Supply & Demand and Buying a New Car

When it comes to buying a new car, one aspect that you should keep in mind is that of supply and demand.

If you truly want to get the best car deal that you can, you need to understand how supply and demand in the marketplace is working either for you or against you when it comes to working the deal on your desired car.

Every single car manufacturer has its own bread and butter type of cars. By that I mean that these are the cars that have the most demand and the greatest amount of supply available to the dealer. These particular models for the manufacturer are the models that really brand the name to the public eye. And the manufacturer uses these cars to get their name and their insignia out on the streets.

A lot of the reason for this is simply social proof.

Social proof is a marketing nuance whereby when people see a great number of a particular car being driven by other people over and over again, people tend to think that it must be a great car since so many people are driving it… hence the social proof.

I’m sure if you take just a moment to think about it you can probably name these makes and models from the various manufacturers.

So, let’s take a look at how supply and demand works into the equation when you’re out buying a new car and how supply and demand will directly affect how good of deal you can get when buying a car.

As of late, a good example would be the hybrid vehicles.

With hybrid vehicles your chance of working your car deal down to the bare bones profit for a dealer is pretty slim. The reason is the manufacturer keeps the demand for these vehicles high by keeping the supply rather low. In fact, many of these cars have waiting lists at some of the dealers. And yet others might even have additional dealer markup tags to the window sticker depending upon where you live… as if there wasn’t enough profit already on the window sticker itself!

A good way for you to determine what the supply and demand is for a car that you’re looking at, is to take a look and see how many of these cars they actually have on their lot in relationship to their inventory, and the price that they are advertising them for.

If you notice that there seems not to be an advertised price for the particular car that you’re looking to buy, but they do have that car in stock, you’ll want to note that this car is probably in pretty high demand and the dealer probably won’t be as aggressive in working with you to put together that killer car deal.

Another note to take while you’re out car shopping and trying to buy your next new car and get the best deal that you can, is to take a look at the stock number or the inventory number on a car that you’re looking at. Compare this number to some of the other stock numbers that you see around the lot for similar types of cars.

Most generally stock numbers are sequential to the dealer, meaning the lower the number the longer the car has been sitting on the lot. It’s no secret that dealers do not like to have inventory sitting on their lot. So with a little investigation, you can at least determine which of the cars you are looking at has been there the longest. And with this information in mind you can use this to work the deal harder when you’re buying a car and probably get a better deal.

When it comes to buying a car there are a lot of variables involved and a lot of homework and research that needs to be done. But if you’re persistent and put all the pieces together, then the next time you’re buying a car you’ll have a much better chance at getting your best car deal.

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