New Car Prices - Understanding The Price Variations

Summary: The price for a specific new car will vary across state and international boundaries. The prices vary because of different local taxes and because of different manufacturer price structures in different markets. Model specifications also vary from country to country. A GLS model in one country will come with different levels of equipment in different countries. Customers in some markets may be willing to pay higher prices, mainly where the market is less competitive. Th...

The price for a specific new car will vary across state and international boundaries. The prices vary because of different local taxes and because of different manufacturer price structures in different markets. Model specifications also vary from country to country. A GLS model in one country will come with different levels of equipment in different countries. Customers in some markets may be willing to pay higher prices, mainly where the market is less competitive. The car manufacturers make more profit in these markets. Customers who live in high car price areas can and should consider purchasing in nearby, cheaper markets. There may be import taxes to pay when customers import their vehicle as a personal import, but the overall price is still going to be lower. New car prices also vary according to time of year. If a state or country has date specific car registrations, then there will be a massive upsurge in demand in whatever months the registration changes. An upsurge in demand means that dealers are less likely to give discounts. Do your research before you go near a showroom. Have emailed quotes for specific models to show the sales staff in the showroom that you eventually do visit. You can use these to try to obtain an even lower price. Dealers are given monthly sales targets. There are some months when dealers struggle to reach these targets and are normally much more willing to give discounts. They arrange for a finance company to buy the cars that they must sell to hit their targets and then sell these as "Demonstrators" or "Pre-registered" at a price thousands below the list price. When you sell the car it will be classed as having had two owners and the price will be slightly lower than a one-owner vehicle, but hardly thousands less. These months are normally November and December, as well as the month immediately before any registration change.