Buying Cars for Cost: Tips for Getting Wholesale Auto Prices

January 27, 2012

If you are looking to buy cars for cost, there are a three different ways to do so. There are auctions, wholesale buying and going to a dealership.

Auctions

Auctions are great ways to get cars at or below cost. Some of the cars may be used, but you can get excellent deals. These types of auctions are not the antique auctions where classic cars are sold, but other auctions, such as police auctions. Cars that are impounded and never claimed may be perfectly good cars, but they need to get sold. You can typically get great deals at these auctions because there are often not as many people at a car auction as their may be bidding on a similar auction from eBay Motors. 

Wholesale

Wholesale buying is becoming a more popular option over the past 15 years. WholeSaleCars is a great site to start looking on. They offer a wide range of cars, for low competitive prices. Many of them are pre-owned, but are typically one owner vehicles. You can get the cars at close to the cost, and not break the bank. There website has a massive inventory of not only cars, but also trucks, SUVs, and vans. You can list their search results by year, make, model, mileage, etc. The listings also show you the current market value, which will be more than the price they would sell the car for. You can then request information on specific cars from the detail page. 

Dealership

You can also go to your dealership in your area and get a car at cost. This may be the more surprising option. Dealers get their cars at an invoice price, which is their cost. You can get cars for the invoice price, or even below invoice price. This is because the manufacturer offers them incentives if they sell a certain amount of cars, or pay in a certain amount of time. These incentives can be 10% to 15% of the MSRP, and can allow dealers to still make a profit, while offering you a car at or below cost. Invoice prices can easily be found online, and are constant for all dealers. This means that the dealers in New York are paying the exact same price as a dealer in California. Since these prices are the same, it is easy to figure out what the dealers are paying for their inventory. The car market is hurting, and couple that with overheads, dealers want to make a quick profit and hopefully get into the black after a poor year. The dealers try to trick you into knowing the invoice price. There is something called a dealer hold back. This is about 3% of the MSRP, or sticker price of the car. This price is paid by the dealer upfront and included in the invoice price. However, after a few months, the manufacturer's send the dealers back that money. They should not pass off this "cost" on to you since it is not a cost at all. You can get them to negate that off the invoice price as well.