PRICING (PAGE 2)

The point we're trying to make here is that you should be sure you understand the advertisements in their entirety. There are usually disclaimers pointing out these little factors that often go overlooked. The dealers have to be creative to get people in the door. It's an extremely competitive market out there, and the dealers are going to do whatever they can to have the first opportunity to sell you a vehicle, before you go to their competitor. Because they know chances are they can make the same deal on the car you want, if they have what you wanted. They want you to believe no one else can offer the deal they can.

Here are some definitions of above terms:

• MSRP & Invoice - This can get a little complicated but for now let's keep it simple. MSRP stands for 'Manufacturer's Retail Price' and the 'Invoice' is the dealer's price. Now every model and line of cars negotiates differently for the vehicle you wish to purchase. A KIA Sorento (for example) will have a different mark up than, let's say, a BMW X5. Some dealers may choose to sell there vehicles over MSRP and can get it (supply and demand). Other dealers will sell well below their factory invoice.

• ADMU - This stands for 'Additional Dealer Mark Up'. Let's say the vehicles' MSRP is $17,395. The ADMU sticker placed in the corner may say the car is priced an additional $2000 more ($19,395). Some one may unwittingly not notice this and the dealer picks up additional monies on a vehicle that a consumer need not pay, justifiable. We say justifiable because sometimes the dealer may add items to the car that justify the mark up, OR a specifically desired car may be the last one available and is a hot seller so the dealer asks more than the MSRP. Take notice to the details, or simply pay the price. If you pay more for the automobile and you financed the vehicle, this will mean you'll also pay more in the interest amount based on the principle amount financed.
  

• Factory Rebate- A rebate is like actual cash used toward a vehicle purchase. It can help absorb the cost of the state taxes. If you owe money on a trade in, it can help close the gap of the negative equity. A rebate will reduce the amount of your purchase price, which can equate to a lower monthly payment (if you're financing). Rebates are solely offered by the manufacture through the dealer. The dealers have no control on the amount or when the rebate will change. Typically rebates are updated at the beginning of each month. If you're reading this than you probably have access to the manufactures websites as well, those websites will list any & all factory rebates offered on each model line of their vehicles to the public. They'll also list what stipulations may apply, if any. Be aware some manufactures don't offer incentives. Most manufactures placing rebates on certain models are offered to help move the product. Some manufactures feel the product is selling just fine and there's really no need for rebates. Rebates are a perfect example of an "incentive" that you may or may not be entitled to. Be informed, as it can only save you money. A vehicle that you wish to own, that was out of your financial reach before, may now be in the budget because of a manufacturer rebate now being offered that wasn't offered previously.

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