How to Negotiate a New Car Dealer Invoice
Many people are successful in negotiating invoice price for a new car. The keys to negotiating is researching prices, contacting dealers, being friendly to the dealer you are working with and being ready to buy. Keep in mind that invoice pricing may be reached by simply including current incentives or rebates, so be sure to decide if this acceptable to you, or if you would rather negotiate to invoice before receiving any rebates.
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Instructions
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Research, Shop and Negotiate
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Use popular internet pricing guides to determine what the invoice price is on the vehicle you want. You will find that many dealers do not order the cheapest model and you need to figure options into the price of the vehicle for accuracy. Have this guide printed out and ready to show the dealer for negotiations.
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Locate several dealerships in your area that have the vehicle you want. Send emails to the Internet department of each dealer and offer a "buy-now" price. This way you will have backup if your local dealer does not meet your price. You should be open to colors or options---if a dealer has to purchase or locate a specific car for you it could potentially cost more money. Dealers will most likely agree to your terms if the vehicle is in stock. Decide how far away you will drive for the right price, and be prepared to do so.
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Maintain friendliness during the time you're at the dealership. Bad attitudes will not help you get the best price. Dealers often feel that an unhappy customer, or one who is difficult, will be a problem in the long run and they may decide not to sell you the car at a negotiated price, in hopes that you will leave. Be friendly to everyone. Ask to meet the sales manager and introduce yourself, as the sales manager is the ultimate decision maker.
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After test driving the vehicle, let the salesperson know that you would like to buy the car that day, if he will meet your price. Show him your copy of the invoice and offer the price you wish to pay. Dealers might have a different invoice than what you have, based on particular options, and once you show your invoice, ask to see theirs. Your salesperson may present a different invoice amount than yours, and if he does be sure to ask him to explain the differences.
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Negotiate with the dealer. You may find that because you are ready to buy the car that day, your dealer may immediately agree. If he cannot reach your price, tell him that you will be in contact. When contacting other dealers, you may use the price that this dealer offered you as a shopping tool. Dealers will compete with each other.
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Tips & Warnings
Be prepared to walk out of the dealer ship if your terms are not met.
You should wait until the end of the month to do your negotiating. Dealers want to sell cars to meet quotas that run until the end of the month. You are more likely to get a deal at this time.
Use the Internet sales people you contacted during shopping as your contact for the dealership if you will continue to shop.
You may be offered rebates and incentives that actually bring the price below invoice. Determine if this is good enough or if you want the rebates to come off of invoice rather than MSRP (manufacturers suggested retail price).
Consider dealer benefits if you are close in price. Some dealers may offer a lifetime warranty. Consider the benefits of each dealer when considering price.
References
Resources
- Photo Credit keys to the new car image by Jake Hellbach from Fotolia.com
