Negotiation at the Car Dealer Tips to Get your best possible price

Before You go to Dealership First Step (and most important) Do your research before you ever step foot in the dealer!!!! Use Edmunds.com or another website to locate the following numbers: MSRP (Sticker Price) Invoice Price (What the dealer would like you to think they paid for the vehicle) Holdback (Any special programs from the manufacturer to the dealer to reduce the dealer’s costs) Can be public like rebates, or “dealer cash” Can be secretive programs not designed for the customer to know about

Costs that Affect Dealer Price The car itself. No matter where you're buying the car, this fee is exactly the same for all dealers. Shipping Cost. Same for all dealers. It doesn't matter if the car is only traveling one state or twenty states away to its destination. Advertising. Dealer has to pay both national and local advertising The dealer floor plan. Dealer pays interest to factory on cars it hasn’t sold yet Dealer facility overhead. Rent, Gas, Electric, Salary, etc

Your negotiation strategy Research an estimated number for the dealers true cost of the car Estimated True Cost = Invoice Price – Known Holdback Begin your negotiations with a number that is around $500 more than what you estimate to be the dealer’s cost Be prepared to justify your numbers if you are starting below “invoice.” Dealer will counter Ignore dealer’s number and raie your original offer in small increments. Have a “drop-dead” price, and be strong enough to stop negotiating when you reach it