Consumer Tips

Why Do Car Prices Change?

We want to empower consumers with the information they need to feel confident throughout the entire car-buying process. Knowing why car prices change will help you get a great deal.

The Union Plus Auto Buying Service is committed to a faster, easier buying experience. One part of the process you may be wondering about is the tendency for car prices to change. The simple answer is supply and demand.

The base price or manufacturer suggested retail price (MSRP) of a particular car does not fluctuate much. But to meet or drive changes in demand, manufacturers often offer incentives such as cash back or bonus cash. Dealers have the same opportunities to offer incentives based on their stock, which often happens towards the end of the month.

For example, one dealership might project high sales of a popular model. A smaller dealership in a different city doesn’t, requesting fewer vehicles from the manufacturer. This second dealer might not offer incentives because they believe their smaller inventory will sell, while the first offers them to quickly move more vehicles.

While prices fluctuate, using a platform like the Union Plus Auto Buying Service, you can receive upfront pricing information from participating dealers that includes available dealer and manufacturer incentives. The Union Plus Auto Buying Service uses TrueCar Certified Dealers who will help you find the vehicle you want and locate incentives you may qualify for, including potential extra savings.

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