Auto Loss Leaders.

Looking for a new car.  If  your buying something fairly normal, you might be able to save yourself a ton of money by purchasing a loss leader advertised car.

Large dealers want your feet on their lot.  To do that, they will often take several of their vehicles and put prices on them that are far below market value.   Even below what I as a broker can get them for.  They will normally take all the extra profit off, all the advertising costs off and any other extras they can trim off.

Loss leaders are most often easy to recognize, following the pricing it will say something like 1 only, or 3 only.   These are new cars, will have full warranties, just priced to make your head turn…. and in my opinion fantastic values for a buyer.  A note of caution, if you call on a loss leader in my experience most dealers will tell you they have the car, even if it has been sold.  This can be an honest mistake because not every salesperson knows the inventory.  The best way in my opinion, watch the Friday or Sat paper early on your car shopping day, the minute you see the car you want, head to the store and take the paper.  Be the first one there.  When you get there, just tell the dealer you want to see the advertised vehicle and show them the ad.

You still need to do your due diligence and see what the current market pricing is, but these can be great opportunities for you as a buyer.

Two points to make sure you never do when buying a loss leader.

Never take a tradein vehicle along

Always have your financing approved ahead of time.

1) Never take a tradein, when your buying a loss leader the dealer has to legally sell you the car at the advertised price.  There is nothing however that dictates what they have to give you for a tradein, and you can be assured you will get dramatically less money for it…probably a thousand or more.

2) Financing, always go to your credit union and get pre-approved for your loan before doing any shopping.  Once you find a loss leader that might work for you, you do not want the dealer doing any of the financing.  The more interaction you have with them the more likely something will be adjusted or increased.  Use the old KISS…Keep It Simple Stupid…the less you have to mess with the financing department, the easier the whole transaction will be on you.

Buy nothing but the car.

Your best value will be to leave with the car only.  No additional warranties, no additional anything…most dealers have huge profits built into any of their additional accessories and will try and make up some lost profit on those items.

Have fun and remember these vehicles can save you literally thousands…

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