons, which are not included in the official network of the company. Such organizations are rarely mono-brand, and in them, the cars of competitors can be freely sold. The cost also varies, which is explained by buying them in the country where they are cheaper and then importing them into another country to sell them.

Even with the simplest calculations, it will be clear that taking into account shipping and customs clearance, such a purchase will never be profitable. A greater likelihood is the purchase of goods of poor quality or fraudulent customs clearance.

Purchase from the factory

As it is easy to see, there are no factories on the list of places where you can buy a car. This means that the answer to the question about the reality of such a possibility must be negative. But everything is not so unambiguous.

Extra tips

This is done in the following way. Every company that makes cars has a sales department. If contacted there, the buyer will be redirected to the dealership, with the message that the cost of the car is the same nationwide. There are only three ways to buy a car from the factory that is realistic:

• Being an employee of the company. Almost every automaker has a special program to sell cars to employees. All it takes is to work a certain amount of time, after which the employee has the right to buy a car at a discount;
• To enter the number of official dealers. This is not an easy task, since the competition for this place is quite high. In addition, the organization will need to invest a lot of money, so that the dealership meets all the requirements, put forward by the company manufacturer. If all goes well, the car can be purchased at a price that is an order of magnitude lower than the retail price;
• To purchase a car for a company. But the delivery of cars will still be made through the dealer, and after that, the company can sell the car to you as well.

We go back to the factory-distributor-dealer chain. The factory and the distributor don’t care how the dealer sells the cars. What’s important is that it sells. Yes, there is a certain checklist of standards, but it doesn’t require a pricing policy. There’s just some kind of quarterly bonus if, when called after the purchase, most customers say over the phone that they’re happy with the terms of purchase.

Conclusion

The best way to buy a car without “extras” is to order from the distributor’s website if the brand allows it. You could also call/drive to all the brand dealers and collect the best deals. But it is unlikely that you will be able to buy a car “by the price” unless you can find the best offer.

Now, the work of most dealers is based on earning a cumulative margin. In simple words: the sale of a car gives from 0.5% to 6% margin. The rest is earned on the “trade-in program” (it is usually partially or fully subsidized by the distributor), profits from additional equipment, and credit products. The most interesting part here is the credit. For what the dealer brings the customer to the bank, the credit institution pays a commission (1-5% of the car loan amount). The dealer also gets 25 to 90% of the insurance or other financial services: extended warranty, policy sales, roadside assistance cards, and legal assistance are all included in the body of the loan. This is presented as a prerequisite for the loan and to maintain the interest rate. As a rule, they are drawn up in such a way that it is impossible to terminate the contract after signing. The profit that the dealer receives from these products, the manager can partially offer to the client in the form of a discount on the car. This results in an ephemeral (marketing) “benefit” which is actively promoted in advertising.