Preston Mazda

Car Buying FAQ

Buying a new car 

 

How can your internet/fleet department offer such low prices?

The fleet/internet department offers the most competitive price upfront. The use of technology and the internet lowers operating costs. Because of lowered costs to the dealership and the competitive nature of the internet, we can offer lower pricing, and the savings can be passed on to our customers in MD.

 

Is the internet price the actual selling price of the vehicle?

The internet price does not include state and local sales tax, advertising charges and rebates or incentives. Since these amounts vary by city, state, consumer, and date. It is always best to contact us to get a specific "out the door" price for the vehicle you buy in MD.

 

What is a dealer invoice?

A dealer invoice, also called a factory invoice, is the bill an automobile manufacturer sends to a dealer for a particular vehicle. The dealer acquires the vehicle for the purpose of selling. A genuine dealer invoice always shows the name of the manufacturer, the name of the original dealer who ordered it (name may be different from the dealership that the customer is visiting due to dealer trades/inventory balancing, etc.), and the vehicle's identification number (VIN). Listed on a dealer invoice are the charges the dealer must pay the manufacturer for a vehicle, and also the price that the manufacturer recommends that the dealer charges consumers when selling the vehicle (MSRP).

 

 

What are advertising assessment fees?

Advertising assessment fees are costs that are charged to every Mazda dealer to cover the cost of local group advertising and selected incentive programs. This fee is not reflected in the invoice price of a given vehicle; however it is added to the factory invoice price.

 

Is invoice price the same as dealer cost?

No, invoice price is different from dealer cost. Dealer cost is comprised of invoice price plus additional expenses associated with selling the vehicle. These added costs include interest (''flooring charges'') the Mazda dealer pays to finance the purchase of a vehicle from the manufacturer, vehicle insurance, sales commissions, and dealer advertising and other business-related costs. The longer a car remains unsold on a Mazda dealer's lot or in a showroom, the greater the dealer cost for the vehicle.

 

Buying a new car

What is a destination charge?

Delivery, or ''destination charge'', is the amount a manufacturer charges a dealer to deliver a new vehicle from the factory to the dealer. This charge varies between different manufacturers and sometimes even between models from the same manufacturer. The destination charge for a given vehicle is the same amount for every Mazda dealer in the entire country -- whether the car has to travel across town to a Mazda dealer in Detroit, or across the continent to a Mazda dealer in Los Angeles. And because it is a fixed cost to a Mazda dealer, destination charges are never negotiated. 

 

What is MSRP?

The Manufacturer's Suggested Retail Price (MSRP) is a vehicle's retail selling price as recommended by the manufacturer.

 

What are Customer Incentives?

When the supply of vehicles is greater than demand, a manufacturer may offer price reductions in the form of rebates or special financing to help Mazda dealers sell them more easily.

Rebates are refunds made to customers by the manufacturer. Rebates can be "national" and apply to all customers or "regional" and apply only to residents of certain states or regions of the country. Typically, a customer can choose to have the rebate amount mailed to him or her after the purchase, or the rebate can be signed over to the Mazda dealer and be immediately deducted from the purchase price of a new vehicle. However, sales tax still applies to the full price of a vehicle, not the price after the rebate has been deducted.

Special Financing or Leasing is typically offered as an alternative to a Rebate. Financing incentives are only available through the Manufacturer's Finance Company and are subject to ''Credit Qualification''. Be sure to ask your Mazda dealer what rebates and finance or lease incentives apply to specific vehicles.

 

What if the vehicle I am interested in is no longer available?

We work hard to update our database to match the vehicles available at the Mazda dealership. If a vehicle you request is unavailable, chances are we will be able to locate it within 48 hours.

 

Am I committed to use the financing once approved?

You are never obligated to use the financing offered to you. Final rates and terms can still be adjusted to fit your needs until you sign the finance or lease contract as part of the vehicle purchase process.

 Buying a new car

How can I determine the value of my trade?

There are many online resources such as kbb.com that may help determine the value of your trade. However, each Mazda is unique and requires a thorough examination to determine specific trade-in value. Factors that influence the value are vehicle condition, local market conditions, vehicle equipment, color, and mileage.

 

Should I trade-in my vehicle or sell it myself?

If you choose to sell it yourself, you may get a price close to retail, but you'll also have to do all the wor

k, including paying off the loan (if applicable), finding a buyer, and transferring the title - all of which consumes substantial time.

 

If you trade-in your vehicle with a Mazda dealer in MD, the amount you get for the trade will most likely be less than retail, because the Mazda dealership will need room to re-sell your vehicle to a used car wholesaler or sell it themselves on their lot at an operating profit.

 

However, there are substantial advantages to trading in your vehicle, because the entire process is handled in one place and usually in one visit. Your Mazda dealer in MD will handle the loan pay-off (if applicable) and transfer of title for you. Also, some states offer tax advantages to trading in your vehicle. In these states, the sales-taxable amount of the new vehicle

purchase is off-set by the trade-in value resulting in a substantial gain.

Buying a new car