If you want the best deal on a new car, first you need to do some research. You need to know the difference between new car invoice prices and sticker prices, and you should know that smart shoppers buy new cars at or below the new car invoice price all the time. (New car invoice prices are supposed to be the dealers cost, and MSRP is full retail, the same as the sticker price.) The MSRP represents the maximum that one should pay for a particular model. This is the price that you see on the window, and the dealer would love for you to pay this price. However, when you discover the new car invoice price that the dealer is paying, you may see a large discrepancy. In fact, new car invoice prices are usually at least one or two thousand dollars lower than the retail price. There may be times when you have to pay the full sticker price for a vehicle. This can sometimes be a result of supply and demand. If there are few models available and many people want them, there may be very little room for bargaining. In this situation, you may be forced to wait or pay the retail price now. In most cases, you are free to negotiate with dealers on the prices of their vehicles. This means that you can offer them anything that you want. However, they do not have to accept any of your offers. Yet, if it is a fair offer, you have a good chance of success. The best way to know how much to offer is to know what the dealer’s cost is on that vehicle.
It is not that difficult to find out dealer costs on a particular model. In the past, dealer costs could be difficult to uncover, as they were considered trade secrets. However, the Internet today provides a great deal of free resources, including dealer cost on new cars, so that is where you need to do your research. When you find an online pricing service, you should be able to see the new car invoice price and the MSRP. This gives you an idea of the dealership’s profit margin on that vehicle. But there are often ways to buy a vehicle below the invoice price. Car dealers typically get special rebates from the manufacturer for selling new cars, and these rebates provide substantial hidden profits for the dealership. This means that dealers can still make a good profit when selling at the new car invoice price, so smart shoppers always try to buy at or below the invoice price. If you want to get a great deal on a new car, you need to understand the difference between retail and wholesale prices. Most of the time, you will not have to pay anywhere near the higher retail price (MSRP) that is on the window sticker. And remember that dealers usually get rebates and incentives that reduce their cost below the new car invoice price, so your goal should be to buy at or below the invoice price.

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This entry was posted on Thursday, January 26th, 2012 at 9:00 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.