| A new vehicle is likely to be the one of the most | | | | sales made at dealerships. |
| expensive purchases you'll ever make, so it can | | | | You need to also pay attention to extra add-ons |
| really pay to learn a few tricks before heading to | | | | that may contribute to a higher price tag. Make |
| the dealership. Here's what you need to know. | | | | sure you want or need the extras that you will |
| Do Your Homework | | | | be paying for. And if the dealership doesn't have a |
| Savvy car shoppers go to the dealership | | | | vehicle with the combination of extra features |
| prepared. You can save big with just a few hours | | | | you need, shop around or wait for the vehicle |
| of online research. | | | | that's right for you. |
| Before you set foot in the dealership, know | | | | Shop Around |
| exactly what you are looking for and have a | | | | Don't go to just one dealership and settle. Make |
| general idea of how much you are willing to spend. | | | | sure you have plenty of time to see the prices |
| You will also want to know the vehicle's Base | | | | and available inventory at other dealerships. When |
| Price as well as the options (and their costs) that | | | | you know what other dealerships can currently |
| are most important to you. You will also want to | | | | offer you, you have a great bargaining tool. |
| know the following: | | | | Armed with this knowledge, you are ready to |
| MSRP | | | | negotiate prices. And keep this in mind: reports |
| Make sure you know the vehicle's Manufacturer | | | | that a full 25 percent to 45 percent of customers |
| Suggested Retail Price (MSRP), also known as the | | | | have successfully purchased cars below the |
| "sticker price" or "list price." The MSRP is basically | | | | factory invoice price (sometimes by thousands of |
| the market value of the car. It generally does not | | | | dollars.) |
| include registration, taxes, freight or destination | | | | Your down payment is also going to be a big help |
| charges, or other fees that the dealer may add | | | | in your negotiations. If you can use cash as a |
| to your negotiated price. | | | | down payment, it can give you another bargaining |
| The Invoice Price | | | | chip. If you have a vehicle to trade, you will |
| The invoice price or "factory invoice price" is (in | | | | definitely need to get an idea of its worth before |
| theory) what the dealer paid the vehicle | | | | you haggle the trade. And don't settle on this |
| manufacturer. Most cars are sold below MSRP and | | | | point, either. If the dealer isn't offering you enough |
| some even below invoice price. | | | | for your trade, consider selling that old car |
| Why would a dealer sell below the factory invoice | | | | yourself and pocketing the cash. |
| price? The stated invoice price often isn't the | | | | Use everything possible to get the upper hand |
| amount the dealer actually paid. A dealer may get | | | | over the dealer. Remember, as the buyer, you |
| a variety of different discounts and incentives | | | | are in control and run the deal. Do not let the |
| that can make their actual price lower than the | | | | salesperson badger you. Know your numbers and |
| "factory invoice price." | | | | stick to your demands. |
| While the factory invoice price may not be what | | | | It's important to not tell the salesperson what you |
| a particular dealer paid for the car, the invoice | | | | are willing to spend until you get locked into |
| price is the same for all the dealerships, so it's | | | | negotiations. Then let them know that you have a |
| important to know the invoice price so can | | | | certain amount you will spend and if they can't |
| determine who is giving you the best deal. | | | | negotiate a deal, you will need to do business |
| Estimated Market Price | | | | elsewhere. |
| A quick Internet search may also provide you | | | | The bottom line: If a dealer wants your business, |
| with a car's Estimated Market Price (EMP). The | | | | he'll work very hard to get it. That means you |
| EMP is available for a limited number of makes | | | | have power. As long as you keep that power, |
| and models and is the estimated price that people | | | | you should be able to save money when buying |
| are actually paying for the car, based on actual | | | | your new car. |