As new car inventory continues to improve, we’re starting to see more advertised specials both by car brands and by individual dealerships. New car ads are difficult to navigate without an expert on your side. At Cartelligent, we help clients understand all the nuances of new car pricing. In this article, we will help you understand what to look out for in new car ads and specials.
As always, Cartelligent helps you understand the price you pay, including lease terms, and can also make sure you get a great price on your next car. Plus we give you an easy, enjoyable experience that allows you to take car shopping off your holiday to do list!
As an example, the Volkswagen website is advertising the all-electric ID.4 at $589/month with $0 down.
Reading the fine print reveals that these numbers exclude tax, title, license, options and dealer fees.
Term and Mileage: This is on a 36-month/12,000 mile lease which is a very typical lease for Cartelligent clients. Sometimes advertised specials are shown with a low-mileage lease such as 7,500 miles per year. The cost will vary depending on how many miles you drive and how long the lease is.
Sales tax: Depending on where you live in California, this will add 7-10% to the monthly payment from $589 to $630 (7% tax) to $650 (10% tax).
Title and License fee: These will average around $750 and are due at signing.
Options: This price reflects the vehicle’s cost based on a specific configuration. Adding features and options will raise the total cost of the vehicle.
Dealer fee: Dealers can choose to add their own fees on top of the manufacturer’s recommended sales price (MSRP). These will raise the total amount paid by the consumer (down payment plus monthly payments). At the same time, some ads make the advertised price even more confusing by limiting it to a single vehicle in stock when the ad is published that may no longer be available, or showing an unusually low mile lease such as 7,500 miles per year.
This advertised special on a 36 month lease for a BMW iX xDrive50 has a monthly payment of $799 with $6,429 due at signing. Reading the fine print reveals that the total price consumers pay (down payment plus monthly payments) does not include tax, title, license, registration, and dealer fees.
Term and Mileage: This is on a 36-month/7,500 mile lease. If you need more miles, the cost for the lease will be higher.
Sales tax: As with the ID.4, this will add 7-10% to the monthly payment from $799 to $855 (7% tax) to $880 (10% tax).
Title, License and Registration: These can add as much approximately $1,500 to the amount due at signing.
Options: As we saw with the ID.4, additional features and options selected will raise the total price of the vehicle.
Dealer fee: Even though this ad is from the dealership, it specifically reserves the right for the dealer to add additional fees to the sales price of the car.
Don’t be discouraged, be informed. There are great deals to be had, often better than these new car ads indicate, and Cartelligent is here to help you. Ask us how we can help you save time and money, and have a great experience buying or leasing the new car you want.