January 12, 2007, Newsletter Issue #73: Online Car buying Web sites vs. Local Car Dealership

Tip of the Week

Do not expect to reap the same benefits from online car buying sites as the local car dealership. Depending on the location of a car dealership, dealer incentives vary by region. For instance, the national incentives posted on the Cars.com Website represent a wide scope of offers. As a result, consumers do not have a way of knowing if the precise incentives are extended at their local car dealership.



Quite often, manufacturers offer dealer incentives for the following reasons:



- To inspire car dealerships to compete against each other

- As a way of rewarding a car dealership for meeting a specific sales goal

- To move slower-selling models or stock



As a result all dealer incentives are not created equally; however they can benefit customers by leaving some room to bargain or negotiate the purchase price of the car. It's a primary reason, online car buying research is very important.

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