Sticker or Invoice - How Much Should You Pay For Your Next New Car?

For most of us, the idea of buying a new car fillsinternet is your friend.
our hearts with dread. We nervously approachMany websites offer insight into how much the
the salesperson. We discuss. We haggle. We finallydealership actually paid for the car - the invoice
walk out of the showroom with the keys in ourprice. This price should be your starting point for
hand, but we can't shake the feeling that we maynegotiations. Once you know what the dealership
have overpaid for the car.has paid for the car, you can figure out what a
How do you know what you should be paying forreasonable profit would be.
a new car? The answer is easy: Do yourThink you're done? Not quite. While figuring out
homework. A little bit of time spent researchingthe profit margin of the dealer can be a good
at home gives you the option of purchasing a carstrategy to getting a better price on a car, there
with confidence.are a few other things to consider as well.
The sticker priceCheck to see if the dealer is receiving any
The sticker price of any vehicle is a nice bit ofrebates from the manufacturer on the vehicle.
fiction. It is an inflated dream the dealership wouldThese rebates are offered to dealers on certain
love to realize. Car salespeople tell you that themodels. If a rebate is available, then even if the
sticker price should be the starting point of yourdealership sells at or below invoice price, they are
negotiations. It shouldn't be. In fact, the stickerstill making a profit. Most car-comparison websites
price bears no relevance whatsoever to theoffer this information.
proceedings to come. Don't even look at it. TheConsider the popularity of the model. If you are
only reason to glance at the sticker in the windowtrying to purchase a car that is in extremely high
is to determine what options are available on thatdemand, you may find that there is no
specific car if you are thinking of purchasing it offnegotiation. The sticker price - or even above -
the lot. Otherwise, disregard sticker price entirely.may be the best deal you'll find. Thankfully, this is
Where do I start?an unusual situation. With most car models, there
Your research should be complete before youis significant room to bargain a price you're
ever leave the house. Begin by choosing thecomfortable with.
perfect vehicle. All car manufacturers haveOnce you've gathered all your information, you
detailed websites that allow you to research theare ready to shop. Visit several dealerships and
vehicle thoroughly and even "build" an ideal car.see who offers the best price. Once your
Once you have found the ideal car, it's time tosalesperson realizes you are armed with all the
find out how much the car really costs. Again, theinside info, you'll get the best deal possible.