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How Online Price Quotes Work

March 9th, 2006

Many websites out there offer a free car price quote, but do you know how it really works?

Here is the process in a nut shell…

1. You submit your name, address, phone number and email address, as well as what car you are interested in getting a quote on.

2. This information is then transmitted to a middle-man, like car.com autobytel.com or invoicedealers.com. This middle-man has already negotiated with new car dealers and delivers your information to them digitally.

3. Once the new car dealer has your information, a salesman will contact you with a price quote on the car you are looking for (usually through e-mail, sometimes over the phone). In my experience, this price quote is always lower than MSRP and is generally 2 – 5% above invoice. The dealer has minimal time invested in selling you that new car, and can therefore offer a lower price.

A note about privacy:
The middle-man has your personal information as well as the new car dealer. Most if not all of the middle-men have a very good privacy policy and also insist that their new car dealers follow it as well. If at any time you feel harassed or flooded with marketing information, you can be removed from their mailing lists. Every legitimate business online is very aware of SPAM issues, and takes this removal process seriously.

How to use the new car price quote to your advantage:
Here is how I buy a new car… Test drive the vehicles at a dealership in your area, and settle on the car you want to buy. Do not give the new car dealer your information or let him sit you down for a lengthy price negotiation. Tell him upfront that you are just looking, and want to make up your mind which vehicle you want to buy before you start talking price.
Once you know which vehicle you want, go online and get a price quote. This will get the negotiation started in your favor. New car dealers know that internet shoppers are better educated and looking for a deal. This gives you an advantage and since you are not on their court, trapped on the showroom floor being beaten down by their sales tactics.

You can find more information on how to Buy a Car Online from my website.

You can also get an online quote from a company that I trust and do business with by Clicking Here

Good Luck,

Kevin Schappell

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