How Much Money Should You Offer When Buying A Car?
When it comes down to money, a car dealership will do anything in its power to hang on to every penny. Here's some tips for buying a car and saving some money in the process.
When you go into a dealership, you want to know all of the pricing and costs of the car that you are looking into buying, as mentioned earlier.
You should know the manufacturer's cost and the dealer's cost.
You need to calculate the cost that the dealer paid for the car and then make a reasonable offer to him if you want to get somewhere.
You should also know that the dealer's price is not the invoice price from the factory. You should know that the dealer's cost is much lower than the factory's cost. In order to make a fair offer to a dealership, you need to learn to read a factory's invoice. Here is what you can expect to find on the factory invoice.
· Base model of the car
· All of the options packages
· Destination charge
· Holdback and dealer flooring help Quick Tip: DO NOT confuse the invoice with the MRSP window sticker because they are not the same. Contrary to popular belief, dealers don't have to tell you the invoice on any car. This often gives the dealer leverage over you. They can offer you one dollar over the invoice. You should know that there are hidden factory incentives in the invoice price that lowers the cost of the car for the dealership. It's no bargain for you. If a dealership is very quick to show you the invoice, you should be aware that they are fully aware that they will be making money on that car off of you and they can settle at a lower price for the car. Knowing this before you walk into a dealership can be your best negotiating strategy. See, they will tell you that you can afford to buy the car at MSRP hoping that you will not then wonder what the actual worth of that car is. But you can make them the same offer. If you offer a few dollars over the factory invoice (which is the actual worth of the car) then you can open your bid and let them know how much profit they can make off of your offer. There's a variety of websites than can give you the factory invoice on virtually any vehicle. Just do a search on "factory invoice". Dealers are always going to try and tell you that they paid less for the cars than they actually did so that they can make a higher profit off of the sale. Salesmen often try and make you feel guilty by telling you "I'm losing my shirt off of this deal". In truth, you are the one that is losing your shirt off of the deal, so don't buy into it.
Buying A Car
| 
