| As you set about buying a new car, you are | | | | transactions within a given region. There are many |
| going to find yourself picking up on a whole range | | | | variable factors affecting price, including a dealer's |
| of words and phrases you have never heard | | | | inventory levels and a dealer's eagerness to sell. |
| before. One of the terms you are bound to hear | | | | If you know your market, you know where you |
| is TMV. A lot of research should go into finding | | | | are going. You have a destination, a desired |
| the right make and model car. Everyone has | | | | outcome for the negotiations. If you know what |
| different transportation needs and part of your | | | | you can expect to pay for the car you want, you |
| research effort should get you focusing on how | | | | can establish whether offers you receive are |
| you are going to be using your new car. You | | | | worth considering or not. |
| need to think about who is going to drive it, | | | | By having the dealers contact you, it is possible to |
| when, where, and how often. You've got to get | | | | stay in control of the negotiations and avoid |
| to know the market for new cars as well. You | | | | spending too much time in pursuit of an |
| have to take a look at the deals and financing | | | | agreement. |
| options available. | | | | When you know the TMV, you take the |
| The TMV or True Market Value pricing is the | | | | uncertainty out of the deal. |
| average price at which a car is sold in a | | | | You may think that dealers will shy away from a |
| consumer's specific region. In other words, it lets | | | | low-ball offer for a new car, assuming that they |
| you know what you'll pay for the car you want. | | | | can make more money selling to someone else. |
| It helps you understand what a sales person is | | | | Of course, dealers are in the business to make |
| going to be trying to charge you for the car you | | | | money, so they are not likely to accept offers |
| want. It also helps you get to an idea of where | | | | that equate to a loss for their dealership, but |
| negotiation can go. There are two ways to use | | | | money is money. Even if you are only offering a |
| the TMV during the negotiations for your new car | | | | small profit for your dealer based on the price |
| purchase. Although you will probably have | | | | you want to buy at, a speedy transaction is often |
| competitive bids from dealers when you use | | | | well worth consideration for the dealer. |
| AutoBidsOnline to advertise the type of car you | | | | You can certainly entice dealers to sell to you on |
| are looking for, you should still be prepared to | | | | the basis that you are ready to complete the |
| work out a price with your dealer. You can try | | | | transaction quickly and have the financing in place. |
| one of two methods. If you don't shy away from | | | | Think of it from their perspective. Many people |
| confrontation and you have time to devote to | | | | looking to buy new cars have to wait for |
| negotiations, you can negotiate without revealing | | | | approval financing. Even people with good credit |
| the TMV price. | | | | can struggle with this process these days and the |
| If you don't reveal the TMV price, you can focus | | | | rate of interest or other terms night be a deal |
| on negotiating in a traditional way. You can | | | | breaker. |
| continue in the negotiations to bring the dealer to | | | | Dealers may well be happy to sell for the TMV if |
| the price you want without disclosing it upfront. | | | | they are assured of a quick turn over. A deal like |
| Your second option is to reveal the TMV up front | | | | this requires considerably less time than the |
| and stick to it as the price that you are going to | | | | traditional type of sale. When a dealer doesn't |
| pay. You can simply dismiss dealers who will not | | | | need to sell to you, when you are already ready |
| offer you the price you want. A consumer armed | | | | to buy, their workload is significantly reduced. |
| with the TMV can empower themselves on | | | | When you emphasize this point, you enhance |
| strong footing with the dealer. Although the TMV | | | | your negotiating position. At the very least, you |
| does not necessarily indicate the best deal | | | | should be able to buy at the TMV, if not at an |
| available for a particular vehicle, it gives a | | | | even more favorable price. |
| particularly good indication of the average of the | | | | |